Le Meridien Jakarta
A variety of applications such as bottles, films, and food packaging segments are fuelling the demand for PET resins. In fact, there is significant increase in PET resin consumption in the packaging industry. Moreover, traditional packaging materials such as glass, aluminum paper, and metal are increasingly being replaced by PET, given its advantage as a light-weight material.
In a new research report by MarketsandMarkets, it is stated that Asia Pacific will dominate the PET resin market between 2014 and 2019, because of a strong surge in demand for PET resin across applications from bottles to films and food packaging segments in the region. The report further predicts that the Asia-Pacific will witness a growth 10.9% during the 2014-2019 period.
The PET resin market already stood at $29,358.5 million in 2013, and it is projected to reach $44,581.8 million by 2019, growing at a CAGR of 7.3%, from 2014 to 2019.
MarketsandMarkets further lists the companies that will play a key role in this period. One is Indorama Ventures (Thailand) that is investing $190 million in a new PET resin manufacturing plant in the U.S, with an annual capacity of 500,000 tons. The facility is expected to complete construction by Q4 of 2015. Another company is M&G Chemicals (Luxembourg) that awarded a $1 billion EPCC to Sinopec Engineering (Group) Co. Ltd. to build a PTA plant to be started in 2014 in Texas. With production of 600,000 metric tons of PET and 864,000 metric tons of PTA, the plant will be the largest single-line PET and PTA plant in the world.
Some of the other players in the PET resin market according to the report are Jiangsu Sanfangxiang Group (China), Far Eastern New Century (Taiwan), and Alpex (Mexico).
More on PET resin market, M&As, new ventures will be discussed at PET Outlook Asia on 20-21 August, 2014 in Jakarta.
A new market report by Smithers Pira, stated that the PET packaging demand will reach 19.9 million tons, worth $60 billion by 2019, from the current global PET packaging market of approximately 16 million tons - worth $48.1 billion. In these next 5 years, the demand will increase at an average rate of 4.6% annually.
According to Smithers Pira, bottled water bottles will witness the fastest growth with a 6% growth in volume terms, during the 2014-19 period. It will be followed by pharmaceutical & medical packaging and PET bottles for other drinks, both increasing by 5%.
In 2013, PET bottles accounted for over 80% of overall beverage sales within the overall PET packaging consumption pegged at 15.4 million tons. PET bottles, in fact, became the largest category for PET packaging in 2013, and the sales of PET water bottles grew by 7.3% while PET bottles for carbonated soft drinks rose by a meager 1.8%.
Factors such as ease in handling, non-breakage, lightweight material have added to the popularity of PET bottles as a viable packaging option for carbonated soft drinks, bottled water, ready-to drink tea and functional drinks as well as juice, packaged food, household cleaning products and pharmaceuticals.
Lack of quality water has also led to an increased preference for bottled water, which have further driven the demand for PET bottles.
More on PET packaging trends will be discussed at PET Outlook Asia on 20-21 August, 2014, Jakarta. For enquiries, contact Ms. Hafizah at email@example.com or call +65 6346 9218.
In an analysis, Euromonitor says that there is a huge market for soft drinks in Indonesia. The absolute off-trade volume growth during 2008-2013 makes the country one of the fastest growing markets for soft drinks in Asia Pacific, only behind the markets in China and India.
GDP growth, high disposable income in the past years, together with tropical climate, have boosted the sales further. But high inflation has resulted in increased prices for consumer goods. Therefore to sustain the growth of the soft drinks industry, manufacturers are looking at ways to cut production and distribution costs.
Although returnable glass bottles, like rest of Asia, was a preferred packaging option in Indonesia, it's popularity is decreasing. Rise in fuel prices has led to a sharp increase in the cost of shipping glass bottles across the island nation and returning them to manufacturers. Therefore, manufacturers are looking at more affordable ways of packaging material, particularly PET and thin wall packaging.
Soft Gable-top liquid cartons and PET plastic bottle packaging have gained much popularity given the ease of use - one-way transaction for retailers and consumers, plastic screw closures that allows resealing the beverage if not completely consumed.
More on packaging trends will be discussed at PET Outlook Asia will be held on 20-21 August, 2014 in Jakarta.