COVID-19 IMPACT SURVEY MAY 2020
The global market for Eco Friendly Bottles is projected to reach US$3.8 billion by 2025, driven by the growing threat of plastic pollution on land for plants, animals and humans. Plastic pollution is a threat that the world can no longer ignore. Plastics are responsible for overflowing landfills worldwide. In the United Sates over 305 of landfills are used by plastics. Plastics are not biodegradable and remain in landfills for over 1000 years; burning plastics releases toxic fumes into the environment; they are expensive to recycle; micro-plastics in water bodies are toxic to marine life as they leach DDT and hexachlorobenzene into water; chemical risks posed by plastics are real for humans as they disrupt natural hormone levels. Chemicals such as phthalates and BPA are proven endocrine disruptors. Plastics, in short, create an environmental crisis comparable to climate change. A worrying trend is the world's obsession with plastic which continues with over 20,000 bottles sold every minute. Lack of stringent regulations in developing countries is a key reason cited for the continued plastic consumption. For instance, lack of stringent regulations curbing indiscriminate plastic use has made India the largest consumer of plastics responsible for generating for 6 million tons of plastic per year.
The coming years will however witness plastic consumption stabilize as growing awareness encourages voluntary environmental stewardship among consumers and stringent regulations force manufacturing companies to adopt greener alternatives. The scenario is poised to benefit green eco-friendly bottles which are defined as bottles made of biodegradable materials such as bamboo, algae, husk, recycled paper, bulrush, and sugarcane pulp, or from biodegradable plastic materials such as polylactic acid (PLA), biodegradable PET and polyhydroxyalkanoates (PHA). The bottled water industry is a major market given the fact that this industry currently consumes a large portion of plastic bottles. Several R&D initiatives are focused on developing cost-effective and innovative eco-friendly bottles i.e. development of algae-based biodegradable water bottles; use of plant-based bioplastic; edible plastic based on Agar, gelatin and seaweed; and paper-based bottles. The market is expected to receive a boost from expected clampdown on plastic use. As of July 2018, about 127 countries adopted legislation to address the problem of plastic bags. About 14% countries so far have banned the use of single use plastics which includes items such as plastic bags, cups, straws, spoons, and bottles. Certain countries also have enacted tax on single-use plastics, which is imposed either as a special environmental tax, or as higher excise tax for single-use plastics. By the year 2021, the number of countries banning single-use plastic items is expected to increase following the passing of EU law banning the use of single use plastic items. Several other countries have also announced plans to implement similar legislations. The United States and Europe represent large markets worldwide with a combined share of 58% of the market, supported by stringent regulations already in place. For the same reason, the United States also ranks as the fastest growing market with a CAGR of 8.7% over the analysis period.