Beverage Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Beverage Packaging Market is segmented by Material Type (Glass, Plastic, Metal, Paperboard), Product Type (Cans, Bottles, Pouches, Cartons, Beer Kegs), Application (Carbonated Drinks, Alcoholic Beverages, Bottled Water, Milk, Fruit and Vegetable Juices, Energy Drinks, Plant-based Drinks (Emerging Market)), and Geography.

Market Snapshot

Beverage Packaging Market Overview
Study Period: 2018 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: 6.2 %

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Market Overview

The beverage packaging market was valued at USD 132.16 billion in 2020 and is expected to reach USD 205.32 billion by 2026, at a CAGR of 6.2% over the forecast period 2021 - 2026. Packaging, as a critical factor, plays an essential role in the widespread consumption of beverages. Different beverages being packaged in varied materials and sizes reflect upon the sheer size of the market. Also, being a consumer-end market, the demand for the same has been rising significantly. Major drivers for the same have been growing disposable income, urbanization, and changing lifestyles.

  • The growing demand for carbonated drinks, energy drinks, and juices, among others, is indicative of rising PET bottles and metal cans as preferred materials for the same. Glass on the other hand, with its recyclable properties, has been challenged by increased costs of production and recycling. The preference for the same has been growing recently concerning sustainability trends across beverage packaging.
  • Moreover, as plastic has been long-standing and a preferred packaging option by global beverage manufacturers, due to the reduced manufacturing, durability, and logistics costs, the transition towards sustainable packaging has driven these packaging manufacturers and bottling companies to pledge and commit usage of newer materials for the same.
  • For instance, Coca-Cola shared its commitment towards recycling as many plastic bottles as it uses by 2030. For the same, the company has been partnering with NGOs globally, to help improve collection. Then, as of January 2020, Nestle commits USD 2.1 billion towards using recycled plastic packaging.
  • As per FEVE, the European container glass manufacturing industry has 160 glass manufacturing plants in the EU region and maintains over 125,000 jobs operating in a circular economy business model. With the outbreak of COVID-19 in the region, the association led the beverage sector exempted from shutdown due to the primary needs of consumers.
  • With self-isolation rules across the world, short supply, coupled with event cancelations, has led the supply chains to source away from China. The United States, parts of Europe, and Canada have been dependent upon imports for glass bottles. This has created a situation of havoc, as a decline of nearly 85% in the volume of Chinese-made goods arriving at Port of Vancouver is expected to create a shortage in the country. Moreover, the stockpiling of beverages has been adding to the shortage of glass containers globally.

Scope of the Report

Beverage manufacturers are focusing on offering a better product with the packaging that is easy-to-handle, eco-friendly, and keeps the product fresh for a long time. Packaging innovation is becoming a norm for beverage companies with smaller package size, situational package types, and multi-packs. Different types of the product depending upon the beverages are packed using various materials.

By Material Type
Plastic
Metal
Glass
Paperboard
By Product Type
Bottles
Cans
Pouches
Cartons
Beer Kegs
By Application
Carbonated Drinks
Alcoholic Beverages
Bottled Water
Milk
Fruit and Vegetable Juices
Energy Drinks
Plant-based Drinks (Emerging Market)
Other Applications
Geography
North America
United States
Canada
Europe
United Kingdom
Germany
France
Italy
Spain
Austria
Poland
Russia
Rest of Europe
Asia Pacific
India
China
Japan
Australia
Rest of Asia Pacific
Latin America
Mexico
Brazil
Rest of Latin America
Middle East and Africa
United Arab Emirates
Saudi Arabia
South Africa
Rest of Middle East and Africa

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Key Market Trends

Alcoholic Beverage is Driving the Market

  • The categorization of alcoholic beverages includes wine, beer, spirits, etc. being packaged using formats such as bottles, kegs, cartons, and cans, to name a few. When it comes to Alcoholic beverages, there has been a significant transitioning of the wine industry concerning packaging format has been observed, as the global consumption across still wine has been slowing down. This has led the Unites States-based wineries to drive packaging innovations to cut costs and appeal to younger consumers.
  • Therefore, portability and convenience became significant drivers in wine packaging innovation, which led to Bota Box and Black Box to leverage alternative packagings, such as tetra packs and bag-in-box wine and cartons. According to the State Of Wine Industry Report 2020, by Silicon Valley Bank, canned wine in the country has recorded an 80% growth in 2019, despite the 0.5% as an overall share.
  • Cans have been observed increasing footprint across other alcoholic single-serve options. Here, the economies of smaller sizes remain the same for cans for 375- and 500-milliliter glass formats. For instance, small-sized bottles and cans, such as 100-200 milliliters, have been holding 90% of beer volume globally.
  • Beer’s packaging, on the other hand, is highly diverse. The format packaging type preference has been driven by different regions where local laws, regulations, tastes, culture, and other drivers influence the packaging landscape.
  • With the COVID-19 outbreak and an upsurge in demand for alcoholic beverages across the United States and Europe, multiple packagers have reported having been running on low stocks.
  • For instance, the draft beer sales stopped flowing in the United States due to on-premise shutdowns caused by efforts in the wake of novel coronavirus disease COVID-19. Therefore, allied craft brewers turned to 32 oz. Cans filled and sealed on demand to sell out leftover beer in kegs before oxidization. This has led to an increased demand for packaging towards current production in hand. Amidst the lockdown scenarios, packaging manufacturers have themselves reported operability with a reduced workforce, creating a supply-driven challenge.
Beverage Packaging Market Trends

Asia-Pacific to Witness Highest Growth

  • The Asia-Pacific region holds significant potential for development in terms of the most prospective countries. The market holds a substantial share in retail packaging, estimating to nearly 75%, as significant manufacturing is done in China.
  • The demand for beverages, and hence the demand for beverage packaging, is expected to grow faster in the Asia-Pacific region. This is due to a rise in income and ongoing population shift from rural to urban, in major countries such as China, Japan, and India.
  • Changes in lifestyle and a growing young population lead to a higher demand for branded and packaged substances. At the same time, growing health awareness and more concern towards environmental sustainability lead to innovations in beverage packaging in the region.
  • Moreover, on the go consumption in countries like India, China, Japan is fuelling demand. With two of the world's populous countries China and India, the beverage demand is always on a higher side, subsequently driving the beverage packaging market.
Beverage Packaging Market Growth Rate By Region

Competitive Landscape

The beverage packaging market is fragmented due to many players are entering into the packaging market. Moreover, innovation and development by players are making the market competitive. Some of the key developments in the market are:

  • In July 2020, Diageo, Johnnie Walker, Smirnoff, and Guinness's parent company, announced the creation of the 100% plastic-free, paper-based spirits bottle. The bottle is expected to source from sustainable wood and would launch in early 2021.
  • In March 2020, a beverage packaging manufacturer, Canpack, announced plans on adding one billion cans annually to support growing markets in Colombia and Russia. To achieve the same, the company would increase the Columbian facility's annual capacity by 46% from 1.3 billion cans to 1.9 billion.
  • In February 2020, Ball Corporation is expected to expand United States Metal Can production by 2021. Its specialty beverage can plant would commence operations in Arizona and the northeastern US, in line with the company's previous commitment to add at least 8 billion units of capacity by the end of 2021.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Value Chain Analysis

    3. 4.3 Industry Attractiveness - Porter's Five Force Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

    4. 4.4 Market Drivers

    5. 4.5 Market Restraints

  5. 5. IMPACT OF COVID-19 ON THE BEVERAGE PACKAGING INDUSTRY (COVID Life Cycle Scenario, Peak Cycles, Short-term and Long-term Value Chain Disruptions, Best-case and Worst-case Scenario Industry Impact, and Euro Green Strategy Initiatives)

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Material Type

      1. 6.1.1 Plastic

      2. 6.1.2 Metal

      3. 6.1.3 Glass

      4. 6.1.4 Paperboard

    2. 6.2 By Product Type

      1. 6.2.1 Bottles

      2. 6.2.2 Cans

      3. 6.2.3 Pouches

      4. 6.2.4 Cartons

      5. 6.2.5 Beer Kegs

    3. 6.3 By Application

      1. 6.3.1 Carbonated Drinks

      2. 6.3.2 Alcoholic Beverages

      3. 6.3.3 Bottled Water

      4. 6.3.4 Milk

      5. 6.3.5 Fruit and Vegetable Juices

      6. 6.3.6 Energy Drinks

      7. 6.3.7 Plant-based Drinks (Emerging Market)

      8. 6.3.8 Other Applications

    4. 6.4 Geography

      1. 6.4.1 North America

        1. 6.4.1.1 United States

        2. 6.4.1.2 Canada

      2. 6.4.2 Europe

        1. 6.4.2.1 United Kingdom

        2. 6.4.2.2 Germany

        3. 6.4.2.3 France

        4. 6.4.2.4 Italy

        5. 6.4.2.5 Spain

        6. 6.4.2.6 Austria

        7. 6.4.2.7 Poland

        8. 6.4.2.8 Russia

        9. 6.4.2.9 Rest of Europe

      3. 6.4.3 Asia Pacific

        1. 6.4.3.1 India

        2. 6.4.3.2 China

        3. 6.4.3.3 Japan

        4. 6.4.3.4 Australia

        5. 6.4.3.5 Rest of Asia Pacific

      4. 6.4.4 Latin America

        1. 6.4.4.1 Mexico

        2. 6.4.4.2 Brazil

        3. 6.4.4.3 Rest of Latin America

      5. 6.4.5 Middle East and Africa

        1. 6.4.5.1 United Arab Emirates

        2. 6.4.5.2 Saudi Arabia

        3. 6.4.5.3 South Africa

        4. 6.4.5.4 Rest of Middle East and Africa

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 Owens-Illinois Inc.

      2. 7.1.2 Tetra Laval International SA

      3. 7.1.3 Ball Corporation

      4. 7.1.4 Ardagh Group

      5. 7.1.5 Amcor Limited

      6. 7.1.6 Mondi PLC

      7. 7.1.7 Verallia SA

      8. 7.1.8 Vidrala SA

      9. 7.1.9 Vetropack Holding Ltd

      10. 7.1.10 Crown Holdings Inc.

      11. 7.1.11 Silgan Containers LLC

      12. 7.1.12 CCL Container Inc.

      13. 7.1.13 Berry Global Inc.

      14. 7.1.14 Sonoco Products Company

      15. 7.1.15 RPC Group PLC

    2. *List Not Exhaustive
  8. 8. INVESTMENT ANALYSIS

  9. 9. FUTURE OF THE MARKET

**Subject to Availability

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Frequently Asked Questions

The Beverage Packaging Market market is studied from 2018 - 2026.

The Beverage Packaging Market is growing at a CAGR of 6.2% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2020.

Amcor PLC, Tetra Laval International SA, Mondi PLC, RPC Group PLC, Ardagh Group. are the major companies operating in Beverage Packaging Market.

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