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Plastic Bottle Manufacturing in the US Industry Market Research Report from IBISWorld Has Been Updated
  • USA - English


News provided by

IBISWorld

Sep 23, 2013, 02:00 ET

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Los Angeles, CA (PRWEB) September 22, 2013 -- Whether a consumer is buying a soda at the corner store or purchasing laundry detergent at the supermarket, plastic is the preferred way to package these staple products. The prevalence of plastic containers and bottles, however, has not kept the industry immune to economic volatility. In the five years to 2013, industry revenue is expected to increase only a marginal 0.2% per year on average to $13.0 billion.

The prevalence of plastic containers kept the industry from declining, despite the recession

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According to IBISWorld Industry Analyst Antal Neville, “The Plastic Bottle Manufacturing industry relies on several key industries to purchase its products.” Soft drink producers, for example, account for over half of industry revenue. However, since 2008, revenue in the Soda Production industry (IBISWorld report 31211a) has declined due to changes in consumer tastes and reduced spending during the recession. This decline has led to weakened demand for the plastic bottles in which soft drinks are packaged. In 2010, downstream markets began their recovery from the recession due to renewed beverage consumption. Industry revenue has since caught up to prerecession levels and is expected to rise 0.7% in 2013.

Meanwhile, the industry has had to contend with production abroad; industry imports are expected to grow at an average annual rate of 3.7% in the five years to 2013. The United States has been a net importer of plastic bottles and containers since 2004. As globalization increases, foreign imports will continue to challenge the viability of domestic manufacturing, forcing domestic manufacturers to innovate or decrease per unit production costs to stay competitive. However, “import penetration will level out over the next five years as wage costs in China rise, preventing Chinese manufacturers from easily undercutting domestic prices,” says Neville.

Mergers and acquisitions among large players have increased, an effective way for established players to increase their market share in a mature industry. Large players can more easily undertake product development to give them an edge over competitors. Furthermore, the Plastic Bottle Manufacturing industry has a moderate level of market share concentration. This industry's four biggest players are Graham Packaging Company, Plastipak Holdings, Consolidated Container Company and Constar International. Furthermore, despite increased prices, plastic will remain a more effective, lower-cost alternative to glass or metal packaging, ensuring its continued use by downstream buyers in lieu of those substitutes.
For more information, visit IBISWorld’s Plastic Bottle Manufacturing in the US industry report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld industry Report Key Topics

The Plastic Bottle Manufacturing industry manufactures a range of bottles from different plastic compounds based on their end use. These bottles are then sold to beverage, food and chemical manufacturers for packaging soft drinks, milk, condiments and household and automotive chemicals. This industry does not manufacture reusable plastic bottles or other plastic containers.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

Gavin Smith, IBISWorld, +1 (310) 866-5042, [email protected]

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