Ban of pouring beer into PET bottles reduces the Russian PET market by 30%

(MRC) -- In case of adoption a new Customs Union regulation in Russia, which bans pouring beer in PET bottles, the Russian PET market volume will lose 30%, according to MRC analysts.

Russian brewers are among leading consumers of PET. The share of beer makes about 30% of total consumption of PET bottle pellets in Russia. About 31% make producers of carbonated soft drinks, 18% - producers of water. The rest of volumes are used in production of finished products such as bottled oil, juices, milk and so on.

In 2010, total volume of PET pellets in the Russian market made about 580 KT where the share of bottle PET was 520 KT. So, in  case of new regulation adoption, which bans using PET bottles for bottling beer, the consumption of pellets just in Russia will decrease by 30% or by 156 KT.

Beer market has been stagnating for the third year. Following the results of the summer season 2011, other segments of PET packaging demonstrated slumping sales too. Indulgent summer compared with the heat wave of 2010 was the main reason for that.

According to MRC analysts, adoption of the amendment even more will aggravate the situation of Russian producers of PET pellets and PET preforms, taking away a significant share of their market, and cause serious losses to the Russian petrochemical industry in a whole. Fringe producers of caps for PET bottles and polypropylene producers will also be affected. Only in 2010, by MRC estimates, total production of beer caps in PET bottles made around 17 KT.

Here is given infographics, which shows the structure of Russian PET market and the possible affect of Customs Union amendment. Infographics can be downloaded here.

mrcplast.com