Hot Drinks Packaging Market in the US 2016-2020

Overview of the hot drinks packaging market in the US

Technavio’s market research analyst predicts the hot drinks packaging market in the US to grow at a moderate CAGR of around 3% during the forecast period. Owing to the growing need to preserve the quality of hot drinks like coffee, improve their shelf appeal and maintain freshness and aroma, manufacturers are introducing several innovative packaging methods. Coffee producers in the US are looking for sustainable packaging materials that aim at reducing transportation and recyclability expenses. Several packaging companies are investing in materials that are light and cause less environmental impact. They are increasingly using metalized sealants or plastic films that can be easily recycled and protect the freshness of the product. Stand-up pouches with gas valves and reclosable zippers are the most used packaging products by coffee vendors in the US. Moreover, to increase their manufacturing production, several US vendors in the coffee industry are also using vertical packaging equipment due to its excellent packing abilities and high operational efficiency. These vertical form fill sealing (VFFS) machines exhibit speeds up to 50 cycles per minute, which will further augment the growth prospects for this market in the coming years.

This market analysis observes the projected rise of private labels in the US hot drinks market who are offering a wide range of coffee products at affordable prices compared to branded products. These private label coffee producers are focusing on innovative packaging designs to boost their sales and increase brand loyalty for their products compared with big coffee labels. Private-label coffee manufacturers in the US like K&F Coffee and Specialty Java are paying more attention to the packaging of coffee products. They are custom designing the products as per the needs of the customers. Specialty Java provides a wide variety of packaging including fractional and single-serve. It offers packaging that is flushed with nitrogen to provide long-term freshness to the packaged coffee.

Competitive landscape and key vendors

The hot drinks market in the US is highly fragmented with the presence of many small and private-label packaging vendors catering to the market. The growing preferences for hot drinks in the US is contributing to the demand for coffee products with convenient and innovative packaging that come with increased shelf life. This increase in consumers’ demand has intensified competition in the market, where the players are constantly contending in terms of price, quality, sustainability, and product differentiation to gain traction in the market.

Leading vendors in the market are -

• Amcor
• Ball Corporation
• Bemis
• Graham
• Mondi
• Owens-Illinois
• Printpack

Other prominent vendors in the hot drinks packaging market in the US include Silgan Holdings, All American Containers, Aptar Group, Crown Holdings, and Mead Westvaco.

Segmentation by material type and analysis of the hot drinks packaging market in the US

• Flexible pouches
• Plastics
• Glass

During 2015, flexible pouches dominated the market and accounted for around 57% of the overall market share in terms of volume. Vendors and manufacturers are opting for flexible packages with gas valves to release carbon dioxide and prevent oxygen from entering the beverage products. The degassing valve in flexible stand-up pouches allows the roasted coffee beans to remain fresh for a longer time and protects them from the degenerative effects of oxygen. With the growing shift towards sustainable packaging, the hot drinks packaging market by flexible packaging will witness massive growth in the coming years.

Segmentation by product type and analysis of the hot drinks packaging market in the US

• Roasted and ground coffee
• Instant coffee
• Premium coffee

Accounting for around 40% of the total market share, the roasted and ground coffee segment will dominate the market during the forecast period. Roasted and ground coffee are packaged in flexible stand-up pouches as they require high barrier protection. Freshly roasted coffee beans are extremely susceptible to oxidation, and they lose aroma as soon as they come in contact with oxygen. Owing to such specific requirements, high barrier packaging such as stand-up pouches with gas valves are preferred for packaging freshly roasted and ground coffee.

 Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the hot drinks packaging market in the US?
• What are the key market trends impacting the growth of the hot drinks packaging market in the US?
• What are the challenges to market growth?
• Who are the key vendors in the hot drinks packaging market in the US?
• What are the market opportunities and threats faced by the vendors in the hot drinks packaging market in the US?
• Trending factors influencing the market shares of the US.
• What are the key outcomes of the five forces analysis of the hot drinks packaging market in the US?

Technavio also offers customization on reports based on specific client requirement.

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