This report presents a board range of topics, both sector-specific and cross-cutting market issues.
Besides updating Vietnam PET packaging market size and competition dynamics, StoxPlus provides an in-depth analysis on PET packaging demand from both F&B and non-food sectors. Furthermore, potential revenue pool for current market 2014 is also included. The report is expected to provide useful market information for new companies looking to penetrate into the market, as well as existing PET packaging manufacturers to get an updated view on competition.
Below are the most critical findings in our second issue:
- 1) Vietnam plastic packaging is the highest value sector in packaging industry with market size of US$4.0bn for the year 2014. Thanks to increasing packaging demand from F&B sector, this sector posted a strong growth rate with CAGR of 12.4% during the period 2010 - 2014.
- 2) As a part of the value chain, Vietnam plastic packaging manufacturers are crucial to manage the stability of their input raw material costs and pass through as much of the raw material price inflation as possible to customers. On the supply side, Vietnamese firms heavily rely on imported raw materials (90%) and imported machinery & equipment. Meanwhile, on demand side, major plastic end-users are giant multinational corporation such as Coca-Cola, PepsiCo, Unilever that have high bargaining powers. As such, Vietnamese packaging firms are in a vulnerable position.
- 3) Market size of independent PET producers (excluding in-house producers like Number 1 Corp.) is approximately US$445mn in 2014. PET packaging is produced by both independent manufacturers such as Ngoc Nghia and in-house by end-users such Number 1 Corp. If taking only independent manufacturers into account, PET packaging market in Vietnam sized at approximately US$445mn in 2014, expanding by 11.4% compared to that figure in 2013.
- 4) Regarding competition dynamics, PET packaging market is concentrated among the top 10 players, especially the top 2 Ngoc Nghia and Bao Van. Together, Ngoc Nghia and Bao Van account for 36% of the total PET market (or US$154mn). Other local players who are also major players include: Duy Tan Plastic, Tan Phu Plastic, and Do Thanh Plastic. Foreign PET plastic packaging companies such as Hon Chuan (Taiwan), Srithai Superware (Thailand), Dynaplast (Indonesia), and VisyPak (Australia) entered into Vietnam since 2006. These are all subsidiaries of major global PET packaging companies who have served multinational end-users like Pepsico or Unilever for a long time. They are aggressively competing with local companies, leveraging their modern machinery and equipment, as well as expertise on PET packaging.
- 5) End-users of PET packaging are diverse. Potential revenue pool for PET packaging is high (three times the current size), but market structure and organization make it difficult for PET manufactures to realize such potentials. Particularly, among 11 end-use sectors that are in-depth analyzed in the report, the highest PET packaging usage sectors are RTD tea (US$443mn), Oils & Fats (US$129mn), Bottled water (US$112mn). However, except for Oils & Fats, major players in other segments tend to do in-house packaging since PET packaging does not require high-tech production process as well as quality management as flexible packaging, especially multi-layered sector. As such, it is believed to be difficult for PET manufacturers to realize such potentials.
- 6) Custom packaging would be the key driver for Vietnam PET packaging industry in the future. With large investment in R&D, foreign-owned manufacturers such as Hon Chuan, VisyPak and Alpla will be the market leader while local players such as Ngoc Nghia and Bavico would be kept around for leveraging the bargaining power of giant end-users.
Table of Contents
1. Vietnam Plastic Packaging Market
- 1.1. Market Structure
- 1.2. Market Size & Growth
- 1.3. Value Chain Analysis
- 1.4. SWOT
2. PET Packaging Market in Vietnam
- 2.1. Market Structure
- 2.2. Market Size & Growth
- 2.3. Competition Landscaping
3. Top 5 Independent PET Manufacturers
4. Analysis of Potential Demand for PET Packaging
- 4.1. Analysis of PET Packaging Demand
- 4.2. Potential Revenue Pool
- 4.3. Profiles of Top 5 PET End-users
- 5.1. Macroeconomics Situation
- 5.2. Regulatory Framework
6. Key Development Trends
- 6.1. Foreign interest in packaging industry
- 7.1. Appendix 1: Key figures on soft drink market in Vietnam
- 7.2. Appendix 2: Key figures on packaged food market in Vietnam
- 7.3. Appendix 3: Factsheet of listed plastic packaging companies