PET preforms are intermediary plastic containers utilized to manufacture polyethylene terephthalate (PET) bottles. They are lightweight, inexpensive, and easy to transport containers. The demand for bottled beverages like carbonated soft drinks, juices, and water is increasing across the globe which require PET bottles for packaging. This is driving the PET preforms market. The global PET preforms Market is estimated to be valued at US$ 340.4 billion in 2023 and is expected to exhibit a CAGR of 8.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Rising consumption of bottled beverages is estimated to augment the growth of the PET preforms market over the forecast period. The rising awareness about health benefits associated with drinking bottled water as compared to tap water is a key factor fueling the demand. In addition, rising incomes and changing tastes and preferences of people are encouraging the demand for various flavoured and functional bottled beverages which require PET bottles. This growing consumption of bottled beverages will subsequently drive the demand for PET preforms as they are the basic raw material for manufacturing PET bottles. This rising consumption of bottled beverages represents significant market opportunity for PET preforms market over the forecast period.
Porter's Analysis
Threat of new entrants: Low capital requirements and availability of PET resins lower the threat of new entrants. However, established players' economies of scale and customer loyalty act as entry barriers.
Bargaining power of buyers: Large buyers like beverage producers have significant bargaining power due to their bulk purchases. They can negotiate on price and demand better quality and service.
Bargaining power of suppliers: A few large resin producers like Indorama Ventures and Dhunseri Petrochem supply most of the raw materials. This gives them bargaining leverage over preform manufacturers.
Threat of new substitutes: No direct substitutes exist for PET preforms. However, alternative packaging like glass and cartons pose a threat, especially in non-carbonated drinks.
Competitive rivalry: Intense competition exists among preform manufacturers. Players compete on price, product quality, design capabilities and customer service to win orders from bottlers.
SWOT Analysis
Strengths: High recyclability and functionality of PET drives its demand. Established supply chain benefits large players.
Weaknesses: Vulnerable to fluctuations in resin prices. High capital requirements are a hindrance for small players.
Opportunities: Growth in non-carbonated drinks packaging using PET bottles and preforms presents an opportunity. Developing regions with rising incomes offer scope.
Threats: Stringent environmental laws on plastic use can impact PET packaging. Substitutes gaining ground pose a threat.
Key Takeaways
The Global PET Preforms Market Growth is expected to witness high over the forecast period due to increasing consumption of packaged beverages.
Asia Pacific dominates the market currently due to high production and consumption of bottled beverages in China, India, Japan and other developing Asian countries. The Asia Pacific PET Preforms market is projected to grow at the fastest rate during the forecast period.
Key players operating in the PET Preforms market are Indorama Ventures, RETAL, Plastipak, Resilux and ALPLA. Indorama Ventures is one of the largest PET producers globally with a integrated production network across Americas, Europe, Asia Pacific and Middle East. RETAL and Plastipak are other major preform suppliers with pan-India and global presence respectively. Resilux and ALPLA have a stronghold in European preform market.
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