PET Preforms Market - Forecast(2023 - 2028)

PET Preforms Market Overview

The PET Preforms market size is estimated to reach US$24.9 billion by 2027 after growing at a CAGR of 3.8% during the forecast period of 2022-2027. PET (polyethylene terephthalate) Preforms are products derived from polyamide namely polyethylene terephthalate which is a mixture of ethylene glycol and purified terephthalic acid. The preforms are mainly used for manufacturing bottles and containers which are used for packaging pharmaceutical, cosmetics products and food & beverage items such as carbonated drinks, mineral water and ready-to-drink items such as juices & soft drinks. High demand for PET preforms in packaging applications in food & beverage, medical & pharmaceutical and cosmetic & personal care sectors is driving the PET preforms industry. Factors such as high demand for beverages, bolstering the growth of the cosmetic & personal care sector and an increase in the sale of medicine have provided growth opportunities to the PET preforms market. However, stringent regulation on the usage of plastic products and the growing shift towards using biodegradable plastics is posing a challenge in market growth, thereby negatively affecting the PET preforms market size. The COVID-19 pandemic disrupted the production and sales of products in the food & beverage and medical & healthcare sector on account of the lockdown, which negatively impacted the PET preforms industry outlook.

PET Preforms Market Report Coverage

The “PET Preforms Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the PET Preforms Industry.

Key Takeaways

Asia-Pacific dominates the PET Preforms industry on account of the rapidly growing food & beverage and cosmetic & personal care sectors which are significantly influencing the market growth in the region.

High-performance properties provided PET Preforms in comparison with conventional packaging materials such as glass and metals are driving the market demand, thereby positively impacting the PET preforms industry outlook.

The growing shift towards sustainable packaging solutions reduces the usage of PET Preforms which can negatively impact the PET Preforms market size during the forecast period.

Figure: Asia-Pacific PET Preforms Market Revenue, 2021-2027 (US$ Million)

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PET Preforms Market Segment Analysis – by Size

The 500-1000ml segment held the largest share in the PET Preforms market share in 2021 and is anticipated to grow at a CAGR of 3.9% during the forecast period 2022-2027. PET Preforms have a high demand for manufacturing 500-1000ml capacity bottles as they are mainly used as packaging products in the food & beverage sector for ready-to-drink items such as juices and carbonated drinks items such as soft drinks. The consumption of beverage items especially soft drinks and juices is growing rapidly among adults on account of an increase in disposable income, thereby increasing the demand for 500-1000ml of capacity bottles for packaging purposes. Thus, the growing demand for 500-100ml bottles will create more usage of PET preforms for manufacturing such capacity bottles, which will significantly contribute to the segment growth of 500-1000ml during the forecast period.

PET Preforms Market Segment Analysis – by End-Use Industry

The Food & Beverage sector held the largest share in the PET Preforms market share in 2021 and is anticipated to grow at a CAGR of 4.5% from 2022-2027. PET preforms made from polyamide polyethylene terephthalate have major applicability in manufacturing bottles and jars which are used in the food & beverage sector for storing carbonated drinks, milk, non-alcoholic beverages and ready-to-drink items. Food & beverage has shown significant growth on account of the growing consumption of juices, soft drinks and non-alcoholic beverages. According to PepsiCo’s statement, in 2021, the beverage sales of the company grew by 21% in North America. Furthermore, according to the first quarter results of Coca-Cola, in 2022, the sparkling soft drinks segment of the company grew by 7% driven by high sales seen in Europe, Middle East & Africa and Latin America. With the robust growth in consumption of beverage items, the demand for PET preforms for packaging applications is also anticipated to increase, resulting in the positive market growth in the food & beverage sector during the forecast period.

PET Preforms Market Segment Analysis – by Geography

Asia-Pacific held the largest share in the PET Preforms market share in 2021 up to 43%. The strong growth of PET Preforms in the region is influenced by its flourishing demand from major sectors such as food & beverages and cosmetics & personal care for packaging applications. The food & beverage sector is growing rapidly in countries like India, Singapore, Malaysia and more on account of the growing demand for healthy drinks, whereas China has shown an increase in cosmetics sales. According to the statement by PepsiCo, in 2021, the company’s sales of beverages increased by 20% in India. Also, according to the October 2021 report of the Asia Pacific Economic Council (APEC), there has been a rise in demand for healthy beverage drinks that have zero sugar and reduced-sugar formulations in Asian countries like Malaysia and Singapore. Furthermore, according to the National Bureau of Statistics, in May 2021, sales of cosmetics goods increased in China by 14.6%. The growing consumption of beverages and cosmetics in major Asian countries will increase the demand for PET preforms for the packaging of such products, resulting in a positive market in the Asia-Pacific region. 

PET Preforms Market Drivers

Bolstering Growth of Cosmetics & Personal Care Sector:

Benefits provided by PET Preforms made from polyethylene terephthalate polyamides such as longer shelf life and varieties in packaging products have created their demand in the cosmetics & personal sector. The sector over the years has grown significantly on account of the growing consumption of various cosmetics items such as creams, lotions, powders and others. According to the quarterly reports of Proctor & Gamble, in Q3 of 2021, the cosmetic sales of the company stood at US$18.1 billion, showing a 5% increase in comparison with 2020. Furthermore, according to the annual reports of Shiseido, in 2021, the cosmetic sales of the company increased by 7% in North America. Growth in cosmetics sales of companies on account of growing consumer consumption has increased PET preforms demands in the cosmetic & personal care sector for innovative packaging, which has positively impacted the growth of the PET Preforms industry.

Increase in Medicine Consumption:

PET Preforms have high applicability in the medical & pharmaceutical sector as the material made from polyethylene terephthalate consisting of ethylene glycol is used for packaging medicine items ranging from tablets to syrups. The sale of medicine has increased over the years driven by an increase in the number of drug recipients. For instance, according to Statistics Canada, in 2019, pharmaceutical sales including over-the-counter medicine sales stood at US$23.5 billion, which showed a 35.3% increase. Furthermore, according to quarterly reports of Cipla, in December 2021, the company’s medicine sales increased in India by 6% in comparison with 2020. The growing consumption of medicine has accelerated the demand for PET preforms in the medical & pharmaceutical sectors for medicine packaging, resulting in positive market growth.

PET Preforms Market Challenge

Growing Shift Towards Biodegradable Plastics:

Polyethylene terephthalate which consists of ethylene glycol resins is a petroleum-based plastic that is not biodegradable and forms a toxicity risk to the environment. Companies especially in the foods & beverage sector to avoid toxicity created by packaging materials made from PET are shifting towards the usage of biodegradable plastic. For instance, according to the statement of Bacardi, in 2020, the company announced to use of 100% biodegradable plastic for packaging products for all its brands by 2023. Furthermore, in 2021, Coca-Cola introduced its first beverage bottle made from plant-based plastic and the company aimed to achieve 100% sustainability in the production of its bottles by 2023. Switching of companies from conventional to biodegradable plastic can reduce the usage of PET for making preforms, which can negatively impact the PFE preforms market size during the forecast period.

PET Preforms Industry Outlook

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the PET Preforms market. The top 10 companies in the PET Preforms Market are:

1. Retal Industries Ltd.
2.  Sidel S.A
3. Plastipak Holdings Inc.
4.  Societe Generale des Techniques
5. ALPLA Werke Alwin L.
6. GmbH & Co KG
7. KOKSAN Pet Packaging Industry Co.
8. Retal Industries Ltd.
9. Zhuhai Zhongfu Enterprise Co. Ltd.
10. Esteform Packaging Limited

Recent Developments

• In February 2022, Quva acquired PET preform manufacturer Resilux with a total sum of US$302 million and the acquisition will increase the production capacity of Quva in PET preform.
• In February 2021, Retal Industries Ltd. planned to increase its PET Preforms capacity by more than 2 billion annually by purchasing new injection molding machines that would increase the preform production capacity.
• In November 2020, Husky Injection Molding System launched NexPET System which is a mid-volume PET preform molding solution equipped with several unique features, including up to 25% faster mold changeovers to support a multiple preform design environment

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