Market Trends of United States Rigid PET Packaging Industry
This section covers the major market trends shaping the US Rigid PET Packaging Market according to our research experts:
Rigid PET Caps and Closures will Observe a Significant Growth
According to Silicon Valley Bank, premium wineries in the United States had a gross margin of 56.8 % as of 2020, with the average bottle price being USD 28. Hence, the usage of Rigid PET closures can be an advantage in reducing cost, being stronger than cork, and not susceptible to taint, which is why PET caps and closures are further fueling the growth of sales in the region.
According to the National Library of Medicine, in 2021, overall pharmaceutical expenditures in the US grew 7.7% compared to 2020, for a total of USD 576.9 billion. By 2022, overall prescription drug spending is expected to rise by 4.0% to 6.0%, whereas in clinics and hospitals it is anticipated to increase from 7.0% to 9.0% and 3.0% to 5.0%, respectively, compared to 2021. Due to the high consumption of drugs, there is a considerable rise in demand for more bottles, driving the growth of the caps and closures market.
Furthermore, nanotechnology in convenience food manufacturing has played a crucial role in improving critical functions, including preservation procedures, packaging methods, and finished goods processing. Thus, this trend is anticipated to play a significant role in increasing the usage of containers for packaged food products, which is expected to increase the demand for various kinds of closures.
Most manufacturers are considering caps and closures to provide seal-proof packaging and product protection, driving the market's growth. According to the USDA Foreign Agricultural Service 2020 report, fresh fruit export commodities included apples, grapes, oranges, strawberries, and cherries, which accounted for a combined USD 3.1 billion, with top markets including Canada and Mexico. The requirement for caps can be increased since they are most often used in juices.
Moreover, concerning the environmental issue and enhancing brand appeal, various manufacturers are replacing outer box products with rigid PET caps and closures made from recycled plastic and are concentrating more on design and high appeal for their brands. According to American Chemistry Council, 52 new plastics recycling projects have been announced in the United States between 2017 and 2020, with the combined value of projects being USD 4.8 Billion. The growing investments in the US advanced recycling technologies are making it probable to reuse more plastic types than was possible.
Food is One of the Significant Factor for Market Growth
Packaged food products, such as jams, mayonnaise, pickles, etc., are usually stored in bottles protected using various kinds of airtight Rigid PET closures. With an increase in the working population, there has been a substantial increase in the demand for easy-to-cook and packaged food. According to Global Organic Trade Guide, organic packaged food consumption in the region is expected to reach USD 21.39 Billion by 2026. It is expected to fuel the growth of rigid PET packaging.
Various initiatives were taken by the governments and the related regulatory bodies regarding food safety procedures and environmental issues that have led to the revision of the existing food packaging procedures. It has been done to promote the packaging industry to look for better options in terms of packaging materials, which is expected to drive the market players to comply with environmental regulations and provide environmentally sustainable packaging.
For instance, Fabri-Kal products are made with a minimum of 20-50% post-consumer recycled (PCR) PET material. Recyclable products are made in the United States. The PET Sip Lids are created for on-the-go consumption of cold drinks and transport safely without splashing, preventing the use of straws. The company's greenware products are made from PLA resin derived from plants.
Also, many governments are mandating stringent laws and regulations on the labeling and packaging of drugs and food products, further expanding the scope of the Rigid PET packaging market. For instance, the United States witnessed an increase in the demand for rigid packaging in the food industries, owing to the inability of an in-house packaging facility for a few companies in this region.
In 2021, transparency in food packaging had been trending. Beyond just the listed ingredients on the label, consumers also want to see the physical product before purchasing. Polyethylene terephthalate (PET) bottles are taking over for glass in the single-serve ketchup, condiments, and barbecue sauce markets. Many companies are choosing polyethylene terephthalate (PET) bottles, as PET is as clear as glass and less likely to break.
