Mumbai, Sept 23: The compound known as polyethylene terephthalate (PET) seems set to become the pet of the beverage industry. According to industry analysts, PET packaging is the fastest growing segment in the carbonated soft drinks (CSD) market.Today, PET is constituting nearly 5 per cent of the total sales in CSD as against a 2 per cent contribution last year. According to market sources, Cadbury Schweppes is already in the process of planning a 2 litre PET package to give more choice to its consumers while Pepsi too has considered expanding the literage options in PET. A Pepsi spokesperson clarified that the company is currently concentrating on stabilising the existing 1.5 litre pack before introducing a new size in PET.
Yet, by registering a 100 per cent growth, the PET package has become the key tool for beverage companies to pry open markets further. Coca-Cola's Rahul Dhawan says, "Current trends indicate that this segment is expected to double in volumes in the next one year." Coke's own growthin the PET segment has been an encouraging 66 per cent.
The upswing of the segment has also made it essential for beverage companies to service this growth, forcing them to beef up their blowing and bottling capacities. While Pepsi already has a well distributed network of four PET plants, Coke is servicing the demand through a single plant at Pune. As for the third player, Schweppes, it has suffered a major loss in its PET capacities with the termination of its bottling agreement with the Mumbai bottler, and is now tying up new capacities.
Analysts, although, point to the fact that the 100 per cent growth is on a very small base. The growth of PET in the CSD market in India does, however, follow the worldwide trend for the packaging pyramid for soft drinks. Recent data related to the US package consumption shows that PET has grown by 14.6 per cent whereas the traditional glass bottle has registered a negative growth of 26.3 per cent.
However, the growth of PET will not usurp the returnable glass bottlepackage from occupying over 90 per cent of the total volumes. Agrees Dhawan, "It is our estimate that the PET segment will continue to grow for the next few years and then plateau off...the glass bottle package will continue to be market favourites."
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.