Market Trends of North America Rigid Plastic Packaging Industry
Polyethylene Terephthalate (PET) is Expected to Witness Significant Growth
- The use of PET plastic bottles is expanding its range of applications. There is a growing need for PET packaging in both the bottled segment and the soft water segment. There are already a variety of creative, cost-effective, and eco-friendly packaging options available. PET is a well-known material that offers a range of advantages, such as shatterproofness, non-reactivity when in contact with drinks, and a high strength-to-weight ratio. Additionally, its lightweight properties provide cost savings when transporting products with PET packaging. PET is a secure material for beverage products and has been approved by the Food and Drug Administration (FDA) in the United States, as well as similar regulatory bodies throughout North America.
- The United States agricultural exports have been on a steadily increasing trajectory between 2017 and 2022, as reported by the U.S. Department of Agriculture (USDA), the United States Census Bureau (USCBO), and the United States Department of Commerce (USDOT). According to US Department of Agriculture, the value of international U.S. agricultural exports in 2023, by region. The value of U.S. agricultural exports to North America amounted to about USD 75.4 billion in 2023. As a result, there is a potential for increased demand for rigid plastic packaging materials for the preservation and transportation of agricultural goods.
- According to ITA in May 2022, Canada's robust economy provides a credible market for U.S. cosmetics companies looking to enter and expand into the cosmetics market. The industry includes personal care products such as soaps, cosmetics, etc. In 2021, the Canadian cosmetics market was expected to be approximately USD 1.24 billion. The revenue of the industry is projected to increase by 1.45% per annum to USD 1.8 billion by the year 2024.
- The Canadian beauty and personal care industry represents a significant opportunity for U.S. cosmetics exporters. Emerging market trends are contributing to the growth of Canadian beauty products, including tailoring products to consumers' age, gender, and ethnicity using technology to enhance marketing strategies. Such factors drive the market for PET Rigid plastic packaging in the country.
- In 2022, the United States Bottled Water sales volume was estimated to be around 16 billion gallons. Over the past decade, the sales volume of United States bottled water has grown steadily each year. With the increasing demand for Bottled Water, there is demand for PET Bottles as a preferred material for Bottled Water because it is lightweight, durable, and recyclable. As the sales of bottled water are expected to increase with the past trend, it will aid the sales of PET Bottles, helping the market of PET rigid plastic in the region.
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United States to Occupy Major Share
- The food sector is a major contributor to the rigid plastic industry in the region. As people become more aware of their health, the demand for healthy drinks is on the rise. As personal incomes have increased, bottled water has become a more attainable option for individuals, thus contributing to the expansion of the rigid plastics market.
- E-commerce spending in the United States is rising, driven by the convenience of home delivery, merchants' omnichannel capabilities, and contextual customer experiences. According to the U.S. Department of Commerce, e-commerce sales were USD 1.03 trillion in 2022, a 7.44% increase over 2021 and an 18.44% increase over 2020. E-commerce represented 19.3% of all retail sales in 2022 in the United States.
- The development of the rigid plastic packaging market is likely to be significantly impacted by the growth of food and beverage retail stores. As the consumption of food and beverages increases, so does the demand for packaging materials and solutions to meet that demand. The U.S. Census Bureau estimated that retail sales of food and beverages in the U.S. amount to approximately USD 947 billion in 2022.
- According to Beverage Industry Magazine, in 2023, Heineken emerged as the top brand family in the United States non-alcoholic beer market, with sales exceeding USD 77 million. As the demand for Non-Alcoholic beverages increases, the demand for rigid plastic packaging materials, such as containers, bottles, and caps, for the packaging and distribution of these beverages is likely to increase. This could lead to an increase in the demand and production of rigid plastic packaging materials for North American non-alcoholic beverage manufacturers.
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