Soft Drinks Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Soft Drinks Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The soft drinks packaging market has registered a CAGR of 3.96% over the forecast period 2021 - 2026. Soft drinks are generally non-alcoholic beverage drinks, which contain carbonated air, added flavors, and ingredients. The new trend toward healthy and natural content drinks is gaining the market share.

Key Highlights

• The carbonated soft drinks (CSD) market has reached a mature stage in the beverages market. In recent years, it has gone through multiple changes, and this state of flux is expected to continue in the near future. In recent years, consumers are progressively becoming health conscious. Consumers are now spending more on products that keep them refreshed and are safe to consume.
• Consumers prefer healthy products with multiple flavors options into the product. Keeping this in mind, the companies are launching more products to meet these demands. Hence, creating more opportunities for the packaging market of such products.
• The economies of developing countries, like China and India, are growing, which is creating an increase in disposable income across the population. Consumers are now demanding more of ready-to-use packaged drinks.
• However, stringent government restrictions over the use of non-biodegradable plastics are restricting the companies on other eco-friendly packaging materials. These products are limiting the profit margin due to higher costs, ultimately affecting the overall soft drink packaging market.
• Lock down mesures across the globe due to Covid-19 pandemic situation has lead to significant supply chain disruptions and shrink disposable income of consumers .New health and wellness priorities in the post Covid era and sharp recessionary effects will certainly affect carbonated soft drink Industry.

Key Market TrendsPlastic to Account for the Largest Market Share

• Consumer preference for plastic packaging in the soft drinks industry has been observed over other products, as plastic packages are lightweight and more comfortable to handle. Also, the major manufacturers prefer to use plastic packaging solutions, as the cost of production is significantly lower.
• However, the market is expected to face challenges due to government regulations and consumer demand pushing manufacturers to look for packaging solutions that are biodegradable or derived from sustainable sources.
• Furthermore, a significant amount of plastic products are being recycled and reused in recent years. Also, the variety of plastics available for packagings, such as PVC, PE, PP, PS, PET, and nylon, are one of the reasons contributing to the market share of this segment.
• Coca-Cola revealed that it uses three million metric ton of plastics annually . Hence, with the average weight of 10 grams a bottle, it employed 300 million plastic bottles in that year. Even though the sales of carbonated drinks is toward the declining trend, the use of plastic for other soft drinks offered by different players has multiplied over the years.
• Polyethylene terephthalate (PET) bottles are expected to witness steady demand from consumers during the forecast period.

Asia-Pacific to Witness Fastest Growth

• Asia-Pacific is a region with a huge customer base and several fast-growing economies. However, packaging preferences differ considerably from region to region, thus, adopting region and application-specific strategies is expected to result in better product movement. Moreover, manufacturers are actively adopting sustainable packaging practices due to the increased pressure from consumer groups, government, and customers.
• Japanese consumers have the highest per capita spending power in Asia. This, combined with the growing size of its aging population and the new functional food labeling system, has created an opportunity for premium functional soft drinks products, particularly those with health claims targeting an older demographic.
• According to Red Bull, in 2019 , its sales grew by 37% in India and this trend is expected to continue in the forecasted period, 2020-2025.
• Countries, like India and China, are showing rapid urbanization, and currently, with 33% and 51% urban population, respectively. With the urbanization, growing disposable income is creating demand for soft drink products, and hence, affecting the soft drinks packaging market.

Competitive Landscape

The availability of several players providing soft drinks packaging solutions has intensified the competition in the market. Therefore, the market is moderately fragmented, with many companies developing expansion strategies.

• Mar 2020: CanPack announced the capacity expansion in Colombia and Russia, two growing markets, by more than one billion cans annually. The new expansion comes as beverage companies in Colombia and Russia seek additional capacity for their products, an increase that is driven by both a focus on environmental sustainability, as well as a growth in sales.
• Mar 2019 - Amcor Limited acquired its rival Bemis Company Inc. By combining these two market leaders, Amcor aims to create a stronger value proposition for shareholders, customers, employees, and the environment.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Amcor PLC
Toyo Seikan Group Holdings Ltd
Graham Packaging Company
Ball Corporation
Owens
Illinois Inc.
Pacific Can China Holdings Limited
Crown Holdings Incorporated
CAN
PACK SA
CKS Packaging Inc.
Refresco Group NV
Tetra Pak Inc.
Ardagh Group SA

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