PETpla.net Insider 03 / 2021

EDITOUR PETplanet Insider Vol. 22 No. 03/21 www.petpla.net 14 Beverage packaging The Japanese drinks market is distinctive in that drinks can be sold at all times and everywhere via an enormous network of vending machines. According to the Japan Vending System Manufacturers Association, the number of vending machines in the country decreased by 4,149,100 units as of the end of 2019, amounting to 98.0% of the previous year. Looking at beverage vending machines, which account for almost 60% of the total, numbers dropped in all categories, including soft drinks (cans/PET bottles), milk (paper cartons), coffee/cocoa (cups), and alcohol/beer. Of these, the vend- ing machines for soft drinks (cans and PET bottles), which account for the majority of the market, have an over- saturation in terms of location. The Yano Research Institute emphasises that this trend is likely to continue for some time, and, since new installa- tions have been delayed due to the effects of Covid-19, the number of vending machines installed as of the end of 2020 was expected to drop to 97.6% of the previous year, i.e. 4,050,000 units. However, one vend- ing machine for roughly 30 people is still very high coverage. As regards packaging mate- rial, PET dominates the Japanese drinks packaging market, followed by aluminium cans. According to The Council for PET Bottle Recycling, 25.2 billion plastic bottles were sold in Japan in 2018. This represented a 6.9% increase on the year before and amounts to about 200 bottles per person. The Covid-19 outbreak has shifted market attention from reus- able containers to disposable contain- ers, re-evaluating the convenience of single-use plastic containers. Despite this trend, which seems to have halted the plastic-free movement, the Yano Research Institute has noted that in 2020, convenience stores that endorse the use of environmentally friendly materials are promoting prod- ucts in paper containers. Driven by the desire to offer more sustainable solutions, many bottle manufacturers in Japan are also aiming for 100% rPET. Examples include drinks manufacturer Suntory, which plans to convert all PET bottles to 100% rPET and bio-derived PET by 2030, and Evian Japan, which has announced that production will be with 100% rPET by 2025. Two trends are emerging with regard to container size. In recent months, large pack sizes and units have been in greater demand because of coronavirus, primarily packaged mineral water. According to the Yano Research Institute, examples of large volume containers on the rise include mineral water and RTD tea in 2 l PET bottles. However, the traditionally rather small living spaces in Japan counterbalance this as they do not support extensive stockpiling. So this trend may be rather pandemic-driven and will flatten. At the same time, reduced mobility caused by corona- virus has reduced the market shares of on-the-go sizes but this may also change again as infection rates fall. Demographic change in Japan has long been an important topic and this also influences demand behaviour. In 2020, the median age of the Japa- nese population was around 48 years; according to the World Bank, 36% will be over 65 years of age by 2050. In terms of health, life expectancy at birth in Japan is 84 years, four years higher than the OECD average of 80 years and one of the highest in the Collection and recycling rates of designated PET bottles (source: The Council of PET Bottle Recycling - CPBR) photo courtesy: Suntory Suntory’s bottled green tea Iyemon comes in a square-shaped bottle with a label that can be easily removed after consumption. (Photo courtesy: Suntory)