SIC 3085 Plastics Bottles

Contenidos

• NAICS CODE(S).
• INDUSTRY SNAPSHOT.
• BACKGROUND AND DEVELOPMENT.
• CURRENT CONDITIONS.
• INDUSTRY LEADERS.
• WORKFORCE.
• RESEARCH AND TECHNOLOGY.
• FURTHER READING.

SIC 3085

Included in this category are establishments primarily engaged in manufacturing plastic bottles.

NAICS CODE(S)

326160

Plastic Bottle Manufacturing

INDUSTRY SNAPSHOT

In 2005 U.S. manufacturing establishments shipped $9.34 billion worth of plastic bottles. This number marked a solid increase over 2002 levels, which totaled $7.93 billion. Three main types of plastic resins were used in the manufacture of plastic bottles. Vinyl, polyethylene terephthalate (PET), and high density polyethylene (HDPE) together accounted for about 95 percent of all plastics bottles in the mid-2000s.

The industry is dependent on nine separate plastic bottle markets: soft drink, milk, medicinal, household chemical, toiletry and cosmetic, automobile and marine, juice and water, food (excluding milk), and industrial. All of these markets have had moderate and steady growth. Plastic bottles have been steadily replacing ones made of aluminum and glass because plastic is convenient and cost effective.

BACKGROUND AND DEVELOPMENT

In 1990, plastic bottles comprised 22.7 percent of the container market by material shipments, metal cans were 59.1 percent, and glass containers were 18.2 percent. A report by the Freedonia Group entitled "Beverages & Containers: Markets & Materials" claimed that metal would remain the dominant packaging material for beverages, but plastic would continue to gain market share at the expense of glass throughout the 1990s.

Bottle demand for PET in the United States was 1.3 billion pounds in 1992, about 70 percent of the total PET market. The largest market for PET was carbonated soft drink containers at 910 million pounds. Single-serving carbonated soft drink containers in 12, 16, and 20 ounce sizes comprised a 225 million pound market that was growing 25 percent annually.

PET resin producers supply the bulk ingredient to make plastic bottles, and their production in 1991 capacity rose to only 68,000 tons, while demand shot up to 206,000 tons. By 1992 demand had increased to 219,000 tons, while new capacity more than doubled, reaching 140,000 tons. Eastman Company expanded domestic resin production by 300 million pounds in 1993 and 1994 and 250 million pounds in 1995. In early 1992 PET resin stood at 65 to 67 cents per pound and fell at the end of 1992 to 62 to 64 cents per pound.

In 1992 PET resin demand from the soft drink industry topped 900 million pounds, and by 1997 it approached 1.4 billion pounds. With PET resin bringing higher prices and worldwide demand exceeding supply, lightweighting of plastic bottles became PET manufacturers' highest priority. Environmental and pricing pressures prompted PET producers to investigate methods for reducing the weight of the two-liter bottle below 55 grams. A one-gram reduction alone represented significant cost savings for the industry.

The recycled version of HDPE, the second type of plastic resin, had initially cost more than its virgin plastic, but many packagers began using recycled HDPE to satisfy environmental concerns. In 1994 there were...