Beverage Packaging Market worth $189.0 billion by 2026

Posted on 2021-09-24 by MarketsandMarkets in Food & Beverage // 0 Comments

Chicago, 2021-Sep-24 — /EPR Network/ —

The market for beverage packaging is estimated at USD 148.1 billion in 2021; it is projected to grow at a CAGR of 5.0% to reach USD 189.0 billion by 2026. The rise in demand for sustainable products and awareness regarding the environment coupled with increasing demand for convenient packaging will drive the market demand and growth of beverage packaging globally.

Market Dynamics

Driver: Rising beverage consumption in emerging economies

The increasing global population and rising disposable income in developing economies are creating new avenues for packaged beverages. According to the Brewers Association, the total value of the beer market was USD 94.1 billion in 2020, whereas the total craft beer market was estimated at USD 22.2 billion. The alcohol per capita (15+) consumption (in liters) was recorded at 8.6 liters in 2010, which increased to 8.8 liters in 2016, according to the WHO. The increasing urban population, coupled with the changing lifestyle, has led to an increase in total packaged beverage consumption in emerging economies such as India. The data provided by the World Bank shows that around 30.58% of the total population of India resided in urban areas in 2009, which increased to 34.47% in 2019. According to a study published in the Lancet journal, alcohol consumption in India increased by 38% from 4.3 to 5.9 liters per capita during 2010 – 2017. The large population in emerging economies such as India and China is expected to drive the beverage packaging market.

The increasing health awareness among youths has increased the demand for packaged juices, energy drinks, and health drinks, providing immense opportunities for manufacturers to increase their sales. Furthermore, the increase in tourism, easy availability of bottled water, and preference for a healthy lifestyle on-the-go have also increased the demand for bottled water and flavored water infused with vitamins, natural flavors, or nature-identical flavoring substances such as basil, lemon, mint, orange, hibiscus, and fruits.

Restraint: Stringent environmental legislations

Packaging waste harms the ecosystem as it takes decades to decompose. Governments across the globe are addressing this issue by imposing strict laws that the beverage packaging industry is subjected to follow. For instance, governments in Europe take various steps to deal with packaging waste and recycling issues. One such legislation of the European Commission is ‘European Parliament and Council Directive 94/62/EC of 20 December 1994 on Packaging and Packaging Waste.’ This directive provides measures aimed at limiting the production of packaging waste and promoting recycling, re-use, and other forms of waste recovery.

Opportunity: Increasing use of biodegradable and renewable raw materials

The increasing awareness of environmental safety among consumers and the rising adoption of eco-friendly products provide manufacturers of beverage packing products with immense opportunities. According to a study conducted by National Retail Federation, 69% of participants in North America are ready to pay a premium price for recycled products, while 80% of participants want to know the origin of products they buy. Bioplastics are polymers obtained from renewable sources, such as corn starch, woodchips, vegetables, and fatty oils.

Bacardi Limited, in 2020, announced that it would be using 100% biodegradable plastic packaging made with plant-based oils for all its brands by 2023. Thus, the shift of beverage brands to bioplastic bottles from conventional materials for packaging their beverages provides new opportunities for players in the market.

Make an Inquiry: https://www.marketsandmarkets.com/Enquiry_Before_BuyingNew.asp?id=1222

Challenge: High cost of sustainable packaging

Consumers demand sustainable solutions for beverage packaging, keeping in view health and environmental issues linked with the use of synthetic polymers. Beverage packaging companies try to ensure the quality and safety of products with their available resources, but the sustainability factor increases the overall cost of production and thus, affects the overall profitability. The increasing cost of final packaging might affect sales. Therefore, this two-way challenge pressurizes companies to find a middle path that balances various dimensions of sustainability and cost management.

By product type, non-alcoholic beverage will drive the demand for beverage packaging, in terms of value, in 2021

Based on product type, the market is categorized as a non-alcoholic beverage, alcoholic beverage, and dairy beverage. The non-alcoholic beverage segment is dominated in the market. A non-alcoholic beverage usually acts as refreshment drinks for the majority of the population. Hence it captures a major market share in the overall beverage market. The non-alcoholic beverage market is flooded with a large number of strong brands of all product categories that make the market highly competitive. Therefore, in order to retain its customers and gain new customers, the players are coming up with a diversified range of products in beverages. The dairy beverage segment is projected to grow at the highest CAGR of during the review period.

Asia Pacific is projected to dominate the majority market share, in the global beverage packaging market, in terms of value, in 2021

On the basis of the regional area, the market is segmented into North America, Europe, Asia Pacific, South America, and Rest of World (RoW). Due to the increase in population and rise in disposable income, Asia Pacific is projected to account for the largest share during the review period. Global players such as Ball Corporation (US) and Crown Holdings Inc (US) are entering the Asia Pacific market by developing new manufacturing plants in the region. Rapid industrialization and urbanization, increase in environmental concerns, rise in disposable income of growing middle class, and lower production of fresh food & beverage products are factors propelling the usage of processed food & beverage products, consequently fueling the demand for beverage packaging market in this sector.

This report includes a study on the marketing and development strategies, along with a survey of the product portfolios of the leading companies operating in the beverage packaging market. It includes the profiles of leading companies, such as Amcor Group GmbH (Switzerland), O-I Glass, Inc. (US), Crown Holdings, Inc (US), Ardagh Group S.A. (Ireland), Verallia SA (France), Tetra Pak Group (Switzerland), Ball Corporation (US), Vidrala S.A. (Spain), Toyo Seikan Group Holdings, Ltd. (Japan), and CPMC Holdings Limited (China), among others.

About MarketsandMarkets™

MarketsandMarkets™ provides quantified B2B research on 30,000 high growth niche opportunities/threats which will impact 70% to 80% of worldwide companies’ revenues. Currently servicing 7500 customers worldwide including 80% of global Fortune 1000 companies as clients. Almost 75,000 top officers across eight industries worldwide approach MarketsandMarkets™ for their painpoints around revenues decisions.

Our 850 fulltime analyst and SMEs at MarketsandMarkets™ are tracking global high growth markets following the “Growth Engagement Model – GEM”. The GEM aims at proactive collaboration with the clients to identify new opportunities, identify most important customers, write “Attack, avoid and defend” strategies, identify sources of incremental revenues for both the company and its competitors. MarketsandMarkets™ now coming up with 1,500 MicroQuadrants (Positioning top players across leaders, emerging companies, innovators, strategic players) annually in high growth emerging segments. MarketsandMarkets™ is determined to benefit more than 10,000 companies this year for their revenue planning and help them take their innovations/disruptions early to the market by providing them research ahead of the curve.

MarketsandMarkets’s flagship competitive intelligence and market research platform, “Knowledgestore” connects over 200,000 markets and entire value chains for deeper understanding of the unmet insights along with market sizing and forecasts of niche markets.

Matched content

Editor’s pick