Market Trends of France Plastic Caps And Closures Industry
Polyethylene Terephthalate (PET) is Expected to Witness Growth
- Lifestyle changes and consumer reliance on packaged beverages drive sales of PET bottle packaging products, including caps and closures. This trend drives the sale of products characterized by superior barrier properties and high-quality printability. Growing consumer demand for packaged drinking water provides durability, ease of use, and better protection of products from potential spoilage than other packaging alternatives.
- Moreover, the demand for sustainable and recyclable packaging materials is high. The European packaging industry announced its Circular Packaging Vision 2030, promising that by 2025, all packaging will be 100% recyclable, and PET plastic material products will contain 50% recycled content.
- The country is actively promoting the recycling of PET products, notably bottles. PET plastic bottles are gaining traction over traditional glass bottles, particularly for beverages like mineral water and non-alcoholic drinks. This shift is fueled by PET's reusability, facilitating more efficient transportation. PET's versatility is evident in its ability to be molded into various shapes, its inherent clarity, and its CO2 barrier.
- According to Eurostat, the revenue from the manufacture of plastic products in France in 2020 was valued at 30.65 billion and is expected to reach USD 36.36 billion in 2024. The increasing emphasis on mobility and convenience is a crucial factor shaping the demand for plastic products in the food and beverage packaging industries. This trend is particularly evident in the growing preference for on-the-go consumption and portion control.
- Further, in November 2023, Aloxe launched its latest venture, a recycled PET plastic manufacturing facility in Messein in the Meurthe-et-Moselle region. The Messein site has gradually increased operations, with two cutting-edge EREMA VACUNITE production lines situated on a repurposed brownfield. By December 2023, Aloxe plans to relocate its older lines from the Vézelise facility to Messein, effectively quadrupling its PET recycling capacity in France from 12.5 kt to 50 kt annually.
Understand The Key Trends Shaping This Market
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The Beverage Industry is Expected to Witness Robust Growth
- French consumers are pursuing healthier beverage choices, with a growing interest in non-alcoholic options. This shift is primarily motivated by a desire to moderate alcohol intake. Despite this trend, taste remains paramount for those opting for alcoholic beverages. On the flip side, the surge in non-alcoholic drink consumption is fueled by factors like brand awareness, product quality, cost, freshness, and claims of tradition.
- Bottled water consumption within the soft drinks segment is climbing, driven by its perceived health benefits. Energy drinks are also witnessing increased consumption. In energy drinks, promotional activities hold particular sway over French consumers.
- According to Eurostat, revenue from beverage manufacturing in 2020 was USD 24.06 billion and will reach USD 30.03 billion in 2023. The demand for beverages is pushing the country's market for PET bottles, caps, and closures. A growing public consciousness regarding the significance of clean drinking water further fuels this uptrend. Bottled water, known for its convenience, is a favored beverage.
- Significant companies in the country are actively pursuing innovative strategies to bolster their market presence. Take Nestlé Waters France, for example, which made headlines by unveiling its latest eco-friendly initiative. The company declared that its VITTEL, HEPAR, and CONTREX brands' bottles, tailored for flavored and on-the-go ranges, are crafted entirely from 100% recycled plastic (rPET). Nestlé Waters is swiftly transitioning its natural mineral water lines to embrace rPET bottles, marking a pivotal move in its overarching ambition to achieve carbon neutrality across its entire brand spectrum by 2025.
- Techniques, like utilizing recycled plastic for manufacturing plastic bottles, have been adopted by the government. These recycled plastic bottles are often more cost-effective than virgin plastic ones. This move aims to foster a circular economy and elevate the recycling rate. Such initiatives are poised to spur recycling giants like Veolia and Suez to scale nationwide PET bottle recycling efforts. Given the rising demand in France's FMCG sector, the plastic bottles market is projected to grow significantly in the coming years. Such efforts would further drive the country's demand for caps and closures.
