Market Trends of Spain Rigid Plastic Packaging Industry
Bottles and Jars to Witness Growth in the Industry
- Manufacturers widely favor plastic bottles and jars crafted from materials like polyethene terephthalate, polypropylene, and polyethene. These materials are lightweight and unbreakable, simplifying handling. Additionally, manufacturers are drawn to plastic packaging due to its lower production costs. Given the cost-effectiveness of plastic and the rising dependence on packaged and processed foods alongside various beverages, these factors are set to shape the market for plastic bottles and containers in the coming years.
- Plastic bottles and jars, predominantly made from materials like Polyethylene Terephthalate (PET), are chosen for their durability, versatility, and cost-effectiveness. As industries such as food, beverage, and pharmaceuticals expand and innovate, the demand for plastic packaging rises correspondingly. Furthermore, the industry's push for new beverage flavors and diverse packaging formats underscores the sustained demand for rigid plastic bottles.
- Spain has surpassed the European Union's 2025 packaging recycling target of 50%. The Ministry of Ecological Transition and the Demographic Challenge has now upped the goal to 60%, a nearly impossible target. The National Association of Plastics Recyclers (Anarpla) also highlights that industries possess a recycling capacity exceeding half a million tons annually, translating to over 40% of their total plastic usage. Such recycling trends would push the market growth in the country.
- According to the government of Canada, the food service sector is growing, and Spain's vibrant dining culture presents unique opportunities in its restaurant segment. While the full-service restaurant sector has matured and is not expected to grow significantly, it will continue to play a key role in the industry. The fast food segment, particularly chain restaurants, home delivery services, is set to be the primary growth driver. Furthermore, with increasing diversity from immigration, there's a rising demand for ethnic restaurants and food products. Spaniards' health-consciousness and an ageing demographic drive heightened demand for wellness-focused and organic products. Rise restaurants and food service sector would leverage the need for bottles and jars in the country.
- According to Eurostat, the revenue of manufacture of beverages in Spain in 2020 was USD 21.35 billion and it has reached USD 24.35 billion. Therefore, plastic bottles and containers reign supreme in the beverage packaging sector. The advent of polyethene terephthalate (PET) and high-density polyethene (HDPE) polymers is broadening the horizons of plastic bottling applications. Notably, PET bottle demand is surging, especially in the bottled and soft water markets.
Understand The Key Trends Shaping This Market
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End-User Industries Such as Food and Beverage Propel Demand for Rigid Plastics
- Spain's burgeoning food and beverage sector has spurred a heightened demand for diverse packaging materials. The industry employs various packaging solutions, including rigid plastics. In June 2024, the minister inaugurated the XI Food & Drink Summit, which was organized by the Spanish Federation of Food and Drink Industries (FIAB). This summit serves as a platform for analysis and knowledge exchange to invigorate the agro-industrial sector.
- In line with this, the Government's commitment to enhancing the agri-food sector revolves around three key strategies: the National Food Strategy, the forthcoming Law on the Prevention of Food Losses and Waste, and the international promotion of "Food from Spain." These initiatives aim to steer the food sector toward more significant sustainability, profitability, and competitiveness. They also seek to minimize food and natural resource wastage and bolster the global promotion of "Food from Spain."
- Spain's thriving tourism sector has bolstered export opportunities for food and beverage suppliers, especially within restaurants and hotels. The market expansion can be credited to the growth in tourism, the rise in MICE (Meeting, Incentive, Conference, and Exhibitions) activities, and advancements in the hotel and restaurant sectors.
- Factors such as tourism growth, smaller household sizes, more women entering the workforce, evolving consumer behaviors, an uptick in dine-in establishments, and a rising appetite for diverse cuisines have fueled the popularity of full-service restaurants. As disposable incomes rise, food service trends are poised for growth, signaling a lucrative opportunity.
- As per the National Statistics Institute (INE) Spain, the sales value of the pet food industry in 2020 was EUR 11,918 million (USD 12.89 billion), and it reached EUR 18,864 million in 2023 (USD 20.41 billion). Moreover, the food segment encompasses packaging solutions for various items, including sauces and condiments, dairy products, pickles, syrups, jams, processed vegetables, fruits, and baby food. Therefore, rigid plastic packaging is expected to witness growth across the country over the forecast period.
