18 November 2013 02:36 [Source: ICIS news]
CARTEGENA, Colombia (ICIS)--Demand for polyethylene terephthalate (PET) in Mexico is facing a major challenge from substitution with recycled PET (R-PET), a market participant said on Sunday.
Mexico is producing PET bottles with 20%, 50% and even 100% recycled content, the source said on the sidelines of the Latin American Petrochemical Association (APLA) annual meeting.
About 50% of PET consumption in Mexico is currently being recycled, and collection rates are expected to continue rising in the near future.
An additional challenge to PET growth is a new tax of one Mexico peso per litre to be levied on carbonated drinks, with the objective of decreasing consumption of sugared beverages for health reasons.
Thin-walling of containers is also reducing the consumption of PET in Mexico, according to the source.
The APLA conference ends on Tuesday.
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