PET Packaging Market Size (2024 – 2030)

The Global PET Packaging Market size was exhibited at USD 41.23 billion in 2023 and is projected to hit around USD 58.4 billion by 2030, growing at a CAGR of 5.1% during the forecast period from 2024 to 2030.

Polyethylene terephthalate, commonly known as PET or PETE, constitutes a chemical compound extensively utilized as a recycled plastic material across diverse industries, including but not limited to food and beverage, healthcare, consumer goods, cosmetics, electronics, pharmaceuticals, and cinematography. Its eco-friendly nature and sustainable attributes make it a preferred choice. PET packaging finds application in various sectors such as thermoforming, household toy gift packs, and more. The compound's primary constituents, ethylene glycol and terephthalic acid, undergo a heating and combining process to form strands, which are subsequently cooled to produce pellets.

These pellets are then distributed to industrial units, where they are heated and molded into the desired shape and size. Notably, PET bottles stand out for their environmental friendliness compared to other plastic forms. The merits of PET material products include recyclability, strength, inertness, resistance to microorganisms, and non-shattering properties.

Key Market Insights:

Polyethylene Terephthalate (PET), in contrast to alternative materials, boasts remarkable flexibility and toughness, making it suitable for highly lightweight packaging, thereby conserving raw materials and natural resources. The outstanding capacity-to-weight ratio of PET is pivotal for energy efficiency and climate change mitigation, resulting in reduced packaging production, transportation of packaged goods, and loss of goods during use. As a highly stable and inert polymer, PET provides excellent barrier properties, safeguarding the packaged product from the external environment. PET packaging is particularly advantageous in the food and beverage sector, ensuring safety, increasing shelf life, and diminishing food waste, thereby alleviating the environmental impact of food production.

The stringent food safety criteria are met by polyethylene terephthalate packaging, positioning it as an excellent packaging form. Its versatility allows for the creation of a wide range of shapes, accommodating various packaging designs with intricate complexities, highlighting corporate identity, or providing a distinctive shelf presence for the enclosed product. Consumers benefit from the convenience offered by PET packaging, characterized by strength, lightweight properties, transparency, and safety.

Global PET Packaging Market Drivers:

The growth of the market is propelled by the exceptional properties inherent in PET.

PET exhibits packaging features that set it apart from other packaging methods. Noteworthy characteristics of PET packaging include high transparency, a glossy surface, stability, resistance to high pressure, effective barrier properties, and lightweight nature. Being a biologically inert substance, PET does not react with food or beverages and remains resistant to microbial attack. Regulatory bodies such as the FDA, Health Canada, and the European Food Safety Authority have deemed it safe for contact with food and beverages.

Presently, disposable PET bottles weigh between 20g to 30g, significantly lighter than a glass bottle with comparable content, which can be approximately 25 times heavier (source: DLG e.V. - German Agricultural Society). The reduced weight positively impacts transport costs, especially for returnable PET bottles with thicker walls and a robust base. The transportation efficiency is further enhanced as disposable PET bottles are conveyed to filling plants as preforms and only molded into finished bottles on-site.

According to the National Association of Container Distributors, the demand for PET is driven by the desire for lightweight packaging from both consumers and businesses. This lightweight trend, aimed at cost optimization, allows manufacturers to gain a competitive edge. Notably, some manufacturers have achieved weights below 8g for a 500ml PET water bottle.

Increased demand for environmentally friendly packaging contributes to market growth.

PET exhibits a significantly superior eco-balance compared to various other plastics. The recyclability of PET leads to a reduction in packaging waste and a decrease in waste incineration volume. Raw material consumption during production is lower than many alternative plastics. The polymer chains of PET break down at a low temperature, facilitating a recycling process with minimal degradation. The United States alone collects 822,363 tons of PET bottles for recycling annually (source: Food Packaging Forum Foundation).

Both PET and PET plastic are recyclable through a process involving heating, melting, and transformation into new materials. The global trend of PET recycling is on the rise, supported by government mandates and industry initiatives. In the United States, PET recycling rates have increased, reaching 29% according to NAPCOR (National Association for PET Container Resources) and APR (Association of Plastic Recyclers).

Furthermore, the rise of bio-PET, derived from renewable raw materials, offers a sustainable alternative. Bio-PET is composed of 30% renewable raw materials and 70% oil-based materials. Investments in the plastic packaging industry, spurred by the COVID-19 pandemic, have led to increased demand for PET bottle grade manufacturers.

Global PET Packaging Market Challenges:

Regulations restricting plastics implementation in certain regions pose challenges to market growth.

The past decade has seen a significant increase in public awareness regarding the adverse effects of plastic usage. Government initiatives and public campaigns have resulted in heightened awareness, impacting plastic packaging consumption. For example, the Kerala Government in India banned single-use plastic products in pharmaceuticals and other industries in November 2022.

Stringent government regulations on plastic use create challenges for new market entrants. While the government of India considers a potential ban on Single-Use Plastics, existing policies like the Laghu Udyog Scheme may facilitate the entry of new players.

Fluctuating costs of PET, a key raw material for caps and closures, present challenges for manufacturers. As production costs are contingent on raw material expenses, maintaining consistent output becomes a challenge. Additionally, PET's sensitivity to UV light, especially in adverse environmental conditions, hampers its application in solid container PET for nutrition and vitamin supplements packaging.

Global PET Packaging Market Opportunities:

Opportunities Arising from Innovative Packaging:

The advancement in polymer science is on the rise, presenting significant prospects for plastic bottle packaging. Key players like Berry Plastics and Gerresheimer, engaging in robust research and development, are poised to play a crucial role in unveiling inventive packaging solutions that surpass the current offerings, including intelligent and active packaging.

Promising avenues exist to address forthcoming packaging challenges, with recycled PET (rPET) standing out. rPET boasts a carbon footprint nearly one-fifth that of virgin PET, making it a pivotal factor for sustainable growth. Consumer acceptance is a key driver, with a willingness to embrace beverages packaged in 100% rPET bottles, a shift that was met with resistance in the past.

PET PACKAGING MARKET REPORT COVERAGE:

Global PET Packaging Market Segmentation: By Product

• Bottle and Jars

• Bags and Pouches

• Trays

• Others

In terms of product segmentation, Bottles and Jars held a dominant market position with a 41% share in 2023. The widespread utilization of PET in food packaging is attributed to its robust barrier properties, effectively resisting water vapor, gas, dilute acids, oils, and alcohols. PET is recognized for being shatterproof, reasonably flexible, and easily recyclable. The surge in demand for packaged drinking water is a key driver for PET plastic caps and capsules. Moreover, it is extensively used in the manufacturing of disposable plastic containers, commonly found in finished products and frozen foods. The popularity of PET is further amplified by its excellent oil barrier, providing resistance against chemicals that may harm plastics. Additionally, PET's weight can be up to 90% lighter than glass, contributing to a more cost-effective transportation process. These factors collectively propel the growth of this market segment.

Bags and Pouches, as another product category, are projected to experience a Compound Annual Growth Rate (CAGR) of 4% throughout the forecast period. This growth is anticipated due to factors such as busy lifestyles and an increasing preference for takeout food items. These trends are expected to fuel market growth within this segment over the forecast period.

Global PET Packaging Market Segmentation: By Packaging

• Rigid

• Flexible

In terms of packaging segmentation, the rigid segment emerged as the market leader, holding a substantial 56.3% share in 2023. The surge in demand for items like bottles, jars, and trays is a key contributor to the segment's dominance. The convenience of carrying and the spill-resistant nature of rigid packaging products are significant factors propelling their demand within the PET Packaging market.

Concurrently, the flexible segment is poised to witness a Compound Annual Growth Rate (CAGR) of 4.4% throughout the forecast period. The adaptability of flexible packaging, allowing customization to suit design and feature requirements, positions it as a preferred choice. Features like seals, zip locks, and spouts enhance the reusability and convenience of flexible packaging, driving its anticipated growth within the market segment.

Global PET Packaging Market Segmentation: By End-Use

• Water

• Carbonated Soft Drinks

• Non- Foods

• Other drinks

• Food

• Thermoforming

In terms of end-use segmentation, the Water segment asserted its dominance in the market, capturing a significant 34.65% share in 2023. The indispensability of water and the extensive use of water bottles, surpassing other categories, contribute to the segment's leading position. The growing demand for water bottles in diverse sizes and designs is a key driver propelling the segment's growth within the market.

On the other hand, the Carbonated Soft Drinks segment is projected to experience a Compound Annual Growth Rate (CAGR) of 5% throughout the forecast period. The global uptick in soft drink consumption is a pivotal factor fuelling the demand for bottles, thereby influencing the growth of PET packaging in this segment. These trends are anticipated to propel the segment's growth over the forecast period.

 
Global PET Packaging Market Segmentation: By Region

• North America 

• Asia-Pacific 

• Europe 

• South America 

• Middle East and Africa

In terms of regional segmentation, North America emerged as the market leader, commanding a substantial 39.3% share in 2023. PET stands out as the most commonly recycled plastic in the United States, with approximately £1.47 billion worth of used PET bottles and containers collected for recycling annually, as reported by the PET Resin Association (PETRA). The escalating demand for PET closures is a consequence of the increased utilization of PET in various forms such as containers, bottles, tubes, and cans. PET's notable barrier properties against carbon dioxide (CO2) and oxygen (O2), coupled with its microwave safety and widespread usage in some grocery chains, contribute to the heightened demand for PET products in the region.

Concurrently, the Asia-Pacific region is poised to exhibit a Compound Annual Growth Rate (CAGR) of 8% throughout the forecast period. This growth is attributed to factors such as a growing population, an expanding food and beverages industry, technological advancements promoting lightweight solutions, and an increasing focus on sustainability and recycling. The potential introduction of recycled PET by various companies is anticipated to influence the demand for plastic caps and closures, further driving the PET Packaging market in the region over the forecast period.

COVID-19 Impact on the Global PET Packaging Market:

The worldwide repercussions of the COVID-19 pandemic adversely affected various sectors. The global economy experienced a downturn following the outbreak of COVID-19. Lockdowns and social distancing measures worldwide led to a halt in production activities, exacerbating the labor shortage issue. This, in turn, significantly impacted sectors such as food, personal care, and others. The reduced production also translated into decreased packaging of products.

The lack of demand prompted companies to refrain from introducing new products during the pandemic. Consequently, the PET packaging market faced challenges. However, amid the downturn, there was a positive aspect for the market. Pharmaceutical companies, responding to increased demands, ramped up the production of medicines, leading to a surge in the use of PET packaging in the pharmaceutical sector. Despite this positive development, the overall demand and growth of market trends remained sluggish. Key players played a crucial role in sustaining demand during the challenging circumstances of the COVID-19 situation.

Recent Trends and Innovations in the Global PET Packaging Market:

In April 2022, Mondi unveiled novel packaging solutions for the food industry during the Anuga FoodTec event in Cologne, Germany. The introduction of two-tray packaging options offers recyclable alternatives for fresh food manufacturers, contributing to the reduction of food waste. The utilization of Performing Monoloop and Mono Formable PP ensures high-barrier food protection, underscoring the pivotal role of packaging throughout the supply chain.

In January 2022, Sonoco Products Company successfully concluded the acquisition of Ball Metal Pack, a notable manufacturer of sustainable tinplate food packaging. This strategic collaboration expands the sustainable packaging portfolio to encompass tinplate packaging.

May 2022 witnessed the launch of a new line of 100% PET Processor Trays by Tekklex Consumer Products. This innovation addresses common packaging challenges encountered by poultry processors, particularly in the realm of higher-end products labeled as organic, non-GMO, or sustainably sourced. TekniPlex's newly introduced trays, crafted from 100% PET and incorporating up to 50% post-industrial recycled content, are not only environmentally friendly but also 100% recyclable. These trays align with the growing consumer awareness of sustainability.

Key Players:

1. Amcor Limited

2. Graham Packaging Company

3. Resilux NV

4. Gerresheimer AG

5. GTX Hanex Plastic Sp.

6. Dunmore Corporation

7. Comar LLC

8. Berry Global Inc.

9. Silgan Holdings Inc.

10. Sonoco Products Company