Spirits Packaging Market Size Estimated To Reach $30.1 Billion by 2027

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Spirits Packaging Market Size Estimated To Reach $30.1 Billion by 2027

April 21
00:50 2022
Spirits Packaging Market Size Estimated To Reach $30.1 Billion by 2027
Spirits Packaging Market | IndustryARC
Rapid Growth in Global Alcohol Consumption Is a Major Factor That Is Driving the Spirits Packaging Market

The Spirits Packaging Market size is estimated to reach $30.1 billion by 2027. Furthermore, it is poised to grow at a CAGR of 4.60% over the forecast period of 2022-2027. The use of quality spirit packaging by manufacturers helps to ensure that the beverage is protected during transportation and storage, thereby reducing losses through damaged goods. Moreover, spirit packaging is a major component that influences customer buying decisions as the packaging usually contains company information, product information, and marketing and promotional messages. Some of the key types of spirits packaging include polyethylene terephthalate (PET) bottles, glass bottles, stand-up pouches, and others. Stand-up pouches are usually made of from coextruded film as they provide a much better barrier than Ethylene vinyl alcohol (EVOH) film, and do not degrade with exposure to moisture. Manufacturers typically make use of Horizontal Form-Fill-Seal equipment for the production of such stand-up pouches. The rapid growth in alcohol consumption during the COVID-19 pandemic is a major factor that is driving the market for the Spirits Packaging industry during the projected period of 2022-2027.

Spirits Packaging Market Segmentation Analysis – By Product

The spirits packaging market based on the product can be further segmented into PET bottles, cans, cartons, glass bottles, stand-up pouches, and others. The PET bottles held the largest share of the market in 2021 and are poised to dominate the market during the forecast period 2022-2027 owing to their numerous advantages over traditional glass bottles. For instance, the hardened non-reactive composition of Polyethylene Terephthalate makes the packaging resistant to breakage. This helps reduce losses incurred during transportation and storage. Besides, the cost of manufacturing PET packaging is also significantly lower than glass bottles, thereby increasing profit margins for the manufacturer. In addition, the transportation costs for PET bottles are also reduced owing to their lightweight. Additionally, RTDs account for more than 11% of sales in alcoholic beverages, which have increased from 7% in 2019 to 11% in the first half of 2021.

However, the Stand-up pouches segment is estimated to be the fastest-growing, with a CAGR of 5.2% over the forecast period of 2022-2027. This is attributed to factors such as low production costs, high flexibility, and growing environmental consciousness among consumers. In addition, the pouches also help protect the product from moisture, oxygen, light, and odor, thereby enhancing the shelf life of the beverage.

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Spirits Packaging Market Segmentation Analysis – By Type

The Spirits Packaging market based on type can be further segmented into primary packaging and secondary packaging. Primary packaging held a dominant market share in the year 2021. Primary packaging is the first layer of protection for the beverage and the last packaging layer that the consumer opens. They are usually made of glass, PVC, or metal in order to ensure that the beverage is protected. The high market share of primary packaging is attributed to the fact that the revenue generated from a unit of primary packaging is significantly higher than a unit of secondary packaging. Moreover, spirits coming in stand-up pouches or cartons usually only consist of primary packaging, further contributing to the growth.

However, secondary packaging is also estimated to witness lucrative growth at a CAGR of 5.4% as they are an essential component of product marketing. As secondary packaging is the outermost packaging layer of the product, they usually contain product information and marketing messages. Therefore, attractive secondary packaging is essential for improving the probability of the customer purchasing the spirit.

Spirits Packaging Market Segmentation Analysis – By Geography

The Spirits Packaging market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the rest of the World. North America held a dominant market share of 33% in the year 2021 as compared to the other counterparts and is predicted to remain dominant in the market during the forecast period 2022-2027. This can be attributed to the presence of key market players such as Astra Pouch, Big Sky Packaging, and Hartness Holdings in the region. The high domestic competition results in lower prices and higher product varieties for the end-user industries to choose from. In addition, rapid innovations in the field of biodegradable spirit packaging in North America are another crucial factor that is contributing to the market growth. For instance, Brown-Forman is projected to remove 100% single-use plastic packaging by 2023. Additionally, in 2018, as per CDC reports- around two-thirds or 66.67% of the adults aged above 18 consume alcohol, thereby allowing for robust growth in the projected period of 2022-2027.

Spirits Packaging Market Drivers

Rising global alcohol consumption has readily aided market growth

Rapid growth in global alcohol consumption is a major factor that is driving the spirits packaging market during the forecast period. For instance, in 2020, the consumption of spirits and alcoholic beverages in the US increased by 2%, which was the highest annual increase since 2002. Besides, around 1 in every 12 persons in Europe consume alcohol on a daily basis. The overall sale of liquor in the US increased by nearly 54% during the month of March in 2020 while the frequency of consumption of alcoholic beverages increased by 14%. This growth in consumption of alcoholic beverages increased the volume of spirit output by manufacturers, thereby increasing the demand for primary and secondary packaging during the period.

The growing demand for PET bottles is projected to drive the marketRising demand for PET bottles from the end-user industries is contributing to the market growth during the forecast period. PET bottles are lighter, more durable, and cheaper to produce. This helps spirit manufacturers reduce manufacturing, shipping, and storage costs. Besides, PET bottles also have superior oxygen, carbon dioxide, and moisture barrier properties. The bottles are also designed to be compatible with the storage of 1 to 100% ethyl alcohol as the plastic used in the bottle does not get dissolved by the alcohol, thereby eliminating the risk of leaching. Furthermore, the flexible production process allows for the use of diverse bottle designs, which makes the product more attractive and unique.

Direct Purchase @ https://www.industryarc.com/purchasereport.php?id=504586

Spirits Packaging Market Challenges

Stringent government regulations regarding spirit packaging are a major factor impeding market growth

Stringent government regulations regarding spirit packaging are anticipated to hamper growth during the forecast period 2022-2027. For instance, the US Alcohol and Tobacco Tax and Trade Bureau (TTB) regulates the packaging of distilled spirits in the US. The regulatory body states that spirits can only be packaged in one of the standard sizes of 50 mL, 100 mL, 200 mL, 375 mL, 750 mL, 1 L, and 1.75 for bottles while it is 50 mL, 100 mL, 200 mL, and 355 mL for cans. Moreover, the TTB also has mandatory instructions regarding the labeling that has to be added to the primary and secondary packaging of such beverages. Besides, restrictions in the use of PET bottles for spirit packaging are also challenging the market. For instance, in 2021, the government of West Bengal, India proposed a plan to ban plastic liquor bottles owing to the rising concerns regarding pollution.

Spirits Packaging Industry Outlook

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Spirits Packaging Market. Spirits Packaging top 10 companies include:

Ball CorporationAmcor Limited

Smurfit Kuppa Group

Ardagh Group S.A

Crown Holdings Incorporation

Astra Pouch

Big sky Packaging

Hartness International Inc

LiDestri Spirits

United Bottles and Packaging

Recent Developments

In October 2020, Bacardi partnered with biodegradable products manufacturer Danimer Scientific to manufacture bottles made using natural oils derived from palm, canola, and soy seeds. The bottle will biodegrade after 18 months without leaving behind microplastics. The new innovative packaging is anticipated to replace 80 million plastic bottles used by Bacardi every year.

In July 2020, Diageo announced the creation of the world’s first-ever 100% plastic-free paper-based spirit bottle. The new packaging was introduced with the Johnnie Walker whiskey in 2021. Diageo created the new packaging in partnership with the venture management company Pilot Lite. The product is made entirely from sustainably sourced wood. Additionally, the product would follow food-safe standards and will be fully recyclable in standard waste streams.

In October 2019, Carlsberg created the “world’s-first” paper beer bottle. The Dutch beer maker has created the first paper beer bottle from sustainable wood fiber, with a coated interior that would prevent seepage. Additionally, the prototypes are in the works, one which uses a thin layer of recyclable polyethylene terephthalate or PET plastic in the interior. The other uses PEF, which is 100% bio-based. It is the company’s first step to achieving the zero carbon emissions target.

Key Takeaways

Geographically, North America accounted for the largest Spirits Packaging market share in the year 2021 owing to the presence of large dominant packaging companies in the region. Moreover, the high prevalence of alcohol consumption among the population and the increasing popularity of online alcohol stores during the COVID-19 pandemic is predicted to contribute to the market growth. The European spirits packaging market is also predicted to witness rapid growth during the forecast period owing to the rising demand for safe and innovative spirit packaging in the region during the pandemic. Besides, European countries also have some of the highest per capita alcohol consumption in the world.

The rapid rise in demand for boxed alcohol and liquor pouches is anticipated to drive the market during the forecast period. However, stringent government regulations regarding spirit packaging are a key factor that can hamper growth opportunities during the forecast period.

Detailed analysis of strengths, weaknesses, opportunities, and threats will be provided in the Spirits Packaging Market Report.

Relevant Titles

Packaging Film Market

https://www.industryarc.com/Report/15172/packaging-film-market.html

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