Plastic Bottle Industry Analysis in Vietnam

Vietnam Plastic Bottle Industry Outlook from 2023 to 2033

Sales of plastic bottles in Vietnam are estimated to be valued at US$ 844 million in 2023 and are projected to reach US$ 1,126.5 million by 2033. Sales of plastic bottles are expected to increase at a CAGR of 2.9% during the forecast period.

Vietnam plastic bottle business was valued at US$ 824.2 million in 2022 and is anticipated to exhibit a y-o-y growth of 2.3% in 2023. Small-sized plastic bottles are gaining traction at present, primarily driven by increased adoption in the beverage sector.

Consumers are shifting toward selecting low-capacity plastic bottles for products used infrequently, as longer shelf life could potentially lead to contamination. This trend further boosts the demand. Based on end-use, the food and beverage segment is estimated to hold a share of 30.4% in 2023.

The beverage sector, followed by the pharmaceutical sector, contributes the key portion of the ecosystem. PET plastic bottles are particularly noteworthy due to their adaptability for use with food and beverage products, as well as their aesthetic appeal, transparency, and temperature resistance. These qualities have a positive impact and are set to gain significant traction in the forecast period.

Attributes	Key Insights
Vietnam Plastic Bottle Revenue, 2022	US$ 824.2 million
Vietnam Plastic Bottle Business Estimated Revenue, 2023	US$ 844 million
Vietnam Plastic Bottle Business Projected Revenue, 2033	US$ 1,126.5 million
Value-based CAGR (2023 to 2033)	2.9%

The plastic bottle business in Vietnam is expected to experience a lucrative growth outlook during the forecast period. A new estimation predicts that sales will rise from 2023 to 2033 and are projected to generate a total financial potential of US$ 302 million.

The demand for plastic bottles in Vietnam is set to be primarily driven by the packaging needs of several businesses, including food and beverages, personal care products, household chemicals, and pharmaceuticals. The beverage business, in particular, has played a crucial role in boosting sales with the rising consumption of bottled water, carbonated drinks, and other beverages.

The personal care and pharmaceutical sectors have witnessed significant growth in Vietnam. With increasing disposable income and a growing emphasis on personal hygiene, the demand for products such as shampoos, lotions, detergents, cleaning agents, and syrup has surged. Plastic bottles can provide an efficient and cost-effective packaging solution for these products, thereby driving sales.

2018 to 2022 Vietnam Plastic Bottle Industry Analysis Vs. 2023 to 2033 Forecast

Vietnam’s plastic bottle business witnessed a CAGR of 1.5% during the historical period. It reached a value of US$ 824.2 million in 2022 from US$ 777.5 million in 2018. The historical outlook for the plastic bottle business in Vietnam has been positive, driven by changing consumer lifestyles, economic development, and the packaging needs of several sectors.

Over the past several years, the growth of the nutrition industry has significantly fueled the demand for plastic bottles with health-enhancing features. This trend has led to a significant shift in the plastic bottle business, moving away from traditional designs toward bottles equipped with filters, infusers, and mist sprayers.

The plastic bottle business in Vietnam is undergoing a significant transformation, driven by the global trend for sustainability and environmental consciousness. Reusable water bottles have gained widespread preference over single-use bottled water, reflecting the growing awareness of eco-friendly solutions among the population.

In Vietnam, the processes of industrialization and urbanization have been particularly noticeable. This has fueled the expansion of sectors, including personal care, food and beverage, and medicines, that mainly rely on plastic bottles for packaging. The kinds of items eaten and the materials used for packaging have changed as a result of shifting customer tastes and lifestyles.

Vietnam's usage of plastic goods, particularly plastic bottles, has soared, as it has in several other emerging nations. The surging popularity of plastic packaging can be ascribed to its cost, convenience, and adaptability.

Vietnam is not alone in the world, as environmental worries over plastic pollution have grown in importance over time. This can have an impact on the business of plastic bottles by raising knowledge of sustainable packaging options and fostering conversations about them.

To address ecological challenges and encourage sustainable behaviors, the government has put in place several rules. These rules can have an effect on how plastic bottles are made, used, and disposed of, which can change dynamics.

Technological developments in manufacturing have probably contributed to the development of the plastic bottle business. Improvements in productivity and product quality have been made possible by innovations in materials, manufacturing techniques, and design.

In Vietnam, the importance of recycling has increased over time. The goals of recycling programs and awareness raising have been to address the problem of plastic waste and encourage the use of plastic bottles in a more sustainable way. Plastic bottles are still widely used. However, packaging materials have changed as a result of environmental concerns.

Companies are also channeling their investments into research and development to create cost-effective and visually appealing plastic bottles. They are not only striving to distinguish themselves in the business but also aiming to gain a competitive edge in meeting consumer demands.

Semi-annual Sales Update

The table presents the expected CAGR for Vietnam’s plastic bottle business over several semi-annual periods spanning from 2022 to 2033. In the first half (H1) of the decade from 2022 to 2032, the field is expected to surge at a CAGR of 2.8%, followed by a slightly higher growth rate of 3.0% in the second half (H2) of the same decade. Moving into the subsequent period, from H1 2023 to H2 2033, the CAGR is projected to decrease slightly to 2.7% in the first half and remain relatively moderate at 3.1% in the second half.

Particular	Value CAGR
H1	2.8% (2022 to 2032)
H2	3.0% (2022 to 2032)
H1	2.7% (2023 to 2033)
H2	3.1% (2023 to 2033)

Trends, Opportunities, and Challenges in Vietnam Plastic Bottle Business

Attributes	Key Factors
Upcoming Opportunities	Studies and advancements in the realm of plastic materials can result in the growth of more ecologically friendly and sustainable solutions. Using cutting-edge manufacturing technology can save expenses and increase production efficacy. Enhanced quality control, intelligent production procedures, and automation can all support expansion as a whole.
Key Trends	As consumers become conscious of environmental problems, there is a rising need for environmentally responsible packaging options. This tendency could encourage manufacturers of plastic bottles to use environmentally friendly materials, including biodegradable or recycled PET polymers. The business of plastic bottles can be impacted by a focus on the circular economy model, which encourages recycling and reuse. Businesses are looking at methods to create recyclable bottle designs and are taking part in campaigns to cut down on plastic waste. The demand for plastic bottles can be greatly impacted by the government’s rules regarding the use and disposal of plastic as well as more general ecological policies. A key tendency is adhering to these rules and adjusting to evolving policy.
Challenges	Reducing the usage of plastic bottles can result in raising awareness of ecological concerns, such as plastic contamination. Businesses and customers can start using more environmentally friendly packaging options. To lessen the influence on the environment, the government or international organizations should impose strict guidelines on the disposal and use of plastic bottles. Taxes, prohibitions, and recycling mandates are a handful of examples of this.

Comparative View of Adjacent Vietnam Plastic Bottle Businesses

The section covers a comparative view of three businesses similar to the Vietnam plastic bottle business. As per estimations, the pharmaceutical plastic bottle business would lead out of the three businesses.

The demand for plastic bottles in Vietnam is set to surge at a CAGR of 2.9% by 2033. The global plastic bottle and pharmaceutical plastic bottle businesses are expected to rise at CAGRs of 4.2% and 10.5%, respectively, in 2033.

Factors Pushing Plastic Bottle Sales in Vietnam:

Attributes	Vietnam Plastic Bottle Business
CAGR (2023 to 2033)	2.9%
Growth Factor	Durability, chemical resistance, leak resistance, and versatility are driving growth.
Restraining Factor	The availability of other packaging materials, such as paper, glass, or metal, can make plastic bottles less competitive.
Key Trend	Health-focused features such as filters, infusers, mist sprayers, and BPA-free Tritan material are the latest packaging trends.

Key Trends in the Global Plastic Bottle Business Landscape:

Attributes	Global Plastic Bottle Business
CAGR (2023 to 2033)	4.2%
Growth Factor	Rising demand for eco-friendly and sustainable plastic bottle options is set to aid sales.
Restraining Factor	Uncertainties or downturns in the economy can have an impact on consumer purchasing patterns and lead companies to choose affordable packaging options.
Key Trend	Increased focus on lightweight, recyclable, and user-friendly designs is a key trend.

Opportunities in the Pharmaceutical Plastic Bottle Business:

Attributes	Pharmaceutical Plastic Bottle Business
CAGR (2023 to 2033)	10.5%
Growth Factor	Technological advancement and the rising application of plastic bottles in solid and liquid oral medicines will likely augment demand.
Restraining Factor	The adoption of sustainable practices can be slowed down by a lack of knowledge and instruction on the environmental impact.
Key Trend	Utilizing post-industrial and post-consumer recycled plastics for raw materials, such as child-resistant closures and counterfeit protection, is a key trend.

Country-wise Insights

In the table below of the growth potential of plastic bottles in Vietnam, CAGRs of leading countries are provided. Central Vietnam will likely lead the field of plastic bottles by exhibiting a CAGR of 3.9% from 2023 to 2033. The country is set to be followed by Northern Vietnam and Southern Vietnam, with CAGRs of 3.2% and 2.8%, respectively, through 2033.

Countries	Value (CAGR)
Northern Vietnam	3.2%
Central Vietnam	3.9%
Southern Vietnam	2.8%

Growth of Modern Retail Channels to Surge Sales in Southern Vietnam

The tourism business in Southern Vietnam has contributed significant growth of the plastic bottle landscape. The region attracts several domestic and international tourists who require bottled and other beverages during their travels. Hence, there is a high demand for plastic bottles in hotels, restaurants, cafes, and tourist attractions. This has led to an increased production and consumption of plastic bottles in the region.

The growth of modern retail channels, such as supermarkets and convenience stores, has boosted the demand for plastic bottles. The Southern Vietnam plastic bottle business is set to generate a potential of US$ 214 million in the forecast period. The region is projected to hold 75.9% of the share in the estimated year.

The government is also pressuring bottle manufacturers to employ eco-friendly and sustainable materials after realizing the risks associated with single-use plastic bottles. This factor is expected to encourage consumers to use plastic bottles. The proliferation of plastic bottles in Vietnam is anticipated to be accelerated by this project.

Growing Environmental Consciousness in Central Vietnam to Spur Demand

Central Vietnam is expected to showcase a CAGR of 3.9% in Vietnam’s plastic bottle business through 2033. The demand for plastic bottles is influenced by the economic circumstances in Central Vietnam, which include factors such as GDP growth, industrialization, and consumer expenditure. Increased demand for packaging solutions and higher consumption are frequently correlated with economic growth.

Plastic bottles are widely used by the food & beverage, personal care, and pharmaceutical businesses. The demand for plastic packaging is influenced by the existence and expansion of these sectors in the central area. The use of plastic bottles is shaped in large part by local and federal laws pertaining to environmental sustainability, recycling, and plastic consumption.

The kinds of packaging that customers desire are influenced by shifting consumer tastes, particularly an increasing consciousness of environmental problems. Packaging choices that are eco-friendly and sustainable can become more popular in response to customer demand.

The sustainability of plastic bottle consumption in Central Vietnam is influenced by the accessibility and effectiveness of recycling facilities. In the packaging sector, efforts to enhance recycling procedures and lessen environmental effects are becoming important

Category-wise Insights

The table below highlights the demand for plastic bottles in Vietnam by capacity and material type. Under material type, the PET segment will likely remain dominant in the assessment period with a CAGR of 2.7% by 2033. Based on the capacity, the below 1-liter segment is set to showcase a significant CAGR of 2.5% through 2033 in the field of plastic bottles in Vietnam.

Segment	Value-based CAGR
Below 1 Liter (Capacity)	2.5%
PET (Material)	2.7%

PET Material is Mainly Preferred by Key Manufacturers

Polyethylene terephthalate’s (PET) versatility extends beyond its use in plastic bottles. It is set to be widely adopted in other sectors, such as food & beverage, packaging, pharmaceuticals, and personal care products. This versatility has led to economies of scale in PET production, making it a cost-effective choice for bottle manufacturers.

PET-based bottles lead the business of Vietnam. This is due to the fact that PET-based plastic has an exceptional ability to provide complete safety for food and beverage products. Moreover, the chemical transfer from PET to food items is minimal.

PET-based plastics are more transparent than other type of plastics. This is anticipated to enable future growth. The segment is projected to create a total monetary potential of US$ 144.3 million through 2033.

Consumers Prefer Bottles with a Capacity of Below 1 Liter

The growing demand for small-sized bottles with the rising need for on-the-go and single-serve products is set to aid sales. With busy lifestyles and a growing preference for convenience, consumers are seeking smaller-sized bottles that can be easily carried and consumed while on the move. This has led to a surging demand for beverages such as juices, energy drinks, and water in compact packaging.

Plastic bottles with below 1-liter capacity are projected to hold 56.3% of the share in the estimated year. The segment is projected to foster a financial potential worth US$ 139.6 million during the forecast period.

Competitive Landscape

Key players in Vietnam’s plastic bottle business are gaining value by developing innovations and advancements in the landscape. Leading companies are directed toward product launches and developments to expand their reach. Recent activities and mergers implemented by leading players are:

• In October 2023, the first plastic bottle-recycling machine in Ho Chi Minh City was set up and started up at an Annam Gourmet supermarket and food store located in Thu Duc City.
• In September 2022, The Coca-Cola Company launched its fully recycled plastic bottles to push the development of a circular economy in Vietnam. Except for the labels and caps, the bottles are made of recycled polyethylene terephthalate (rPET).

Scope of the Report

Attribute	Details
Estimated Vietnam Plastic Bottles Business Revenue (2023)	US$ 844 million
Projected Vietnam Plastic Bottles Revenue (2033)	US$ 1,126.5 million
Value-based CAGR (2023 to 2033)	2.9 %
Base Year for Estimation	2022
Historical Data	2018 to 2022
Forecast Period	2023 to 2033
Quantitative Units	Revenue in Value US$ million, Volume in million units, and CAGR from 2023 to 2033
Report Coverage	Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends and Pricing Analysis
Segments Covered	Capacity Material End-use Country
Key Companies Profiled	Tan Phu Vietnam Joint Stock Company Công Ty Tnhh Bao Bi Thành Nghia Pet Honda Plus Vietnam Co Ltd Duy Tan Plastic Company Alpla Phu Tuyen Plastic Co., Ltd Ngoc Nghai Group Nhat Tien Manufacturing & Trading Co. Hon Chuan Vietnam Co., Ltd Tupperware Vietnam Company Limited Vietnhat Plastics Chan Thuan Plastic Thang Phat Production And Trading Company Ltd

Vietnam Plastic Bottle Industry Segmentation by Category

By Capacity:

• Above 1 Liter
• Below 1 Liter
  • 20 ml
  • 50 ml
  • 100 ml
  • 250 ml
  • 500 to 1000ml

By Material:

• High-density Polyethylene (HDPE)
• Polyethylene Terephthalate (PET)
• Polypropylene (PP)
• Polyvinyl Chloride (PVC)

By End-use:

• Oleochemicals
• Agrochemicals
• Others (Homecare and Personal Care)
• Paints, Industrial Coatings, Chemicals
• Pharmaceuticals
• Food and Beverages
• Flavor and Fragrances
• Petroleum and Lubricants

By Country:

• Northern Vietnam
• Central Vietnam
• Southern Vietnam

Frequently Asked Questions

What was Vietnam’s plastic bottle business size in 2022?

In 2022, the business size was US$ 824.2 million.

What is the Vietnam plastic bottle business estimated to reach in 2023?

The business is anticipated to reach US$ 844 million in 2023.

What is the plastic bottle valuation in Vietnam expected for 2033?

The valuation is expected to reach US$ 1,126.5 million in 2033.

What value CAGR did Vietnam's plastic bottle business exhibit over the last 5 years?

The business exhibited around 1.5% CAGR over the last 5 years.

What is the projected CAGR for Vietnam's plastic bottle business from 2023 to 2033?

The projected CAGR for the Vietnam plastic bottle business is 2.9%.

Which end-use segment will garner significant value share by 2023?

The food and beverage segment is expected to garner a significant value share by 2023.