Market Trends of Beverage Packaging Industry
Bottled Water to Drive the Market
- The beverage industry is one of the pioneers of considerable expansion and technological modernization investments. Packaging water is a complex technical area of the industry. The packaged and bottled water packaging industries are experiencing rapid growth as public awareness of the need for pure drinking water increases.
- Bottled water is considered one of the most consumed beverages due to its convenience. The bottle packaging is also suitable for long-distance transportation of water. Boiling water at home is time-consuming and energy-inefficient. This is anticipated to contribute significantly to the growth of the bottled water packaging market. In emerging markets, it has become a symbol of a healthy lifestyle. According to Krones Group, among the consumption of packed beverages globally, bottled water held its dominance, with a consumption of 506 billion liters globally, which is higher than any other type of beverage.
- There are different types of bottled water, each with different origins, compositions, and processing requirements. Advances in mineral water have led to increased consumption worldwide due to its high benefits and positive health impacts. Growing demand for mineral water from natural sources stored in quality bottles drives the growth rate of the bottled water packaging market.
- The use of glass bottles for water packaging is widespread. However, the hot-fill/hold/cool process had to be applied carefully to avoid breakage of the containers. With rising environmental concerns about plastic wastage, various hospitality businesses, such as hotels, are using glass water bottles. As a move toward this transition, in July 2023, SPLENDOR Water, the provider of mineral water with colloidal gold and silver and natural electrolytes, formed a partnership with Ardagh Glass Packaging North America for glass bottles to serve its consumers with the natural purity of SPLENDOR Water. Such initiatives are expected to further leverage the market for glass water bottles.
- This is due to the significant increase in the number of players and the increasing focus on attractive packaging. Major players' increased spending on advertising and marketing activities to reach many consumers and generate profits is anticipated to complement the market's growth over the forecast period. Moreover, manufacturers are innovating bottled water, such as water infused with water from unscathed glaciers. This is likely to attract new consumers to experience the feel of water to keep up with their hydration, thus driving the bottled water packaging market.
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Asia-Pacific to Witness Highest Growth
- The key factors driving future growth are urbanization, youth and their growing share in the workforce, increasing purchasing disposable income, and improved connectivity, particularly in smaller towns. Government directives have brought about new developments in the beverage packaging market. Since packaging waste is deemed toxic to the environment, attempts have been made to curb the amount of waste generated. This has nudged the industry toward recyclable and more sustainable packaging options.
- The Chinese beverage packaging industry has been growing at a rapid pace due to the country's growing economy and increasing middle class with higher purchasing power. The demand for beverage packaging is growing because China's beverage market has experienced considerable growth over the past several years, which has been led by the increasing consumption of beverage and beer exports. For instance, according to China Customs and UN Comtrade data, China’s beer exports reached USD 451.76 million in 2023 from USD 255.32 million in 2019. The beer export from China in 2023 reached a notable rise of about 38% over the year 2022.
- The growing consumption of ready-to-drink (RTD) beverages such as coffee, green and black tea, and others due to hectic consumer work schedules and sedentary lifestyles is propelling the market for beverage packaging in Japan. For instance, according to the Japan Soft Drink Association, the production volume of ready-to-drink (RTD) coffee beverages in Japan amounted to around 3.14 million kiloliters in 2023 compared to 3.03 million kiloliters in 2022. This growth in the consumption of RTD beverages is causing a soaring demand for beverage packaging, especially metal and plastic.
- The beverage industry is continuously witnessing innovative packaging product innovations on the grounds of sustainability initiatives, a reduction in carbon footprint, and adapting to changing consumer demands and trends. Innovations such as developing new processing, separation, and packaging technologies are key to Asian beverage packaging success. The market is expected to grow due to product expansion, launch, upgradation, sustainability, and more.
- For instance, in April 2024, Nutifood, a prominent dairy player in Vietnam, opted for the SIG DomeMini carton bottle, prioritizing consumer convenience on the go. The company's decision to debut its premium adult nutrition milk under the Varna brand in SIG's carton packaging signals a strategic shift away from traditional plastic bottles. This move not only marks the arrival of SIG DomeMini in the Southeast Asian market but also underscores Nutifood's commitment to a more sustainable packaging approach, favoring a bottle-shaped carton for an improved plastic-to-product ratio.
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