Market Trends of Nordic Rigid Plastic Packaging Industry
Polyethylene Terephthalate (PET) To Witness Growth
- Plastic bottles crafted from PET are increasingly replacing traditional glass bottles, known for their fragility and weight. This shift is mainly due to PET's ability to provide reusable packaging for mineral water and various beverages, streamlining the transportation process economically. PET, celebrated for its clarity and natural CO2 barrier properties, boasts versatility; it can be effortlessly molded into bottles or any desired shape.
- Manufacturers can enhance PET properties by incorporating colorants, UV blockers, oxygen barriers/scavengers, and other additives, tailoring bottles to meet specific brand requirements. Within the rigid packaging sector, PET is not limited to crafting bottles for soft drinks, water, and juices. Its applications extend to producing microwavable food trays, containers, and various food jars. This surge in demand is fueled by consumer preferences and the inherent advantages of PET, notably its lightweight nature and impressive recycling rate.
- In November 2023, Swedish Plastic Recycling is set to inaugurate its significant and sophisticated plastic sorting and recycling facility in Motala, Sweden. The facility, boasting an investment of USD 91.6 million, spans approximately 60,000 square meters. With an annual capacity of 200,000 tons, it adeptly sorts a diverse range of materials at 1,000 items per second. This includes rigid PP, rigid HDPE, flexible LDPE, PET trays, transparent and colored PET bottles, flexible PP, EPS, PS, PVC, two grades of mixed polyolefins, metals, and non-plastic materials.
- According to Eurostat, the revenue of the manufacture of plastic products in Sweden in 2020 was USD 4,483.9 million and is expected to reach USD 4,877.43 million in 2024. The rise in the manufacture of plastics is expected to create opportunities for rigid plastic packaging across various end-user industries such as food, beverage, cosmetics, healthcare, and others.
- Nordic consumers make intentional shopping choices, emphasizing health and personal needs while being vigilant about prices amid global inflation concerns. Nordic consumers consistently include carbonated beverages in their grocery purchases. The growth of these beverages in the Nordics stands out for primary reasons. Carbonated soft drinks have firmly established themselves, ranking as one of the top 20 products in the Nordic region. This would increase the demand for PET bottles in the region.
Understand The Key Trends Shaping This Market
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Food and Beverage Industries Drive Market Growth
- Driven by the rising demand for convenient solutions, the food industry's appetite for rigid plastic packaging is surging, especially with the growing trend of ready-to-eat meals. These meals, typically housed in various sealed trays from round containers to salad packs, are increasingly transitioning to sustainable and eco-friendly materials. This shift resonates with consumer preferences for environmentally conscious packaging and highlights the industry's dedication to market demands and environmental stewardship.
- In the global beverage industry, demand for PET containers is set to outpace other major beverage packaging types in the coming years. While beverage consumption by volume is crucial, another key metric is the number of units filled, encompassing packaging materials like plastic, glass, metal (cans), and cartons. As lifestyles evolve, so do consumer preferences, rapidly embracing innovations like frozen meals, on-the-go breakfasts, and beverages.
- Product safety is a top priority for manufacturers and consumers in the beverage industry. Rigid packaging is essential for safeguarding products, minimizing contamination risks, and adhering to strict hygiene standards. In addition, tamper-evident seals bolster consumer trust, signaling that the product remains untouched and safe for consumption.
- According to the Union of European Soft Drinks Association (UNESDA), the consumption volume of soft drinks in Norway in 2020 was 677.8 million liters and reached 723 million liters in 2023. By utilizing rigid plastic packaging solutions that offer these built-in safety features, beverage manufacturers can maintain consumer trust, protect their brand reputation, and prioritize product safety in the marketplace.
- Moreover, according to the Ministry of Foreign Affairs of Denmark, Denmark's food sector, a testament to centuries of harnessing nature's and science's offerings, has evolved into a global powerhouse, extending its influence beyond Danish borders. Surveys indicate that Denmark boasts the EU's most innovative food sector. The nation is home to some of the world's leading companies across various food industry segments. The growing food sector will create opportunities for rigid plastic packaging in the region during the forecast period.
