Beverage packaging market is estimated to witness growth due to the rising consumption of packaged beverages and growing environmental concerns
The Beverage Packaging Market is estimated to be valued at USD 144.42 billion in 2024, exhibiting a CAGR of 4.2% over the forecast period (2024-2031). Furthermore, the growing consumption of packaged beverages, such as bottled water, soft drinks, juices, and other drinks, is driving the demand for beverage packaging solutions. Rising health consciousness among consumers and changing lifestyles have increased the demand for packaged and ready-to-drink beverages.
The growth of the beverage packaging market is driven by the increasing consumption of packaged beverages and rising environmental concerns. The packaged beverage industry has seen tremendous growth over the past decade owing to changing consumer preferences and improved supply chain infrastructure. Furthermore, environmental concerns related to plastic waste are prompting beverage manufacturers to use more sustainable packaging materials like glass, paper, and aluminum. Beverage companies are investing heavily in research and development of innovative packaging solutions to attract more consumers and comply with stringent regulations.
Growing Demand for Convenience Beverages
The demand for convenience beverages like bottled water, soft drinks, juices, energy drinks, and flavored milk has been rising significantly over the past few years. As lifestyles get busier, consumers prefer ready-to-drink beverages that can be consumed on-the-go without much preparation. This increasing consumption of convenience beverages is a key driver fueling growth in the beverage packaging market. Beverage manufacturers are introducing various innovative package types and formats that cater to the need for convenience. Stand-up pouches, slim cans, portable multi-serve bottles, and single-serve packets are some examples of packaging aimed at boosting portability and convenience.
Strong Growth of Non-carbonated Beverages
While carbonated soft drinks still dominate the beverage industry, non-carbonated beverages are gaining huge popularity and growing at a much faster pace. Health-conscious consumers are shifting from sodas to healthier drinks like bottled water, juices, milk, and various kinds of teas and coffees. This strong growth of non-carbonated beverages is benefiting the beverage packaging market tremendously. Different types of non-carbonated beverages require specialized packaging solutions in terms of materials, closure types, shelf-life requirements and portion sizes. Manufacturers are developing innovative packages made from different materials to offer optimal protection, functionality and appeal for diverse non-carbonated drinks.
Stringent Regulations Regarding Use of Plastics
Rising global concerns about plastic pollution and its environmental impact have led many countries to implement strict regulations around the production and usage of plastics. Single-use plastics are being banned altogether while regulations for recyclable/compostable packaging are getting more stringent. This poses a big challenge for the beverage packaging industry that depends heavily on plastic bottles. Manufacturers have to find viable alternatives to plastics or implement effective recycling systems to comply with the new rules. Considerable investments are required for R&D of new materials and technologies, increasing costs for the industry.
Volatility in Raw Material Prices
Packaging production involves various raw materials like plastics, paper, metal, glass, etc. that see regular fluctuations in their global prices due to factors like supply scarcity and changes in crude oil rates. Frequent hikes in raw material costs put pressure on packaging prices. With thin profit margins in the competitive beverage industry, manufacturers cannot always pass on these increased costs to consumers. They have to sometimes absorb price rises, impacting their profitability. Strategic sourcing and long-term contracts are followed to mitigate volatility risks but unstable raw material prices continue as a challenge for the beverage packaging sector.
Growing Popularity of Environment-friendly Packaging
With sustainability gaining prominence globally, there are significant opportunities for beverage brands and packaging companies to offer eco-friendly solutions. Manufacturers are innovating packages made from renewable/recyclable materials like plant-based plastics, paperboard, and aluminum. They are also focusing on lightweighting, optimized packaging designs and effective recycling systems. The demand for sustainable beverage packaging is on the rise as consumers have grown more aware and concerned about environmental protection. Capitalizing on this consumer trend can help companies boost their market share.
Emergence of Developing Markets
While developed markets in North America and Europe still account for maximum revenues, developing regions like Asia Pacific and Latin America offer huge untapped potential for future growth. With growing population, rising incomes and changing lifestyles in emerging economies, the demand for packaged beverages is scaling to new heights. International players are actively exploring opportunities in developing markets through partnerships, acquisitions and setting up local production plants. Strategic expansion to high-potential developing countries can open lucrative new avenues of growth for beverage packaging manufacturers over the coming years.
Link - https://www.coherentmarketinsights.com/market-insight/beverage-packaging-market-2989
Key Developments
- In January 2024, Sidel introduced a new filler designed for beverage packaging.
- In March 2024, Flow Beverage launched its new brand alongside sustainable packaging solutions.
- In 2023, PepsiCo introduced paper-based beverage packaging in North America as a replacement for plastic rings.
- In 2021, Amcor Group GmbH, a global leader in high-quality packaging solutions, partnered with Nutrea, a company specializing in human body protein supplements, to launch Rupro protein juice in a newly developed polyethylene terephthalate (PET) bottle.
Key Players
Amcor Limited, Alcoa Inc., Crown Holdings Inc., Owens-Illinois Inc., Rexam PLC, Ardagh Group S.A., Compagnie de Saint-Gobain, Bemis Company, Inc., Sonoco Products Company, Scholle IPN, Mondi, Reynolds Group Ltd., Stora Enso, Tetra Laval International S.A., Ball Corporation, WestRock Company, Graham Packaging, SIG, Berry Global Inc., and Amber Packaging
