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Driven by bottled beverages using PET resin, the market is expected to grow at a CAGR of 6.73% between 2021 and 2026.
2 Min Read
Graphic courtesy of Technavio
The blow-molding resin market is expected to grow by $17.88 billion between 2021 and 2026, according to a new study from Technavio. The market is anticipated to observe year-over-year growth of 6.45% and accelerate at a compound annual growth rate (CAGR) of 6.73% during the forecast period.
Growing demand for packaged beverages— primarily PET bottles — is driving the growth in the market. Changing consumer lifestyles coupled with the rising disposable incomes have increased the demand for on-the-go beverage products, especially evident in emerging economies such as Brazil, China, India, South Africa, and Vietnam.
Rising consumption of bottled water is significantly contributing to the sales of packaged beverages using plastics including PET, polystyrene (PS), and polypropylene (PP) for the packaging of fluid products.
In addition, factors such as the rising adoption of PET as a packaging solution and the increasing demand for blow-molding resins from automotive and transportation further drive expansion of the market. Some key takeaways:
Packaging accounted for the maximum share in the market in 2021.
Key segments driving expansion are the packaging of food and beverages, household, and personal care products.
APAC will have the largest share of the market, dominating 49% of the global market share.
Factors such as increasing industrial activities, growing ecommerce, the rising demand for consumer-packaged goods, and rapid urbanization are driving the growth of the blow-molding resin market in APAC.
China, South Korea, and Japan are the key markets for blow-molding resin in APAC.
The US, Canada, and Germany will also emerge as major markets during the forecast period.
Technological advances including the increasing use by blow molders of advanced automation processes are improving efficiency and output.
Flexible packaging is challenging growth.
The only identifiable potential constraint on growth is increasing demand for pouch packaging solutions globally, a much lighter-weight format that’s ideal for single-serve applications. Pouch packaging solutions also offer exceptional printability and the ability to meet the requirements for single-serve applications.
Changing consumer lifestyles and the shift in consumer preference for flexible packaging solutions that offer ease of storage, handling, transportation, and use have also increased the demand for pouch packaging solutions, with “increasing demand for packaged beverage products that will strengthen the need for pouch-packaging solutions.” According to the Technavio report published August 2021, the flexible plastic packaging market is projected to grow by $40.13 billion during 2021-2025 while accelerating at a CAGR of 4.78%.
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