Study spots firm increase in demand for plastic bottles in the US

SEATTLE (Scrap Monster): The latest study report published by the Plastics Industry Association (Plastics) indicates that plastic bottle demand has reported continued growth in the US. The report titled “Plastic Bottles Today: Innovating to Reach Today’s Consumer” analyzes the increasing role played by plastics in bottling.

According to the report, plastic bottles have come a long way from 1940’s, when they were introduced commercially. The introduction of high-density polyethylene (HDPE) and polyethylene terephthalate (PET) polymers has resulted in huge expansion of plastic bottling applications. Plastics have surpassed glass as the packaging choice for a wide variety of products. Currently, HDPE and PET together represent approximately 86% of the plastic container market. Also, plastic bottles and jars account for three-fourths of all plastic containers by weight.

The global production of plastic containers in 2014 totaled 50.1 million metric tonnes. The production is expected to grow at a CAGR of 5.2% to reach 67.9 million metric tonnes by 2020. The plastic containers market was worth $273.15 billion in 2014, which is now expected to reach $388.35 billion by 2020, growing at a compounded annual growth rate (CAGR) of 6%. The properties of plastic resins are found to offer design flexibility. The lightweight nature of plastics makes it easy to handle.

The largest market share of plastic bottles is represented by beverage sector. The sector in North America and Europe accounts for 40-45% market share in 2014. In second place stands consumer packaged goods sector with market share of 30%, closely followed by pharmaceutical sector with 22%. Across the world, food and beverage industry accounts for more than half of the global plastic bottles consumption. The healthcare and bottled water sectors continue to report increased usage of plastics, the report noted.

In the US, demand for plastic containers is predicted to grow by 4.9% in 2016 to reach $32.4 billion. Also, the demand for caps and closures in the country is expected to register 4.2% CAGR growth to touch $11.8 billion by 2020. The PET’s market value for packaging is likely to grow from $48.1 billion in 2014 to $60 billion by 2019. The PET packaging market is predicted to grow by 4.6% each year.

Lighter packaging is the key driver of PET bottle growth. Several manufacturers have announced huge success in cost savings due to lightweighting of plastics. For instance, Dr Pepper is believed to have conserved more than 60 million pounds of plastics by redesigning its bottles and packaging. PepsiCo too had made significant strides in lightweighting, by introducing lightweight Aquafina Eco-Fina bottle in 2009, which weighed just 10.9 grams. The average weight of half-liter PET plastic bottle has dropped by nearly 48% from 2000 to 2014.

In 2014, plastic bottle recycling generated an estimated $730 million. However, export of recycled post-consumer plastics declined during the year, mainly on account of rising US dollar and tighter restrictions on imports into China by customs authorities.