Euromonitor's Global Head of Packaging Research, Rosemarie Downey, presented this research at PETnology conference on November 9, 2015 in Nuremberg, Germany.

1. GLOBAL OPPORTUNITIES FOR PET BOTTLES – THE SIZE AND
SHAPE OF FUTURE DEMAND
PETNOLOGY 2015
NUERNBERG 9TH NOVEMBER 2015
ROSEMARIE DOWNEY
GLOBAL HEAD OF PACKAGING RESEARCH

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3. GLOBAL MARKETPLACE FOR PET
2015 VIEW ON OPPORTUNITIES FOR PET
FINAL THOUGHTS

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0
1
2
3
4
0
500
1,000
1,500
2,000
Food Beverages Tobacco Beauty &
Personal
Care
Tissue &
Hygiene
Home
Care
Dog & Cat
Food
%CAGR
BillionUnits
Billion Units 2015 % CAGR 2015-2019
Global Retail Packaging by Industry in 2015 and Growth to 2019
Food and Drink: Core to Global Packaging Demand and Growing
8% Food
4.3
units of retail
packaging sold in 2015
73%
in food and drinks
alone
14%
share held by PET in
food and drinks
Trillion
GLOBAL MARKETPLACE FOR PET

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Clear Importance of Plastics Packaging in Food and Drink
0 200 400 600 800 1000 1200
Flexible Aluminium/Plastic
Metal Food Cans
HDPE Bottles
Flexible Paper
Folding Cartons
Liquid Cartons
Thin Wall Plastic Containers
Metal Beverage Cans
Glass Bottles
PET Bottles
Flexible Plastic
Billion Units
Global Leading Pack Types for Food and Drink in 2015
and Growth 2015-2019
2015 Billion Units
2015-2019 unit volume growth
4.2% CAGR to 2019
4% CAGR to 2019
3.2% CAGR
to 2019
3.1% CAGR to 2019
+80 bn
0.8% CAGR to 2019
2.2% CAGR to 2019
GLOBAL MARKETPLACE FOR PET

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0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
40%
45%
50%
55%
60%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
%annualgrowth
%PETBottleinSoftDrinks
PET Bottles vs. Total Packaging Growth
in Soft Drinks
PET % Total Packaging Growth % PET Bottle Growth
Global Evolution and Impact of PET in Soft Drinks Remains Strong
GLOBAL MARKETPLACE FOR PET
#155% of all soft
drinks sold in 2014
through retail were
in PET bottles
4.3%
growth for PET
bottles in 2015
175
growth for PET
bottles since 2004
Billion

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Emerging Markets are Recipients of 56% of PET Demand
GLOBAL MARKETPLACE FOR PET
0
2
4
6
8
10
12
14
0
50
100
150
200
250
300
350
400
450
500
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
%Growth
Billionunits
Global Demand for PET Bottles in
Developed vs. Emerging Markets: 2004-2014
Developed Emerging % Growth Developed % Growth Emerging
43%
56%
43%
50%

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-5 5 15 25 35 45
Russia
Thailand
Japan
Mexico
Vietnam
Brazil
Indonesia
India
USA
China
2015-2019 billion units growth
Top 10 Countries for PET Bottle Volume Growth
2015-2019, % CAGR
+ 39 billion units
Where to Go for Best PET Volume Growth
% CAGR 2015-19
+ 39 billion units
11%
6%
2%
7%
Billion Units
GLOBAL MARKETPLACE FOR PET

9. GLOBAL MARKETPLACE FOR PET
2015 VIEW ON OPPORTUNITIES FOR PET
FINAL THOUGHTS

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2015 Key Drivers Shaping PET Performance and Potential
2015 VIEW ON OPPORTUNITIES FOR PET
Emerging Markets for Biggest Volume Gains
Polarisation in Pack Sizing: Rightsizing
Premium and Value-add Opportunities
Consumer Health and Wellness Preferences
Innovation to Support Brand Presence

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PET Position in Key Categories Shows Ample Opportunity for Growth
2015 VIEW ON OPPORTUNITIES FOR PET
-1
0
1
2
3
4
5
6
-50
0
50
100
150
200
250
300
%CAGR2015-2019
Billionunits
PET Bottle Penetration in Key Categories 2015
and Prospects 2015-2019
Billion units 2015 2015 Other Pack Types % CAGR 2015-2019
PET strength in bottled water
versus other pack types and good
for onward growth
Clarity of PET holds opportunities
in Tea, Oils and Dairy

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2005-2015: Bottled water sales double
To represent just under half of all soft
drinks volumes by 2019
0
50
100
150
200
250
300
350
400
2005 2010 2015 2019
Billionlitres
Global Volumes of Still
Bottled Water vs. Other Soft
Drinks 2005-2019
Still Bottled water All Other Soft Drinks
Still Water’s Absolute Importance to Consumer Beverage Preferences
2015 VIEW ON OPPORTUNITIES FOR PET
Value-add expansion to be pursued
PET Prospects in Bottled
Water by Type 2015-2019
Carbonated Bottled Water Flavoured Bottled Water
Functional Bottled Water Still Bottled Water
+50bn
units
30%
45%
35%
41%

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Canada: Fastest growth country for
sparkling water 2014-15 – 1 litre
Australia: Mount Franklin re-
design, Summer 2015
US: Bullet design caffeinated
water – 500ml
China: Heritage of source and
design from Nongfu Spring
Desire for Added Benefits via Carbonation, Quality and Weight
Spain: Showing
recovery – 1.2 litre
2015 VIEW ON OPPORTUNITIES FOR PET

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Healthy Option for on The Go…
…and Family Value Too
0
2
4
6
8
10
12
0
1
2
3
4
5
6
%growth2014-15
Billionunitsgrowth
Global Bottled Water:
PET Pack Size Performance
2014-2015
PET bottle growth, billion units % growth 2014-15
Polarisation in Pack Sizing Increasingly Apparent in Still Water
2015 VIEW ON OPPORTUNITIES FOR PET

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-2
0
2
4
6
8
10
-100
0
100
200
300
400
500
600
%growth2014-2015
Millionunitsgrowth
Global Carbonates:
PET Pack Size Performance
2014-2015
2014-15 PET bottle growth (mn units) % growth 2014-15
Reduce Sweetness and Size
In Carbonates, Control over Sugar Intake Sees Shift to Smaller Sizes
2015 VIEW ON OPPORTUNITIES FOR PET
Variation in
Smaller Sizes
1. Fits lifestyle
2. Affordable
3. Procures value
and volume gains
Canada
591ml->500ml
China
300ml
Various
500ml

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0
20
40
60
80
100
120
Glass Bottles Metal Beverage Cans PET Bottles
Carbonates Packaging by
Core Pack Type 2010-2019
BillionUnits
Flavour and Feel Factors, Room for Big Value for Money Lines Too
2015 VIEW ON OPPORTUNITIES FOR PET
Natural Flavour
Visual Impact
Value for Money

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PET Bottle Growth in Ready-
to-Drink Tea by Region
Asia Pacific Latin America North America
Eastern Europe Western Europe Australasia
Middle East/Africa
Innovation in Natural Tea Flavours Hits Premium Health Note
2015 VIEW ON OPPORTUNITIES FOR PET
+ 8 billion
bottles
2015-2019
Gerolsteiner
Germany
750ml
April 2015
Pepsi-Lipton Tea
Netherlands
500ml
April 2015

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0
2
4
6
8
10
12
14
16
18
Oils and
Fats
Drinking
Milk
Products
Table
Sauces
Yoghurt
BillionUnits
Leading Growth Categories for
PET in Foods
2010 2015 2019
Clarity of PET Advances its Position in Edible Oils and Dairy
2015 VIEW ON OPPORTUNITIES FOR PET
31%
of 2015 sales of milk in
PET in Asia Pacific
3.3%
growth for PET bottles
in Dairy 2015-19
38%
of 2015 PET bottle
demand in Food is for
Milk

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0 2 4 6 8 10 12
Fresh
Shelf Stable
Billion litres
Latin America Milk Consumption 2010/15/19
2010 2015 2019
Brazil: shelf-stable milk +573mn litres 2015-19
Latin America is Shifting to Shelf Stable Milk, Opportunity for PET?
2015 VIEW ON OPPORTUNITIES FOR PET

20. GLOBAL MARKETPLACE FOR PET
2015 VIEW ON OPPORTUNITIES FOR PET
FINAL THOUGHTS

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Focus Areas for PET to Consider Looking Ahead
FINAL THOUGHTS
Look to
Emerging
Markets for
Volume
Growth
Value Growth
in Premium
Flavour and
Designs
Provide Right
size for Specific
Consumer
Need
Engage,
Innovate and
Explore Gaps
for New
Openings

22. THANK YOU FOR LISTENING
Rosemarie Downey
Global Head of Packaging Research
rosemarie.downey@euromonitor.com
+44 (0) 207 251 8024 ext. 1325