PETpla.net Insider 09 / 2011

MATERIAL / RECYCLING 14 PET planet insider Vol. 12 No. 09/11 www.petpla.net Bottled water still ahead, niche beverages making their mark World trends in PET packaging Apart from its excellent perfor- mance properties, PET packaging market growth was also supported by the environmental credentials of PET as a lightweight material that can be recycled easily. However, growth in the PET packaging market has been curtailed since 2008 as a result of the world economic recession. Consum- ers have reduced their discretionary spending, including the purchase of some packaged beverage products. PET packaging market growth in ton- nage terms has also been adversely affected by the trend to light-weight PET bottles. For example, the aver- age weight of a single-serve PET mineral water bottle reduced by around one-third during the period 2003–08. The trend to light-weight PET bottles is set to continue. The slowdown in consumer demand for CSDs and mineral water in developed countries, and the market maturity of these key end-use sectors, is also holding back the growth of PET pack- aging. Furthermore, the growing use of recycled PET content in beverage bottles is displacing virgin PET mate- rial for packaging. While from 2010 to 2015 PET packaging is unlikely to register growth rates similar to those seen between 2000 and 2007, growth opportunities still remain. Barrier PET bottles and jars for juice, milk, tea, beer, wine and food are forecast to register strong growth over the period 2010–15. The developing countries of Asia Pacific, South America and eastern Europe will also show higher growth for PET packaging as a result of growing real incomes and the replacement of traditional pack for- mats by PET bottles. Market drivers Economic, social and demographic influences are playing a key role in driving development of the global PET packaging market. Slower economic growth in the advanced economies of Western Europe and North America will constrain future PET packaging growth in these regions. In contrast, rising real incomes in the emerg- ing and developing markets of Asia Pacific, Eastern Europe and South America will be the main driver of growth for PET packaging over the five years to 2015. Social influences are also playing a major role in the development of the PET packaging market. Environmental concerns are driving PET packaging producers, brand owners and retail chains to adopt sustainable packaging programmes. This type of packaging addresses the growing concerns for the environment due to its ability to be light-weighted and recycled. PET packaging is lighter than its competi- tors such as glass bottles, and CO 2 emissions have been reduced in PET bottle production. Key demo- graphic influences on global PET packaging growth include the faster- growing populations in Asia Pacific, eastern Europe and South America. The development of PET bottles with enhanced gas-barrier properties presents a major market opportunity for PET preform and bottle producers over the period to 2015. Barrier PET bottles are predicted to grow at a significantly higher rate than PET packaging as a whole. Beer, wine, juices, dairy products and food all present growth opportunities for barrier PET bottles and jars. Develop- ment of the PET packaging market is being helped by continuous improve- ments in technology. Technological development is providing better bar- rier solutions, improved resin formula- tions, faster and more efficient PET processing machinery, and solutions for hot-filling and aseptic filling of PET packaging. PET technology develop- ments Advances in developments bar- rier technologies have paved the way for PET bottles to be used for small, single-serve beverages. Barrier PET bottles have also penetrated market sectors such as juices, teas and beer and are making inroads into new end- use sectors such as wine and dairy drinks. Technology developments in hot-fill and aseptic cold-fill processes are also supporting the development of PET bottles and jars in these devel- oping market sectors. Alongside these key technology developments, contin- ued improvements are being made to PET resin formulation, additive tech- nologies and processing equipment. Barrier PET bottles Plastic bottles in themselves do not provide a good barrier against oxygen and carbon dioxide for certain sensitive beverages such as beer, juice and dairy drinks. The limited Global consumption of PET packaging saw strong growth during the period 2000–07. Growth was largely driven by the replace- ment of glass bottles, metal cans and cartons for beverages, particularly for carbonated soft drinks (CSDs) and mineral water. While from 2010 to 2015 PET packaging is unlikely to register growth rates similar to those seen between 2000 and 2007, growth opportunities still remain, according to a recent study undertaken by Pira international*.