PET Blow Moulder Market North America Industry Analysis & Opportunity Assessment

The U.S. accounted for a revenue share of a little more than 70% in the North America PET blow moulder market in 2016 and is expected to gain 110 basis points by 2026. The U.S. is likely to witness a rapid Y-o-Y growth rate of close to 4% over the period of assessment. The PET blow moulder market in the U.S. is estimated to be valued at more than US$ 25 Mn in 2017 and is likely to record a CAGR of 4.5% from 2016 to 2026 to reach a little more than US$ 40 Mn by 2026. In terms of value, the U.S market is expected to represent an incremental opportunity of more than US$ 15 Mn and grow 1.6X during the forecast period.

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Increasing taxation and stringent government policies for the ban of plastic bags is expected to hinder the growth of the PET blow moulder market in the U.S.

Due to the rising demand for PET bottles, manufacturers are trying to get more output by investing less, which is ultimately affecting the quality of bottles. For instance, manufacturers have started using a lesser amount of raw material in the manufacturing process. However, this makes the bottles thinner, which causes the bottles to not be able to bear the force incurred during the quality checking process. Reducing the quality of bottles manufactured adversely affects the PET blow moulder market in the U.S.

Along with generic bottles, the PET blow moulding industry also depends on customised bottles. In fact, customised bottle is a trend in the market, which is now flourishing with a number of brands. Most of these brands have adopted the trend of customising their own bottles. However, these customised bottles if dropped, can bend or even break due to acute stretch ratios. This factor is also likely to be a restraining factor in the growth of the PET blow moulder market in the U.S.

PET moulding machines are made to manufacture a large number of bottles, i.e. a minimum of 30,000 bottles/hour. Because of the inherent quality, these machines are largely used by manufacturers who generally require large-scale output. However, if these machines are forced to be used for a smaller volume output then manufacturers would not be able to fetch the profit they expect.  The small scale industries operating in rural regions can’t consume such high volumes of the product thus forcing the market to produce machines that can handle smaller volumes in a single run with economic rates. Such economic machines with smaller volume are limited in the market, which is hampering the growth of the PET blow moulder market in the U.S.

Unstable macro-economic and political conditions are the major challenges faced by the PET blow moulder market in the U.S.

The PET blow moulder market in the U.S is affected by economic conditions and consumer spending trends. The high energy requirements of the manufacturing process lead to high costs, which eventually lead to increasing losses for companies. Similarly, unfavourable political, labour and tax conditions also lay a challenging road for PET blow moulder manufacturers in the U.S. Increasing demand for bio-based materials for packaging has significantly reduced the demand for PET bottles, thereby resulting in a challenge for PET blow moulder manufacturers. As consumers are getting more inclined towards sustainable raw materials for their packaging solutions, there is a tough road ahead for PET blow moulder manufacturers in the U.S to increase their profitability margins.

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