Rising Demand of PET Bottles/Films in Milk Packaging Industry Drives Ethylene Glycol Market

Ethylene Glycol (EG) is an intermediate product which is used in the manufacturing of a variety of products including polyester fibers, PET resins and antifreeze.  Currently, End-user Industries such as food and beverages, packaging and others are more concentrating towards PET bottles/films usage due to altering lifestyles, growing population and higher purchasing power and other economic factors.

As per the recent trends, almost 60% of PET consumption is in beverage sector during 2015. Gujarat Cooperative Milk Marketing Federation (GCMMF) set up the aseptic PET bottle line in 2013 and they are planning to add another one million bottles per day (bpd) capacity in two aseptic lines at Gandhinagar and Godhra with an investment of about Rs 200 crores in 2015; with this expansion GCMMF total bottling capacity will touch nearly 2.5 million bpd. GCMMF is usually known as Amul Dairy. Now a days, Amul is into packaging of only flavoured milk and other value-added products where usage of PET bottles is profitable in the point of manufactures as it is easy to transport and they are also beneficial to  consumer as it is easy to carry and can be multi-served (one can just close the lid and consume the remaining liquid later).

Infact, other companies like Parag Milk Foods started its trails on packing liquid milk in PET bottles apart from flavoured milk and also introduced ‘Farm to Home’ program to deliver fresh milk in some cities in PET packaging. The company has invested about $5 million to set up high-speed aseptic line to India, with an aim to capture the dairy market.

As per the industry expert, demand for PET bottle packaging of milk and related products will grow with the CAGR of 25-30% in near future. Currently, beverages sector captures 60% of PET bottles market but it is projected that 20% of the market will be captured by liquor and milk alone in 2020.

Rapid developments in emerging countries and use of easy handling products in food and beverages have supported the growth of PET and ethylene glycol markets.