Drinks Biopackaging Still Holds Potential for Growth

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8 February 2011

Compostable bottles present an increasingly attractive alternative to recycled PET for beverage companies, according to a new Drinks Biopackaging report from leading food and drink consultancy Zenith International.

Biopackaging use in the combined markets of West Europe and North America rose by 47% growth in 2010 to over 100 million litres, but volumes remain small as a proportion of total volume.

There is a clear need for government incentives if the market is to make a real step change, particularly in the area of drinks packaging.  “While the environmental credentials of compostable bottles sit well with increasingly green-minded consumers, challenges such as price, separation from PET, and composting facilities persist,” commented Zenith Senior Analyst Jenny Foulds.

Zenith’s 2011 Drinks Biopackaging report finds that:

• Biopackaging does have potential to improve sustainability in beverage packaging.
• Increased retailer acceptance has helped compostable packaging become a mainstream opportunity.
• Whilst the economic downturn may have affected demand, interest in added value, convenience and eco-friendly products will return.
• Larger formats, such as 1.5 and 2 litre sizes or above represent a relatively untapped segment.
• Growing interest in locally-available renewable crops may bring additional scope.

“The use of recycled PET, however, continues to gain momentum and has overtaken compostable bottle formats,” added Jenny Foulds.  “Biopackaging also has to answer concerns about the use of food sources for non-food products.” 

“Despite the difficulties, we foresee continuing strong growth in development projects.  If the challenges can be answered, then volume can gain serious market share,” Jenny Foulds concluded.

The 2011 Zenith Report on Drinks Biopackaging contains over 80 pages of market commentary, charts and tables together with brand profiles. Contact Zenith International on tel +44 (0)1225 327900, fax +44 (0)1225 327901 or e-mailmi@zenithinternational.com.

Notes for Editors

1. Two charts are attached for publication.

http://www.zenithinternational.com/emails/Biopackaging_Charts_Page_1.jpg

http://www.zenithinternational.com/emails/Biopackaging_Charts_Page_2.jpg

2. For further information, please contact:

Jenny Foulds, Zenith International Ltd
7 Kingsmead Square, Bath BA1 2AB, United Kingdom

t+44 (0)1225 327900 f+44 (0)1225 327901

e

jfoulds@zenithinternational.com

zenithinternational.com

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