PETpla.net Insider 07+08 / 2012

REGIONAL MARKET REPORTS 16 PET planet insider Vol. 13 No. 07+08/12 www.petpla.net Market participants: Coca Cola 55% PepsiCo 34% Hangzhou Wahaha 5% Rest under 1% each. Comments: Stagnation from 2009 to 2010. Market satura- tion. Improved living standards led to consumers switch- ing to perceived healthier carbonated drinks. Also lack of promotion by the “Big Two” suspected. Juice/nectar/still drinks 18 16 14 12 10 8 6 4 2 0 2007 2008 2009 2010 2011* Volume growth in bn l * Forecast 9.1 10.5 12.6 14.8 17.2* +15.3% +20.0% +17.5% +16.2% bn litres Volume growth in bn litres from 200/ to 201! (Source Canadean) Per capita consumption 2011*: 12.8 litres Packaging : PET is the predominant pack type continuing to take share, with approx. ratio 116 (PET) to 284 (total) bn units. Carton is second leading. Market participants in juices Beijing Huiyan Juice & Beverage Group 26% Liwayway Marketing Corp. l9% Market participants in nectar Beijing Huiyan Juice & Beverage Group 36% Zeijiang Nongfushanquan Water 15% Market participants in still drinks Coca Cola 14% Tingyi Holding 11% Guangzhou Wanglacji 10% Comments: Preference for healthier drinks with a wider range of flavours. A strong growth with big potential. Many competing flavours. Fierce competition. RTD tea drinks 14 12 10 8 6 4 2 0 2007 2008 2009 2010 2011* Volume growth in bn l * Forecast 5.3 6.6 8.5 11.1 13.5* +24.5% +28.8% +30.6% +21.6% bn litres Volume growth in bn litres from 200/ to 201! (Source Canadean) Per capita consumption 2011*: 10.0 litres Packaging PET leading pack in single serve. Carton has a 3% share. Glass remains a niche market Market participants: Tingyi Holding 54% Uni President 16% Hangzhou Wahaha 12% Comments: Strong market. Max. growth in beverages, up to 30% - due to promotional efforts of key players in the markets. The Chinese PET Story Over the past decade the Chinese beverages market has bestowed on the PET indus- tries – in particular the machine manufac- turers - a boom never before experienced anywhere in the world. Manufacturers of injection moulding machines for preforms, of blow moulding machines for bottles, bottling machines and complete lines have identified a market for a high percentage of their global sales in China. In this way, more than a few respected machine manufacturers have dis- covered a way of compensating for the weak points that occur in cycles within the major saturated markets of this world. PET resin Total figures for 2010:  consumption: 2.65 million t – 65% for beverage, i.e. 1.722 million t. All resin is produced at local sources for local consumption.  production: 3.35 million t. The difference to consumption is exported.  Capacity: 4.1 million t. There is an over-capacity, but investments into new plant and capacities go on. The Chinese producers are amongst the TOP TEN resin producers in the world, such as:  San Fang Xiang (Capacity of1.380 million t for 2011)  Fenc (Capacity of 1.250 million t for 2011)  Na Ya (Capacity of 0.868 million t for 2011)