Market Trends of APAC Rigid Plastic Packaging Industry
Polyethylene Terephthalate (PET) is Expected to Record Significant Growth
- PET is one of China's most widely used plastics. Due to its transparency and safety, it is commonly used to produce beverage bottles or food packaging material. China's packaging market is growing steadily due to the nation's expanding economy and growing middle class with increased purchasing power. The demand for beverage packaging is rising owing to growth in China's beverage market over the past few years. The market is shaped by emerging trends in Chinese consumer lifestyles.
- Government regulations have led to a shift in the market. As packaging waste is considered hazardous to the environment, efforts have been made to reduce the amount of waste produced. This has prompted a shift toward recyclable, more sustainable packaging solutions.
- Stakeholders throughout the supply chain are actively pursuing sustainability goals within the plastic industry. For instance, in September 2023, Indorama Ventures Public Company Limited, a Thailand-based packaging firm, successfully recycled 100 billion post-consumer PET bottles.
- This monumental effort not only removed 2.1 million tons of waste from the environment but also curtailed a carbon footprint equivalent to 2.9 million tons over the product lifecycles. Demonstrating its commitment to the circular economy for PET, Indorama Ventures invested over USD 1 billion in the past decade to bolster the collection of used PET bottles.
- The National Bureau of Statistics August 2024 report stated that till June 2024, the country manufactured about 19.54 million metric tons of soft drinks, showing an upward trend in production volume compared to the previous year's same timeframe. As a result, the demand for packaging materials for storing and transporting these beverages increased. The rigid plastic packaging market is likely to experience growth due to the durability, lightweightness, and freshness of PET bottles and containers, which soft drink companies favor.
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India is Expected to Record Significant Market Growth
- The market is driven by factors such as the growing population, increasing income levels, and changing lifestyles. Growth prospects of end-user segments are leading to a rise in the demand for rigid plastic packaging.
- The safe and non-toxic nature of PE-based rigid packaging contributes to its wide adoption. With the increase in the number of single-person households in India, the need for rigid food packaging using PE-based films is expected to complement the rise in demand for convenience products, such as prepared fruit and vegetables.
- Bottle manufacturers across the region rely on PET as a key packaging material owing to its recyclability and eco-friendly nature. The Coca-Cola Company declared in June 2022 that its Indian subsidiary intended to reach a state of 100% recovery and recycling of post-consumer packaging, consisting primarily of bottles and cans, over the next two to three years. As part of its global campaign, "World Without Waste," the company is committed to collecting and recycling all bottles and cans by 2030.
- The beauty and personal care market in India is fiercely competitive, with both international and local brands vying for dominance. According to Nykaa, a leading Indian online platform for personal care, the market value is expected to surge from USD 13.34 billion in 2020 to around USD 23.59 billion by 2025.
- The focus of well-known beauty and personal care brands is on innovative and eye-catching rigid plastic packaging designs to stand out from the competition. This may lead to innovative solutions for rigid plastic packaging solutions and cutting-edge technologies.
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