United States Rigid PET Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The United States rigid pet packaging market is expected to witness a CAGR of 4.35% over the forecast period (2022-2027). PET packaging was considered an essential service in the United States due to its applications in bottled water and pharmaceuticals packaging. Beverage, food, healthcare, and other end-user industries have been considered under essential services in the region. This end-user witnessed significant demand for bottled water, hand sanitizer bottles, household cleaning, etc., detergent. According to convenience store news 2020 survey report, purchasing behavior of consumers at convenience stores due to the pandemic for the product such as bottled water(single), bottled water(multipack), milk accounted for 49%, 38%, and 46%, respectively.

Key Highlights

• The International Bottled Water Association reports that Americans consumed 15.6 billion gallons of bottled water in 2021, up 4.5% from 2020 (compared to a 4.2% increase the previous year). That means that each American consumed 46.9 gallons of bottled water on average in 2020, up 3.8% from the prior year. Furthermore, retail dollar sales of bottled water increased by 4.4% in 2021, reaching USD 37.9 billion. With this rising trend likely to continue, it is set to propel the demand for Rigid PET in bottled water packaging.
• Clamshell packaging remains popular with retailers among rigid plastic packaging because the product is visible on both sides. It can be hung or freestanding, and it’s harder to shoplift since the package is bigger than the product inside. It’s much lighter than cardboard or other alternatives, saving energy during transport, cheaper to make, and more durable.
• Manufacturers prefer PET over other plastic packaging goods because it minimizes the loss of raw material throughout the manufacturing process. Its recyclability and the capability to customize it with numerous colors and designs make it a popular choice. Refillable items have risen in popularity as consumer knowledge of environmental issues has grown, increasing demand for the product. For instance, in February 2022, Evergreen is one of the prominent producers of food-grade rPET in North America, having its USD 200 million investment and multiple acquisitions.
• For decades, pharma packaging has likely migrated away from plastic, the industry's main design, and manufacturing material. However, the industry will continue to use polyethylene terephthalate (PET) because of its capacity to break down to PET at the molecular level.
• In April 2022, Klockner Pentaplast, a manufacturer of recycled content products and high-barrier protective packaging, has decided to expand its multi-million dollar production facility in Beaver, West Virginia, to add post-consumer recycled content (PCR) PET capacity in North America. The installation of an extrusion line and two thermoformers will increase the company's sustainable innovation offering in the consumer health, pharmaceutical, and food packaging markets, producing a total of 15,000 metric tonnes of new rPET/PET capacity. Over 20% of Klockner Pentaplast volumes are currently made with PCR material.

Key Market Trends

Rigid PET Caps and Closures will Observe a Significant Growth

• According to Silicon Valley Bank, premium wineries in the United States had a gross margin of 56.8 % as of 2020, with the average bottle price being USD 28. Hence, the usage of Rigid PET closures can be an advantage in reducing cost, being stronger than cork, and not susceptible to taint, which is why PET caps and closures are further fueling the growth of sales in the region.​
• According to the National Library of Medicine, in 2021, overall pharmaceutical expenditures in the US grew 7.7% compared to 2020, for a total of USD 576.9 billion. For 2022, it is expected overall prescription drug spending to rise by 4.0% to 6.0%, whereas in clinics and hospitals it is anticipated to increases of 7.0% to 9.0% and 3.0% to 5.0%, respectively, compared to 2021. Due to the high consumption of drugs, there is a considerable rise in demand for more bottles, driving to the growth of the caps and closures market.
• Furthermore, the inclusion of nanotechnology in convenience food manufacturing has been playing a crucial role in improving critical functions, including preservation procedures, packaging methods, and finished goods processing. Thus, this trend is anticipated to play a significant role in increasing the usage of containers for packaged food products, which is expected to increase the demand for various kinds of closures.
• The majority of the manufacturers are considering caps and closures to provide seal-proof packaging and product protection, which is driving the market growth. According to the USDA Foreign Agricultural Service 2020 report, fresh fruit export commodities included apples, grapes, oranges, strawberries, and cherries, which accounted for a combined USD 3.1 billion, with top markets including Canada, Mexico. The requirement of caps can be increased since they are most often used in juices.
• Moreover, concerning the environmental issue and enhancing brand appeal, various manufacturers are replacing outer box products with rigid PET caps and closures made from recycled plastic and are concentrating more on design and high appeal towards their brands. According to American Chemistry Council, 52 new plastics recycling projects have been announced in the United States have been announced between 2017-2020, with the combined value of projects being USD 4.8 Billion. The growing investments in the US advanced recycling technologies are making it probable to reuse more types of plastic than was previously possible.

Food is One of the Significant Factor for Market Growth

• Packaged food products, such as jams, mayonnaise, pickles, etc., are usually stored in bottles that are protected using various kinds of airtight Rigid PET closures. With an increase in the working population, there has been a substantial increase in the demand for easy-to-cook food and packaged food. According to Global Organic Trade Guide, organic packaged food consumption value in the region is expected to reach USD 21.39 Billion by 2026. This is expected to fuel the growth of rigid PET packaging.
• Various initiatives were taken by the governments and the related regulatory bodies regarding food safety procedures and environmental issues that have led to the revision of the existing food packaging procedures. This has been done for promoting the packaging industry to look for better options in terms of packaging materials, which is expected to drive the market players to comply with environmental regulations and provide environmentally sustainable packaging.
• For instance, Fabri-Kal products are made with a minimum of 20-50% post-consumer recycled (PCR) PET material. Recyclable products are made in the United States. The PET Sip Lids are created for on-the-go consumption of cold drinks and transport safely without splashing; also, preventing the usage of straws. The company’s greenware products are made from PLA resin derived from plants.
• Also, many governments are also mandating stringent laws and regulations on the labeling and packaging of the drugs and food products, which is further expanding the scope of Rigid PET packaging market. For instance, United States witnessed an increase in the demand for rigid packaging in the food, industries, owing to the inability of an in-house packaging facility for few companies in this region.
• In 2021, transparency in food packaging has been trending. Going beyond just the listed ingredients on the label, consumers also want to see the physical product before purchase. Polyethylene terephthalate (PET) bottles are taking over for glass in the single-serve ketchups, condiments, and barbecue sauce markets. Many companies are choosing bottles made of polyethylene terephthalate (PET), as PET is as clear as glass and less likely to break.

Competitive Landscape

US rigid pet packaging market is moderately consolidated, with the presence of a few major companies. The companies are continuously investing in making strategic partnerships and product developments to gain more market share. Some of the recent developments in the market are

• April 2021: Berry Global Group, Inc., announced an investment of more than USD 70 million to support continued growth in consumer packaging films, primarily for e-commerce, food, and beverage applications. The investment supports new multi-layer blown film lines along with infrastructure upgrades and other equipment that will come online in 2021 and 2022, across multiple sites in the North American manufacturing system. Beyond the traditional infrastructure upgrade, the film lines will support the anticipated increased customer demand for recycled content.
• February 2021: Berry Global launched a polyethylene terephthalate (PET) spirit bottle specifically designed for e-commerce businesses. The 50ml PET bottle aimed to address the increasing demand of online spirit sales, especially gin.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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