Market Trends of Europe Alcoholic Drinks Packaging Industry
This section covers the major market trends shaping the Europe Alcoholic Drinks Packaging Market according to our research experts:
Glass Packaging is Expected to have a Major Share in the market
- The demand for reusable and environmentally friendly alternatives to plastic packaging, such as glass packaging, is driving the growth of the glass packaging sector. It is anticipated that changing consumer habits and rising disposable incomes will propel industry expansion. Alcohol consumption in emerging economies is rising, which is helping the sector. Western markets are expected to develop due to the rising premiumization of alcoholic beverages and rising consumer demand for creative alcoholic beverages like craft beer.
- Glass is completely recycled without sacrificing its strength or quality. Most recycled glass bottles are used in the manufacture of new glass bottles. Due to its growing significance in wine packaging and strong market demand, the need for glass containers is projected to increase.
- A greater proportion of recycled glass is being utilized in liquor makers' bottles as they become more aware of employing recycled resources in their packaging. Absolut, a premium vodka brand from Sweden, has pledged to reduce packaging waste by introducing a limited-edition design composed of 41% recycled glass.
- Bag-in-Box (BIB) has emerged as a popular trend in the wine industry due to changes in people's purchasing behaviors, lifestyles, demography, and occasions for drinking. Numerous current bottled wine consumers have switched to the BIB category, and new customers have been drawn in by the quality, practicality, and affordability that boxed wine offers and the wine's continued freshness after opening. Additionally, boxed wine offers advantages for sustainability and the environment, which are essential for the market and consumers to make more eco-friendly decisions. Since glass packaging has consistently had a disproportionate market share in the wine category, this trend could eventually cause glass packaging to lose considerable market share.
- According to SIBA - Society of Independent Brewers, UK, beer production in casks declined by 31% in 2021 while canned, bottled, and keg beer increased. This is likely a response to the shutdowns of pubs in the UK because of the COVID-19 pandemic. However, in 2022 the packaging type for glass too decreased by 3%.
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The United Kingdom is Expected to Hold Significant Market Share
- The packaging market is expanding overall due to the rising trend of adopting environmentally friendly packaging, such as rPET, paper-based packaging, etc. Drink manufacturers are eager to appear to be doing their part as public awareness of single-use plastics, and their environmental impact grows. Drink companies are anticipated to do well to be ahead of the curve when it comes to lowering the environmental impact of their packaging, as regulations on single-use plastics have already been voted into law and will be implemented in the UK in 2023.
- Innovative firms keep an eye out for opportunities to use flexible formats to challenge established industries as the flexible packaging market expands. Alcohol is one of the newest businesses to notice the trend, with spout pouches adding a cool touch that's already attracting the millennial demographic.
- Millennials' preferences are becoming more significant as one of the most powerful consumer purchasing groups. Millennials have been shown to prefer flexible packaging due to its enhanced portability and lighter weight. Alcohol pouches have a far more flexible structure than glass bottles because of their lighter weight and portability.
- Alcohol Gifting is a rising trend in the UK, innovative and appealing packaging adds to the overall experience, and hence companies are looking for new designs and packaging for gifting purposes that can attract customers online as well.
- According to Independent Retail News, Stella Artois was the top-selling beer brand in the United Kingdom (UK) as of 2022. By selling beer, Stella Artois made over 246 million British pounds in the 12 months that ended in April 2022. Budweiser sold 164.7 million British pounds worth of beer in 2022, ranking second in terms of retail revenue.
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