Sidel: The leading edge on PET technology and applications
PET is the leading material on the water market, where it should represent about 90% of packaging in 2013. For CSD , metal cans are still number one in 2009 with 41% of all containers, versus 38% for PET.
Roberto Schianchi, Market Operations Executive Vice-President, Sidel Group
Interview - Roberto Schianchi, Market Operations Executive Vice-President, Sidel Group
What trends are you seeing on the water and CS D markets?
Roberto Schianchi: These two markets are still the biggest ones for non-alcoholic beverages, and while both are progressing, their dynamics are quite different. CSD is a mature market, which has had high volume for quite some time but whose growth is now slowing down (1.5% per year between 2005 and 2009). In contrast, the water market has enjoyed the strongest growth of all beverages in the last four years (+7% per year). Volume has increased, and water is gaining in importance. However, some large disparities are hiding behind these general trends. From the geographical perspective, the outlook is better in the zones where demographic growth, urbanization and increased purchasing power are more promising, while the outlook is less positive, or even in decline, on mature markets, where consumption per inhabitant is already high. From the segment perspective, bottled water consumption is increasing at four times the rate of CSD : the growth rate for water is estimated at 4% per year between now and 2013, versus a little less than 1% for CSD .
And on the packaging side?
R.S. PET is the leading material on the water market, where it should represent about 90% of packaging in 2013. For CSD , metal cans are still number one in 2009 with 41% of all containers, versus 38% for PET. However, PET is expected to increase its market share and take over the number one spot for CSD (40% by 2013), thus the absolute need for Sidel to strongly focus on this growing opportunity.
Is the success of bottled water linked to a trend among consumers to go with more “natural” products?
R.S. As for CSD , the water market has seen significant growth in countries where purchasing power is increasing and lifestyle changes are favoring on-the-go consumption, not necessarily linked to the trend towards more “natural” products. This is the case in Eastern Europe and the Middle East (+10% from 2005 to 2009), in China (+9%) and Latin America (+10%). While in North America (+7%), consumers favor natural drinks with positive effects on health and environment, therefore they are drinking more bottled water as one of the solutions to the obesity problem. Still, this growth on the bottled water market is expected to slightly slow down in the next few years, reaching 4% per year, mainly because of its replacement by tap water (for family economic reasons) and because of the increasing diversification of the beverage offer to the final consumer.
CS D market?
R.S. The CSD market is growing in Asia, Eastern Europe and Latin America, where consumers appreciate the taste and thirstquenching properties of these products. But globally, growth for this mature product is expected to stagnate (less than 1% growth through 2013), and even drop in North America (-1.3% through 2013). A significant trend is appearing on this market: the increased “naturalness” of these products. Beverage companies want to decrease preservative levels, particularly benzoates and sorbates, which leave a taste in the final product, or “Velcorin”, a tasteless, colorless cold sterilizing agent whose presence in the drink has to be indicated on the label, in line with consumer information and protection measures. Major beverage companies are therefore looking at product packaging solutions that require no preservatives.
What technical constraints does this desire for greater “naturalness” involve for CS D?
R.S. Without preservatives, some carbonated soft drinks become sensitive products, which are more complex to package, requiring a new process. New technological solutions have to be found and Sidel is on the race: Alwa Fontanis in Germany and a major company in China have decided to package their sparkling fruit juices as sensitive products, applying one of our leading edge technologies. They have ordered Predis Combis from Sidel: the innovative dry decontamination process for preforms that ensures perfect quality for sensitive products sold at ambient temperature. Predis offers a simpler path than traditional aseptic installations, which should be of interest in this new segment, where there are still no “hygienic” production habits.
What are the industrial challenges on this market?
R.S. Of course, everybody is looking to improve productivity (producing more with less) and optimizing existing capacity (modification of parts for improvement, relocation of lines to growth areas, etc.). We can also see that the major players on these markets are increasingly preoccupied with sustainability, which is leading them to reduce energy and water consumption, to decrease the carbon footprint of their activities, to lightweight their packages and to use recycled materials. For this specific purpose Sidel developed a complete range of new “service products”: audits, tests and analyses for line relocation or transfer, package lightweighting or decreased secondary packaging in both the food and non-food sectors and technical solutions aimed at reducing consumption (energy, water, steam, chemicals…) of the installed base. Other important developments in this area include bottle lightweighting and PET recycling. Last September, at its Drinktec stand in Munich (Germany), Sidel blew bottles with 50% recycled PET, and in the laboratory, we have blown marketable bottles with 100% recycled PET. Even if Sidel is leading in water and one of the key players in CSD , we are facing fierce competition. Therefore it is of utmost importance that we continue to focus our innovation efforts on this strategic segment thus keeping the leading edge on PET. (Source: SidelInLine2010)
