United States Beverage Contract Bottling And Filling Market Size (2024 - 2029)

The United States beverage contract bottling and filling market is experiencing growth driven by manufacturers' shifting preferences to outsource these activities for cost optimization and efficiency. This trend is further supported by the evolving manufacturing regulations for beverage products, which necessitate stringent inspections and quality checks that are more manageable through outsourcing. The market's expansion is also fueled by the rapid introduction of new products and technologies, requiring companies to adapt to changing consumer demands. The demand for contract bottling and filling services is high, as evidenced by the establishment of new facilities to accommodate the production of a vast number of new beverage products annually.

Market Size of United States Beverage Contract Bottling And Filling Industry

United States Beverage Contract Bottling And Filling Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 3.84 Billion
Market Size (2029) USD 5.57 Billion
CAGR (2024 - 2029) 7.67 %
Market Concentration Medium

Major Players

United States Beverage Contract Bottling And Filling Market Major Players

*Disclaimer: Major Players sorted in no particular order

United States Beverage Contract Bottling And 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 US beverage contract bottling and filling market is mainly influenced by the changing preferences of manufacturing firms, which 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 operational costs can be reduced significantly through outsourcing bottling and filling activities to contract companies and decreasing the costs of machines and labor.

  • 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 (DO) 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 United States, 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 its 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, 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.

United States Beverage Contract Bottling And Filling Industry Segmentation

The study tracks the revenue accrued by the services offered, including bottling and filling, which are outsourced by third-party vendors with substantial expertise in the area. Beverage types such as beer, carbonated drinks and fruit-based beverages, and bottled water are included in the scope. At the same time, the contract bottling and filling market studied is only for the beverage industry. The current trade scenario and the significant investments and acquisitions by players in the United States are also analyzed in the study. The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

By Beverage Type
Beer
Carbonated Drinks and Fruit-based Beverages
Bottled Water
Other Beverage Types (Sport Drinks)
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United States Beverage Contract Bottling And Filling Market Size Summary

The United States contract bottling and beverage filling market is experiencing significant growth, driven by manufacturers' shifting preferences towards outsourcing these activities to third-party providers. This trend is largely due to the need for cost optimization and the focus on core business operations, as outsourcing can substantially reduce operational costs by minimizing expenses related to machinery and labor. The evolving regulatory landscape for beverage products in the U.S. further encourages this shift, as outsourcing helps manufacturers navigate stringent inspection and quality control requirements. The industry is also witnessing rapid innovation, with new products and technologies emerging to meet changing consumer demands. Major players like Admiral Beverage Corp. and Big Beverages Contract Manufacturing are expanding their facilities and capabilities to cater to the growing demand for contract bottling and filling services.

The market is moderately fragmented, with key players such as Brooklyn Bottling Group, G3 Enterprises Inc., Southeast Bottling & Beverages, and Niagara Bottling LLC holding significant market shares. These companies are actively engaging in partnerships and mergers to enhance their market presence. The demand for bottled water, the fastest-growing beverage choice in the U.S., is particularly influencing the market, as companies ramp up production to meet increased consumer demand, especially during emergencies. Despite challenges posed by environmental concerns and the impact of the COVID-19 pandemic on beverage distribution, the market is poised for continued expansion, supported by strategic agreements and acquisitions, such as Novelis Inc.'s contract with Ardagh Metal Packaging USA Corp. and Refresco's acquisition of VBC Bottling Company.

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United States Beverage Contract Bottling And Filling Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Impact of COVID-19 on the US Beverage Industry

    3. 1.3 Market Drivers

      1. 1.3.1 CapEx Benefits Offered by Contract Bottlers for Small-scale Beverage Manufacturers

      2. 1.3.2 Rise in Demand From New-age Drinks and Craft Beer Segment

      3. 1.3.3 Gradual Change in the Business Model of Contact Packagers Toward a Consultative Approach Involving Design and Placement

    4. 1.4 Market Challenges

      1. 1.4.1 Lack of Flexibility and Agility in Manufacturing Processes and Dynamic Nature of Regulations

    5. 1.5 Value Chain Analysis

    6. 1.6 Porter's Five Forces Analysis

      1. 1.6.1 Bargaining Power of Suppliers

      2. 1.6.2 Bargaining Power of Consumers

      3. 1.6.3 Threat of New Entrants

      4. 1.6.4 Threat of Substitute Products

      5. 1.6.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Beverage Type

      1. 2.1.1 Beer

      2. 2.1.2 Carbonated Drinks and Fruit-based Beverages

      3. 2.1.3 Bottled Water

      4. 2.1.4 Other Beverage Types (Sport Drinks)

United States Beverage Contract Bottling And Filling Market Size FAQs

The United States Beverage Contract Bottling And Filling Market size is expected to reach USD 3.84 billion in 2024 and grow at a CAGR of 7.67% to reach USD 5.57 billion by 2029.

In 2024, the United States Beverage Contract Bottling And Filling Market size is expected to reach USD 3.84 billion.

United States Contract Bottling & Beverage Filling Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)