United States Liquid Packaging Market Assessment, By Material Type [Paper & Cardboard, Glass, Plastic, Metal and Rubber], By Product Type [Pouch, Bottles, Cans & Tins, and Others], By Packaging Type [Flexible and Rigid Packaging], By Packaging Technology

United States Liquid Packaging Market Assessment, By Material Type [Paper & Cardboard, Glass, Plastic, Metal and Rubber], By Product Type [Pouch, Bottles, Cans & Tins, and Others], By Packaging Type [Flexible and Rigid Packaging], By Packaging Technology [Pressure and Gravity Liquid Filling Machines, Pump Fillers, Overflow Fillers and Others], By End-user [Food and Beverages, Pharmaceutical, Consumer Goods, Chemicals, Industrial and Others] By Region, Opportunities, and Forecast, 2016-2030F

United States Liquid Packaging Market size was valued at USD 68.2 billion in 2022, which is expected to grow to USD 118.1 billion in 2030 with a CAGR of 7.1% during the forecast period between 2023 and 2030. The diverse expansion across materials, shapes, and formats drives the fundamental changes in the liquid packaging sector. These differences are present in the United States due to shifting customer behavior and market-based product innovation. The beverage business has seen significant expansion in the United States due to shifting consumer behavior.

Increased use of PET bottles and metal cans are preferred as packaging materials for carbonated beverages, energy drinks, and juices, among other products, is a sign of expanding global demand. The American Beverage Association announced a USD 100 million collaborative investment with other soft drink companies in the area to promote PET bottle recycling in the US and lower the industry's reliance on virgin plastic. Similar patterns in numerous locations and nations point to a landscape that influences bottlers and package makers to change their product development strategies.

The Increasing Demand for Aluminum Cans

Brands prefer metal packaging across a variety of beverage industries over other materials like plastic and bottles because it can be recycled at the end of its lifecycle without losing any quality. The aluminum used in the cans can be melted down and reused almost entirely. Additionally, a number of new aluminum can manufacturing facilities are coming up in the United States to meet the demand for a variety of beverages in the nation. For instance, in September 2021, Canpack, a can manufacturer, began constructing a new aluminum can factory in eastern Indiana and is expected to produce approximately 3.6 billion cans per year. The Canpack is a subsidiary of the Polish company Giorgi Global and the factory is expected to employ approximately 340 people in the long run. Thus, due to such developments in various companies, demand for liquid packaging market is expected to grow in United States at a higher pace.

Additionally, compared to 23% for glass bottles and less than 6% for plastic, the average aluminum can made in the United States contains roughly 73% recycled material. Aluminum is also more valuable as scrap than glass or plastic, which makes it a key factor in the financial sustainability of the American recycling system. Additionally, as consumers grow more conscious of how plastic affects the environment, they are increasingly choosing to purchase beverages in cans rather than bottles. Thus, the preference of metal cans is expected to further increase the demand for liquid packaging market in the coming years.

Surge In Demand Beverage in United States

The ready-to-drink (RTD) beverage category has experienced tremendous market growth and innovation over the last several years. From spirits-based premixed cocktails to wine spritzers and hard seltzers. The type of alcohol in RTD beverages such as malt-, wine-, spirits- and cider-based plays a significant role in consumer decision-making. The growing preference for spirits based RTDs is based on the flavor or taste, and they should be made with real spirits. Spirits-based RTDs also offer a range of beverages made with different spirit categories and stand out as a consumer favorite, due to the wide variety of innovative flavors, classic cocktail options and brand recognition. This has led to an increased demand for liquid packaging towards current production. Most recently, Vermont (2022) expanded access for spirits based RTDs from the 82 retail outlets that sell distilled spirits to an additional 1,030 more private beer and wine retail outlets. Thus, the increase in sales of spirit based RTDs is expected to increase the demand for liquid packaging market in United States in the forecast period.

Impact of COVID-19

The food and beverage sector compared to other sectors had a major impact felt the impact of the coronavirus outbreak in several ways. COVID-19 effect on the beverage industry had a huge impact, especially on the retailer's and manufacturers' supply chain. The unparalleled demand has led to massive out-of-stock and starkly empty beverage shelves across the country's retail shops. Additionally, the demand for ready-to-drink beverages grew by around 9.5% in the United States due to consumers stockpiling. According to the preliminary government tax receipt data, alcohol sales increased by 3% to 5% in the United States in 2020 in comparison to what it was in 2019. However, United States, online sales increased by up to 234%. All these factors contributed to a positive impact on the beverage market which in turn impacted the liquid packaging market towards a growing scenario.

Impact of Russia-Ukraine War

The production of plastic suppliers, converters, and the larger packaging industry is dependent on oil and gas. The quantities of oil and gas required to create plastic goods are difficult to quantify. However, supply chain interruptions, sanctions, and divestment due to the war significantly negatively impacted the business. Over 300 significant western corporations have withdrawn operations from the country due to the conflict, and numerous production and packaging facilities in both Russia and Ukraine have been shut down. Some businesses initially hesitated to halt operations, reducing or shutting them down since they were unsure when it would finish. The largest petrochemical (PET) facility in Ukraine, Karpatneftekhim, was among the facilities compelled to halt operations after martial law was proclaimed in February 2020.

Key Players Landscape and Outlook

The United States Liquid Packaging Market is dominated by a few significant players, including American Packaging Corporation, Sealed Air, Owen Illinois Inc., Dow Inc., Amcor Plc., Berry Global Inc., Krones, Inc., Tetra Laval International S.A. (Switzerland), Gerresheimer AG, International Paper Company (US), Pactiv Evergreen Group Holdings Inc., Elopak ASA, Silgan Holdings Inc. These companies have a strong brand presence, a vast distribution network, and a focus on innovation.

In November 2022, Sealed Air acquired Liquibox which would help the company to boost its packaging solutions, especially in its bag-in-box solutions which are applied to water, coffee, dairy, milkshake mix, fountain beverage syrup, wine, and other liquid food products. Thus, these acquisitions and mergers by regional companies are expected to further boost the demand for liquid packaging in the coming years.