Alcohol Packaging Market Share, Size & Trends 2031

Report Description

Alcohol Packaging Market Outlook 2031

The global alcohol packaging market size was valued at around USD 63.78 billion in 2022 and is projected to reach USD 79.65 billion by 2031, expanding at a CAGR of around 2.5% during the forecast period, 2023 – 2031. The growth of the market is attributed to the rising demand for alcohol and increased consumption of alcoholic beverages among the population.

Alcohol packaging refers to the process and technique of packaging alcoholic beverages. It involves the packaging of different types of alcoholic beverages using primary and secondary packaging. The primary packaging involves the packaging process of alcohol in cans, bag-in-box, liquid brick cartons, growlers, pouches, and bottles. Similarly, the secondary packaging involves the use of folding cartons, multipacks, and tubes & boxes.  

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Packaging is a vital process for enclosing and protecting alcohol while distributing, storing, selling, and consuming alcohol. Over the years, the packaging industry has significantly evolved to meet the changing standard requirements, resulting in consumer-oriented packaging solutions. The alcohol packaging market is transforming with the introduction of various convenient and attractive types of packaging. 

The development of innovative packaging solutions along with constant effort from the alcohol packaging manufacturers to provide customers with alcohol in innovative designs and new flavors is driving the market. The alcohol packaging industry is gaining significant popularity, owing to the intense demand for alcohol packaging along with the rising production of alcohol.

Packaging has always influenced consumers when it comes to purchasing decisions. Attractively designed packages attract a large number of customers, hence the manufacturing industries are consistently focusing on improvements in product innovation to persuade customers to prefer their brand over other competitors.

In fact, most of the companies in the alcoholic packaging industry undergo substantial premiumization of the products to cater to the demands for safeguarding and brand exposure. With new innovative designs along with high durability and large number of to-go options, the alcohol packaging industry is registering high growth in the global market.

Packaging materials such as glass containers, plastic containers, metal containers, paper, and paperboard containers are used to package alcoholic beverages. Most containers that are used in the packaging of alcohol products offer various advantages such as recyclability and reuse. The availability of such sustainable packaging solutions for alcohol packaging has positively affected the market growth.

The alcohol packaging market is expected to grow exponentially in the coming years, owing to various factors that are affecting the market. Rapid urbanization and increasing disposable income motivate consumers to spend on luxurious lifestyles. These factors are leading to high spending on the consumption of various alcoholic beverages across the globe.

COVID-19 Impact

The recent outbreak of the COVID-19 pandemic had a significant impact on the alcoholic beverage industry. The pandemic scenario has had a huge impact on various economies and industries, including the food & beverage industry across the globe. Subsequent lockdowns, travel bans, and halt in the operations of business enterprises disrupted the demand for alcohol.

The shutdown of hotels, liquor shops, bars, food service providers, and restaurants has declined the sales of alcoholic beverages, which in turn, affected the global alcohol packaging market. Restriction of public meetings, public gatherings, events, and parties led to decline in the consumption of alcoholic beverages and decreased the revenue of the alcoholic packaging market.

The shutdown of manufacturing factories and local retailers disrupted the demand and supply of alcoholic beverages. This factor is expected to restrain the growth of the global alcoholic packaging market. However, the market is expected to maintain a steady growth rate, due to ease of operations across the globe.

Alcohol Packaging Market Dynamics

The alcohol packaging market report presents a complete overview of market dynamics by focusing on the current market trends, existing drivers, growth opportunities, and emerging challenges that can shape the outcome or overall performance of the market during the forecast period, 2022 to 2030.

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Major Trends:

Switching to metal cans is a growing market trend
In the recent years, companies manufacturing alcohol packaging are increasingly switching to metal can containers over plastic containers for environmental sustainability. Metal can, as a packaging container, is used for the storage and distribution of alcoholic beverages. It is highly durable and cost-effective. It reduces energy use, air emissions, and water pollution.

Additionally, tactile printing, matte finish, grooved edges, extra glossy surfaces, and embossing used for enhancing the appearance of the metal cans attracts consumers. The growing popularity of metal cans is anticipated to drive the sales of alcoholic beverages, which in turn, influences the demand for alcohol packaging.

Usage of multipacks in canned beverages is a market trend
Multipacks in canned beverages are widely adopted in the alcohol packaging industry across emerging countries, owing to its convenience of transportation as well as cost-efficiency. These factors are anticipated to contribute to the market growth. In November 2019, Coca-Cola, along with its strategic partners, announced the launch of an innovative packaging solution for multi-pack cans in an attempt to replace plastic wrap and minimize the amount of paper required across Europe

Key Drivers:

Rising consumption of alcohol with growing disposable income drives the alcohol packaging market.
Rising sources of disposable income among the population have motivated people to upgrade their lifestyle. This resulted in increasing expenditure on food and beverage items. Growing expenditure on community activities, parties, birthday celebrations, and other gatherings and the rising number of people in the workforce in developing countries are driving the consumption of premium and luxurious alcoholic beverages such as wine, whisky, beer, rum, and others.

Thus, an increase in the consumption of luxurious premium alcohol in emerging economies drives the alcohol packaging market. Alcohol consumption in casual outings, lounges, leisure gathering, night parties, and others is common. This is anticipated to increase the sales of alcoholic drinks. Additionally, the large young population is exposed to alcoholic beverages, resulting in an increase in the demand for alcohol.

Therefore, rising disposable income of people and a huge part of population that consumes alcohol influence the intense demand for alcoholic beverages along with developments in the alcohol packaging industry. The popularity of alcoholic drinks among the millennial population aids the market growth. Rising consumption of luxurious drinks, including alcoholic beverages, premium wine, whisky, and others, in community activities is expected to boost the global alcohol packaging market.

Improvements in alcoholic packaging solutions fuels the market
Alcohol packaging plays an important role in brand exposure, product marketing, and brand promotion. Manufacturers are increasingly producing innovative and creative alcohol packaging designs that attract customers. Introduction of new flavors to the market increases the sales of alcoholic beverages.

The PET-based containers in alcohol packaging are considered as environmentally beneficial, as the components can be reused and recyclable. Rising concerns over environmental protection and the availability of sustainable alcohol packaging solutions fuel the market.

For instance, pouch packaging and flexible bag-in-box packages offer biodegradable solutions and keep alcoholic beverages safe from the production process to final consumption. Furthermore, key players are increasingly investing in research and development activities to develop convenient and cost-effective products demanded by consumers. Therefore, continuous launches of innovative packaging in the alcoholic packaging industry fuels the market.

Increasing demand for alcohol is boosting the alcohol packaging market
With the huge proportion of population that consumes alcohol, there is immense demand for alcohol-containing products, including beer, wine, spirits, and others. Demand and sales for alcoholic beverages are growing, owing to the rising popularity of high-end alcohol drinks among the millennials. Consumers prefer high-quality premium alcohol products.

The spirit sales in terms of volume are expected to reach a CAGR of 5.8% during the forecast period, 2023-2031. Spirits are made through the process of distillation of fermented products and are much stronger than wine and beer. This high-end alcohol product is highly popular in the market, which in turn, is increasing the sales of spirits. Increased demand for such products aid the alcohol packaging market growth.

Existing Challenges:

Price fluctuation poses challenges to the expansion of the global alcohol packaging market
Fluctuations in the availability of alcohol and growing prices of raw materials in the alcohol packaging market are expected to pose challenges to the key market players.

Ill effects of alcohol consumption hamper the market
Rising consciousness over health and increasing awareness of the ill effects of consumption of alcoholic beverages are decreasing the consumption of alcohol. This is expected to hamper the growth of the alcohol packaging market.

Regulatory restrictions restrain the market growth
Many governments across the globe have imposed several restrictions on the consumption and sales of alcohol, which is limiting the overall growth of the global alcoholic packaging market. Additionally, stringent regulations were imposed on the use of hazardous components and non-biodegradable products. Compliance with such regulations pose challenges to the market players, which is hampering the market growth.

Emerging Opportunities:

Rising consumption of popular alcoholic beverages creates opportunities for market expansion
Wine is an alcoholic beverage that is gaining wide popularity in different parts of the world. It is consumed mostly by women and is a popular drink in Europe, across Spain and Italy, among others. With the growing consumption of wine, the market value for wine is projected to grow considerably. Innovative and attractive packaging design of the wine production company further increases wine sales.

For instance, on February 2019, Bride Valley Vineyard, a wine-producing firm introduced Cremant in stripped-back packaging. Beer is mostly consumed by men in different regions. It is highly consumed among people in the US. These factors are propelling the beer and wine market. Rising consumption of these popular alcoholic drinks among people is creating opportunities for market expansion.

Scope of The Alcohol Packaging Market Report

The report on the global alcohol packaging market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Alcohol Packaging Market Segment Insights

Glass container segment registers high market revenue

Based on material types, the global alcoholic packaging market is segmented as glass containers, plastic containers, metal containers, paper, and paperboard containers, and others. The glass container segment registered a high market revenue and accounted for 60% market share in 2021. The glass container segment is expected to expand at a high CAGR during the forecast period. Glass is 100% biodegradable and a sustainable green packaging solution.

It is widely adopted in the alcohol packaging market, owing to its resistance to water, high durability, and flexible structure. Extensive usage of glass containers in the alcohol packaging process increases its demand across the global alcohol packaging market. Glass containers have neutral reactive properties and preserve alcohol for a long time by avoiding contamination.

Glass is highly permeable to carbon dioxide and oxygen, which makes it an ideal container for storing spirits for a long period. With its non-porous and impermeable properties, glass prevents the interaction between glass packaging and alcohol without affecting the flavor, aroma, and strength of the alcohol, as it has a zero rate of chemical interaction.

The plastic segment is a fast-growing segment, as it provides thin, light, and compact packaging. Currently, more than 30 different types of plastics are used for packaging in diverse applications. Furthermore, manufacturers are investing in flexible plastic packaging, which has a positive impact on the growth of the plastic segment.

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Primary packaging segment leads the market 

On the basis of packaging types, the global alcoholic market is bifurcated into primary packaging type and secondary packaging type. The primary packaging type segment leads the market and is projected to expand at a CAGR of 3.1% by 2030. The primary packaging type segment is sub-segmented into cans, pouches, bag-in-boxes, growlers, liquid brick cartons, bottles, jars, and others.

Primary packaging processes involve direct contact of the container with the alcohol. It preserves, protects, and provides information to the consumer about the product. Glass bottles, aluminum cans, tin cans, and PET bottles are some of the instances of primary packaging. They are easy to carry and make the beverage appealing. Primary alcohol packaging protects the alcohol from spillage and exposure to elements that leads to its deterioration.

Beer segment remained dominant in the global market

Based on alcoholic beverages, the global alcoholic packaging market is fragmented into distilled and un-distilled alcoholic beverages. The un-distilled segment is sub-segmented into wines, beer, and cider. The beer segment remained dominant in the global market in terms of market revenue. It is expected to generate over 60 million tons of packaging material by 2030. Beer is a highly preferred drink after tea and coffee over the years. It is more nutritious as compared to other alcoholic beverages. Beer is widely consumed at occasional gatherings, parties, and other celebrations.

It has other health-beneficial properties, as it contains vitamin B, antioxidants, and proteins. Drinking beer reduces the presence of bad cholesterol in the body. The presence of high silicone in beer is expected to improve bone health. Other advantages of consuming beer include the reducing risk of developing a kidney stone. Additionally, beer contains proteins and natural antioxidants that help in preventing cardiovascular disease and muscle rebuilding.  

Increasing awareness of the health benefits of consuming beer is boosting the demand for alcohol, which in turn, drives the global alcohol packaging market. Product innovation, in terms of package design, is another major force for the growth of the segment. For instance, in February 2019, Bride Valley Vineyard, a sparkling wine producer, introduced Cremant in stripped-back packaging.

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Asia Pacific holds high value in the global alcohol packaging market

In terms of regions, the global alcohol packaging market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific holds high market value and is expected to generate more than 30% market share by 2030. This is attributed to the surging demand and rising consumption of beer and spirits in the region.

China and India are densely populated countries. Rising disposable income of people and increasing expenditure on food and beverages are expected to drive the market in the region.

The presence of prominent alcohol manufacturing companies and the development of innovative and sustainable packaging materials are favorable conditions for market growth. North America is an established market for packaging of alcoholic beverages, owing to the extensive consumption of different types of alcoholic beverages among people across the region. The market in North America is estimated to grow exponentially in the coming years.

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