Plastic Bottles Procurement Intelligence: Shaping the Future of Packaging

The plastic bottles procurement is gaining traction as beverage companies are seeking lightweight packaging solutions. The plastic bottles market is anticipated to grow at a CAGR of 4.2% from 2024 to 2030. The demand for the product is primarily driven by the beverage industry’s need for lightweight, durable, and cost-effective packaging solutions, coupled with the increasing consumption of bottled water and soft drinks globally. Additionally, the growing popularity of a convenience-oriented lifestyle further fuels the demand for single-use bottles. The development of recycled and biodegradable bottles is creating new opportunities for businesses in the plastic bottle industry to focus on sustainable bottles.

Sustainable packaging is gaining more importance due to the rising impact of plastics on the environment. The plastic waste crisis has become the most challenging environmental issue nowadays. The growing demand for the procurement of sustainable packaging solutions is driving innovations like plant-based plastics. In an effort to reduce the impact of plastic on the environment, many companies have teamed up with technology partners to create eco-friendly plant-based plastics and biodegradable plastics. For instance, in September 2023, DFRL (Defence Food Research Laboratory) and DRDO (Defence Research and Development Organization) in India joined forces to launch a biodegradable bottle made from poly lactic acid (PCA). The bottle is completely compostable right from the cap and label. The introduction of biodegradable water bottles is a significant move in India's commitment to innovative environmental solutions.

Order your copy of the Plastic Bottles Procurement Intelligence Report, 2024 – 2030,  published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

Single-use plastics are mostly utilized for packaging like bottles, bags, wrappers, and straws. However, these plastics are also the major contributor to global plastic pollution, as it takes several years to decompose. Hence, bottle manufacturers are seeking single-use plastic alternatives, such as edible packaging and dissolvable bottles. Several countries, including Thailand, Canada, and Rwanda, have implemented bans on single-use plastic items to reduce waste and promote the use of sustainable alternatives.

There is a growing emphasis on utilizing technological innovation to recycle plastic waste containers into polymers. For instance, in February 2023, a group of A*STAR scientists in Singapore, successfully recycled waste PET (polyethylene terephthalate) plastic into polymer electrolytes, which are key components for lithium-ion batteries. Technological innovations in the stretch blow molding manufacturing process used to create bottles have improved the quality, sustainability, and efficiency of the process. Innovations in the process such as infrared heating, lightweighting, barrier coatings, and 3D printing are helping manufacturers in creating high-quality products.

The competition in the plastic bottle industry is fragmented due to the involvement of numerous players. Certain participants are leveraging innovative packaging techniques to secure substantial market positions. Additionally, other players are investing heavily in food-grade recycled PET bottles to align with environmental regulations set forth by various governments. The threat of substitutes in the market is high. Alternatives such as glass, aluminum, reusable containers, plant-based, or biodegradable materials are becoming increasingly popular due to environmental concerns. The threat of substitutes is influenced by various factors such as consumer preferences, regulatory trends, sustainability concerns, and technological advancements. Companies in this industry must innovate and adapt to changing market dynamics to remain competitive in the face of potential substitutes.

Raw materials (polyethylene terephthalate or PE or PLAs), labor, machinery, transportation, and packaging are some of the costs incurred in manufacturing plastic bottles. Polyethylene terephthalate (PET) is one of the major raw materials to manufacture the bottle. Hence, fluctuations in the raw material prices can significantly impact the production costs. The price of PET pellets as of November 2023, was around USD 8,000 to USD 9,000 per ton. In November 2023, the cost of processing a 500ml bottle was approximately USD 0.3 to USD 0.5 per bottle. Packaging costs include capping and bagging and cost around USD 0.1 per bottle. The overall cost of producing a typical 500ml plastic water bottle can be around USD 1 - 1.5 per bottle. To determine the final cost of a product, various factors are taken into consideration, such as the price and quality of raw materials, production technology, labor costs, transportation costs, and market demand.

As part of the plastic bottles procurement strategy, clients such as beverage companies fully outsource their bottle manufacturing. Outsourcing container production helps them in cost saving, giving access to specialized services, improving product quality, and getting exposure to sustainable production. The quality of the bottle is a critical factor in the procurement of the product, and procurement professionals should choose providers that offer better quality bottles in different sizes, shapes, and types. Procurement professionals or leaders must check the type of plastic used and the suitability for the end-use. China, Mexico, and Vietnam are some of the preferred countries for sourcing and procurement of plastic bottles. China is the largest producer of plastic globally. Around 20,000 bottles are produced across the world as of 2023.

Browse through Grand View Research’s collection of procurement intelligence studies:

• Synthetic Fibers Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

• Plasticizers Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Plastic Bottles Procurement Intelligence Report Scope

• Plastic Bottles Market Growth Rate: CAGR of 4.2% from 2024 to 2030

• Pricing Growth Outlook: 12% - 15% increase (Annually)

• Pricing Models: Volume-based pricing, competition-based pricing

• Supplier Selection Scope: Cost and pricing, Past engagements, Productivity, Geographical presence

• Supplier Selection Criteria: Shape, type, quality, and size of the bottle, end-use industries served, comparing prices for the same bottle of different suppliers, production capacity, customization option, delivery option, geographical presence, years in services, regulatory compliance, operational and functional capabilities, and others.

• Report Coverage: Revenue forecast, supplier ranking, supplier matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model

Key Companies 

• Amcor plc

• Berry Global Inc.

• Cospack America Corp

• Graham Packaging Company

• Comar

• BERICAP

• Sailor Plastics

• Container Corporation of Canada

• Alpack Plastics

• Plastipak Holdings Inc.

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.

Our services include (not limited to):

• Market Intelligence involving – market size and forecast, growth factors, and driving trends

• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships

• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing

• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions



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