Plastic tray market to surpass $7 billion in 2018
Introduction of eco-friendly alternatives to the plastic trays such as fiber-based trays, bagasse or sugarcane trays, paper trays, and plant-based plastics are emerging as a threat in the growth of the plastic tray market.
The plastic tray market is projected to expand at a very slow phase with the global sales of plastic tray surpassing US$ 7 billion by the end of 2018, according to the latest research by Fact.MR. Introduction of eco-friendly alternatives to the plastic trays such as fiber-based trays, bagasse or sugarcane trays, paper trays, and plant-based plastics are emerging as a threat in the growth of the plastic tray market. However, manufacturers in the plastic tray market are focusing on developing reusable and recyclable plastic trays.
Moreover, the rise in human health concerns due to use of plastic is also leading to the development of new products, for instance, companies have started offering BPA-free plastic products, including plastic trays, bottles, containers, and other products. Companies are also investing in the research and development of plastic trays that are safe to use across industries including food and beverages, personal care, pharmaceuticals, and consumer electronics.
Polyethylene Terephthalate (PET) is expected to be one of the largest used materials in the production of plastic trays. PET is projected to expand at a significant rate during the forecast period 2018-2027. By the end of 2018, Polyethylene Terephthalate is expected to bring in more than US$ 2,000 million in terms of revenue, as per the study.
High-recyclability property of PET material is leading to the growing popularity in the plastic tray market. Companies in the plastic tray market are using a recycled PET to produce plastic trays as it is lightweight, shatterproof, cost-effective, and saves energy. The packaging industry across the world is using PET material on a large scale. For instance, Europe is witnessing the significant growth of PET trays in the packaging industry in the region.
Recycling of PET trays and bottles is also significantly growing with new technologies and equipment to ensure proper recycling of PET plastic trays. Also, according to Recoup, a plastic organization in the UK, nearly 70,000 tons of PET plastic trays are collected in the UK every year.
Plastic trays are largely used across the food and beverages industry. The demand for plastic tray in the food and beverages industry is expected to grow significantly throughout the forecast period 2018-2027. Rising demand for ready-to-eat and the ready-to-cook food is driving the use of plastic trays.
However, health concerns regarding the consumption of food in plastic are also rising. Hence, the Food and Drug Association (FDA) has introduced regulations regarding the materials used to make plastic trays and other packaging used in the food and beverages industry.
Manufacturers in the plastic tray market are developing thermoformed plastic trays for food packaging. These plastic trays are being designed with easy to open and close lids, especially for packaging foods such as baked goods, salads, wraps, and sandwiches.
Europe is likely to emerge as one of the most dominating regions in the plastic tray market. Europe has already introduced regulations and guidelines with the aim to boost the recycling of PET plastic trays.
Meanwhile, the European Commission has also introduced new rules to ban single-use plastic products from the market. This is likely to hamper the market growth in the region. However, manufacturers in Europe are focusing on developing reusable and recyclable plastic tray products.
Flexible plastic trays in the plastic tray market are expected to witness the highest sales during the forecast period. Reusability, lightweight, enhanced protection, shipping friendly, longer shelf life, are some of the benefits offered by flexible plastic trays. Hence, the adoption of flexible plastic trays is increasing across various industries.
The overall outlook for the plastic tray market is likely to remain sluggish, with the plastic tray market expected to reach CAGR of 3.6% in terms of revenue during 2018-2027.
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