Market Trends of Japan Plastic Bottles Industry
Polyethylene Terephthalate (PET) Set for Expansion
- Plastic bottles made from PET are increasingly replacing traditional glass bottles as they provide reusable packaging for mineral water and other beverages, facilitating more economical transportation. PET, known for its transparency and natural CO2 barrier properties, is easily molded into various shapes, including bottles, and enhanced with additives like colorants, UV blockers, and oxygen barriers.
- PET has emerged as a crucial packaging material for bottle manufacturers in the region. Its ability to accommodate diverse shapes and sizes offers unmatched alternatives to conventional glass and metal containers, solidifying its status as a preferred choice in the packaging industry.
- According to the Japan Containers and Packaging Recycling Association (JCPRA), the average recycling cost for plastic packaging per kilogram was JPY 51 in 2021 (USD 0.36), and it is expected to reach JPY 62 (USD 0.44) in 2024. Various product areas are increasingly adopting polyethylene terephthalate (PET) bottles. Their affordability, lightweight nature, and advancements in printing technology and recycling capabilities have made PET bottles particularly appealing to premium consumers.
- Recent advancements in PET resin technology encompass the creation of barrier PET for prolonged shelf-life packaging, lightweight initiatives for enhanced sustainability, and specialized resin blends tailored to specific end-user demands. The PET resin market is pivotal in helping companies achieve their environmental sustainability objectives by offering recyclable, lightweight packaging solutions, minimizing carbon footprints, and bolstering circular economy efforts.
- Further, in February 2024, SIPA unveiled a new branch office in Tokyo, Japan. This strategic move doubles SIPA's presence in Japan, adding to its established Osaka branch, and reaffirms its dedication to providing premier PET packaging solutions with unmatched efficiency and client proximity. This expansion epitomizes SIPA's commitment to staying attuned to its clients, grasping their distinct needs, and delivering customized PET packaging solutions.
Understand The Key Trends Shaping This Market
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Beverage Segment Poised for Strong Expansion
- The beverage industry is witnessing significant expansion, driven by a growing demand for health-focused beverages. Consumers increasingly seek drinks offering specific health benefits, such as immunity boosts, improved digestion, and enhanced cognitive transparency. This trend is particularly pronounced among Japan's elderly demographic and those grappling with lifestyle-related health issues.
- The country is witnessing innovations in beverage formulations, blending natural ingredients with scientific advancements. In 2024, critical segments like soft drinks, sports drinks, and energy drinks may highlight the diverse preferences of consumers for functional beverages. By emphasizing ongoing innovation, targeted marketing, and sustainability, companies have a prime opportunity to solidify their presence in Japan's rapidly expanding functional beverage market.
- Companies in Japan are focusing on producing PET bottles made from biobased raw materials to promote sustainability. In August 2023, Neste, a Finnish company, cooperated with Suntory, ENEOS, and Mitsubishi Corporation to commercially produce PET resin made with renewable Neste RE. Neste RE is made from biobased raw materials such as waste and residues. Japanese beverage company Suntory will use PET resin to make product bottles.
- According to Asahi Group Holdings, in the market share for soft drinks in Japan as of 2023, RTD tea took the top position with a 30% share, followed by RTD coffee, carbonates, and others. In Japan, a diverse range of non-alcoholic beverages are available, purchasable not just at general store outlets but also from the country's extensive network of over two million vending machines.
- Further, according to the US Department of Agriculture, the Japanese non-alcoholic beverage market stands at an estimated USD 40 billion, with imports contributing around USD 1 billion. The United States is Japan's primary supplier of non-alcoholic beverages, exporting mainly mineral water, carrots, and grape juice. The spotlight is on healthy drinks and non-alcoholic beers as the dominant consumer trends. Japan's annual production of non-alcoholic beverages stands at 182 l per capita, translating to an average daily consumption of a 500 ml PET bottle by each individual. Such trends are expected to push the plastic bottle market over the forecast period.
