Chicago--Global PET markets will continue to be vastly oversupplied, leading to significant rationalization of older plants, said Chase Willett, director of PET at IHS, at the Global Plastics Summit. New capacity is being added while demand slides.
"We are seeing year-on-year declines in the carbonated soft drink market," he said. The diet soft drink market is dropping at a 6% annual rate. Demand for water bottles is rising at about a 4.5% annual rate. "People are making choices based on perceived health concerns."
Willett also noted that water bottles are about one-third the weight of carbonated soft drink bottles because of thin-walling. "We're seeing the water bottle being turned into the water bag," another speaker at the conference said.