PETpla.net Insider 09 / 2011

MATERIAL / RECYCLING 16 PET planet insider Vol. 12 No. 09/11 www.petpla.net Material innovation in PET has been driven by increasing demand for new products developments with advanced performance attributes including resins that offer enhanced mechanical strength and design flexibility. End-use markets CSDs are the largest end-use sector for PET packaging, account- ing for a projected 35.9% share of consumption in 2010. Bottled water is the second-largest end-use sector for PET packaging with a projected 2010 share of 33.8%. All other end-use sectors command a relatively minor share of PET packaging consump- tion, as the joint third-largest sectors, thermoforming and food bottles, each represent 7.1% of total consumption. Bottled water is forecast to overtake CSDs as the largest end-use sector for PET packaging over the forecast period 2010–15. Other soft drinks, such as functional drinks, dairy drinks and ready-to-drink tea and coffee, are also forecast to grow at a rate higher than that of PET packaging consump- tion as a whole. There are also good growth opportunities for barrier food bottles and jars and thermoforming. Geographic markets Global consumption of PET pack- aging grew during the period 2005–10 at a and forecasts compound annual growth rate (CAGR) of 4.3% to reach 11.5 million tonnes. However, there was a sharp downturn in global con- sumption of PET packaging growth between 2008 and 2010. The world economic downturn and consequent reduction of consumers’ disposable incomes led to reduced demand for some key categories of packaged food and beverage products. In addition, the trend to lightweight PET bottle production and the grow- ing use of PET recyclate for bever- age bottles negatively impacted upon growth in consumption of new PET packaging. A modest upturn in con- sumption of PET packaging is taking place in 2010 as the world economy recovers from recession. Consump- tion of PET packaging is forecast to grow during the period 2010–15 at a CAGR of 4.8% to reach 14.5 million tonnes. World PET packaging market value in US dollar terms grew during the period 2005–10 at a CAGR of 4.3% to reach $29.9 billion. World PET packaging market value at con- stant 2009 PET prices is forecast to grow during the period 2010–15 at a CAGR of 4.8% to reach $37.8 billion. Asia Pacific overtook North Amer- ica and Western Europe as the largest regional consumer of PET packag- ing during the period 2005–10. Asia Pacific is forecast to be the fastest- growing world region for PET packag- ing, accounting for almost half of total consumption growth for the period 2010–15. In South America, east- ern Europe and the Middle East and Africa consumption of PET packaging is forecast to grow at above aver- age market rates during the forecast period. In the more mature western European and North American mar- kets consumption of PET packaging is forecast to grow at much slower rates. These forecasts are based on a number of key assumptions, such as: the economic upturn continues and there are no major changes to the economic and financial environment; light-weighting of PET bottles will continue for water, CSDs and aseptic cold-fill bottles, especially in the devel- oped markets of North America and western Europe; recycled PET (rPET) continues to displace new PET pack- aging resin over the forecast period. www.pira-international.com * Pira International: The Future of PET Pack- aging to 2015 - Global Market Forecasts by David Platt Global consumption of PET packaging by end-use sector, 2010 (Source: Pira International)