PET Resin Market
In terms of consumption, PET resin market was 20.6 million tons in 2015. The PET resin has an extensive application from carbonated soft drinks, bottled water, food and non-food to sheet and films. The demand for increasing packaging of carbonated beverages with no better substitute for PET resin is driving the market of PET resin application in end-segment.
The consumption of PET resin, when segmented by application, finds carbonated soft drinks (CSD) occupies major share with 26.4%. The bottled water held a share of 26% followed by other drinks (18.4%). The bottled drinks together held more than 70% share of the market in 2015. The other segment of PET resin market by the application were sheet and film (13.9%), Food (9.3%) and Non-Food was at 6% of the market in 2015.
The polyethylene terephthalate bottles demand is growing with application in wide range of beverages The PET resin is making significant inroads into other industries such as beer, milk, still drinks, pharmaceuticals and others. The PET resin is also in demand for flexible packaging film because of its properties of high clarity, low permeability, and excellent printability.
PET Resin Market by End Segment
The pet bottles are high in demand with the wide application because of ease in handling, breakage free and convenience for on the go consumption. Polyethylene Terephthalate bottles are an obvious choice for beverages packaging for carbonated soft drinks and bottled water with a sizeable market. The major share of the PET resin market by end segments is being by Carbonated Soft Drink and Bottled Water. China is the largest market for PET bottles. The PET bottle consumption in China for the year 2015 was 39 billion units and the market is expected to grow at 7% for next 5 years.
Carbonated Soft Drinks (CSD) Market
The global carbonated soft drink is leading end-use segment for PET resin. It occupied 26.4% of market share in 2015 amounting to 5.4 million tons. The Americas dominate the consumption of bottled carbonated drinks. As seen below, Argentina has the highest level of soft drink consumption in 2014. The per capita consumption was 155 liters followed by US (154 liters), Chile (141 liters), Mexico (131 liters) & Uruguay (109 liters).
The major challenges faced by pet bottled carbonated soft drinks are consumers are becoming increasingly conscious of their health with high intake of sugar content in carbonated beverages. This has led to the stagnant growth in this segment in recent years. This segment also struggles with demographic changes and consumer age, as their preferences changes to other pet bottled drink such as juices, alcohol, and water.
PET Bottled Water Market
Pet Water Bottle market occupied 26% of polyethylene terephthalate resin market by application amount to 5.3 million tons in 2015. The consumption of bottled water is increasing due to shift in trend of consuming less carbonated soft drink because of health issues. In coming years it is expected that PET for water bottle will surpass the consumption of carbonated soft drink ( CSD ) segment.
As seen below Mexico is top country in consumption of bottled water. The consumption was 64 gallon per capita in 2015. The second largest country was Thailand consuming 54 gallons followed by Italy (47 gallons), Germany (38 gallons) & France (37 gallons).
Market Drivers And Constraints
PET packaging is showing increasing demand because of its wide range of applications. They are making inroads in the market for bottled juices, pharmaceuticals, cosmetic, chemical and household products. Among bottle grade PET resin, Carbonated Soft Drink (CSD) has the highest demand as an end segment. But due to health issues with consuming more sugar content in CSD the shift has been to healthier options of bottled water, juices, and other energy drinks. PET water bottle is growing segment and will soon have the most share of the PET resin market by end-segment.
The key factors for rising demand for PET packaging are an increase in purchasing power of the growing global population and changing lifestyle. The young generation is demanding more easy-to-handle, and light weighted on the go packaging. This has led to manufacturers trying innovative ways to reduce the weight and lighten the PET bottles. While some manufacturers and brand owners feel that threshold for reduction of weight of PET bottles has been achieved with little or no scope for further reducing the weight of PET bottles.
On the geographical segmentation, Asia-Pacific is the largest and the fastest developing PET market. While North America and Europe are other big markets. The growth prospect of PET resin market is being dampened by growing environmental concerns and regulations imposed by governments.