Published: August 2018
Overview: This is the 4th edition of AMI Consulting’s report on blow moulded bottles which has been published every four years since 2006. The report covers EU28 (+ Norway and Switzerland) and provides a comprehensive analysis of the blow moulded bottles market by several variables focussing on end use applications and inter-material competition for 2009-22. It investigates the market drivers, key issues and challenges which are shaping the European market and explains the growth trends, structural change and competitive pressures.
Good organic growth of several market segments and a change in packaging trends remain the key drivers of demand for blow moulded bottles. In some applications penetration of plastics is increasing strongly driven by opportunities for brand development. Where penetration of plastic bottles is already high the competitive battleground will centre on inter-material and inter-format competition, supply-chain efficiency and premium brand opportunities. The outlook for the blow moulded bottle market is positive with further output growth and increasing demand for added value products shaping the landscape.
Sustainability has been incorporated in the agenda of all significant brand owners and their suppliers. Most have established long term sustainability targets, encompassing ways to reduce, reuse and recycle the packaging. Emphasis on packaging weight reduction is adversely affecting polymer demand and at the same time it drives the development of better-performance materials and technology. The use of PET and HDPE recyclates has been steadily gaining in importance but now will accelerate. The growth of rPET requires a balance between financial and environmental considerations and to meet the industry targets will require the development of a new supply chain, investments in capacity, closed-loop recycling and sorting technology.
As price pressures are increasing, the supply chain is forced towards maximising operational efficiency and minimise costs. Brand owners are reducing the role of the converter by increasingly controlling polymer procurement, gaining competence in blow moulding and injection moulding, and acquiring cost-transparency through self-manufacture. As value-capture decreases, converters are becoming specialists and reduce cost through operating fewer sites. Several players have focussed their development efforts on their preform business looking at how to add value, for example focussing on barrier technology. Advancements in barrier technology and improving cost of supply are driving growth of barrier bottles in specific end-use applications.
To develop competitive advantage, industry participants need to fully understand competitive strengths and weaknesses of their organisation, the market opportunities and the dynamics of demand and supply.
The report is intended to assist industry participants and investors in anticipating change, formulating response strategies and directing R&D investment. It is designed to deliver a comprehensive review of market dynamics and trends to help build strategies to exploit business opportunities and manage threats.