Global Beverage Packaging Market Outlook, 2029

Global Beverage Packaging Market Outlook, 2029

The beverage packaging industry plays a crucial role in ensuring the safety, freshness, and appeal of various beverages such as soft drinks, juices, alcoholic beverages, and more. As a pivotal link in the food and beverage supply chain, the industry has evolved over the years to meet the changing demands of consumers and regulatory standards. The beverage packaging industry is a critical component of the global beverage market, responsible for the safe and efficient containment, protection, and transportation of a wide array of liquid products. This industry has evolved significantly over the years, driven by technological advancements, changing consumer preferences, and sustainability concerns. Packaging is generally done to protect the product from damage and attract customers by enhancing its visuals through the utilization of advanced decorative techniques, which also helps the product stand out among competitors. Beverage packaging plays a crucial role in protecting liquids as they are prone to leakages and contamination. Packaging companies provide a wide range of products, such as cans, bottles, jars, pouches, and cartons, to increase the shelf life and sales of beverages. The high strength, lightness, and protection from the external environment offered by the packaging solutions may accelerate the beverage packaging market growth. Due to stringent government regulations, labor shortages, and high prices of raw materials during the COVID-19 pandemic, production was hampered, resulting in the contraction of demand for beverage packaging products. Moreover, the rise in the number of online food & beverage outlets in the ever-growing e-commerce industry is anticipated to propel the beverage packaging market share in the post-pandemic era. Busy lifestyles have driven the demand for packaging that is convenient and easy to carry. This includes single-serve portions, resealable caps, and lightweight, on-the-go packaging options. The rise of digital technology has brought smart packaging to the forefront. This includes QR codes, augmented reality (AR), and near-field communication (NFC) features that allow consumers to interact with the packaging and access additional information about the product. Eye-catching designs and innovative shapes are essential for standing out on crowded shelves. Beverage companies are constantly experimenting with different colors, shapes, and textures to create visually appealing packaging that captures consumers' attention.

According to the research report, “Global Beverage Packaging Market Outlook, 2029” published by Bonafide Research, the market is anticipated to cross USD 215 Billion by 2029, increasing from USD 156.69 Billion in 2023. The market is expected to grow with 5.60% CAGR by 2024-29. The Beverage Packaging market is witnessing the highest growth globally due to awareness among the public regarding the environment coupled with increasing demand for suitable packaging, and the increasing demand for sustainable products. Moreover, the beverage industry includes ready-to-drink products like alcoholic and non-alcoholic beverages. In addition, the beverage industry also provides flavored drinks, vitamin water, energy, sports drinks, milk, vegetable juice, flavored tea, and coffee which is expected to increase its demand in the upcoming years. Moreover, the growth in the adoption of biodegradable, recyclable, and compostable packaging material among the various manufacturers is generating a prospect of growth for the global Beverage Packaging market in the years to come. The global Beverage Packaging market has grown substantially in these few years owing to the growth in the demand for small packs, and flexible pouches. Additionally, the prime benefits of using Beverage Packaging are that it offers to seal, retain the aroma, protection against moisture, and enhances strength which is boosting the demand for Beverage Packaging during the forecast period. Furthermore, the Beverage Packaging industry is accepting advanced systems in order to maintain the nutritional content of beverages and to ensure maximum security which is projected to drive the Beverage Packaging market growth in the coming years. Whereas, increasing use of biodegradable and renewable raw materials is projected to provide an opportunity for the growth of the Beverage Packaging market in the years to come. Consumers are becoming more environmentally conscious and are demanding packaging that is recyclable, biodegradable, or made from renewable materials. This has led to a surge in the use of recycled plastics, paper-based materials, and innovative packaging solutions such as plant-based plastics. Reducing the weight of packaging materials helps decrease transportation costs and carbon emissions. Beverage packaging companies are continually exploring ways to lightweight their products while maintaining durability and structural integrity.

Market Drivers

• Sustainability: As awareness of environmental issues rises, consumers are actively seeking out products that use sustainable packaging materials. This includes recyclable, compostable, and biodegradable options. Companies are increasingly adopting sustainable practices to align with corporate responsibility goals and comply with regulatory standards. This includes reducing waste, minimizing the use of single-use plastics, and opting for materials that are better for the environment.
• Consumer Convenience: The fast-paced nature of modern life requires packaging solutions that offer convenience, such as on-the-go formats, single-serve containers, and resealable features. These packaging types are designed for ease of use and portability. Packaging that is easy to use and personalized enhances the consumer experience. This includes unique designs, ergonomic shapes, and packaging tailored to specific occasions or preferences.

Market Challenges

• Regulatory Compliance and Standardization: Beverage packaging companies must navigate diverse regulatory landscapes across different regions. This includes varying requirements for labeling, materials use, recycling, and safety standards. Regulatory frameworks are constantly changing, particularly with the growing focus on sustainability and health. Staying compliant requires ongoing investment in research and development, as well as updates to processes and materials.
• Supply Chain Disruptions: Supply chain challenges can lead to shortages of key packaging materials such as plastics, aluminum, and glass. This can disrupt production schedules and increase costs. Global transportation networks have been strained by events such as the COVID-19 pandemic, leading to delays in shipping and logistical bottlenecks. These disruptions can impact the availability and delivery of packaging materials and finished products.

Market Trends

• Smart and Connected Packaging: Smart packaging technologies such as QR codes, near-field communication (NFC), and augmented reality (AR) are being used to provide consumers with additional information and interactive experiences. For example, a QR code can link to a webpage with product details, promotions, or interactive content. Advanced packaging technology allows for supply chain transparency by enabling traceability of the product from production to end-user. This can build consumer trust and ensure product authenticity.
• Innovative Materials and Designs: Companies are exploring the use of biodegradable and compostable materials, such as those derived from plant sources like sugarcane and corn starch. This reduces the environmental impact of packaging. By reducing the weight of packaging materials, companies can decrease transportation costs and carbon emissions. This trend aligns with sustainability goals while maintaining product integrity.

Bottle packaging leads the beverage packaging market is its versatility and consumer appeal, offering convenience, safety, and branding opportunities across a wide range of beverage types.

Bottle packaging has long been a staple in the beverage industry, consistently maintaining its status as the leading packaging type due to its numerous advantages. One of the most significant benefits of bottle packaging is its versatility. Bottles can be made from various materials such as glass, plastic (e.g., PET), and aluminum, each offering unique properties suitable for different types of beverages. This versatility allows beverage manufacturers to choose the most appropriate material for their product, taking into account factors such as taste preservation, shelf life, and recyclability. Glass bottles, for instance, are favored for their inert properties, which ensure that the taste of the beverage remains unaltered. This makes glass a preferred choice for high-end alcoholic beverages, such as wine and spirits, as well as craft beverages like specialty sodas and kombucha. The premium and traditional aesthetic of glass bottles also adds value to the consumer experience, making the product feel more luxurious and high-quality. On the other hand, plastic bottles, particularly PET (polyethylene terephthalate), offer the advantage of being lightweight and shatterproof, making them ideal for a variety of beverages such as soft drinks, juices, and water. PET bottles are not only cost-effective for manufacturers, but they also provide convenience for consumers due to their portability and resealability. Moreover, advances in recycling technologies have made PET bottles increasingly sustainable, as they can be recycled and repurposed into new bottles or other products. Aluminum bottles, although less common than glass and PET, provide another versatile option for beverage packaging. Aluminum bottles combine the lightweight and recyclability of plastic with the premium feel and thermal insulation of glass. This packaging type is particularly popular for alcoholic beverages, such as beer and cocktails, and for energy drinks. In addition to material versatility, bottle packaging offers a range of shapes, sizes, and designs that can be tailored to suit specific brand identities and target markets. Brands can differentiate their products through unique bottle shapes, colors, and labeling, making their beverages stand out on crowded shelves. Customization options also extend to closures, such as screw caps or corks, adding another layer of brand distinction and consumer appeal. Consumer familiarity and acceptance of bottle packaging contribute to its leadership in the market. Bottles have been a trusted form of packaging for generations, providing a sense of nostalgia and reliability. Consumers are accustomed to the feel and experience of drinking from a bottle, making it a comfortable choice for most beverage types.

Plastic material is leading in the beverage packaging market is its cost-effectiveness and versatility, offering lightweight, shatterproof, and customizable options that cater to a broad spectrum of beverage products and consumer preferences.

Plastic, particularly polyethylene terephthalate (PET), has become the dominant material in the beverage packaging market due to its numerous benefits that align with the needs of both manufacturers and consumers. PET plastic is known for its lightweight nature, which allows for ease of transportation and reduces shipping costs compared to heavier materials like glass or aluminum. This efficiency leads to lower overall production and distribution costs for manufacturers, making it a more economically viable option for packaging beverages. One of the key advantages of PET plastic is its shatterproof nature, providing safety and durability that other materials such as glass cannot match. This is especially important in active, on-the-go settings where consumers may carry beverages in bags or use them during outdoor activities. The shatterproof quality of plastic minimizes the risk of injury and product loss, contributing to its popularity among consumers. The versatility of plastic in terms of shapes, sizes, and closures also plays a significant role in its dominance in the beverage packaging market. Plastic bottles can be easily molded into various shapes and sizes, offering opportunities for customization that allow brands to differentiate their products on store shelves. The ability to create unique designs and branding elements, such as embossing or custom closures, enhances the visual appeal and consumer experience of the beverage. Furthermore, PET plastic provides excellent barrier properties against moisture, oxygen, and other external elements that could degrade the quality and freshness of the beverage. This is essential for preserving the taste and safety of a wide range of drinks, from carbonated soft drinks to non-alcoholic juices. The material's clarity also allows consumers to see the contents of the bottle, providing an additional layer of transparency and confidence in the product. From an environmental perspective, the beverage packaging industry has been working to improve the sustainability of plastic materials. While plastic has faced criticism for its impact on the environment, advancements in recycling technologies have made PET plastic increasingly recyclable. Many beverage companies now use recycled PET (rPET) in their bottles, reducing the demand for virgin plastic and promoting a circular economy. Plastic's compatibility with various beverage types, including carbonated drinks, still beverages, and flavored waters, further underscores its leading position in the market. Its flexibility allows it to accommodate the unique needs of each type, such as the carbonation pressure in soft drinks or the shelf stability required for juices. Consumer convenience is another driving force behind plastic's popularity. Plastic bottles are easy to carry, resealable, and often come in single-serve sizes that suit modern lifestyles. This convenience extends to features such as ergonomic grips and built-in straws, making plastic bottles an attractive choice for a wide range of consumers.

Non-alcoholic applications are leading in the beverage packaging market is the broad and growing consumer demand for health-conscious and diverse beverage options, driving the need for innovative packaging solutions that provide convenience, freshness, and appealing presentation.

Non-alcoholic beverages encompass a wide variety of drink types, including carbonated soft drinks, juices, energy drinks, flavored waters, sports drinks, functional beverages, ready-to-drink teas and coffees, and more. The market for these beverages has seen significant growth due to changing consumer preferences toward healthier and more diverse options. As consumers become more health-conscious and seek alternatives to sugary or alcoholic drinks, beverage companies are responding with innovative products that require specific packaging solutions. One of the key drivers for the leading position of non-alcoholic applications in the beverage packaging market is the rising demand for functional and health-focused beverages. Consumers are increasingly looking for drinks that offer added health benefits, such as vitamins, minerals, and electrolytes. These functional beverages often require packaging that protects the integrity of the ingredients and ensures their stability throughout the product's shelf life. This necessitates the use of advanced packaging materials with excellent barrier properties against light, oxygen, and moisture. Another significant factor contributing to the leading role of non-alcoholic applications in the beverage packaging market is the popularity of ready-to-drink (RTD) products. Modern consumers, especially those with busy lifestyles, value the convenience of RTD beverages, which can be consumed on the go without the need for preparation. This trend drives the demand for single-serve packaging options such as cans, plastic bottles, and cartons, which provide portability, resealability, and easy access to the beverage. Non-alcoholic beverage packaging also benefits from ongoing innovations in design and branding. Companies are constantly exploring new packaging formats and shapes to differentiate their products in a crowded market. For example, slim cans and uniquely shaped bottles can enhance a beverage's aesthetic appeal and create a distinct identity for the brand. Eye-catching labels and vibrant colors further attract consumers' attention and contribute to the overall visual appeal of the product. Sustainability is another crucial aspect of non-alcoholic beverage packaging. With consumers increasingly concerned about the environmental impact of packaging, companies are turning to sustainable materials and eco-friendly packaging designs. Recyclable and biodegradable options, as well as the use of recycled materials, are becoming more prevalent in the industry. This not only aligns with consumer values but also positions brands as socially responsible and forward-thinking. The growth of e-commerce and online grocery shopping has also influenced the demand for non-alcoholic beverage packaging. As consumers increasingly purchase beverages online, there is a need for packaging that can withstand shipping and handling while maintaining product quality and safety. Durable and lightweight packaging, such as PET bottles and cans, are ideal for this purpose, ensuring beverages arrive in optimal condition.

Based on the region, Asia-Pacific region is leading in the beverage packaging market is its large and rapidly growing population with increasing disposable income, driving demand for a wide variety of beverages and innovative packaging solutions tailored to local tastes and preferences.

The Asia-Pacific region encompasses a diverse range of countries with varying cultural, economic, and social backgrounds. This diversity is a key factor contributing to the region's dominance in the beverage packaging market, as it presents unique opportunities for growth across different market segments. As the population continues to increase, so does the demand for beverages across various categories, including carbonated soft drinks, juices, tea and coffee, energy drinks, functional beverages, and bottled water. This growing demand fuels the need for innovative and efficient packaging solutions that cater to different consumer preferences and consumption habits. In addition to population growth, the Asia-Pacific region is experiencing rising levels of urbanization and increasing disposable income. As more people move to urban areas and attain higher incomes, their purchasing power and access to a wider range of products increase. This leads to higher consumption of packaged beverages, as convenience becomes a priority in busy urban lifestyles. Consumers in the region seek packaging that is portable, easy to use, and visually appealing, which aligns with the trend toward single-serve packaging options such as cans and PET bottles. Another significant factor contributing to the region's leadership in the beverage packaging market is its vibrant and varied beverage culture. Countries in Asia-Pacific have long histories of traditional drinks such as tea in China and Japan, and coconut water in Southeast Asia. These traditional beverages are being modernized and marketed in innovative packaging formats to appeal to younger generations and international markets. At the same time, there is growing interest in Western-style beverages such as energy drinks, soft drinks, and specialty coffees and teas, which require different packaging types to suit the products' characteristics. The region's strong manufacturing base and technological expertise also play a role in its dominance in the beverage packaging market. Asia-Pacific is home to some of the world's largest and most advanced packaging manufacturers, particularly in countries like China and India. These companies have the capability to produce a wide range of packaging materials and designs, from PET bottles to cans and cartons. The region's advanced production capabilities support the creation of innovative, cost-effective, and sustainable packaging solutions. Sustainability is another important consideration in the Asia-Pacific beverage packaging market. As environmental concerns grow, consumers in the region are becoming more aware of the impact of packaging waste. In response, beverage companies are exploring more sustainable packaging options such as biodegradable materials, recyclable packaging, and the use of recycled content in their products. E-commerce and online shopping trends are rapidly growing in the Asia-Pacific region. As consumers increasingly purchase beverages online, there is a greater need for packaging that can withstand shipping while maintaining the quality and safety of the product. This trend further drives the demand for durable and lightweight packaging options such as PET bottles and cans.

Recent Developments

• In August 2023, Crown Holdings, Inc. (NYSE: CCK) has officially completed the purchase of Helvetia Packaging AG, a manufacturing facility specializing in beverage cans and ends located in Saarlouis, Germany. This acquisition marks a strategic move to broaden Crown's European beverage can platform, adding a substantial annual capacity of approximately one billion units.
• In August 2023, TricorBraun, a prominent global packaging leader, acquired CanSource, a renowned provider of can packaging and associated services. This strategic move serves to enhance TricorBraun's expertise in beverage packaging, reinforcing its position within the North American beverage packaging market.
• In August 2023, Ball Corporation, a leading beverage packaging company, announced that it has developed a new recyclable aluminum can that is lighter and more durable than traditional cans. The new can is expected to reduce the company's carbon emissions by 10%.
• In March 2023, Hinojosa Packaging Group, one of the leading brands in sustainable packaging, launched a new range of primary packaging for the prepared foods & beverages market. This packaging is said to be 100% recyclable and mainly designed for hot and cold beverages.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Beverage Packaging market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Packaging Type
• Bottle
• Cans
• Pouch
• Paperboard Carton
• Other packaging type (Boxes, Kegs)

By Materials Type
• Plastic
• Metal
• Glass
• Paper & paperboard
• Other material type (Biodegradable Materials)

By Product Type
• Non-alcoholic beverages
• Alcoholic beverages

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Beverage Packaging industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.

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