Europe Alcoholic Drinks Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Europe Alcoholic Drinks Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The Europe alcoholic drinks packaging market is expected to record a CAGR of 5.5% during the forecast period. The packaging of alcoholic beverages plays a significant role in the brand promotion of alcoholic drinks. It helps brands to communicate with their consumers as they can touch and feel the product through packaging. Recent innovation such as lightweight glass and effective recycling is driving the market.

• The demand for alcoholic drinks is anticipated to rise in the United Kingdom, Italy, Germany, and Finland, which will help the packaging industry in Europe expand. Manufacturers of alcoholic beverage packaging in Europe benefit from the rising trend of alcohol use during social gatherings since it opens up new business prospects. In Europe, young consumers are becoming more accustomed to drinking beer and wine.
• Glass is a popular choice for packaging since it does not react with the chemicals in drinks and, as a result, protects the scent, strength, and flavor of these beverages. Packaging materials like glass are anticipated to be in high demand. As a result, glass bottles are used for packaging the majority of beer sales. Throughout the forecast, this tendency is anticipated to persist. Since glass packaging is entirely recyclable, it is a desirable packaging choice for sustainability.
• The increased acceptability of cans among young customers led to significant demand for aluminum can packaging from canned wine and beer producers. This tendency has been progressively pushed by a substantial cultural shift since millennials are enthusiastic consumers of various wine forms that provide convenience.
• Craft positioning is becoming more significant across alcoholic beverages as customers choose to drink less but better, pushing firms to use packaging to communicate their message. This may be seen in the increase in beverage packaging, such as metal beverage cans for beer and glass bottles with cork closures for alcohol.
• The COVID-19 epidemic did not affect total alcohol consumption; beer and wine sales increased while hard liquor sales decreased. Budget and mid-range spirits increased in demand, while high-end super-premium and ultra-premium spirits saw a decline in demand. There have been significant increases in the demand for wholesale wine and beer as people cut back on socializing and spend more time at home. Consumers are paying more for each bottle than before the epidemic.

• 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%.

• 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.

The availability of several players providing packaging solutions for alcoholic beverages has intensified the competition in the market. Therefore, the market could be more cohesive, with many companies developing expansion strategies.

• January 2023 - Consumers in Italy will have access to digital information regarding product packaging and recycling owing to a partnership between U-Label, the European e-label platform for wines and spirits, and the Italian company Giunko. Wines and spirits sold in Italy starting on January 1, 2023, must disclose to consumers the identification and categorization of the product packaging or the type of packaging materials used and how they should be disposed of. Italian regulators permit manufacturers to provide this information digitally via an e-label that may be accessed by scanning a QR code with a smartphone on the bottle.

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