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The beverage packaging market size is forecast to increase by USD 75.07 billion at a CAGR of 4.95% between 2023 and 2028.
Moreover, the market's growth trajectory hinges on numerous factors, notably the escalating consumption of bottled water, the widespread acceptance of PET packaging bottles within the alcoholic beverage sector, and the surging demand for single-serve options, multi-packs, and environmentally sustainable packaging solutions. These trends reflect shifting consumer preferences towards convenience, hygiene, and eco-consciousness, driving manufacturers to innovate and adapt. Additionally, the regulatory focus on reducing plastic waste and promoting recyclability further propels the market's evolution. As consumer lifestyles evolve and sustainability concerns intensify, market players must navigate these dynamics to capitalize on opportunities and address challenges effectively, ensuring continued growth and relevance in the packaging industry.
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The market is evolving with the integration of digital printing and technological innovations to meet consumer demands and enhance brand identity. Packaging design plays a crucial role in influencing consumer choices by offering solutions that prioritize product protection and quality preservation. Lightweight, convenient, and sustainable packaging solutions are gaining traction, driven by advancements in technology. Features such as QR codes and smart labels provide embedded information and added security. The industry is shifting towards eco-friendly materials like recycled plastics, biodegradable, and reusable materials to address concerns regarding health, hygiene, and environmental impact. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
One of the key factors driving the market growth is the rising consumption of bottled water. The consumption of bottled water is on the rise in countries like the US, with much of the growth coming from people switching to bottled water from less healthy packaged drinks. This shift is driven by increasing awareness of waterborne diseases and the growing need for clean drinking water, highlighting consumers' preferences for health and hygiene, product protection, quality preservation, and lightweight packaging solutions.
Moreover, the growing demand for bottled water has led to some companies expanding their product offerings. For example, In August 2020, ZenWTR launched a new bottled water made from 100% post-consumer recycled plastic, certified as ocean-bound plastic, showcasing their commitment to using recycled and eco-friendly packaging materials. Similarly, in June 2019, All Market introduced a new eco-friendly aluminum bottled water brand called Ever & Ever. Hence, such factors are driving the market during the forecast period.
Rising demand for functional drinks is an emerging trend in the market. Functional drinks include energy drinks as well as RTD coffee and tea, and there is a rise in the consumption of these functional drinks. Energy drinks are mostly seen as a lifestyle choice for millennials as they lead incredibly busy lives in most countries. RTD tea and coffee are convenient choices for people with rising disposable income and a need to sip their beverages on the go. For instance, in June 2020, PepsiCo announced the launch of new iced packaged coffees in partnership with Italian Coffee Company Luigi Lavazza.
Moreover, in February 2020, Silk launched two plant-based ready-to-drink latte varieties, combining almond and oat milk with coffee. In March 2019, Coca-Cola announced the launch of its first energy drink under the Coca-Cola brand Coca-Cola Energy. Hence, such factors are driving the market during the forecast period.
Growing opposition to the use of plastic bottles is one of the key challenges hindering the market growth. Plastic bottles could take over 800 years to decompose in a landfill. PET bottles contribute heavily to the problem of environmental pollution worldwide; hence, many organizations, agencies, and governments have banned the use of plastics. Many countries, such as Australia and Kenya, have already banned or imposed taxes on the use of plastic bags.
For instance, in June 2020, the government of the Indian state of Tamil Nadu published a notification banning the use of plastic for food and beverage packaging with immediate effect. Similarly, in February 2020, the Mayor of New York City in the US announced banning the sale of single-use plastic beverage bottles on city-owned and leased properties. Thus, the growing opposition to the use of plastic bottles is expected to hamper the growth of the market during the forecast period.
The market is a dynamic industry shaped by various factors, including digital printing for customized designs and brand identity. Packaging design plays a crucial role in attracting consumers, influencing their consumer choices, and ensuring product protection and quality preservation. As brands focus on minimizing risks and enhancing sustainability, they turn to lightweight packaging solutions and convenient packaging solutions that also prioritize environmental concerns. Technological innovations like smart labels, QR codes, and mobile scanning enable intelligent technologies for tracking and ensuring the reliability and safety of bottles, liquid cartons, and other packaging materials. This holistic approach addresses aspects such as health and hygiene while delivering aesthetically pleasing texture, color, and design options to meet diverse market demands in both alcoholic beverages and non-alcoholic beverages sectors.
The rigid plastics segment is estimated to witness significant growth during the forecast period. PET, polystyrene, and polypropylene (PP) are some rigid plastics increasingly used in beverage packaging. In addition, compared to other packaging materials such as metal and glass, the demand for rigid plastic packaging is increasing rapidly. Furthermore, rigid plastic is one of the popular types of packaging material, and buyers prefer it due to its various advantages, such as low weight compared to glass.
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The rigid plastics segment was the largest segment and was valued at USD 85.01 billion in 2018. Moreover, rigid plastic is also shatterproof and flexible, which allows it to be molded into various shapes and sizes. In addition, the popularity of PET bottles is expected to grow further during the forecast period. A healthy lifestyle drives more consumers toward buying bottled water. Furthermore, growing health awareness and busy lifestyles are prompting consumers to switch to healthy eating habits. Therefore, there is a rising demand for products such as juices and dairy beverages, including flavored milk, which is generally packed in PET bottles. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.
Based on the product, the market has been segmented into alcoholic beverages, non-alcoholic beverages, and dairy beverages. The alcoholic beverages segment will account for the largest share of this segment. An alcoholic beverage refers to a beverage that contains ethanol, a form of alcohol that works as a narcotic and is created by the fermentation of grain, fruits, or other sugar-rich sources. In addition, in many cultures, the consumption of alcoholic beverages, sometimes known as drinking, has an essential social function. Furthermore, most countries have regulations that govern the manufacture, sale, and use of alcoholic drinks. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.
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APAC is estimated to contribute 48% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Packaged beverage consumption in the region is expected to grow during the forecast period. Factors such as the rising disposable income of the population and an increase in the average temperature will lead people to opt for packaged beverages such as bottled and canned water instead of tap water in emerging countries. Moreover, rapid urbanization and increased spending by beverage companies on marketing and communications will boost the consumption of non-alcoholic beverages in these markets. Countries such as China, India, Indonesia, and Thailand will account for over 50% of the incremental growth in the consumption of beverages. Some packaged beverage companies are expanding their product portfolio by launching new variants of packaged beverages, which, in turn, can influence market growth in the region during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Amcor - The company offers beverage packaging such as plastic bottles, jars, canisters, single-serve coffee capsules, pods, bags, and pouches.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Ardagh Group SA, Ball Corp., Berlin Packaging LLC, Berry Global Inc., CANPACK SA, Compagnie de Saint Gobain, Crown Holdings Inc., DS Smith Plc, Mondi Plc, O I Glass Inc., Pactiv Evergreen Inc., SIG Group AG, Silgan Holdings Inc., Smurfit Kappa, Stora Enso Oyj, Tetra Laval SA, Toyo Seikan Group Holdings Ltd., Vidrala SA, and WestRock Co.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report encompasses the entire market adoption cycle, ranging from the initial innovator phase to the subsequent laggard stage. The market growth analysis emphasizes adoption rates across various regions, determined by penetration levels. Additionally, the report outlines essential purchasing factors and factors influencing price sensitivity. This aids companies in assessing and formulating effective growth strategies.
Customer Landscape
The market report forecasts market growth by revenue at global, regional & country levels and provides market research and growth of the latest market trends and analysis and growth opportunities from 2018 to 2028.
The market is witnessing a surge in demand for convenient and reliable packaging solutions driven by the need for safe packaging and texture. Liquid cartons and cardboard are increasingly popular due to their eco-friendly nature and recyclability. The market is also experiencing a shift towards advanced packaging technologies and intelligent solutions, including digitalization and mobile scanning. With a focus on sustainability, there is a growing preference for recyclable and biodegradable materials over virgin plastics. This trend is particularly notable among international beverage brands catering to the burgeoning middle class seeking diverse beverage choices, including carton milk, non-alcoholic drinks, soft drinks, and healthy drinks. The market also caters to specific demographics such as children and the elderly population and is influenced by the E-commerce industry and regulations like the EU Waste Framework Directive.
Moreover, the market is evolving with a focus on packaging systems that offer convenient and safe solutions. The integration of intelligent technologies is driving innovation, enabling interactive and engaging packaging experiences. There is a strong emphasis on sustainability, leading to increased use of recyclable materials. Visuals and decorative techniques play a crucial role in attracting consumers and conveying product messages. The market caters to a wide range of beverages, including instant energy drinks, those promoting heart health, ready-to-drink beverages, packed beverages, and carbonated drinks. With growing environmental concerns, the industry is also focusing on plastic and paper recycling to reduce its carbon footprint.
Market Scope |
|
Report Coverage |
Details |
Page number |
179 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.95% |
Market Growth 2024-2028 |
USD 75.07 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.65 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 48% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Amcor plc, Ardagh Group SA, Ball Corp., Berlin Packaging LLC, Berry Global Inc., CANPACK SA, Compagnie de Saint Gobain, Crown Holdings Inc., DS Smith Plc, Mondi Plc, O I Glass Inc., Pactiv Evergreen Inc., SIG Group AG, Silgan Holdings Inc., Smurfit Kappa, Stora Enso Oyj, Tetra Laval SA, Toyo Seikan Group Holdings Ltd., Vidrala SA, and WestRock Co. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Material
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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