The Influence of Sustainability on the Future of PET Bottles in the Beverage Industry

Plastic packaging remains a staple in grocery stores, with flexible plastics and PET bottles comprising 47% of retail packaging sales. In 2022, PET bottles led the way, showing a 3% increase in sales and driving the overall growth in packaging volume. However, the industry is undergoing significant changes as the concepts of circularity and sustainability become more prevalent.

PET bottles have long been at the forefront of discussions about plastic packaging's environmental impact. Images of overflowing landfills and plastic-strewn beaches in various countries highlight the urgent need for change. While the industry explores alternatives like metal cans and glass bottles, PET bottles still hold a dominant position in the beverage sector, making up over 41% of the market. This figure rises to 61% within the soft drinks sector alone in 2023. Projections indicate a stable market share but with an increase in consumption, suggesting that by 2027, the beverage industry will require an additional 80 billion PET bottles compared to 2023. Bottled water, particularly in soft drinks, is poised to drive this surge in demand. As the primary packaging choice in this category, the expected rise in bottled water consumption, especially in the Middle East & Africa, will further boost the demand for PET bottles.

As plastic consumption continues to rise, there's a corresponding surge in the demand for sustainable alternatives. On one front, regulatory pressures are tightening, with the European Union likely to outlaw greenwashing and enhance transparency about product durability, akin to its Health Claims directive. This includes a proposal to prohibit vague environmental claims that aren't supported by verified certification schemes. An example is the claim by Danone's brand Volvic to be “climate neutral” in Germany, which has drawn scrutiny.

On the consumer side, awareness and concern about environmental impacts are growing. According to the 2023 Euromonitor International’s Voice of the Consumer: Sustainability Survey, nearly two-thirds of global consumers are anxious about climate change, pushing for businesses and brands to adopt more sustainable practices.

However, a significant challenge remains: consumers' reluctance to pay extra for sustainable products, which experts in the industry see as a major obstacle to the effectiveness of sustainability initiatives. Over 58% of industry experts, as reported in the 2023 Euromonitor International Voice of the Industry: Sustainability Survey, view this as particularly problematic in the packaging sector. Despite investments in water and energy conservation, recycling, green technology, and circular economy models, the industry struggles to effectively communicate these efforts to consumers, underscoring a gap in awareness and engagement that needs addressing.

The foundational elements of material circularity include removal, redesign, reuse, and the adoption of alternative models. The aim is to strip materials down to their essentials, eliminate excess, and utilize recyclable components. While developing alternative packaging solutions is a priority, it’s equally crucial to ensure that existing materials can be efficiently collected, recycled, or refilled to foster a circular packaging economy.

A rising trend in achieving this is the implementation of deposit return systems (DRS). Currently, these systems have a limited geographic reach, covering approximately 13% of global beverage packaging, either through existing schemes or those planned for future implementation.

Plastic remains a mainstay in packaging, but innovations are enhancing its reusability and making it more cost-effective for consumers. Companies are also tasked with better communicating their sustainability efforts to consumers, using packaging as a primary tool for engagement. As consumer confidence grows in products labeled “recyclable,” it is essential for businesses to educate and maintain transparency about their supply chains to bolster consumer trust and understanding.