Market

Sidel Group’s core business is to serve the global market for beverage packaging, covering all main categories such as water, carbonated soft drinks (CSD), juices, nectars, soft drinks, isotonics and teas (JNSDIT), liquid dairy products (LDP) and beer.

​​​​​​​​​​​​​​​​​​​​​​​​PET packaging is becoming increasingly popular

GLOBAL MARKET FOR BEVERAGE PACKAGING

Sidel Group’s core business is to serve the global market for beverage packaging, covering all main categories such as water, carbonated soft drinks (CSD), juices, nectars, soft drinks, isotonics and teas (JNSDIT), liquid dairy products (LDP) and beer. PET is increasingly becoming a packaging material of choice due to its inherent characteristics: it is light, strong, safe, hot-fillable, flexible, easily recyclable, re-sealable, transparent and low cost. As a result, PET is gradually taking over from other traditional packaging materials such as metal cans and glass.

CONSUMER PREFERENCE FOR PET

Consumers’ preference for PET bottles over the other main packaging materials, metal and glass, is estimated to grow at above average rates of 4.5 per cent annually to 2019, while the overall market for beverage packaging is growing at 3.6 per cent annually according to Euromonitor.

GROWTH TRENDS OF THE PET MARKET

Sidel’s addressable PET equipment market is estimated to reach over €2.1 billion, with important cycles linked to macroeconomic factors. The three main suppliers including Sidel account for nearly 80 per cent of the PET market.

Growing technological advancements are stimulating the market, including high-barrier PET bottles, aseptic milk and ambient products. However, falling consumption of CSD in developed markets has restricted growth to some extent, although growing demand for bottled water has largely counteracted this trend.

Consumer demand in the water and JNSDIT categories is expected to grow at above market growth rates of 4.5 per cent annually until 2019. This drives demand for PET bottles, as 86 per cent of water container units and 40 per cent of JNSDIT container units are filled in PET bottles. Growth in demand for CSD, on the other hand, is expected to be slower than in water and JNSDIT. These trends are a result of increasing consumer health awareness and a preference for changing to healthier beverages.

The largest markets for PET bottles are soft drinks, such as carbonated soft drinks and mineral water. PET bottles are also used for non-food products, including personal care, household cleaning and healthcare products. PET has a strong position within the bottled water segment and there are particular growth opportunities within the tea, oil and dairy segments.

​GROWTH OPPORTUNITIES IN THE BEVERAGE MARKET

The key growth drivers in the beverage market are demographic growth, dynamics in consumer preferences and rising incomes in developing countries. These drivers are a source for sustainable growth in Sidel’s underlying industry as the global population continues its long-term growth and per-capita consumption of packaged beverages continues to increase.

In emerging markets, population growth and currently low per capita consumption of packaged drinks provide substantial room to grow. This is especially the case in Asia-Pacific, in the Middle East and in Africa.​​

Global demand pet

GROWTH OPPORTUNITIES IN THE BEVERAGE MARKET

The key growth drivers in the beverage market are demographic growth, dynamics in consumer preferences and rising incomes in developing countries. These drivers are a source for sustainable growth in Sidel’s underlying industry as the global population continues its long-term growth and per-capita consumption of packaged beverages continues to increase.

In emerging markets, population growth and currently low per capita consumption of packaged drinks provide substantial room to grow. This is especially the case in Asia-Pacific, in the Middle East and in Africa.