Beverage Container Market Size

Beverage Container Market Analysis

The beverage container market was valued at USD 204.02 billion in 2020 and is expected to reach USD 283.98 billion by 2026 and grow at a CAGR of 5.08% over the forecast period (2021-2026). The growth of this market is fueled by increasing applications, technological advancements, and the growing demand in developing regions, such as the Asia-Pacific and Latin America. This growth can be attributed to rising disposable incomes, growing population, and increasing dependence on the consumption of beverages.

• Improvements in technology indicate sustainable growth in the beverage container market. The manufacturers are now able to offer similar strength with reduced thickness, weight, and material used. This enables them to provide better solutions while maintaining a lower cost. The lower price is significant because it operates in very low-profit margins of nearly 8% to 10%. For instance, glass packaging is 100% recyclable, making it a desirable packaging option from the environmental point of view. Six metric tons of recycled glass directly saves six metric tons of resources and reduces the emission of CO2 by one metric ton.
• The rising trend for reusability of beverage bottles and containers is termed as re-commerce. Re- commerce has enabled packaging players to supply their products in glass bottles. This is expected to bolster the adoption of reusable beverage bottles and containers over the forecast period. For instance, in January 2019, the launch of Loop, a durable packaging initiative run by New Jersey-based recycling company, TerraCycle, that debuted at the World Economic Forum, allows the use of steel, glass, and durable plastic reusable packaging for everyday items. The initiative enables the user to order products made by the participating companies, which are delivered in special reusable packaging, with manufacturers redesigning product containers for some of their most popular products.
• One of the significant factors driving the growth of the market is the increase in beer consumption worldwide. Beer is one of the alcoholic beverages that use glass bottles and metal cans for beverage packaging. It is packed in dark-colored glass bottles to preserve the contents, prone to spoilage when exposed to UV light. Also, the demand for various sizes of beer and benefits, like one-time consumption, make beer a preferred option for a wide range of consumers, driving the beverage container industry's growth.
• According to the US Beer Institute Annual Report, 2018, the US beer industry sells more than USD 119.3 billion in beer and malt-based beverages to US consumers each year. Moreover, according to the NBWA industry affairs, 2019, the US consumers who are 21 years and older consumed 26.5 gallons of beer and cider per person during 2018, based upon beer shipment data and the US Census population statistics. Such instances indicate that the glass containers market is poised to grow over the forecast period.
• Since the outbreak of COVID-19, countries are shifting toward single-use plastics. Supply chains are also being strained to meet the surge in demand for single-use plastic packaging. The spread of novel coronavirus did not majorly negatively affect the market, as containers support the vital food, beverage, and pharmaceutical industries that fall under essential services and cannot be discontinued until the pandemic is over.