PLASTIC PACKAGING: GLOBAL EVOLUTION OF PET BOTTLES IN

A SUSTAINABILITY-FOCUSED WORLD

December 2019
INTRODUCTION
PET BOTTLES IN THE GLOBAL PACKAGING CONTEXT
THE SUSTAINABILITY INFLUENCER
REALITY OF RECYCLING, RPET AND OTHER SOLUTIONS
KEY CATEGORY PERFORMANCES
RECOMMENDATIONS
INTRODUCTION

Scope

▪ This report discusses the trends and influencers for PET bottles in the global Disclaimer
retail consumer goods marketplace. Much of the information in this briefing
is of a statistical nature and, while
▪ Unless stated otherwise, all packaging data are expressed in retail unit volume every attempt has been made to
ensure accuracy and reliability,
terms, with 2018 as the current year. Euromonitor International cannot be
held responsible for omissions or
errors.
Figures in tables and analyses are
calculated from unrounded data and
may not sum. Analyses found in the
Global Retail Demand for PET Bottles in 2018 briefings may not totally reflect the
companies’ opinions, reader discretion
is advised.

Soft Drinks: 470 billion

The PET bottle is ranked second in
packaging use. Though it has strong
recyclable features, PET operates at a
Food: 43 billion time of keen concern about plastic
pollution. There are mandated
legislative targets, NGO and industry
measures and commitments that
Beauty and Home Care: 16 billion align with a notable brand shift to
rPET, but a gap in supply to solve.
2025 and 2030 will be landmark
years for PET that require progress
Alcoholic Drinks: 8 billion now. Consumers’ wellness search
looks set to assure sales of water and
functional beverages in PET bottles.

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INTRODUCTION

Key findings

PET bottle records The PET bottle is strongly entrenched in the global packaging marketplace, with dynamic
global leading growth annual gains. Soft drinks is its prime revenue generator, owing to PET’s versatility in size,
shape and recloseability.
PET operates in an Despite being recyclable and more widely recycled than other plastics, PET is highly
era of sustainability, criticised for its prevalence, as waste. Design for circularity will become standard to
calling for a stop to ensure recovery and reuse ensues. This can help PET shake off its single-use label among
pollution consumer for a more sustainable one – a bottle with many lives.
2025, 2029 and 2030 Milestone years are not far away for PET and the wider plastics industry. Global promises
milestones require include 25% recycled content by 2025 in Ellen MacArthur Foundation’s New Plastics
robust progress Economy. The EU is a region to watch, given corporate pledges and regulation via the
Single-Use Plastic Directive’s targets on recovery and rPET content. A revolution is
required to meet the targets being set.
Gap in rPET capacity There is a gap in rPET to meet demand. Current global recovery is far from optimal. In
creates potential for Europe, PET bottle recycling is around 60%. It is far lower in the US, and faces
recovery technology competition from outside the bottle industry. Corporate investment shows evidence that
solutions are being sought; via return, reuse, recycling and alternatives.
Water and wellness Bottled water is set to account for half of all soft drinks consumed in 2020, where PET
are core to growth; holds a flagship position. However, in this time of “plastic-free”, some gains for canned
recycling and rPET and carton waters are apparent. The need for sustainable packaging is epitomised by
reuse hold circular brands’ move from virgin PET. This will be a key driver, including of 100% rPET bottles.
key Cross-value chain collaboration on PET recovery for reuse is essential to prevent waste,
and importance must be communicated to consumers, for a sustainable PET future.

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INTRODUCTION
PET BOTTLES IN THE GLOBAL PACKAGING CONTEXT
THE SUSTAINABILITY INFLUENCER
REALITY OF RECYCLING, RPET AND OTHER SOLUTIONS
KEY CATEGORY PERFORMANCES
RECOMMENDATIONS
PET BOTTLES IN THE GLOBAL PACKAGING CONTEXT

PET holds leadership performance in the global packaging marketplace

▪ The PET bottle holds an influential global position in the consumer packaging industry, and is second only to
flexible plastic packaging, accounting for 15% of global retail packaging sales in 2018. It remains among the
most dynamically growing of the major consumer packaging formats.
Global Leading Packaging Formats 2018 and Forecast Growth 2018-2023
1,400 4.5
1,200 4.0
3.5

% CAGR 2018-2023
1,000
3.0
Billion units

800 2.5
600 2.0
1.5
400
1.0
200 0.5
0 0.0
Flexible PET Metal Glass Thin Wall Liquid Folding HDPE Flexible Flexible
Plastic Bottles Beverage Bottles Plastic Cartons Cartons Bottles Alu/Plastic Paper
Cans Containers
2018 Billion units % CAGR 2018-2023

PET Bottles
538 billion 15% 3.9% CAGR
units in 2018 of global packaging market leading growth 2013-18

Note: Data refer to global retail packaging consumption, aggregated across food, beverages, beauty and personal care, home care and dog and cat food
industries

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PET BOTTLES IN THE GLOBAL PACKAGING CONTEXT

Consumers’ thirst for soft drinks will instruct PET fortunes

▪ Central to global PET bottles’ success is the demand that comes from soft drinks, where the PET bottle ranks
among the strongest performing pack types, recording a 4% CAGR over 2013-2018, compared to total soft
drinks packaging’s 2% CAGR over the same timeframe.
▪ PET bottle sales growth is being bolstered by fast-developing countries and by broader global consumer
purchasing of bottled water for health and hydration, where recloseable PET is by some distance the preferred
pack. Further adding to PET bottles’ potential is the rise of the single-serve format, which meets consumers’ on-
the-go beverage needs.
Global PET Bottles by Industry 2018 and Forecast Growth 2018-2023 PET Bottles
500 4.5
60%
450 4.0
of all soft drinks sold in
400 3.5 2018 were in a PET
350 bottle

% CAGR 2018-2023
3.0
Billion units 2018

300
2.5
250
2.0
+82 billion
200
more soft drinks in PET
1.5
150 bottles in 2018 vs 2013
100 1.0

50 0.5
43%
0 0.0
301-500ml share of PET
Soft Drinks Food Home Care Alcoholic Drinks Beauty and
Personal Care bottled water sales
Billion units 2018 % CAGR 2018-2023
2018-23

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PET BOTTLES IN THE GLOBAL PACKAGING CONTEXT

PET evolution fastest in Asia and North America, slower in Europe

PET Bottle Penetration in Soft Drinks by Region ▪ Asia Pacific has seen the most
2013/2018/2023 rapid development, with retail PET
70 bottle sales rising by 31% over
2013-2018, is followed by North
America, both regions lead in
60
absolute volume gains for PET
over 2013-2018.
50 ▪ Middle East and Africa demand
reflects the young population and
40
preference for soft drinks. Highest
per capita consumption in 2018
%

was registered in Saudi Arabia

30 (218 litres) and the UAE (203
litres) but is slowing as sugar
20
concerns influence. Per capita
consumption is lower in South
Africa, at 103 litres, but rising fast.
10
▪ Western Europe – the third largest
region for PET – is seeing a
0 backlash against pollution with
Asia Pacific North Western Latin Middle East Eastern Australasia competing pack types seeking
America Europe America and Africa Europe
headway. Many brands have made
2013 2018 2023
sustainability pledges.

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PET BOTTLES IN THE GLOBAL PACKAGING CONTEXT

Recyclable PET bottles operate amidst anti-plastic sentiment…

▪ The PET bottle is highly successful, as evidenced in its widespread use. It is an extremely resource-efficient
pack (a concept not widely understood among consumers), being highly recyclable; however, alongside the
wider plastics industry, it is operating under a cloud, owing to its contribution to pollution.
▪ The attention on plastic waste, which has been particularly prominent since the latter half of 2017, has hit a
raw emotional nerve with consumers and NGOs, leading to demand for action to reduce waste. Plastic waste
and commitments to sustainable packaging are being addressed by governments through legislative measures,
with 2025 and 2030 are targeted as key timelines for advances in reduction, recovery and recyclability. In
tandem, a rising number of corporate commitments on plastic usage, collection, recycling and reuse have been
seen across the value chain, from manufacturers, packagers and retailers.
▪ Plastic-free is trending as a response, but the wholesale removal of plastic is not necessarily the answer.
Switching to alternative packaging can have its own unintended but potential detrimental implications for
product shelf-life, carbon footprint and waste.
▪ From the outset of product packaging design to end of
life, a sustainable approach is becoming standard and will
be key to future packaging development. There are an
increasing number of collaborations and breakthroughs
happening in the recovery and recycling of plastic,
alongside the creation of new materials and new
solutions to address circularity, with more to come in the
next five years.
▪ Responsible PET bottle consumption and far-reaching
advances in preventing it being a pollutant are critical to
corporate strategies and to the future of PET.

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PET BOTTLES IN THE GLOBAL PACKAGING CONTEXT

…as rise of remove, reduce, reuse, recycle and reinvent strategies shows

Remove (Packaging-free): Examples

Remove (Plastic-free): From beer Reduce: From milk bottle caps to ready
range from Lush “Naked” beauty stores
multipacks to “plastic-free” trust mark meal trays, the search to reduce plastic
to Tesco loose produce trials and
launch and paper bottle designs. use continues.
direct-printed, laser-labelled fruit.

Reuse: From refillable drinks bottles to Recycle: From ocean-recovered plastic Re-invent: Alternative consumption
retailer refill schemes to home care to conventional recycling post solutions, such as on-line grocery trial
refills. Here, Febreze removes need for consumer use, recycled, recyclable Loop seeking to close the plastic loop
a new trigger sprayer each time. packaging is the starting point. with refillable packaging.

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INTRODUCTION
PET BOTTLES IN THE GLOBAL PACKAGING CONTEXT
THE SUSTAINABILITY INFLUENCER
REALITY OF RECYCLING, RPET AND OTHER SOLUTIONS
KEY CATEGORY PERFORMANCES
RECOMMENDATIONS
THE SUSTAINABILITY INFLUENCER

Sustainability is a strong influencer of changing corporate strategies

▪ The importance placed on sustainability as part of a company’s value proposition is currently very strong, as
indicated by Euromonitor International’s 2019 Voice of the Industry Sustainability survey, where around three
quarters of professionals state this. However, a larger number of survey respondents consider that their
companies’ sustainability strategies need improving.
▪ Surveyed attitudes regarding the importance of sustainability align with corporate pledges and activity
regarding packaging specification, to address concerns about how waste impacts the planet and the potentially
damaging outlook for both planetary and human health. Plastic packaging is a prime concern.
Attitudes Towards the Company’s Sustainability Strategies 2019
Need to be improved

Are an important component of the value proposition

Are critical to success

Help to attract and retain customers

Help to develop sustainable products

Help to attract and retain employees

Set the pace for sustainability initiatives against industry peers

0% 10% 20% 30% 40% 50% 60% 70% 80%

Respondents
Source: Euromonitor International Voice of the Industry Survey: Sustainability, May 2019; n=556

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THE SUSTAINABILITY INFLUENCER

Recyclable is the most trusted of green product labels…but is trust faltering?

▪ Recyclable is a term that is well understood, and is Global Consumer Trust in Green Labels
the green label most trusted by consumers – 57% 2017/2019
of consumers in Euromonitor’s 2019 Lifestyles Halal/kosher
Survey. “Recyclable” is more trusted than “locally Vegan
sourced”, “organic” and “natural” labels. Supports a charity or a charitable cause
Fair trade or UTZ certified
▪ Trust might, however, be faltering. Consumers tend
Non-GMO
to regard plastic soft drinks bottles negatively in Free range
environmental terms, even if these bottles are Sustainably produced
typically recyclable PET bottles. The throw-away No artificial ingredients
Organic
nature of soft drinks bottles remains a challenge,
Environmentally conscious/eco-friendly
and has been a contributor to the reduction in Natural
consumer trust in “recyclable” noted between 2017 Locally sourced
and 2019. Recyclable

▪ Pledges from brands on recovery and reuse of 0 25 50 75

%
plastic, alongside education programmes about Source: Euromonitor’s Lifestyles Survey 2017, 2019
plastic handling post consumer use, are growing,
and seek to offer guidance on how best to dispose Consumer Trust in “Recyclable” Label: 2017/2019
of packaging, what happens to collected bottles,
and how they are recycled and used for new 63.5% of consumers trusted recyclable in 2017
bottles.
▪ With this understanding also comes a rising search
for recycled PET (rPET) over virgin PET, as a 57.0% of consumers trusted recyclable in 2019
responsible, recycled and recyclable pack choice.

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THE SUSTAINABILITY INFLUENCER

Plastic’s success in use, its downfall as waste…

▪ Commensurate with plastic’s success in use is its highly prominent occurrence as waste. This concern presents
opportunities and a need for both innovation and redress.
▪ Among plastic pack formats, PET is highly recyclable but far more can and needs to be done to curtail its
inadequately managed presence as waste, by designing for circularity, and by improving recovery and recycling
to prevent plastic becoming litter in landfill, polluting the natural environment.

59% PET bottle share of

63% Plastic’s dominance 541 billion PET
global retail soft drinks
as share of global retail
packaging sales in 2018 bottle retail sales in 2018 = almost 1
million
bottles per minute

Plastic protects and 8 million

… yet 58% of plastic is recycled
PET is tonnes of plastic (part in Europe*(1), so 42% is
recyclable… of this is PET) ends up as
marine waste
not recycled

Source: (1): Petcore Europe and ICIS’s PET Recycle Industry survey (results released December 2018) cite 58.2% of the 3.3 million tonnes on PET placed on the
European market were collected, increase of 2.9% on 2016.

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THE SUSTAINABILITY INFLUENCER

…with sustainability focus firmly rooted on plastic packaging

▪ Among the top 10 collected items in Ocean Top 10 Items Collected in International Coastal
Conservancy’s International Cleanup 2019 report, all Clean-Up (Ranked in Size, by Number of Items
10 had plastic in their composition. Collected) 2017/2019
▪ Plastic beverage bottles – which principally refers to 2017 report 2019 report
PET bottles as the most common polymer used –
rank prominently in waste clean-ups. 1 Cigarette butts Cigarette butts
▪ Bodies including the UN and the European 2 Plastic beverage bottles Food wrappers
Commission are seeking action on plastic pollution, 3 Plastic bottle caps Straws, stirrers
with the European Commission legislating on the
handling of single-use plastic items through its 2018 4 Food wrappers Forks, knives, spoons
European Plastics Strategy and Single-Use Plastic 5 Plastic grocery bags Plastic beverage bottles
Directive of 2019.
6 Plastic lids Plastic bottle caps
▪ PET is not among the banned materials but is,
because of its importance in sales, targeted for 7 Straws, stirrers Plastic grocery bags
recovery. With increased scrutiny, opportunities for 8 Glass beverage bottles Other plastic bags
alternative formats exist, including for “plastic-free”.
9 Other plastic bags Plastic lids
▪ Core non-plastic pack materials like metal and glass,
also with recycling and recyclability profiles, seek to Foam take-away
10 Plastic cups, plates
advance, as do circular alternatives from within the containers
PET value chain itself. rPET is in high demand as an Source: Ocean Conservancy from International Cleanup reports,
2017 and 2019
increasingly preferred sustainable pack solution to
virgin PET.

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THE SUSTAINABILITY INFLUENCER

Targeted action on plastic includes PET bottles: 2017-2018

▪ The rise of legislated targets and corporate pledges reflects the focus on plastic packaging and waste.
▪ Collaboration and alliances across the value chain are gaining traction as collective means to advance
sustainability. These include national alliances, like the UK’s Plastic Pact, launched in spring 2018, the aim of
which is to eliminate unnecessary single-use plastic by 2025, and ensure that all remaining plastic packaging is
reusable, recyclable or compostable by that date.
Key Plastic Packaging Sustainability Milestones 2017-2018: Legislative and Corporate
Late 2017 January-March 2018 April–May 2018 August–December 2018

• France announces tax to be

▪ Blue Planet ll documentary • Government targets on • National collaborations set up to
implemented on opaque, hard-to-
series brings awareness of the recovery announced: EU advance solutions for plastic. The
recycle PET bottles.
detrimental effects of plastic Plastics Strategy; UK 25-year UK Plastics Pact’s aim, working
pollution to the masses. Environment Plan. in partnership with the Ellen • UK government announces tax to
MacArthur Foundation (EMF), is be introduced on plastic
▪ UN Environment Plan (200+ • Major corporate players to address plastic pollution and packaging with less than 30%
nations sign up) to tackle plastic update plastic packaging eliminate unnecessary single-use recycled plastic, effective from
pollution. commitments on sustainable plastic by 2025. According to the 2022.
and recyclable packaging in line UK Plastics Pact, close to 70% of
▪ China waste import ban on with legislative timelines. • European Commission tethered
low-grade plastic waste plastic waste in the UK is
packaging. caps proposal for drinks bottles.
implemented. • Retail initiatives: packaging-
free stores, plastic-free aisle/ • Environmental campaign group • Ellen MacArthur Foundation
stores, eg Ekoplaza, Lush, Tesco. A Plastic Planet launches the launches New Plastics Economy
first plastic-free packaging Global Commitment. At the time
trust mark. Tea Pigs is the first of writing this report it has more
commercial brand to use it in the than 400 signatories.
UK.

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THE SUSTAINABILITY INFLUENCER

2019 sees activity continue apace

▪ Reponses to improve and innovate continue. Efforts to move from a linear to a circular economy include
Terracycle’s Loop retailing model, investment in research by the Alliance to End Plastic Waste and the network
of national Plastic Pacts, which continues to expand.
▪ Regulation is a significant driver. 2019 sees the EU’s formal adoption of the Single-Use Plastic Directive, while
in Singapore, the Resource Sustainability Bill has been passed.
Key Plastic Packaging Sustainability Milestones 2019-date: Legislative and Corporate
January-February 2019 February 2019 May-June 2019 August–September 2019

• Loop: a reusable, refillable • Ellen MacArthur Foundation’s • EU’s Single-Use Plastic • San Francisco International
packaging e-commerce initiative, (EMF) global Plastics Pact Directive to reduce plastic Airport bans sale of single-use
which collaborates with major network expands with the marine waste, formally adopted plastic water bottles (circa 4 mn
manufacturers including Procter French National Pact on Plastics in May 2019. Targets plastic bottles sold per year) as part of its
& Gamble, Coca-Cola, Nestlé, Packaging. items most commonly occurring plan to cut emissions. Refillable
Unilever and Danone. Initial trial as waste separate requirements aluminium or glass bottles can be
in France and the US in 2019. • UK government department for beverage bottles. purchased.
Defra (Department for
• Alliance to End Plastic Waste, Environment, Food and Rural • Chile joins EMF’s Plastic Pact as • Edible packaging Ooho receives
comprising 30+ global chemical, Affairs) launches a public first Latin America nation. UKRI funding; partners with
oil and plastics players pledging consultation on viability of Lucozade Ribena Suntory to
USD1.5 billion investment to introducing a packaging deposit • Retailer Waitrose & Partners, develop vending technology.
“end plastic waste”. return scheme to improve launches 11-week trial at one
national recycling. store in Oxford (UK), offering • The Body Shop opens Refill Body
• Circular Plastics Alliance, first unpackaged fruit and vegetables Shop concept store (UK).
meeting 5 February 201. Its and refill stations for a number of
declaration and vision presented foods, detergents, beer and wine. • Singapore passed its Resource
20 September 2019. The trial has been extended Sustainability Bill in September
following a positive response. not only on plastic, but targeting
reduction in use of all types of
disposables.

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THE SUSTAINABILITY INFLUENCER

EU single-use plastic directive sets stiff milestones for PET bottles

▪ The EU Single-Use Plastic (SUP) Directive to reduce EU Single-Use Plastic Directive: Key Targets
plastic marine litter was formally adopted on 21 May
2019. It targets the 10 most common items occurring Ban on non-packaging items by 2021: single-use
as waste on EU beaches. It stipulates a 2021 ban on plastic plates, cutlery, balloon sticks and cotton wool
non-packaging items like single-use plastic cutlery. buds.
▪ For PET bottles, 2025 is a pivotal year, by which time
bottles should have a 25% minimum recycled PET
(rPET) content. This is earlier than the 30% recycled Tethered caps by 2024; this regulation will impact
content target for all plastic bottles, of 2030. all plastic beverage bottles under three litres.
▪ The PET bottle is the only plastic singled out for a
mandated minimum recycled content by 2025.
Beverage bottles – mainly PET – have a further target
PET bottles to contain at least 25% recycled plastic
of 90% recovery by 2029.
by 2025.
▪ In advance of formal directive adoption, there have
been examples of brands implementing rPET. For
example, in the UK, Highland Spring’s 500ml eco-
bottle moved from a 2018 trial to a permanent 2019 Plastic bottles to contain at least 30% recycled
release, which was communicated to consumers. content by 2030.
▪ This directive requires robust progress on recovery
and reuse, and has wider global implications as
brands operate across regions. Some brands are A 90% collection target for plastic beverage bottles
looking to exceed requirements. Updates on progress by 2029 (77% by 2025), which EU member states
are expected to be a recurring feature. have agreed to.

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INTRODUCTION
PET BOTTLES IN THE GLOBAL PACKAGING CONTEXT
THE SUSTAINABILITY INFLUENCER
REALITY OF RECYCLING, RPET AND OTHER SOLUTIONS
KEY CATEGORY PERFORMANCES
RECOMMENDATIONS
REALITY OF RECYCLING, RPET AND OTHER SOLUTIONS

Recycling and waste are the top sustainability investment priorities

▪ With “recyclable” the most trusted green label among consumers, it is perhaps not surprising that 73% of
business professionals consider recycling and waste as their primary focus for sustainable business investment
over the next five years. According to Euromonitor International’s Voice of the Industry survey on
Sustainability, recycling is the first priority for sustainable investment for business, followed by waste.
▪ These investment priorities align with supply chain focus on responsible use, recovery and recyclability of
plastic, and presents opportunities to advance progress for PET and alternatives through:
▪ Waste management and recycling infrastructure investment, as most important to achieve the increased
volume and quality of PET recovery required for packaging use anew; to reduce virgin PET use and meet
rising commercial need for food-grade rPET.
▪ Recycling technology Areas For Sustainable Investment 2020-2025
innovation, to improve recycling
Recycling
beyond current rates. Chemical Waste
technologies that can repurpose Energy
difficult to recycle plastic are Development of sustainable products
expected to feature alongside Green technology
current established mechanical Sustainable sourcing
recycling technology. Clean technology
▪ Alternative models/materials Pollution

that encourage reuse Water

consumption, or are materials Forest and biodiversity protection

derived from renewable 0% 20% 40% 60% 80%

sources. Respondents
Source: Euromonitor International Voice of the Industry: Sustainability, May 2019; n=556

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REALITY OF RECYCLING, RPET AND OTHER SOLUTIONS

Europe’s plastic recycling rates and 2025 targets: there is work to do

▪ In the EU, in 2016, 17 of the Recycling Rate for Plastic Packaging per Country 2016
EU28 recorded recycling rates for Liechtenstein
Iceland
plastic packaging of more than Norway

40%. Lithuania was far ahead of Malta

Estonia
this, at more than 70% recycled. Finland
France
Its use of a deposit return scheme Ireland
Hungary
has been key to its success. Luxembourg
Austria
▪ Recycling regulation was Denmark
Latvia
formerly governed by the EU Greece
Croatia
Packaging Waste Directive Portugal
Italy
(PPWD), which targeted 22.5% Belgium
United Kingdom
for plastic, met by all EU Spain

countries. Romania
Poland
Germany
▪ The new targets set by the EU’s Sweden
Netherlands
Plastic Packaging Strategy and EU Slovakia
Bulgaria
Single-Use Plastic Directive go Czechia
Slovenia
much further, stipulating a 50% Cyprus (¹)

recycling rate by 2025. Lithuania

EU-28 (¹)
▪ Preparing for this regulation, 0 10 20 30 40 50 60 70 80
alongside the clear global agenda 22.5% 40.8% in 2016 50%
on plastic waste, requires rapid EU Plastic Recycling EU 28+2 recycling rate New Plastic Packaging
Rate target according for plastic packaging Recycling Target for
progress on recycling. to the EU’s PPWD waste 2025
Source: Eurostat 2016 (EU Single-Use Plastic
Directive)

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REALITY OF RECYCLING, RPET AND OTHER SOLUTIONS

How does PET fare in the recycling stakes? A mixed bag

▪ In Europe – the region where regulation on PET recovery is arguably strongest – a 58.2% recycling rate was
achieved in 2017, with varying country performances. This outperformed a 42%* regional recovery rate for
total plastics.
▪ The US, the second biggest user of PET bottles after China, registers far lower recycling rates, while Japan, the
third largest user of PET bottles, has high recovery and processing rates for PET bottles. Incineration for energy
is an important element of recovery, given Japan’s landfill restrictions. There is room for progress on collection
to outpace PET bottle growth, which is not currently the case in Europe and will be required to meet the EU
2025 targets on recycled content for plastic beverage bottles.
PET Recycling Across Regions 2017/2018

Europe US Japan
58.2% 29.2% 84.0%

PET Recycling Collection rates In the Recycling Actual PET One of the Rate refers to
survey states vary from highs Activity report, weight has highest country processing via
58.2% of the 3.3 of 90-95% in the US records dropped, which recovery rates one of three
million tonnes of Germany to less 29.2% recycling is related to a for PET bottles in types of recycling
PET placed on than 30-40% in for PET bottles, consumer switch the world. technologies:
the European some up from 28.4% in from carbonates material, thermal
market was Mediterranean 2017. to water, the (incineration)
collected, up by countries. bottles of which and chemical.
2.9 percentage are lighter.
points from
2016.
Source: Europe 2017 results – PETcore Europe and ICIS PET Recycle Industry survey (Dec 2018 results); USA 2018 results – National Association for PET Container
Resources (NAPCOR ) and The Association of Plastic Recyclers (APR); Japan 2017 results – Council for PET Bottle Recycling; *2016 Eurostat

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REALITY OF RECYCLING, RPET AND OTHER SOLUTIONS

Brands commit to reusable rPET to reduce reliance on virgin plastic

▪ At 470 billion PET bottles in 2018, the soft drinks industry’s use represents
68% of global sales. As such, it is no surprise that this industry is vocal in its
commitments made on plastic bottles.
▪ Commitment from brand leaders to advance to zero waste goes beyond soft
drinks, and is apparent in strategies across food, beauty and home care,
with promises on reduction, recovery and reuse.
▪ Unilever, in autumn 2019, pledged to halve its use of virgin plastic by 2025,
Guhl shampoo uses 50% rPET for 15
as part of its “Better Plastic” goal. This includes plans to switch its Dove million bottles sold in Europe; annual
brand to 100% recycled plastic bottles in Europe and North America by saving of circa 770 tonnes of CO2 and 180
tonnes of PET.
end-2019, following the move of its premium Ren skin care into 100% rPET Kao Corporation, 2019
bottle. This complements trials of refillable and reusable packaging. There
is activity across fmcg players, eg Kao Corp committing to 50% rPET for its
Guhl shampoo range in Europe.
▪ rPET offers a solution that is both less energy intensive and more carbon
efficient to produce than virgin PET (the latter being oil-derived plastic
from non-renewable fossil fuels). Brands and retailers extensively favour
rPET, and this is where largest PET volumes are expected to shift, as
companies demonstrate their endeavours on sustainable packaging by
reducing their dependence on virgin PET.
▪ Reducing environmental impact will be dominant in strategies. Among soft Nestlé Pure Life DC Super Hero 330ml
drinks users of PET, there is an emphasis on the adoption of rPET. Reuse water bottles for children; 100% rPET
and 100% recyclable.
via rPET will drive recycling to meet future demand. Nestlé Waters North America, 2019

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REALITY OF RECYCLING, RPET AND OTHER SOLUTIONS

rPET pledges from soft drinks leading four…

Global Leading Soft Drinks Players

Soft drinks players rPET pledges in soft drinks
• PET bottles to be 50% rPET by 2025 (up from 21% in 2016).
• Its largest bottler, CCEP, pledges for all bottles to be at least 50%post-consumer
recycled by 2023 (formerly the stated goal was 2025).
• Further pledge on 100% rPET content: Smartwater to be 100% rPET in Western
Europe by early 2020 (600ml, 850ml); Chaudfontaine water and Honest RTD teas.
• To use 25% recycled content in all its plastic packaging by 2025.
• LIFEWTR brand to be packaged in 100% rPET by 2020.
• A multi-year supply agreement with plastic innovation firm Loop Industries to
procure rPET from 2020.
• Increase recycled PET content in bottles to 35% by 2025 globally .
• To 50% rPET content in US, with focus on Poland Spring brand; to 50% rPET for
European brands Acqua Panna, Buxton, Henniez and Levissima by 2025.
• 100% recycled PET bottles in all major water markets, by 2021.
• Average 50% rPET content in drinks bottles; 100% for Evian bottles by 2025.
• In arrangement to purchase Loop Industries Inc rPET from Loop’s JV facility with
Indorama Ventures in US to enable100% rPET by 2025.
• To use 30% post-consumer recycled content across packaging portfolio by 2025.
• Commits to replacing dark-coloured plastics and to making bottle labels and caps
compatible with bottle recycling processes.
• Involved in consumer education campaigns on how to “recycle right” (2018 CSR
report).

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REALITY OF RECYCLING, RPET AND OTHER SOLUTIONS

…but there is a shortfall in rPET supply for packaging

Heightened demand for rPET, thus price increases …but competition for rPET in circulation means that
likely… rPET recovery for bottle use is not a certainty
▪ As regulatory stipulations, alongside government, ▪ There are further challenges in the form of
brand, retailer and packager pledges, on recovery competition for rPET, outside reuse in food-grade
and recycled plastic use are set to become more PET bottles.
stringent, with 2025 a pivotal year, there is a gap in ▪ There are strong revenue streams for rPET coming
rPET availability to meet current and future needs. from the plastic tray industry and beyond packaging,
▪ Key targets on recycled plastic content include: with significant volumes downcycled for textiles and
▪ The regional EU Single-Use Plastic Directive and, carpet end-uses, the latter of which can be more
in the US, California Assembly Bill 792 (10% economically repurposed.
recycled content by 2021, 50% by 2030); ▪ Based on a global target of 25% rPET by 2025, rapid
▪ The global reach of Ellen MacArthur Foundation’s progress on collection rates and on high quality
New Plastics Economy, with 400+ signatories collection for reuse as rPET is necessary.
committed on reducing plastic pollution, such as
by using 25% recycled content by 2025; PET recycling progress required to 2025 to
▪ Individual brand owner, retailer and packager meet rPET pledges: US (x2); EU (+7% CAGR)
recycled content goals, many that go above 25%, Based on a global average target of 25% rPET
make the requirement for more rPET a global one. content in PET beverage bottles by 2025 and
▪ With higher rPET demand, rPET prices are rising and current availability of rPET, recycling rates would
this is likely to continue. In the UK, taxation is need to double in the US to circa 60%* and rise by a
planned from 2021 on plastic not formed from a 7%** CAGR (currently 4%**) in the EU over the next
five years to reach this target
minimum recycled content. Source: APR meeting (US) October 2019; **ICIS study (Europe) 2019

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REALITY OF RECYCLING, RPET AND OTHER SOLUTIONS

Extensive recycling investment and brand agreements to secure rPET

Investment in recycling and recycling technology Brands make formal rPET supply arrangements
▪ Major investment by the PET industry is apparent, ▪ To secure rPET supply and deliver on pledges made,
and includes that from raw material producers such but mindful of the shortage of availability, there is
as Indorama, which pledges to significantly increase evidence of many brands entering into multi-year
the use of recycled content in its production. purchase agreements for rPET.
▪ Investment firms like Closed Loop Partners (US), ▪ A number of soft drinks players have entered into
which attracts investment into its Closed Loop Fund, multi-year agreements with Canadian plastic
invest in local recycling and infrastructure projects recycling technology start-up Loop Industries Inc to
▪ Chemical recycling technologies are becoming an guarantee rPET supply. Danone is to purchase Loop
important area of recovery activity, to complement Industries rPET from Loop’s joint venture facility
mechanical recycling, such as by converting PET back with Indorama Ventures in the US, to enable 100%
to its original component monomers and then rPET by 2025. PepsiCo and The Coca-Cola Company
repolymerising it into rPET. have also arranged multi-year contracts.
▪ Country and regional initiatives are growing. The US ▪ In the beauty market, L’Occitane has a multi-year
is the second largest nation for PET bottle use, and deal, the goal of which is to reach 100% Loop-
action is being taken to increase its currently low branded rPET across all products by 2025.
recycling rate. The American Beverage Association ▪ In 2018, Nestlé Waters North America and Niagara
(ABA) has channelled USD100 million into The Bottling established a pre-buy agreement with
Recycling Partnership and Closed Loop Partners to CarbonLITE in the US for rPET. This has enabled
advance US recycling. CarbonLITE to expand operations in anticipation of
need. Its third US plant is to be in full production by
early 2020, to recycle more than two billion PET
bottles annually into food-grade rPET pellets.

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REALITY OF RECYCLING, RPET AND OTHER SOLUTIONS

Brands further impart the value of recycling to consumers out-of-home

▪ Brands using PET bottles show a keenness to “Sending plastic round in circles”
communicate with, and educate consumers on the Coca-Cola Great Britain (UK)
value of plastic and the importance of recycling,
apparent in the rise in advertising on the topic,
encompassing collection and recycling for reuse. This
is important, as out-of-home infrastructure for on-
the-go packaging recycling tends generally to be
weaker. This is certainly true for the UK market,
where there is a far more developed kerb-side
system for residential collection of PET bottles.
▪ To coincide with Recycle Week, in 2019, Coca-Cola
Great Britain launched a “round in circles” campaign
“Recycling. It’s in our own hands”
to reach consumers out-of-home, informing them of
Lucozade Ribena Suntory (UK)
the value of recycling for reuse, in order to create
new rPET bottles. Lucozade Ribena Suntory, another
UK example, used a key billboard, visible from the
M4 motorway into London, moving from its
Lucozade brand’s iconic orange to green, to promote
recycling with its “Go the extra mile and recycle your
bottle” slogan. This is indicative of the pressure on
plastic, with brands using advertising to encourage
and educate on plastic recycling, and the value of out-
of-home collection to raise recycling rates. September 2019 – Recycle Week campaign

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REALITY OF RECYCLING, RPET AND OTHER SOLUTIONS

Deposit systems: another means to incentivise bottle return and quality

▪ Recovery of PET bottles tends to be much higher where deposit return schemes (DRS) are in operation. With
the drive – in some places a legislated drive – to solve plastic waste through advancing plastic recovery, more
countries are evaluating the implementation of a bottle deposit system as a remedy. Consumers pay a small
deposit that gets reimbursed upon returning bottle to a collection point.
▪ In Europe, Norway, Germany, Lithuania and the Netherlands record among the highest recovery rates for PET
bottles. In each of these, a DRS is in operation, illustrating how the financial incentive to return can work. This
helps ensure materials are kept in the system for reuse rather than discarded as rubbish. Separate collection
has the secondary benefit of providing high-quality feedstock. A number of retailers in the UK are trialling
reverse vending, while in Italy, summer 2019 saw Rome’s transport system trial a return scheme.

Lithuania the stand-out success myCicero +Ricicli +Viaggi trial Reverse vending at Sainsbury’s
▪ Launched in 2016, the beverage ▪ For each PET bottle returned of ▪ Following 2018 plastic trials at
pack deposit has been a big 0.5-2 litres, consumers receive Iceland, Coop and Tesco,
success, with 91.9% recovery by EUR0.05 credit for use on ATAC Sainsbury launched a reverse
the end of the second year. (Rome’s public transport network). vending trial for beverage cans,
plastic and glass bottles.
PET bottle return rate

Prior to
End 2016 End 2017
DRS
74.3% 91.9%
34.0%
Rome, Italy (July 2019)
Newbury, Berkshire, UK (August 2019)

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REALITY OF RECYCLING, RPET AND OTHER SOLUTIONS

Transparency for PET circularity: Sprite and Ribena redesigns

Iconic Sprite green goes clear for glass and PET bottles, Ribena designs 500ml PET bottle label for recycling (UK)
The Coca-Cola Company (TCCC), 2019 Lucozade Ribena Suntory, 2019
▪ The Coca-Cola Company, the number one soft drinks ▪ The Ribena brand is a decade-long user of rPET, long
company, has, among its regional and local initiatives before today’s rush to use rPET. According to
on recovery, the global World Without Waste Lucozade Ribena Suntory, its 10-years of rPET use
initiative, which commits to collect and recycle the stopped the use of 40,000 tonnes of new PET.
equivalent of all the bottles and metal beverage cans ▪ Lucozade Ribena Suntory is committed, like many of
it sells globally by 2030. its peers, to plastic packaging that is 100% reusable,
▪ In 2019, the company announced a substantial global recyclable or compostable by 2025.
packaging redesign for its Sprite brand, effectively to ▪ The 2019 redesign of its 500ml Ribena bottle label
transition from green to transparent glass and PET focuses on improving recyclability. The redesign
bottles, to improve recovery. involved reducing the size of the sleeve label and
▪ Transparent PET holds a higher increasing transparency in the label for easier
commercial reuse value, with easier automated pick-up in UK recovery facilities by infra-
mechanical recycling into new bottles red sorting technologies for onward PET bottle
compared with Sprite’s iconic green recycling.
bottle (which is also recyclable). ▪ The brand’s new Spring
▪ This move is further evidence of the 2019 wellness entry, Ribena
measures brands are taking to Frusion, sold in a 420ml PET
increase sustainability and convey bottle made from 100%
this to consumers, as with Sprite’s rPET, also offers bottle
“Clear is the new green” campaign. clarity to facilitate recycling.

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REALITY OF RECYCLING, RPET AND OTHER SOLUTIONS

Beyond rPET, R&D collaboration will see use of bioplastics rise

▪ Bioplastics are plastics derived from renewable, non-fossil fuel sources (not directly derived from oil), such as
sugar, seaweed and starch. Bioplastics is still a nascent development area, with co-operative multi-stakeholder
collaborations on R&D projects forecast to be a continuing feature in this era of sustainability, including bio-
based PET, as a means to reduce emissions and carbon footprint.
▪ From the Coca-Cola portfolio comes the Dasani HybridBottle, an up to 50% rPET and plant-based combination
bottle, regarded as the next generation of the PlantBottle, with higher renewable content than the PlantBottle
(the PlantBottle has up to 30% plant-based content). It is due to launch in the US in 2020. The company
extended access to its PlantBottle IP in early 2019 to increase collaboration on sustainable solutions. NaturALL
Bottle Alliance is another R&D partnership that takes in some of the biggest fmcg users of PET bottles, sharing
expertise to develop 100% bio-based PET bottles. Its first bottles are expected to be introduced circa end-2020.

NaturALL Bottle Alliance Dasani’s HybridBottle

A bioplastics R&D
partnership which aims to
develop 100% bio-based Up to 50% plant-based,
PET bottles that are also around 30% rPET and
recyclable. 20% PlantBottle and 50%
Formed of Origin virgin PET, and is
Materials, Groupe Danone, recyclable.
Nestlé Waters and
PepsiCo.

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INTRODUCTION
PET BOTTLES IN THE GLOBAL PACKAGING CONTEXT
THE SUSTAINABILITY INFLUENCER
REALITY OF RECYCLING, RPET AND OTHER SOLUTIONS
KEY CATEGORY PERFORMANCES
RECOMMENDATIONS
KEY CATEGORY PERFORMANCES

PET bottle sales remains strong, shaped by soft drinks performance…

▪ Soft drinks, which are overwhelmingly led by bottled water and carbonated soft drinks, will drive global PET
bottle demand over 2018-2023. Outside the core soft drinks market, a rise in consumption of milk, yoghurt and
dairy alternatives is increasing demand for the convenience afforded by the recloseable PET bottle, from
wellness shots to more conventional single-serve and multi-serve formats, evidence of the packaging’s
flexibility to meet needs across the pack size spectrum. Metal and glass are making gains, with sustainability
and premiumisation among the determinants of pack choice.
▪ Beyond beverages and food, the drive for sustainable packaging is evident in beauty and home care, where
there is notable PET bottle development favouring the use of recycled plastic. There are also potential threats to
consider, as cross-fmcg innovation in refills and concentrates has the potential to reduce overall packaging and
PET bottle demand.
Global Lead Categories for PET Bottles in 2018 and Forecast Growth PET Bottles in Soft Drinks
2018-2023
400 7
87% Soft drinks share of
350 6
global PET bottle sales in

% CAGR 2018-2023
2018 Billion units

300 5 2018.
250
4
200
3
150
100 2
50 1
0 0 19 billion more PET
Bottled Carbo- RTD Tea Edible Yoghurt & Energy Juice Drinking Table Sports bottles for soft drinks
Water nates Oils Sour Milk Drinks Milk Sauces Drinks over 2018-2019.
Products Products
2018 Billion units Unit volume growth 2018-2023 % CAGR 2018-2023

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KEY CATEGORY PERFORMANCES

…where less sweet, clean label and sustainable packaging are all key

Trends Expected to Impact Soft Drinks Sales in Coming Five ▪ Within soft drinks, which is
Years instrumental to PET fortunes,
Sugar reduction addressing wellness is paramount.
Sustainable packaging
Avoidance of artificial sweeteners Less sweet is the order of the day,
Clean labels with sugar reduction ranked as the
Plant-based ingredients
Ethical/fair ingredients sourcing most impactful industry trend
Certified organic among industry professionals over
Probiotics
Certified GMO-free the next five years, according to
A1-free/lactose-free dairy Euromonitor International’s Non-
CBD/cannabis beverages
Alcoholic Drinks Industry Insights
0% 20% 40% 60% 80% 100%
Survey.
Respondents
Extremely influential Very influential ▪ Sugar-free, natural ingredients and
Somewhat influential
clean label profiles continue to gain
Lead 3 Trends: % Considered very or extremely influential in next five years traction in new product
development.
▪ Sustainable packaging has risen
significantly up the rankings. In
2019 it was considered the second
most influential soft drinks trend by
74% (-) 63.5% ( ) 58% ( ) 64% of respondents, compared to
Sugar reduction Sustainable packaging Avoidance of artificial 53% in the 2018 survey, indicative
sweeteners of rising global concern about the
Source: Euromonitor International Non-Alcoholic Drinks Industry Insights Survey,
May 2019. Note, bracketed shows movement in ranking since 2018 survey environment and pollution.

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KEY CATEGORY PERFORMANCES

Consumer hydration shift is an important boost for water and PET

Global Bottled Water vs Other Soft Drinks 2008-2023 ▪ Bottled water – the most
400 consumed soft drink – continues to
350 increase its influence, rising from
300
38% of global volume sales in 2008
Billion litres

250
to 49% in 2019. This is a boon to
200
PET, as the favoured packaging
150
100
material for bottled water.
50 ▪ Still water dominates, but there is
0 considerable scope for growth in
2008 2013 2018 2023
sparkling, flavoured and functional
Bottled water All other soft drinks varieties as alternative to the more
traditional carbonates and juice.
Bottled Water by Pack Type 2018 ▪ Asia Pacific uptake of PET-bottled
water is forecast most dynamism,
with an 8% CAGR for PET over
2018-2023. This in part will be
health-driven, given the need for
safe drinking water, but also as a
wellness beverage choice. North
80% 82% 84% 86% 88% 90% 92% 94% 96% 98% 100%
America and Western Europe will
PET Bottles Thin Wall Plastic Containers Glass Bottles follow in volume growth, with
Metal Beverage Cans Flexible Packaging HDPE Bottles functional waters in PET faring
Other Plastic Bottles Liquid Cartons Bag In Box especially well in Europe.

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KEY CATEGORY PERFORMANCES

PET for water in future? Yes, but the West leads charge on alternatives

▪ There is no doubt of the importance of PET bottles in its leading category of bottled water. PET bottles
accounted for 89% of global category packaging growth over 2018-2019, recording a 6% increase in sales. The
PET bottle offers the all-important flexibility across pack sizes, alongside recloseability. Sales of the 751-
1,000ml size range are expected to be the most dynamic over 2018-2023, with a 10% CAGR, indicative of
consumers’ partiality to larger sizes for adequate hydration.
▪ There are the concerns about plastic because of plastics’ polluting presence as waste to consider. The PET
polymer itself is highly recyclable and efficient for producing bottles, but consumer concern and brands seeking
to respond has opened up opportunities for growth in less typical pack formats for water, most notably in more
developed world economies in North America and Western Europe, where the launch and expansion of brands
available in beverage cans and liquid cartons stands out most.
Bottled Water: Growth by Pack Type 2018-2023
Asia Pacific

Australasia

Eastern Europe

Latin America

Middle East and Africa

North America

Western Europe

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Share of unit volume growth 2018-2023
PET Bottles Thin Wall Plastic Containers Glass Bottles Metal Beverage Cans Liquid Cartons Stand-Up Pouches HDPE Bottles Other Plastic Bottles

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KEY CATEGORY PERFORMANCES

North America and Europe show a propensity for PET alternatives

Carbonates in beverage cans for for sustainability Recloseable carton resonates with the eco-conscious

▪ The beverage can in bottled water, which formerly ▪ Metal beverage cans accounted for just 2% of global
had fairly limited reach, such as via Nestlé’s Perrier bottled water unit sales in 2018, reflecting the strong
canned water, is enjoying greater traction in North preference for PET. The liquid carton, meanwhile,
America, resonating with carbonates consumers accounts for rather less than 1% of bottled water
making the health-driven shift to water. La Croix is a packaging. While a niche, it is growing, with Western
winner in this pack movement. The success of Bubly, Europe most influential in current sales and
Spindrift, San Pellegrino and others is continuing this prospects, followed by the US.
evolution. Bubly (PepsiCo) has made a further move, ▪ The renewable nature of paper in pack composition
announcing in 2019 that it aims to be plastic-free. and the rise in use of FSC board elevates eco-
▪ In Europe, where sustainable packaging has a strong credentials alongside having a smaller plastic
resonance, there is evidence of brands bringing in footprint. JUSTwater saw wider release in US in
cans arrive to quell concerns regarding plastic. The Target stores in autumn 2019, in a carton bottle with
metal industry is communicating cans’ recyclability a bio-based cap made from sugar cane, while Spanish
and capacity for reuse. In Italy, Europe’s largest brand Bezoya has also launched in carton. In 2019,
European per capita consumer of bottled UK start-up Water Cubed was another entry,
water, San Benedetto using SIG’s Combidome
has introduced new can carton bottle, targeting
lines for the off- and on- eco-conscious consumers
trade, in addition to its seeking a bottle substitute
core PET use. with similar recloseability.
+8% CAGR for bottled water in beverage cans 2018-23 +8% CAGR for bottled water in liquid cartons 2018-23

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KEY CATEGORY PERFORMANCES

Water’s top four address waste and single-use through rPET

▪ Bottled water brands are among those coming under fire for their use of single-use plastic bottles and their
contribution to plastic pollution. It should be noted that many countries operate returnable systems for PET, for
example, Germany and Mexico, where bottles are returned, washed and refilled many times over, and that PET
itself, whether single-use or returnable, holds value as a polymer to recycle. What is true, visible and of high
concern, is that plastic pollutes the environment. This requires serious attention and prevention.
▪ Brand responses include ensuring they design for recycling as standard (PET fits this mould as recyclable).
Beyond recyclability, brands commit to lightweighting, bottle recovery and to ensuring bottles have multiple
lives by using rPET, as in the examples below from global leading brands. Recycled PET had been in use prior to
current pressures, but the push is now much stronger, as brands seek to use rPET in greater quantities via post-
consumer resin for plastic reuse, and thereby reduce their reliance on virgin plastics.
Nestlé

Valvert Danone-Aqua
(Indonesia) Ciel Water
(Belgium/Luxembourg)
1.1 litres Still water (Mexico)
500ml, 1.5 litres
600ml (2018)
July 2019

Highland Spring LIFWTR to be 100% rPET

Nestlé Pure Life (UK) 500ml Smartwater to be 100% rPET in Western by early 2020
(US) 700ml June 2018 trial, Europe by early 2020 (600ml, 850ml);
February 2018 mainstream Jan 2019) Chaudfontaine water and Honest RTD teas

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KEY CATEGORY PERFORMANCES

In carbonates, value picks up with premium “healthier” sparkling options

▪ In the PET bottle’s second largest end-use category, carbonated soft drinks, health concerns and taxation on
sugar challenge development and innovation, but the category continues to see moderate value growth, with
smaller sizes, zero-sugar and premium products being key contributors. The zero-sugar Pepsi Max has been the
stand-out performer in Europe.
▪ Sugar taxation, which increases the price per litre of conventional sugar carbonates, has continued, with Saudi
Arabia imposing a 50% tax on carbonates, and taxation effective in Malaysia as of July 2019. Malaysia registers
one of the highest levels of diabetes prevalence, and prevalence has risen over the past 10 years.
▪ Premiumisation in the wider delivery of “natural” carbonates, adult sparkling variants and mixers, alongside
offerings of organic ingredient profiles, has further supported value and volume gains in carbonates.
▪ PET bottle growth is tracking a little better than carbonate litre volumes, with the exercising of sugar control
and a consequent shift in purchasing towards smaller bottles being a key reason for this.

Carbonates: Volume versus Value and PET Growth 2013-2022 Key Value and Pack Size
4 Growth Stats 2018-2019
2 101-300ml
% year-on-year growth

0
fastest growing pack size
-2 band for PET bottles
-4 4.8% growth
-6
-8 1.0% rise
-10 price per litre for
2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
carbonates 2018-2019
PET bottles Carbonates volumes Carbonates value

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KEY CATEGORY PERFORMANCES

Carbonates: improving pack performance all-round through innovation

▪ PET bottle accounted for 48% of carbonated soft drink sales in 2018, and is forecast strong growth, Sales of
smaller single-serve bottles of 101-300ml are predicted to be the most dynamic. A strong performance by zero-
sugar brand will reflect consumers’ sugar concerns.
▪ The rise of “natural” carbonates though fruit content and adult sparkling variants, saw a return to growth for
glass bottles in 2018, with 2019 building on this. Carbonates leader, The Coca-Cola Company, continues to
diversify in premium sparkling, evidenced by the launch of its signature mixers in spring 2019, in glass,
designed to partner brown spirits, and its 2019 purchase of premium sparkling Italian player, Lurisia.
▪ There have been many offerings of organic products, such as Nestlé’s San Pellegrino Organic and vegan
ChaiKola from Polish producer Wild Grass, containing tea and yerba mate. These are predominantly in the
single-serve space, which will underpin carbonates sales and growth in pack unit volume.
Global Carbonates: Performance and Forecasts Zero-sugar, Premium Sparkling with Natural Credentials
by Core Pack Type 2018-2023 And Single-serve Most Buoyant
120 4

100 3

% CAGR 2018-2023
2018 billion units

80 2

60 1

40 0

20 -1
Pepsi Max, best 2019 premium launch selection: Coca-Cola
0 -2
performing carbonate in Signature mixers 200ml; San Pellegrino
PET Bottles Metal Beverage Cans Glass Bottles Western Europe 2013- Organic/Bio 200ml; Bai Bubbles 11.5 fl oz
2018 % CAGR 2013-2018 % CAGR 2018-2023 2018 ChaiKola 330ml

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KEY CATEGORY PERFORMANCES

Natural and functional to expand sensitive beverages in tea and juice

▪ The search beyond hydration in soft drinks is important to PET, eg through functional waters. Beverages with
added functional benefits are coming more to the fore as consumers seek to invest in their health. In RTD tea
and juice, blends with superfruit ingredients and natural flavours are increasingly common, such as coconut
water and cold-pressed juices with ingredients such as kale, ginger and turmeric.
▪ RTD tea holds strong volume potential for PET via single-serve packs for on-the-go consumption, as global
brands like Fuze Tea illustrate, as well as national brands like SOTI Natural (Poland) and Paulig (Finland). The
latter has expanded into cold brew with its gentle processing technique. There are multi-serve opportunities
too, with Honest Tea (TCCC) planning to launch an organic cold brew in a 46oz bottle in 2020 in North America,
in response to consumers’ rising interest in natural, wellbeing beverages. In plant waters, the liquid carton is
the mainstay for coconut water, typified by Vita Coco, but there is room for alternatives, as the lightweight PET
bottle is expected to make further headway in single- and multi-serves.
More Tea Please: +6.8 Bn Units RTD Tea in PET Bottles Global Packaging Prospects in RTD Tea and
(Absolute Growth 2018-2023) Coconut/Other Plant Waters: % CAGR 2018-2023
14
12
% CAGR 2018-2023 10
8
6
4
2
0
-2
RTD Tea Coconut and Other Plant Waters
Plant-based, reduced-sugar, cold brew and organic credentials win:
Fuze Tea, SOTI Natural, Paulig Cold Brew, Honest cold brew tea PET Bottles Glass Liquid Cartons Metal Thin Wall Plastic Containers

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KEY CATEGORY PERFORMANCES

Across age-groups and beverages, functional benefits are sought out

▪ Beyond the leading PET bottle end-

uses of water, carbonates and RTD
tea, value-added opportunities lie in
beverages that offer specific
wellbeing benefits, evident in the
evolution of energy drinks and plant-
based beverages, organic lines and in
Functionality Child-friendly: Plant-based: RTD
drives natural, organic, coffee and non- drinks targeting defined need states,
premiumisation portioned, easy to dairy drinks in PET such as Pfanner’s juice range.
consume
▪ Natural ingredient credentials are
clearly important in the choices that
parents make for their children. In
Euromonitor International’s 2019
43%* Children’s Health and Nutrition
of parents Survey, “is all natural” was cited by
consider ‘is all 43% of parents as their top food and
natural’ as the beverage labelling priority, ahead of
top food and sugar or sweetener content. Child-
Wellbeing: Pfanner Milk makes a beverage friendly packaging also resonates.
“Eye-opener”, “in- come-back: white
labelling priority PET bottles provide parents with a
between snack” milk and plant-
based. safe recloseable pack, whilst a sports
“stress-killer”.
closure, as in Volvic Kids, aids
Source: * Euromonitor International from its Children’s Health and Nutrition Survey, 2019 independent drinking.

© Euromonitor International PACKAGING: PLASTIC PACKAGING: GLOBAL EVOLUTION OF PET BOTTLES IN A SUSTAINABILITY-FOCUSED WORLD PASSPORT 41
KEY CATEGORY PERFORMANCES

Threat from other modes of consumption: refill stations? concentrates?

▪ Amid global concerns about plastic and the search for sustainable solutions, innovation in the form of
alternative modes of consumption continues. In soft drinks, brand-led vending dispensers, such as from Dasani
(TCCC), with free and chargeable options, are being tested, while Drinkfinity pod concentrates (early 2019) and
SodaStream refillables from PepsiCo are proposed. Danone has launched an e-commerce trial of Evian 5-litre
rPET bubble. Alongside these, there is the increasing availability of free drinking water stations.
▪ Refill innovation in home care and beauty continues apace, such as Unilever Cif, among pod concentrates, and
Olay’s refillable skin care jars trial. Retail outlets are active too, mindful of ethical consumers with refill
concepts. Launches in the UK include The Body Shop’s Refill Body Shop and a Boots’ London store complete
with Beauty Kitchen refill station and free water refills.
▪ Sales of PET-bottled beverages remain strong, but solutions to increase collection globally for reuse are critical
and will remain so, given global pressure for action on plastic waste.

Dasani PureFill charges for Pepsi refillable at home via Danone (re)new 5-litre Boots concept store (UK,
“value added” flavour and Sodastream acquisition PET Evian bubble made June 2019) with Beauty
bubbles PepsiCo Inc from 100%rPET Kitchen skin care refill
The Coca-Cola Company Groupe Danone station and free water
refills
The Boots Company

© Euromonitor International PACKAGING: PLASTIC PACKAGING: GLOBAL EVOLUTION OF PET BOTTLES IN A SUSTAINABILITY-FOCUSED WORLD PASSPORT 42
INTRODUCTION
PET BOTTLES IN THE GLOBAL PACKAGING CONTEXT
THE SUSTAINABILITY INFLUENCER
REALITY OF RECYCLING, RPET AND OTHER SOLUTIONS
KEY CATEGORY PERFORMANCES
RECOMMENDATIONS
RECOMMENDATIONS

Recovery and reuse are key to PET’s circularity push

Recovery and reuse are key Collaboration and investment need Soft drinks, lynchpin of PET use, go
circularity levers for PET procures innovation opportunities functional and seek a pack that fits
▪ Design out excess, design for ▪ Global, regional, national and ▪ The soft drinks industry accounts
recycling and design for reuse – local pressures and targets that for almost 90% of all PET bottles
these are to set be the dominant seek to reduce plastic pollution sold, thus the activities of the
premises for sustainable will see better handling of plastic, leading soft drinks players
packaging progress, pertinent to which represented more than dictate PET’s fortunes.
the global plastics value chain 60% of global retail grocery sales ▪ Water and wellbeing are integral
with a waste issue to remedy. in 2018, and is central to fmcg components of consumers’
▪ The PET bottle is highly strategies. beverage consumption, with ever
successful in resource efficiency ▪ The will to remove virgin plastic more category blurring in natural
and recyclability features, and is from brands’ portfolios, as part of and functional beverages, to cater
the most recovered polymer, but a sustainable plastic roadmap, is for different need states.
it needs to go further given the ever-strengthening, with ▪ There are challenges to meet
huge volumes that remain commitments pledged. regarding sensitive ingredients.
unrecovered today. ▪ To make good on promises and Metal, glass and carton exert an
▪ There is a need also to upcoming legislated targets influence, but brands’ shift to
communicate the benefits of PET. requires a step change in PET recycled and/or plant-based PET
Switching materials can have bottle recovery. This opens up bottles (to reduce virgin PET use)
unintended consequences, which potential for innovative design, will pose the greatest change to
might increase rather than collection, recycling technology PET use in the future.
reduce footprint. and renewable pack solutions.

© Euromonitor International PACKAGING: PLASTIC PACKAGING: GLOBAL EVOLUTION OF PET BOTTLES IN A SUSTAINABILITY-FOCUSED WORLD PASSPORT 44
FOR FURTHER INSIGHT PLEASE CONTACT
Rosemarie Downey
Global Head of Packaging Research
[email protected]
Experience more...
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