by PET preforms are the intermediary products used for blow molding into PET bottles or containers. They are commonly used for packaging water, juices, soda, edible oils, and other products. PET preforms allow manufacturers to efficiently and cost-effectively produce PET bottles using automated blow-molding technology. The compact design of PET preforms also reduces shipping and storage costs compared to finished bottles. The global PET preforms market is estimated to be valued at US$ 15.79 Bn in 2023 and is expected to exhibit a CAGR of 7.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Rising demand for plastic bottles: One of the major drivers for the growth of the PET preforms market is the increasing demand for PET bottles from the beverage industry. PET bottles are widely used for packaging bottled water, carbonated soft drinks, juices, edible oils, and other beverages. PET plastic provides an effective barrier against oxygen, carbon dioxide, and UV light, thus protecting the product quality and freshness. PET also allows clear visibility of the contents. Moreover, PET bottles are lightweight and affordable compared to glass bottles. All these factors have resulted in PET bottles gaining more popularity over other packaging formats.
Improving production efficiencies: Another key factor fueling the market growth is the advantages offered by PET preforms for production efficiencies. PET preforms allow bottle manufacturers to produce bottles through automated blow-molding machines at a very high speed of up to 200 bottles per minute. This significantly improves the production output. Moreover, PET preforms reduce the cost of shipping empty bottles as they occupy 80% less space compared to finished PET bottles of equivalent capacities. They also allow easier storage and handling. Overall, PET preforms help manufacturers lower production costs and improve profit margins.
SWOT Analysis
Strength: The PET preforms market has low tooling and start-up costs as preforms can be blow molded using existing bottle blowing equipment. PET preforms do not break or dent easily making them suitable for packaging various beverages and food products. PET preforms are lightweight and very durable providing strength and impact resistance during transportation and handling.
Weakness: PET preforms are non-biodegradable posing environmental concerns. Changes in crude oil prices can significantly impact the production costs of PET resins used to manufacture preforms.
Opportunity: Growing demand for bottled water and juices especially in developing regions of Asia Pacific and Latin America is driving the need for PET preforms. Recent technological advancements have enhanced the barrier properties of PET enabling its use for packaging carbonated drinks and milk products.
Threats: Stringent government regulations regarding the usage of plastics can adversely affect the PET preforms market. Rising consumer awareness about health issues associated with BPA levels in PET plastic may reduce its consumption.
Key Takeaways
The Global PET Preforms Market Demand is expected to witness high growth over the forecast period owing to rising consumption of bottled beverages worldwide. Asia Pacific region currently dominates the market and is anticipated to maintain its leading position during the forecast years. China, India and Southeast Asian countries are expected to drive the regional market on account of growing population, rising living standards and increasing health consciousness among consumers.
The key players operating in the PET preforms market are Thai Coconut Public Company Ltd., Vita Coco (All Market Inc.), Coco Veda Natural Products Inc., The Coconut Company Ltd., Merit Food Products Co., Ltd., Thai Agri Foods Public Company Ltd. Key players are focusing on capacity expansion plans and new product launches to strengthen their market presence. For instance, Thai Coconut expanded its production facility in Thailand aiming to meet the growing global demand for coconut water.
The global PET preforms market is fragmented with the presence of several international and domestic players. Regulatory changes regarding the usage of PET can impact raw material prices and influence market dynamics. Innovation in packaging formats and development of lightweight preforms with advanced barrier properties will continue to offer new growth opportunities over the coming years.
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Source: Coherent Market Insights, Public sources, Desk research
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