PET packaging market to hit $57 billion by 2017, study saysPET packaging market to hit $57 billion by 2017, study says
The global market for PET used in packaging is expected to grow to almost 19.1 million tons by 2017, with an annual growth rate of more than 5%, according to a report from market research firm Pira International.PET packaging is expected to decline in North America and Western Europe, and will experience higher growth in the Asia Pacific, South and Central America, Central and Eastern Europe and the Middle East and Africa.
March 29, 2012
"The developing countries of Asia Pacific, South America and Central and Eastern Europe show higher growth for PET packaging due to growing real incomes and the replacement of traditional pack formats by PET bottles," the company stated.
Asia Pacific overtook both North America and Western Europe during the period 2007-2012 to become the largest regional market for PET packaging. Asia Pacific accounts for a projected 29.4% of world PET packaging consumption in 2012, followed by North America with 24.1% and Western Europe with 19.7%.
Barrier PET bottles and jars for juices, milk, teas, beer, wine and food are forecast to register strong growth during the period 2012-2017.
PET recycling is another key issue for players along the PET supply chain due to growing consumer concern for the impact of PET bottles on the environment.
Legislation and resource protection programs are major drivers for the development and recycling of PET, the report stated. rPET growth is also driven by global brand owners who believe recycled PET can make a difference to their brands, both environmentally and economically.
While the use of rPET is on the rise, there is still some uncertainty whether the uptake of rPET for bottle production will become widespread, the report stated. The uptake of rPET for bottle content will depend on whether rPET costs less than virgin material.
In addition, while there is strong demand for recycled PET, there remains a problem with raw material supply and an infrastructure that is not expanding quickly enough to collect the material the industry needs, the report states. There are also some concerns that the quality of supply can have had a negative impact on the rPET sector.
Key technology developments will include further advances in barrier systems, continued lightweighting, and growing emphasis on sustainability and recycling. Compression technology for PET preform production is another emerging development.
The study is based on a combination of primary and secondary data gathered during Pira's research program for the global packaging industry.
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