North America Beverage Packaging Market Size

North America Beverage Packaging Market Analysis

The North American Beverage Packaging Market is expected to register a CAGR of 5.3% during the forecast period (2021-2026). The impact of COVID-19 on the market is significant in the short run, as the global lockdown has brought the entire packaging supply chain to an almost grinding halt. However, with online shopping on the rise, the market is expected to rebound in the long run. There has been a considerable increase in residential trash, which significantly comprises packaged products due to more stay-at-home dining, and COVID has exposed vulnerability in the supply chain globally, resulting in various disruptions, including some stores stopping collection of store drop-off for grocery bags and flexible packaging.

• Technological innovation, sustainability trepidations, and attractive economics are the reasons for the remarkable growth of beverage packaging in the last two decades in the United States. The way consumers view and interact with packages is altering. Due to the rising focus on sustainability, traditional rigid packaging solutions are being substituted by innovative, more sustainable, flexible packaging. The growing market demand for customer-friendly packages and heightened product protection is expected to boost flexible packaging as a viable and cost-effective substitute.
• The growing demand for carbonated drinks, energy drinks, and juices, among others, indicates rising PET bottles and metal cans as preferred materials for the same. On the other hand, with its recyclable properties, Glass 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 a long-standing and 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 in the region.
• 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 committed USD 2.1 billion towards using recycled plastic packaging.
• On the vendor front, increased capacities across the metal, glass, and rPET have been observed to complement the increasing demand rising from beverage manufacturers. For instance, as of February 2020, Ball Corporation is expected to expand United States Metal Can to increase production by 2021. Its specialty beverage can would commence operations in Arizona and the northeastern US, in line with its previous commitment to add at least 8 billion units of capacity by the end of 2021.