Beverage Packaging Market Size, Share & Industry Analysis, By Material (Plastic, Glass, Metal, and Others), By Product (Can, Bottle & jars, Pouch, Carton, and Others), By Application (Alcoholic and Non-alcoholic) and Regional Forecast, 2019-2026

The global beverage packaging market size was USD 123.39 billion in 2018 is projected to reach USD 177.04 billion by 2026, exhibiting a CAGR of 4.5% during the forecast period from 2019 – 2026.

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The growth of this market is driven by the increasing adoption of lightweight and inexpensive materials in the industry. Beverage packaging is used for a wide range of products such as bottled water, beer, coffee, soft drinks, dairy products, energy drinks, juice, sports drinks, tea, and wine & spirits. Various shapes of packaging are used for the packaging of beverages as per customer needs and applications. Materials such as plastics, glass, and metals are commonly used in the beverage packaging industry application. The manufacturers are implementing strategies of product launch, attractive product designs, and mergers & acquisitions to gain a competitive edge over their rivals. Changes in regulatory policies are likely to create disruption in the market over the long-run. However, positive steps taken by key stakeholders in the supply chain is likely to create healthier growth opportunities for the market.

LATEST TRENDS

Increasing Use of Bioplastics is a New Growth Trend

The adoption of biodegradable and environment-friendly packaging solutions is amongst the top growth trends followed by top beverage brands. The increasing use of compostable, recyclable, and biodegradable packaging materials showcases a brand’s shift to eco-friendly practices that is significant in attracting consumer attention. This helps the brand owners to create a sense of loyalty and responsibility amongst the consumers, thus increasing the sales of the products. For instance, in December 2019, Tetra Pak introduced a plant based polymer packaging solution for its food & beverage products that gained significant traction in the market. As per Mario Abreu, VP Sustainability, Shelf Life, Tetra Pak, more than 90 % of the consumer today look for environmental logos on packaging solutions while shopping and ratings by credible agencies help customers to increase faith in the brand, and indeed raise the brand valuation. Moreover, brands are also shifting towards more sustainable packaging solutions such as indefinitely recyclable aluminum cans amidst the war against plastics.

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Innovation in Packaging Design to Drive the Market Growth

Packaging design plays a pivotal role in the industry by pleasing customers and boosting sales. Besides, it helps the brand owners to minimize waste and product loss. Personalizing packaging solutions has become the topmost trend for the brands as consumers love attractive & personalized packaging that helps brands to increase their profits. Attractive packaging designs and graphics have a crucial role in making a visual appeal to the customers. Thus, beverage brands use appealing and customer-centric graphics to evoke in order to increase their customer base along with better brand recognition. For instance, in 2019, Johnnie Walker, a renowned alcoholic beverage brand, introduced “Game of Thrones” (GoT) edition ‘White Walker Scotch Whisky’ to attract massive GoT fan base to purchase its product.

Similarly, Various other brands have implemented these strategies to attract customers. These brands include Brewery Ommegang, which has released more than 10 GoT beers with some of them paying homage to prominent characters of the show. These strategies have always influenced the customers and has redeemed brands with low sales & profits. Therefore, it is strongly believed that innovation in packaging solutions will remain amongst top growth trends for the industry.  

DRIVING FACTORS

Soaring demand for effective packaging solutions to drive the market demand

An effective and efficient packaging solution has always been the priority of the beverage industry. Both alcoholic and non-alcoholic beverages packaging materials play a crucial role in preserving the flavor and contents of the beverage product. Being organic in nature, beverages are highly susceptible to the attack of oxygen and get spoilt in the process. Thus, an effective packaging solution offering high oxygen barrier is of great importance in the beverage packaging industry. Continuous research and development activities and trials of new materials are being carried to develop new packaging materials. For instance, PEF (polyethylene furoate) is being considered as effective for beverage packaging instead of PET (polyethylene terephthalate) as PEF offers higher gas barrier for carbon dioxide, oxygen and water vapors along with the benefit of a significant reduction in Greenhouse gas emissions in its production as compared to PET. Moreover, beverage brands are coming up with new premium products that make preservation of contents even more important to maximize the profit and retain their premium customer. Thus, the growing need for effective packaging solution is driving the market growth.        

Ease & flexibility in transportation offered by different packaging solutions boost the market growth    

Beverage packaging manufacturers are coming up with variety for packaging solutions such as PTZ packaging (ready-to-email boxes), Bag-in-Box (BIB), wrap-around, folding boxes, and numerous others for their large customer base. Ease in transportation has always been in focus while designing smart packaging solutions to maximize the carrier space and transport the products efficiently without being damaged. Especially, in the case of fragile beverage containers such as glass, the need for effective packaging becomes more important as such fragile materials are exposed to high risk of damage in transportation. Single-serve packaging solutions make it easier for customers as well as beverage brands to transport and keep their products ready to consume, instead of transporting the beverages in bulk size containers such as drums. Thus, the ease & flexibility in transportation offered by different beverage packaging solutions boosts the market growth.   

RESTRAINING FACTORS

Regulatory changes and ban on single-use plastics to Confine the Market Growth

The implementation of stringent regulatory norms on the use of plastics is likely to hinder the market growth over the forecast period. Lawmakers around the world are framing and implementing such stringent regulations in order to conserve the environment for the betterment of generations to come. Ban on single-use plastics in many prominent parts of the globe has already started affecting the packaging supply-chain resulting in the shift of packaging materials. Brands are opting for relatively expensive materials such as metals and food and beverage packaging glass instead of plastics amid single-use plastic ban. This is expected to increase the cost of beverage packaging as well as end-product affecting the consumer’s pocket.

However, certain initiatives are being taken by beverage brands to decrease their carbon footprint and move towards sustainability. For instance, Coca-Cola has initiated several new programs that are expected to create a change in packaging solutions in different parts of the World. In Sweden, it has launched new labels denoting 100% rPET (recycled PET) bottles to encourage the consumers to recycle the bottles and create a circular economy for plastic packaging. Whereas in Brazil Coca-Cola has launched a returnable bottle initiative along with 100% recyclable labels to support the growth of the circular economy.    

SEGMENTATION

By Material Analysis

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Plastics segment to Gain Momentum during the Forecast Period

In 2018, the plastic segment accounted for the second-largest share in the beverage packaging market. Though stringent norms are being implemented on the use of plastics, positive initiatives taken by the beverage brands are expected to spur the demand and growth of plastic packaging solutions. By the end of the forecast period, the plastic segment is poised to dethrone glass segment as the largest segment in this market. The metal segment is also expected to witness healthy growth over the forecast period owing to positive developments and the adoption of metal packaging by prominent beverage brands.

By Product Analysis

Bottle & Jars to Account for Lion Share

Bottle & Jars segment dominated the market accounting for around one-third of the global market. It is expected to continue its dominance in the upcoming years owing to strong demand for bottle & jars packaging solution in the beverage industry. Moreover, bottle & jar packaging allows ease of handling beverages as compared to other shapes and packaging. Carton segment is expected to witness the highest growth in the market owing to the increasing adoption of eco-friendly and lightweight packaging in the beverage industry.  

By Application Analysis

Non-Alcoholic Beverages Holds the Major Share in the Global Beverage Packaging Market

Non-Alcoholic beverages accounted for a major share in the market in 2018. A large amount of packaging material is consumed for non-alcoholic beverages such as milk, fruit juices, purees, sauces, soft drinks, carbonated drinks, smoothies, and various others. However, the alcoholic beverage segment is increasing at healthy rates and is expected to overtake the non-alcoholic segment over the mid-term forecast. Moreover, beverage brands are introducing many premium beverages, both alcoholic & non-alcoholic, in order to serve an increasing number of premium customers. This is expected to create lucrative growth opportunities for this market.    

REGIONAL ANALYSIS

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The findings based on our research methodology indicate the Asia Pacific to hold the largest beverage packaging market share in the globe during the forecast period strongly supported by the emerging economies such as China, India, Indonesia, Taiwan, Malaysia, and Thailand. Rapid Urbanization coupled with increasing disposable income is likely to boost the consumption of beverages as well as beverage packaging in the foreseeable period. The rising population is another macro factor that is expected to boost consumption in the region. However, changing regulatory policies on the use of single-use plastics is likely to result in the slow expansion of the market.

Prominent consuming countries including Japan, South Korea, India and China have announced a ban on single-use plastics in the upcoming years. For instance, China announced a ban on non-degradable bags and other plastic items in major cities by the end of 2020 and in other parts of the country by 2022. India is likely to come with a similar ban over the short-term forecast. The second-largest producer of plastic waste (per capita) Japan, has committed to a reduction of 25% in the consumption of single-use plastics by 2030. South Korea has already banned single-use plastics in all of its major supermarkets. These countries are expected to announce the ban on single-use plastics to a broader spectrum of applications over the forecast period.

As per our study, Europe is expected to witness moderate growth in the market. Europe accounted for the second-largest share in the market strongly backed by the beverage industry in the region. Western European countries such as Germany, France, UK, Spain, etc., are the major growth drivers in the region. The alcoholic beverages segment is expected to drive the market growth due to the rising consumption of alcoholic beverages. The implementation of stringent regulations such as, ban on single-use plastics is expected to hamper the market expansion in the region. The European Parliament has voted out for a ban on single-use plastics by 2021 and has focused on generating a circular economy for the benefit of European citizens.  

North America is expected to grow steadily over the forecast period, dethroning Europe region as the second-largest region in the beverage packaging market. North America is one of the largest producers of packaging solutions in the world. Moreover, it also produces large quantities of beverages that drive market growth. Major consumers in the region include bottled water, beer, coffee, soft drinks, dairy products, energy drinks, juice, sports drinks, tea, and wine & spirits. The growth in the region is also expected to be hampered by the changing regulatory policies on the use of plastics. The ban on plastics is relatively complicated in the United States with only a few states such as California, Oregon, and Hawaii banning plastics bags and a few states are set to ban the same from 2020 or 2021. However, there is strong opposition from the plastics manufacturers thus the federal government is skeptical of imposing a ban on single-use plastics. Instead, the government is focusing on creating a circular economy that would benefit both consumers as well as manufacturers in the long run. Canada, on the other hand, is set to impose a ban on single-use plastics by 2021, according to Environment Minister Jonathan Wilkinson.   

KEY INDUSTRY PLAYERS

Product launch and packaging innovation to remain key growth strategies

Key players in the globe are focusing on product launch and innovation in packaging design amidst regulatory changes on the use of plastics. For instance, in January 2020, Ball Corporation, a manufacturer of wide range packaging solution, introduced “infinitely recyclable" aluminum bottle line to support its customers amidst regulatory changes on the use of plastic and create a circular economy.

Key Players to Uphold their Market Position Across Different Composites related Areas

Major players operating in the industry are adopting strategies such as strategic partnerships, new product launch & development, mergers & acquisitions, and agreements to enhance their market share and presence. Also, to build competitiveness, companies are increasing existing product offerings.

Although, the majority of the market share of packaging material for beverage is consolidated among large scale and medium scale regional manufacturers. Most of the manufacturers are investing in product and technology innovation to gain core competency within domestic and international markets.

List of Key Companies Profiled:

• Amcor


• Ardagh Group


• Crown Holdings


• Mondi Group


• Saint Gobain


• Sonoco Products Company


• Tetra Laval


• Toyo Seikan


• WestPack


• Ball Corporation 


• Berlin Packaging


• Berry Global Group, Inc


• Others

KEY INDUSTRY DEVELOPMENTS:

• October 2019 - Berlin Packaging, a supplier of packaging solutions headquartered in the US, announced its agreement for the acquisition of Novio Packaging Group in the Netherlands, strengthening its position in northern Europe.


• June 2019 – Amcor, a global packaging company headquartered in Australia, successfully completed the acquisition of Bemis, a US-based packaging solutions provider, closing the transaction at USD 6.8 Bn. The combined entity now operates as Amcor plc and has significantly strengthened Amcor’s position in the North American region.

REPORT COVERAGE

The beverage packaging market research report offers qualitative and quantitative insights on beverage packaging solutions and the detailed analysis of market size & growth rate for all possible segments in the market.

An Infographic Representation of Beverage Packaging Market

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Along with this, the report provides an elaborative analysis of market dynamics, emerging trends, and competitive landscape. Key insights offered in the report are the adoption trends of beverage packaging solutions by individual segments, recent industry developments such as partnerships, mergers & acquisitions, consolidated SWOT analysis of key players, Porter’s five forces analysis, business strategies of leading market players, macro and micro-economic indicators, and key beverage packaging industry trends.

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