Market Trends of Canada Plastic Bottles Industry
The Polyethylene Segment is Expected to Record Growth
- Polyethene is a lightweight, partially crystalline, thermoplastic resin with high chemical resistance, low moisture absorption, and sound-insulating properties. It is used for packaging plastic bottles.
- HDPE and LDPE are formed through the polymerization of polyethylene. During this process, monomers link together to create elongated hydrocarbon chains. These chains then branch out in various directions, with the branching pattern determining the material's strength and density. HDPE and LDPE vary in thickness, making HDPE ideal for strength-focused applications, while LDPE proves more advantageous for making bottles.
- Plastic bottles have significant applications in consumer products, such as food, beverages, and cosmetics. The growing need for plastic bottles can be attributed to the rising packaging solutions that are convenient and portable. The ever-increasing urban lifestyle of consumers in the region also drives the demand for convenient packaging.
- Consumers are looking for easy-to-use and lightweight packaging. Vendors are designing innovative packaging solutions to remain competitive in the growing organized retail market and meet changing demands. According to StatCan, the monthly retail trade in Canada in December 2023 was CAD 66.95 billion (USD 49.59 billion), up from CAD 66.41 billion (USD 49.19 billion) in September 2023.
- In November 2023, Dow Chemical Company announced that its management had given the green light for its Fort Saskatchewan Path2Zero initiative. This project aimed to establish the world's first integrated ethylene cracker and derivatives facility in Alberta, Canada, achieving net-zero Scope 1 and 2 emissions. With a price tag of USD 6.5 billion, not accounting for governmental incentives and subsidies, the project encompasses the construction of a new ethylene cracker and auguring polyethylene capacity by 2 million MTA. Further, the growing demand for plastic bottles, in line with the move to single-person living, drives growth in convenience store retailing, boosting the demand for more convenient packaging solutions. Such expansions are expected to create opportunities for the polyethylene segment.
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The Beverages Segment is Expected to Record Market Growth
- With the growing popularity of organic drinks, beverage companies will seek innovative and attractive packaging solutions to differentiate their products. Plastic bottle manufacturers offer opportunities for customized designs, shapes, and sizes to enhance brand visibility and appeal to consumers. According to Agriculture and Agri-Food Canada, in 2021, retail sales of organic drinks reached approximately USD 557.6 million; this is expected to increase to around USD 735.8 million by 2025.
- Many consumers who choose organic products also prioritize environmental sustainability. Beverage companies may choose plastic bottle options that incorporate eco-friendly materials or have a lower environmental footprint than traditional packaging alternatives. This can include utilizing recyclable or biodegradable plastics in the packaging, contributing to a more sustainable supply chain.
- The growth in Canada's export market for non-alcoholic beverages can drive expansion and innovations in the market, creating opportunities for economic growth and industry advancement. The US Department of Agriculture reported that Canada's export market for non-alcoholic beverages (excluding juices) reached approximately USD 1.46 billion in 2023, increasing from around USD 1.19 billion in 2020.
- A strong beverage export market can open international trade opportunities for Canadian packaging manufacturers. As beverage producers expand into new markets, they will require reliable packaging suppliers, leading to increased plastic bottle packaging materials and machinery exports.
- According to the FCC (Farm Credit Canada), the beverage and food manufacturing sector experienced growth. As new products like protein, energy, and low-alcohol options hit the market, the beverages segment is expected to surpass overall food and beverage unit sales in 2024.
