Why PET is Replacing Glass for Beverages

Janifha Evangeline

The PET preforms market is anticipated to reach USD 23.35 billion by 2022, according to MarketsandMarkets Research. A major factor bolstering the PET preforms market growth is owing to the increasing consumption of carbonated drinks that are largely available in PET bottles. And, therefore, this has resulted in increased demand for PET bottles preforms. Preforms are manufactured using polyethylene terephthalate which is known as PET preforms.

While Preforms can be single or double layered, their weight usually depends on the end container’s desired volume. PET preforms are used for packaging, transporting, and storing drinking water, mineral water, carbonated beverages, dairy products, edible oil, cosmetic products, ketchup, etc. Furthermore, companies that are into the manufacturing of domestic goods are utilizing PET preforms in the packaging of edible oils and cleaning solutions, etc.

Manufacturers use PET preforms in manufacturing bottles that are mostly used to store their produce and this process is known as the hot filling process, which is very common in the developed economies. This does not involve the use of any kind of preservatives and hence requires a very low capital investment.

While one of the major industries that are anticipated to remain a key end-user of PET preforms, the expansion of the ready-to-drink market is bolstering the PET preforms market, internationally. Furthermore, what is predicted to help the market expand have accelerated growth is the availability of products in the local grocery markets and departmental stores.

The RTD beverages are observing a huge rise in their popularity owing to the changing and improving lifestyles of people. Also, in the United States, 30 percent of the entire coffee consumed by the citizens accounts for RTD coffees. In addition, manufacturers are ensuring that products are packaged using stunning designs, with target customers in mind. The market for these single-use beverages is bigger than ever with a large range of beverages in the product offering right from iced teas and coffee to cocktails and wines, which are packaged for immediate consumption on purchase. Therefore, most of the beverage brands are joining to earn using this opportunity and providing some of the most innovative Ready to Drink beverages.

However, there is a surge in the demand for functional drinks with clean labels, owing to a large number of consumers who are health-conscious, demand for such kind of drinks. And this is also one of the major factors driving the market growth. Therefore, the PET preforms market is anticipated to reach 1.4 times the current market value by 2030 owing to the Ready to Drink beverage industry.

Surge in demand for bottled water
Another important fact about the PET preforms is that the surge in demand for bottled water is increasing at an accelerated rate and this is anticipated to make the market grow more than half of the total beverage market.

Since the bottled water is nourishing, calorie-free, and comes without any additives or added sugar this type is expected to be the most consumed drink.

As per studies conducted by the European Federation of Bottled Water (EFBW), over 48 percent of people prefer consuming bottled water rather than buying packaged non-alcoholic beverages, such as sparkling or still water, water with either low mineral content or high mineral content. Therefore, water remains the most favored by consumers.

Furthermore, this is one of the major reasons why big beverage manufacturers are investing hugely in premium water bottle manufacturing. They are doing this aiming to grow or increase their dominance in the international beverages market.

Challenges faced by the PET preforms industry
One of the major challenges faced by the PET preforms industry is the ban on single-use plastics. This is due to the demand for banning single-use plastics made by most governments across the globe. Not just the governments but also the Non-Government Organizations and Environmentalists. Post-implementation of measures intending to decrease the use of plastic has been impacted plastic bottle usage to a greater extent. Furthermore, the growing trend towards sustainable as well as recyclable materials has resulted in huge demands.

PET Recycling
Since today we live in an industrialized affluent society, we have started to rely more on plastics. However, recycling must increase significantly in order to stop or minimize the usage and large production of new plastic products. Therefore, this can be achieved only through the effective and high-quality recycling process and this can help us move towards a circular economy approach. Thereby, it not only protects the nature & environment but it also helps in conserving them for the future generations. Owing to an increase in public awareness and significant effectiveness in recycling operations, recycling rates are increasing.

PET recyclate is set to become highly significant owing to numerous factors as Roland Goggel, Sales Director for Germany, Austria, and Switzerland at Stadler explains: “Until recently there were no specifications for the use of recyclates in manufacturing new products, but this is not the case anymore. The EU has introduced new regulations stipulating that beverage bottles must contain 25 percent recycled content by 2025 and 30 percent by 2030. At least as important as the appearance of new collection and recycling routes for plastic packaging, which together with changes in consumer behavior will give recycling an enormous boost. The plastics manufacturing and processing industry are now showing great interest in recycling, which was not the case in the past. However, the targets set by the EU regulation can only be achieved if all sectors involved in the process work together.”

PET recycling and its Environmental benefits
Recycling decreases the environmental impact of the PET industry in numerous ways such as it helps in reducing the use of raw materials. A further improvement has come through more efficient use of materials for the preforms: “today the preform for a 1.5 – liter PET bottle only weighs around 26.8 g – considerably less than the 38 g of 5 years ago,” explains Roland Goggel. “The use of regranulate and the more efficient use of materials has resulted in a 66 percent reduction in raw materials in the last 5 years.”

Furthermore, the PET industry is also maximizing transport by converting the preforms into bottles at the filling plant and this helps in decreasing the number to a greater extent, and the number of truck trips from the recycling plant as well. While each truck is capable of transporting 700000 preforms, only 15000 finished PET bottles can be transported using a single truck. The result is a significant cut in fuel use and emissions.

The way ahead
While East Asia is expected to observe the highest growth trajectory, registering a Compound Annual Growth Rate of 4.6 percent, it is also anticipated to capture a market as huge as Europe by 2030.

Also, the developing economies are in the process of joining the race intending to make their presence felt in the international market. With a large number of consumers in these countries and change and improvement in lifestyle is further expected to boost the market growth in the region of East Asia.