PET : Trends and Innovations

Transcription

1 PET : Trends and Innovations Presented by: RK Gera, RIL PET Division Mumbai 10 th Aug 2016 At Indian Polyester 2016, The Lalit, Mumbai

2 Contents World Scenario India Growth Drivers PET Journey Indian PET Growth Story Emerging Opportunities PET A Sustainable Product RIL A Supporting Partner 2

3 Tr US $ World Scenario MMT 16 World PET Demand (RHS) Source: IMF/PCI Highly correlated world GDP and PET demand 3

4 World PET Demand : MMT Global CAGR : 6.8% North America South America Africa & Middle East West Europe East Europe Asia Pacific CAGR: 3.3% 7.0% 10.5% 1.7% 5.6% 11.6% Asia and Africa are driving the growth Source: PCI 4

5 Segment Drivers In MMT 2008 Share 2012 Share 2016 Share Projected CAGR CSD % % % 5% Non-CSD Beverages/Aqua % % % 8% Food & Others 1.3 9% 1.7 9% 2.2 9% 7% Agro/Personal/ Home/Health Care/Agro APET Sheet/ Others 0.6 4% 0.8 5% 1.3 5% 13% % % % 8% Total % % % 7% Source: PCI Beverages continue to be at center stage of Growth! 5

6 Per Capita PET Consumption 2014 (Kg) PET Per capita consumption USA, Italy, UAE 6.8 Mexico, 6.69 France, South Africa, 2.77 Brazil, 2.88 Germany 3.6 Russia, 3.88 Turkey, China, 2.43 World average : 2.85 Philippines, 0.68 Indonesia, India, 0.60 Source: PCI Good PET growth potential for India and Asian markets 6

7 PET Trends Indian Market Current Practises PET : Single highest growing Rigid Package World-wide 6 % vs 10% plus CAGR India : PET markets average 13% CAGR Beverages, Milk, Edible Oil, Healthcare, Personal Care,... Transparent, Unbreakable, High Productivity, low CFP,... Emerging Trends Milk Variants, Edible Oil : Niche and Bulk Packs (5L/15L) Fresh Juices, Ketch-up, Jams,... FMCG Industry : PET Product Variants and Niche Shapes Barrier APET trays, CANS, Strap, Blood collection Tubes,.. PET - Expanding in New Application areas 7

8 India - Growth Drivers Rising Urbanisation Retail Culture Increasing Disposable Income Changing Life Style Rising GDP Market Growth Favorable Demographics Evolving Consumer Preferences 8

9 Favourable Demographics % Globals 4 % 2 Strivers Seekers Aspirers Deprived 18 A sharp growth in consuming segment Source: Mckinsey/NCAER 9

10 Retail Culture Strengthening Consumer Base Youth Population Disposable Income People on move Rural Markets: Last mile reach Retail Outlets and Packaging Pack clarity Shelf visibility Innovative Solutions Emerging Scenario Depth and Width of Choices Exposure to International brands Increased RTD and RTE products Organised Retail Share 5% 4% % 21% Retail Growth to spur Packaging Industry Source: Deloitte, FICCI, ASA Increasing mall culture >> Need for POP differentiation! 10

11 Changing Lifestyle and Food habits Nuclear Families Working couples Outside dining frequency Hyper market replacing Kiranas Safety & Hygiene awareness Branding in Hyper markets Gen Now (25-39), 25% Gen Yesterday (40-54), 16% Gen Vintage (>55), 7% Gen Next (13-24), 30% Gen Future (0-12), 22% Change in Drinking Patterns RTD Juices & Colas UHT and Flavoured Milk Convenience Factor Shift towards packaged products Youth Expenditure Eating Out 16% Soft Drinks/Beverages 14% Snacks 7% Self Reliant population reinforcing future consumer base Growth in Packaged Food Products Source: JuxtConsult, Hansa 11

12 PET.. The most preferred packaging material! Shelf Appeal Food Grade Recyclable Ecofriendly Transparent More Bottles per Truck, less CO2 Emission Light weight / Unbreakabale Good Barrier Properties Convenience of PET Reduced Packaging Cost Less Noise Pollutions on filling lines PET : Eco-Friendly Packaging Material 12

13 1970s 1980s 1990s 2000s 2010s PET Journey - Past, Present and Future Carbonated Soft Drinks (CSD) CSD Juices Bottled Water CSD Juices Bottled Water Pharma Confectionary RTD Teas RTD Juice Flavored Tea Isotonics Wellness Drink CSD Milk Bottled Water RTD Tea & Juices Flavored Tea Isotonic Wellness & Energy Drink Functional Beverages Fortified Water CSD Fresh Milk Flavoured Milk Fortified Water Water variants RTD Tea & Juice Flavored Tea Sweeteened Syrups Isotonics Wellness & Energy Drinks Beer Wine Lubricants Paint PET market growth driven by Beverages 13

14 India End Use Consumption Growth (Billion Litres) CAGR ('08-'13) 2018 CAGR ('13-'18) Soft Drinks % 23 12% Bottled Water % 17 16% Juice % 2 16% Alcoholic Drinks % 5 6% Beer % 3 7% Food Processing and Beverage Industry contributes 8.4% of Manufacturing output. The industry will grow from USD40bn to USD180bn by 2022 Local Branding & Convenient Packaging will drive Rural Market penetration. Barrier PET application is in nascent stage for Beer, Ketch-up & Pharma segment. 14 Juice & Bottled Water likely to grow at healthy pace 14 Source : Euro Monitor

15 PET : For all packages TOTAL FREEDOM OF BOTTLE SIZE, SHAPE AND WEIGHT From 0.02 L to 2 L Round or square shape Ultra-lightweight packaging PET, oxygen or light barrier Flat or sport caps Source : Sidel 15

16 PET Emerging Applications Milk Variants Biggest milk producer : 3 bn+ 15% of Global (20 bn L/d) 4.3%, Expansions in Milk/value-added products PET for Fresh and Flavoured Milk Transparent Packaging and Branding In-line blowing & filling, Milk is Cool Effect PET for Fresh Milk - Gowardhan Dairy 1 L, 28 g, Transparent Relpet bottle Shelf life: 7d, refrigerated conditions PET for Flavoured Milk - Amul Launched 200 ml in May 13 in PET Shelf life : 6m, Good Market response 2 more lines added & are operational UHT Milk : Opaque White PET Bottle Growth potential for downstream industry and brand owners 16

17 PET Emerging Applications: Juices, Alcoholic Drinks, EO Pure Juice: Warm Fill, Hot Fill and Aseptic Filling Juice drinks in PET in India (30 KTA) Beer: SAB Miller Using for 3 brands PET potential for Beer - 85 KTA Wine: UB and Sula Wines using PET PET potential for Wines -1 KTA Liquor Frosted Bottle & PET with Handle Edible Oil (EO): 2L/5L/15L & Liquid Nitrogen Dosing Other Beverages Coconut Water Niche Beverages 17 Global universalization of PET Quality & Regulatory compliance

18 PET Emerging Applications: Food & Non-Food Sectors Ketch-up: Barrier PET for enhanced shelf life PET potential for Ketchup 3 KTA Health Care PET : Multi-vitamins and Enzymes,.. Paint: Transparent/Premium look of pack Lube-oils: HPCL - Lal Ghoda : 0.5 L & 1 L Export Packaging Wood replacement for Fruit and Tea exports Bags replacement: Onions/vegetable export PET 18 downstream investment : Favorable in plastic commodity space

19 Long Shelf life Product : Major Driver for PET India sells the cheapest, most accessible Coke : President and COO of Coca Cola James Quincey Jun 18, 2016 The global Coke boss also added that the entry pack PET (250-ml) is a new technology, first in the world. "The pack radically extends the shelf life of small PET... rural areas has always been a problem for anyone in PET bottles because it loses the gas. So, this is a way of really being able to extend the reach way further into the rural areas," he said. Affordable packs include 180 ml cans at Rs 20, 250-ml PET packs at Rs 15 and 200 ml glass bottles at Rs

20 Market Trends for 2016 Global News Mar 2016: Nigerian Breweries has commissioned packaging manufacturer PET Engineering to extend its Climax, Amstel Malta and Maltina brand packaging to PET. Single preform 3 bottles, while maintaining dimensions to prevent changes on the bottling line and make containers able to withstand the pasteurisation process up to 61 C. Jul 2015 : Nestle Waters America Source : Sidel The resulting packaging will allow the part Heineken-owned beer maker to discover the benefits of PET, PET Engineering said, including its robustness; safety during production, transportation and use; and clarity. 20

21 PET : White milk, Flavoured Milk and Soya milk Source : Sidel 21

22 PET : Pasteurized milk and Drinking yogurt Source : Sidel 22

23 Bottles : LSDH Source : Sidel 23

24 Bottles : Flavoured Milk Source : Sidel 24

25 PET : Designing the Differentiator PET Design Differentiating Options! Speciality PET Resins Leak Proofing Light-Weighting and High Speed Filling Designing for high Filling Temperature Mechanical Strength without Panels Mechanical Strength with Panels Complex Shaping Handling the Handle Shelf Life and Mechanical Strength Innovative Bottle Designs - Broadening PET Applications! 25

26 PET : Non Bottle Applications APET Sheet Most Safe : Food-Contact Applications Processed food sector: 40% plus Cost-Effective & Eco-friendly Package Punnets, Blisters, Cartons, Trays, FFS End-users: Marico, HUL, P&G, R&B,.. Emerging: Water cups, CPET, Glasses PET Cans Crystal Clear, Good Barrier, Recyclable Potential Applications Tennis Balls, Juices, Nuts, CSD, Confectionary & Paints,.. A single component, inert safe packaging solution 26

27 APET Cartons Adding Luster! 27

28 PET CANS Current Practises: Metal CANS Emerging Trends PET CANS Crystal Clear Good Barrier. Recyclable Potential Applications: Tennis Balls Juices Nuts, Confectionary, Dry Fruits Paint,.. PET CANS : Creating Shelf Appeal for Consumer 28

29 Paint CANS Current Practises: HDPE, Tin Emerging Trends: PET Why PET CAN? Transparency / Opacity Flexibility: Shape / Clarity Good Solvent Resistance Premium look No Denting/Transit Damages In-house container production & Filling Weight, grams Pack, ml Metal PET PET CANS- Creating a new opportunity for Branding 29

30 Blood Collection Tubes (BCT) BCTs are currently imported Vacuum blood collection tube & stopper Tube dia.13/16mm Length 75/100mm PET Resin : 0.60 IV Major Players : BD, Bayer Telco,.. Shift from Glass & PS to PET Tubes Increasing personal demand on health care BCT : Niche PET Development to reach Bottom of Pyramid 30

31 Air Freshner : Glass Replacement M/s Ramsons, Mumbai were using Glass pack. Replaced Glass by PET: Good market response. Price delta and PET availability encouraged shift Studying development of PET for the new 100 ml. PET Advantages: Increase in Sales volume COP came down in PET Easy launching of new packs ost-competitiveness and Environment Friendliness : Market Drivers 31

32 Bulk Bag Packaging in PET Best Printing Unmatched Strength/thickness advantage Leveraging of the desired price stability Down-Stream Technology Regular systems : Starlinger,.. Some machine modifications Environment-Friendly Niche PET opportunity 32

33 The Safety Ecosystem of PET Packaging Brand Creation/ Marketing Appeal Optimal Protection Ease in transportation More than 300 million MT PET already used globally More than 15 trillion bottles packed and consumed Product Diffrentiation 33

34 Innovative PET Packaging Solutions! High Barrier PET Opaque PET Slow Crystallizing resin Thin Wall Injection Moulding grade UV Blocking PET EBM Grade PET Film Grade 100% PCR Oxygen & Light Carbon sensitive Dioxide Packaging Barrier Milk CSD Beverages 20 L Water segment Brewery For Glasses, Stationary Caps Improves Shelf life of Product Extrusion BoPET Blow Moulded Applications Small packs Recycle PET Driven by efforts to make Packaging more functional! 34

35 RELPET : Total Quality Control Product Grades Aqua General Purpose CSD Fast Reheat Hot Fill Barrier PET B2B Grade Approved By CERTIFICATION ISO : Food Safety Management ISO 9001:2008 : QMS ISO 14001:2008 : Environment Management OHSAS : Occupational Health US-FDA, EU-PIRA, Japan-JHOSPA, India-BIS/CFTRI Pepsi, Coca Cola,Cadbury, Schweppes, Nestle, Danone RELPET Best Quality New Grades RELPET V E R T I C A L I N T E G R A T I O N Crude Oil 35

36 Relpet Barrier Offering Relpet Barrier resin B9845 : Active and Passive barrier. It is moulded and blown on conventional machines OTR improves by 150 times plus. Complies with FDA and BIS Potential applications are for Oxygen sensitive products 36

37 Product and Application Development Centre World class Technology Centre Preform and Blowing machines Developed Barrier use to ensure enhanced shelf life. Solutions to achieve desired properties, shelf appeal and consumer convenience Specifications evaluation as per International practices Invent Perfect Implement 37

38 RIL s Growth Initiatives! Joint Development & Promotion - Hasten Growth Opportunities! 38

39 PET Recycling Let us endeavor to save our Environment!

40 Collection rate : World,China & India: Global China India PET Chips Consumption KT/YR Collection Rate % Pet bottle Collection KT/YR China collection rate is the highest 85% and followed by India 75% The recycling rate in India is 75% plus. Out of balance quantity, 10-15% resin is exported as Preforms/Bottles/Filled products, 7-8 % of empty PET bottles/jars are used as refill packs in Homes/Institutes, 2-3 % in Innovative Applications and Balance/Misc is 3-5 %. 40

41 Recycling Generation PET and RPET Statistics : India PET resin Production KT Toatal PET Resin KT Bottles & Jars 640 KT Sheets & Straps 10 KT Food Beverages Edible oils Liquor Pharma APET sheets Polyester Strapping Masterbatches PET resin imports 80 KT PET Exports 200 KT Export to various countries Basis : Post Consumed Packaging 500 KT Textiles -460 KT Sheets & Straps - 40 KT Demand for recycled fiber is more than availability Industry expanding ahead of RM availability Apparel, Carpets, Upholstery, Filters, Insulation, Fibrefill etc Polyester strapping for Cotton, Paper and Fiber Industry 41

42 Recycled PET - Applications PET Strapping, Toy stuffing, Mattresses, Pillows, T-shirts,. 42

43 Recycled PET Global Applications PET Flakes Jackets, Sheet, Chairs, Toy stuffing, Houses, 43

44 Recycled PET Applications Innovations! PET Bottles stimulating Creative Instincts of Designers 44

45 Recycled PET Indian Market Recyclability influences Pack selection, CSR, Sustainability, Brand image/loyalty PET bottle consumption= 0.8 MMT, Collection 75%, 0.6 MMT bottles RIL uses 40 KT plus of Recycled PET/year: Largest bottle collector in India 150 nos plus networked Collection-cum-Baling Centers RIL: 10 KTA B2B Recycling Plant : Relpet Green Bailing Sorting Crushing Washing Elutriation Drying Sorting Packing RIL cooperates with brand-owners to address Recycling concerns 45

46 Why Relpet Green for FMCG Industry? Consistent Product Quality Hassle-Free operations and productivity enhancement Reliable end-use Performance Value proposition to All : Producer-Processor-End user & Environment sustainability Projects. RIL s all-inclusive approach jointly with the brand-owner! 46

47 Coordinates Mr. RK Gera AVP - Business Development, Reliance Industries Limited PET Division Building No. 8, B Wing, 1st Floor Thane Belapur Road, Reliance Corporate Park (RCP), Ghansoli, Navi Mumbai, Ph: & D: RIL A dependable partner for Application & Market Development! 47

48 In the passing. Relpet continuously strives for niche Applications! 48