Market Trends of Canada Rigid Plastic Packaging Industry
Food and Beverage Sector is Anticipated to Witness Significant Growth
- Rigid plastic packaging plays a pivotal role in the food and beverage processing sector. Within this sector, processed foods predominantly utilize plastic jars, containers, bottles, and rigid trays. Additionally, beverages heavily rely on plastic bottles, primarily crafted from PET and HDPE. According to a report from Agriculture and Agri-Food Canada in October 2023, the food and beverage processing industry led Canada's manufacturing landscape in 2022, boasting a production value of USD 156.5 billion. This figure represented 18.2% of the country's total manufacturing sales and contributed 1.7% to the national Gross Domestic Product (GDP).
- According to StaCan data, sales of sugar and confectionery products by manufacturers reached around CAD 496.5 million (USD 368.92 million) in December 2023, marking a growth of roughly 13% from the same month the previous year. Across the country, sugar and confectionery items are predominantly packaged in plastic jars and containers, available in a diverse array of sizes and shapes. The uptick in sales revenue for these products enhances the value of the rigid plastic packaging sector.
- In addition to rigid primary packaging, intermediate bulk containers (IBCs) are in high demand during the food and beverage manufacturing processes. Furthermore, the expansive food and beverage industry has spurred a growing demand for rigid plastic crates and pallets, especially for storage and transportation as secondary and tertiary packaging.
- In November 2023, The Coca-Cola Company announced a significant sustainability milestone: by early 2024, all its 500 ml sparkling beverage bottles in Canada will be crafted from 100% recycled plastic (excluding caps and labels). This initiative marks a historic first for Canada, as 500mL sparkling beverages will now be available in recycled plastic bottles. The lineup of sparkling beverages encompasses popular brands like Coca-Cola, Sprite, and Fanta.
- In June 2023, a Canadian mineral water bottle factory acquired a significant quantity of Jesper's PCO-1810 PET preforms, weighing 18 grams each, to enhance the efficiency and yield in producing 500ml mineral water bottles. Jesper PET Preform is renowned for its expertise in producing and developing "PCO1810 PET preforms," ensuring these preforms have stable dimensions, uniform thickness, transparency, and controllable blow molding properties.
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Plastic Bottles are Gaining Traction in the Rigid Plastic Packaging Market
- Plastic bottles are becoming increasingly popular in Canada, favored for their advantages over glass bottles and metal cans. Beyond the beverage sector, these bottles are also making inroads in Canada's cooking oil and condiment markets.
- As reported in an article by Agriculture Canada in February 2024, Canada emerged as the top global supplier of sauces and condiments to the United States market in 2022, boasting a market share of 23.4% with sales amounting to USD 511.9 million and a volume of 160.9 million kilograms. With the United States sauces, dips, and condiment sector projected to grow, and considering the geographical proximity, Canadian producers and suppliers are well-positioned to bolster their exports of agri-food and value-added products to the United States.
- Due to the Canada-United States-Mexico Agreement (CUSMA), Canada has preferential access to the United States market. Effective July 1, 2020, CUSMA not only ensures continued tariff-free access for Canadian exporters (with some exceptions) but also introduces updates and new chapters to cater to contemporary trade dynamics. This presents a golden opportunity for Canadian packaging manufacturers to scale up their production for the United States market.
- Plastic bottles play a crucial role in the personal care, cosmetics, and pharmaceutical industries due to their practicality and adaptability. Canadian consumers regularly encounter plastic bottles in products like shampoos, lotions, creams, medications, and health supplements. The country's expansive healthcare system and robust beauty industry rely on plastic packaging for its lightweight, durable, and cost-efficient qualities. However, the environmental impact of plastic waste is a growing concern in Canada, with millions of plastic bottles polluting landfills and waterways. This concern has spurred the adoption of sustainable practices, such as using recyclable materials, introducing refillable containers, and implementing stricter regulations to curb plastic waste across these industries in Canada.
- Demand for PET bottles is surging across Canada, driven by their lightweight nature and sustainability benefits. In a significant move, Califia Farms, a United States-based plant-based beverage giant, announced in February 2024 that it will exclusively use 100% recycled polyethylene terephthalate (rPET) for its bottles in both the United States and Canada. This packaging overhaul spans Califia Farms' entire product lineup, including refrigerated plant milks, creamers, coffees, and teas. This initiative not only underscores the company's dedication to environmental stewardship but also addresses the pressing global challenge of plastic pollution, moving toward a circular economy and reducing the need for new plastic production.
- According to StaCan data, retail sales in Canada reached an estimated CAD 66 billion (USD 49.04 billion) in March 2024. The increased consumer spending has led to higher sales volumes, which in turn has necessitated the use of more durable packaging solutions like rigid plastic bottles. This trend highlights the critical role of packaging in supporting the retail sector's expansion and meeting consumer needs efficiently.
