The global beverage packaging market is expected to secure US$ 156.7 Billion in 2032 while expanding at a CAGR of 4.1%. The market is likely to hold a value of US$ 104.8 Billion in 2022. As the market develops, eco-friendly packaging initiatives are being implemented along with various technological innovations in the field of beverage packaging in order to meet the growing consumer demand.
Packaging plays a significant role in the beverage industry. By utilizing advanced decorative techniques and communicating the brand of the company, packaging goes beyond simply protecting and increasing the shelf life of the product. Digital printing has become one of the most popular methods of producing beverage packaging in recent years.
According to the study conducted by FMI, beverage packaging sales will rise 1.3 times from base year value over the forecast period, generating lucrative investment opportunities for the manufacturers. A large share of 37.3% of the global beverage packaging market is expected to come from the Asia Pacific region by 2022.
To enhance the sales of beverage packaging, beverage brands develop a wide range of beverage products to cater to a wide range of consumers. A consumer’s decision is heavily influenced by the packaging. A well-designed and efficient packaging system is crucial for the beverage industry in order to ensure that the product is protected during shipping, storing, distributing, and final packaging. This method also ensures that the product retains its quality, freshness, taste, and appearance. Furthermore, the implementation of this system reduces the need for recalls and hazards as well as the traceability of foods.
The beverage packaging industry continues to undergo rapid changes due to consumer demand for lightweight, convenient, and sustainable packaging solutions in the market. Innovations in technology as well as the emergence of new packaging materials drive the beverage packaging market to grow at a rapid pace.
What are the Key Factors Contributing to the Beverage Packaging Market Growth?
Customers are more likely to remain loyal when their needs are customized. Depending on the size, texture, color, and design of the beverage packaging, the packaging solutions can be customized.
Adding a personal touch to the product adds value to the consumer’s experience, strengthens the brand, and helps the consumer learn more about the product. Brands can stand out from their competitors by customizing their products.
Health and hygiene are becoming increasingly important to consumers, so they seek packaging solutions that are both reliable and safe in the market. A variety of container types are used to package beverages, including cans, bottles, and liquid cartons. Both alcoholic and non-alcoholic beverages can be packaged with these solutions. A variety of materials are used for beverage packaging solutions, including plastic, glass, cardboard, and metal.
In the beverage industry, smart technologies are bringing a new era of digitalization to the industry. Consumers can have the convenience of mobile scanning QR codes, smart labels, and other information on beverage packaging embedded directly into the package, which provides more security and convenience for consumers. Manufacturers are introducing new technologies that enhance the consumer experience, contributing to the growth of the beverage packaging market.
A more affluent population and rising per capita incomes, especially in emerging economies, encourage the development of better and more convenient packaging technologies in the market. Further research is underway to determine if recycled plastics may replace virgin plastics in beverage containers. In turn, this will encourage beverage packaging companies to reduce polymer procurement costs while maintaining environmental stability.
Which Factors are the Limiting the Growth of the Global Beverage Packaging Market?
A major problem with packaging is its inability to decompose in a timely manner, which is further leading governments around the world to take governmental actions to address this issue. Strict laws are being imposed on the beverage packing industry to address this issue, further hampering the growth of the market. Taking into account the health and environmental issues associated with the use of synthetic polymers, consumers are demanding sustainable solutions for beverage packaging. Using their available resources, beverage packaging companies strive to ensure that the product is of high quality and safe, but sustainability increases production costs and therefore affects profitability. Increasing the cost of packaging might have a negative impact on the sale of products in the future.
There has been an increasing trend among consumers to search for products made from materials that are more economical, such as metals, glass, and packaging for food and beverages. Several countries are introducing heavier regulations on plastic bans that are forcing brands to shift away from plastics, especially those that are single-use, leading to an increase in prices for consumers and their products. These factors will contribute to the growth of the global beverage packaging market.
How are Health Wellness and Sustainable Packaging shaping the North American Beverage Packaging Landscape?
According to forecasts, North America’s beverage packaging market will grow by 3.7% CAGR during the forecast period. FMI estimates that the USA will hold 83% of North American sales until 2032. According to the American Beverage Association, beverage manufacturers are collaborating to make all plastic bottles 100% recyclable and to integrate more PET into these bottles.
PepsiCo, Keurig Dr. Pepper, and Coca-Cola strive to recycle 100% of their beverage plastic packaging across this region. Sustainable beverage companies are more likely to attract USA consumers willing to spend additional money on their beverages. The consumer’s preferences are shifting towards healthier drinks with clean labels, naturally sweetened beverages, and immunity-boosting drinks. All these factors are significantly adding to the growth of the market.
It is predicted that the demand for non-alcoholic, healthier drinks will grow in the USA over the next several years as consumers seek portable drinks with low sugar and better nutrient content and on-the-go beverages in the market. With the rise of disposable income and the trend for flavored beverages, there has been an increase in the demand for alcoholic and non-alcoholic beverages in the market. In response to the growing need for bioplastics and environmentally friendly packaging, bio-based alternatives are growing in popularity and helping to reduce the country’s dependence on petroleum-based products. The beverage packaging market is on the rise.
Expanding Distribution Channels in the Asia Pacific Helps Increase Beverage Packaging Sales?
Asia Pacific region is expected to hold the largest beverage packaging market. The increasing demand for local and branded beverages in these regions has contributed to market growth in the beverage packaging industry. Among the countries in this region, India and China have accounted for a large part of the growth of the beverage packaging market.
According to the forecast, the Chinese market will grow by 1.4x over the forecast period. In India, the beverage packaging market is expected to grow at a compound annual growth rate of 5.6% over the forecast period. The Indian Beverages Association states that the Indian beverage industry will continue to grow in part because the demand for bioplastics and PET bottle packaging in India will grow as environmentally friendly alternatives and recycling facilities are introduced to the market.
A growing upper middle-class population with increasing purchasing power, rapid urbanization, shifting consumer preferences, as well as an increase in e-commerce will fuel an increase in alcoholic beverage consumption in India. Increasing health consciousness and a desire for wellness among consumers contribute to the growth of premium sports drinks in the market. Increasing access to branded juices and health drinks and a trend toward healthier production consumption will further fuel the market for the beverage packaging market. Globalization will have a positive impact on the Indian food and beverage industry, which will lead to an increase in non-alcoholic beverage consumption.
Key players in the global Beverage Packaging Market market include Crown Holdings, Inc., Ardagh Group S.A., Ball Corporation, Gerresheimer AG, Berry Global Inc., Beatson Clark Ltd., Tetra Pak Group, Owens-Illinois, Inc., Toyo Seikan Group Holdings, Ltd., Silgan Containers LLC, Vidrala S.A., Nampak Ltd., BA Glass Germany GmbH, Orora Packaging Australia Pty Ltd., Frugal Limited, Green Creative, TIPA, and Bonito Packaging.
In September 2022, a $530 million deal was completed between Ball Corp and Arnest Group for the beverage packaging business in Russia. Immediately following Russia’s invasion of Ukraine in March, the sustainable metal packaging maker scaled back its five Russian production facilities. As a result of the sale, Ball’s business outside of Russia will remain unaffected by the sale of its Russian-based operations to Arnest Group, which manufactures perfume, cosmetics, and household products in aerosol packaging.
In October 2022, Myers Industries, Inc., one of the world’s leading innovators of engineered plastics solutions, will participate in the exhibition at Pack Expo in Chicago, Illinois, from October 23-26, 2022. As well as reusable packaging bin-matched shelving, attendees will have the opportunity to assess the quality of Intermediate Bulk Containers (IBC) and high-value storage and handling container
These insights are based on a report Beverage Packaging Market by Future Market Insights.