Market Trends of Vietnam Plastic Bottles Industry
Market Growth Driven by Polyethylene Terephthalate (PET) Resin
- Polyethylene terephthalate (PET) is a robust, thermally stable, transparent plastic. As a thermoplastic polyester, PET is celebrated for its durability and chemical resistance. Its notable attributes (toughness, lightweight nature, impermeability, and resistance to acids, alkalis, water, and oils) render PET resin a prime choice for packaging.
- The booming beverage and packaging sectors drive substantial demand for PET resin in Vietnam. Vietnam imports significant volumes of PET resin to cater to its domestic manufacturing needs. Rapid economic growth and a surge in packaged goods consumption have fueled this import trend. The market sees active participation from both local enterprises and multinational corporations. PET resin's relevance spans various manufacturing sectors as a pivotal material in the plastic industry.
- DUYTAN Plastic Recycling Co. Ltd, Vietnam's pioneering recycler producing recycled PET for beverage bottles, is gearing up to install its third Starlinger PET bottle-to-bottle recycling line, which was set to begin production by the end of 2023. The company's initiative aimed to create a closed loop for plastic bottles, curb plastic waste, and minimize fossil resource consumption in Vietnam. With this addition, DUYTAN's reprocessing capacity will surge to 60,000 tons annually, translating to roughly 4 billion post-consumer plastic bottles. Such recycling solutions are expected to encourage the PET bottles market in the country.
- According to the General Statistics Office of Vietnam, the revenue from manufacturing rubber and plastic products in 2024 is expected to reach USD 21.8 billion, which was USD 17.97 billion in 2020. Vietnam's main import markets include the European Union, the United States, South Korea, Japan, and Australia. Products from these countries and regions are usually considered higher quality than domestically produced products. At the same time, the Vietnamese have an increased appetite for foreign products. The government can import PET resin, creating market opportunities for plastic bottles.
- Therefore, PET has emerged as a crucial packaging material for bottle manufacturers throughout the region. Its adaptability to various shapes and sizes offers a compelling alternative to traditional glass and metal containers, solidifying PET's prominence in the packaging sector. The trajectory of PET recycling hinges on technological innovations that enhance efficiency, cost-effectiveness, and eco-friendliness.
Understand The Key Trends Shaping This Market
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Plastic Bottles Set for Significant Expansion in Beverage Sector
- The beverage sector finds considerable demand for packaging non-alcoholic beverages in plastic bottles. The Vietnamese bottled water market features a range of products, including still, sparkling, and flavored waters, with a marked trend toward premium and health-centric choices. According to Phu Quang Company Limited, Vietnam’s beverage industry is rapidly strengthening, accompanied by a boost in economic growth, advantageous demographics, rising tourism, and a higher-income middle class.
- Still, bottled water leads the Vietnamese market, prized for its natural flavor and the convenience of daily, non-carbonated consumption. Consumers favor brands that offer a clean taste and convenient packaging and emphasize health benefits like minerals and electrolytes, fueling the market's expansion.
- Health awareness among Vietnamese consumers significantly propels the bottled water market's growth. As concerns about waterborne diseases and tap water safety rise, more consumers turn to bottled water. According to the Vietnam Ministry of Health, in 2024, 75% of urban households choose bottled water, valuing its perceived purity and safety.
- According to the General Statistics Office of Vietnam, the industry revenue for the manufacture of beverages in 2021 was USD 6.291 billion, and it is expected to reach USD 7.779 billion in 2024.
- In the first quarter of 2024, Vietnam recorded over 4.6 million foreign tourist arrivals, marking a 72% increase from the previous year and surpassing the pre-COVID-19 figures for 2019 by 3.2%. The rise in the tourism sector is anticipated to push the market for plastic bottles in the beverage industry.
- Vietnamese consumers are turning to RTD cocktails for their convenience and diverse flavors. These cocktails appeal to those seeking portable options, milder alcohol content, and unique taste blends. Notably, the younger generation might show a strong affinity for these products. As a result, the Vietnamese ready-to-drink (RTD) cocktails market has become a vibrant and swiftly changing sector in the beverage industry. This delves deep into the market, shedding light on pivotal insights, emerging trends, and the driving forces behind its expansion.
