PET, PE central to packaging industry growth

CHICAGO (ICIS)–The packaging industry in North America is set for robust growth over the next decade, with polyethylene terephthalate (PET) and polyethylene (PE) among the materials expected to drive that growth, according to participants at PACK EXPO International.

Image by Shutterstock

The beverage industry is projected to grow by 4.5% to $45.5bn through 2028, according to the 2018 Beverage Trends report presented by PMMI, The Association for Packaging and Processing Technologies, which is the host of the trade show.

Plastic accounts for 45% of material used in beverage packaging in 2018—a figure that is expected to grow to 55% in 2028, according to PMMI’s report respondents.

Notable growth in plastic beverage packaging is anticipated in wine (100%), bottles (37%) and pouches (45%) over the next decade, according to PMMI.

By packaging type not limited to beverages, rigid plastic is expected to grow by 5.7% per year to $250bn globally in 2020, while flexible and film packaging is expected to grow by 4.4% annually to $200bn, Ron Puvak, managing director of the Association for Contract Packagers and Manufacturers (CPA), told delegates on Monday.

Packaging that uses PET will continue to dominate the industry, according to both PMMI and CPA.

Demand for PET is expected to rise by 4.6% annually to $60bn in 2019, Puvak said.

Water continues as a major driver in the PET market, edging out carbonated soft drinks, which are a giant but stable market, as health becomes a consumer priority.

A $13bn business, bottled water has a lot of room for growth as companies offer a wider array of options and enhanced waters for health-conscious consumers, Puvak told delegates of the show.

“We, as a packaging industry, have enabled that,” Puvak said of growth potential for bottled water. “Rumours of water’s positive impact have reached mythical proportions.”

Puvak expects a boom in flexible packaging as well, as pouches provide a low cost of entry with cost-advantaged polyethylene (PE).

Flexible packaging also adapts easily to lifestyle changes as e-commerce rises as a shopping method of choice.

“It’s probably the closest e-commerce-ready packaging we have,” Puvak said.

The global pouch market value in 2016 was $98bn, according to CPA, with expected compound annual growth rate (CAGR) of 5.2% between 2017 and 2022.

Recycling regulations regarding the material will be an obstacle to pouch market growth over the next eight years, however.

“Sustainability will hinder that growth,” Puvak said. “We have not closed the gap.”

PACK EXPO International runs through Wednesday in Chicago.

The image above shows plastic bottles and film. Photo by Shutterstock