United States Beverage Contract Bottling and Filling Market Size

US Contract Bottling & Beverage Filling Market Analysis

The United States Beverage Contract Bottling and Filling Market size is estimated at USD 3.84 billion in 2024, and is expected to reach USD 5.57 billion by 2029, growing at a CAGR of 7.67% during the forecast period (2024-2029).

Growth in the United States beverage contract bottling and filling is mainly influenced by the changing preferences of manufacturing firms, who usually outsource these specific activities to third-party players. This is because manufacturers focus on cost optimization and their core business. Contract bottling and filling provide several advantages. Firstly, it reduces the operational costs of the manufacturers. In many cases, it is estimated that the operational costs can be reduced significantly through outsourcing bottling and filling activities to contract companies and decreasing the costs of machines and labor costs.

• The manufacturing regulations, especially for beverage products in the United States, are evolving rapidly. Meeting such stringent rules and norms requires several inspection and quality check operations. By outsourcing bottling and filling activities, the hectic task of meeting such regulations is passed on to the contracting agency, motivating more manufacturers to prefer contracting over in-house manufacturing activities. Moreover, the industry is rapidly growing, introducing many new products and technologies. Therefore, companies need to stay updated to meet customers' changing needs.
• Admiral Beverage Corp. is among the largest suppliers of carbonated soft drinks (CSD) in the western United States. It has grown to three extensive facilities supplying carbonated and still beverages, bottled water, and fountain mixes to multiple distributors throughout the mountain, western states, and Alaska. Adopting Bevcorp's MicrO2 system, Admiral Beverage simplified deaeration, optimized blending, and sped up filling and changeovers. The system limits dissolved Oxygen (D.O.) to reduce foaming, which allows the line to run faster. Faster speeds result in more throughput, decreasing costs per unit, and the correlating reduction in energy costs by not having to refrigerate ingredients.
• With over 3,000 new beverage products being created each year in the U.S., beverage contract bottling and filling facilities are in high demand. In February 2020, Big Beverages Contract Manufacturing (BBCM) announced its new beverage co-packing facility in North Carolina. In their new facility, BBCM will begin with one highspeed can line capable of producing 1,200 cans per minute, with plans to add lines two and three over the next 18 months. BBCM plans to provide various canned beverage products for large national and regional customers.
• MSI Express, backed by HCI Equity Partners, headquartered in the United States, has recently acquired Power Packaging. MSI Express provides contract packaging and contract manufacturing services for well-known brands in the shelf-stable human and pet food space. Power also brings MSI Express into categories such as powdered beverages, soups, bases, beverage mixes, food service beverages, coffees, and teas. Power Packaging has four locations - two outside Chicago, one in Wisconsin, and one in Texas. It serves various companies by adding capabilities such as aseptic beverage filling, stick packaging, and filling of jars and cans.
• Due to a nationwide lockdown, the COVID-19 pandemic delivered a significant blow to the nation's beverage distribution system. In March 2020, many U.S. beverage makers, like Coca-Cola, temporarily suspended production across the country's manufacturing facilities. Pesico's bottling partners in the U.S. have also arrested a significant portion of the output at its manufacturing facilities due to the lockdown.