Alcohol Packaging Market Size, Share and Industry Analysis Report, Regional Outlook, Application Development Potential, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI2796
Global alcohol packaging market is anticipated to witness remarkable growth over 2021-2027, considering the rapid introduction of new alcohol flavors, alongside its mounting consumption in high-income countries worldwide. In 2021, the Coca-Cola Company unveiled Topo Chico Hard Seltzer, its first alcoholic beverage in China, in an effort to expand its footprint in the Chinese alcoholic beverage sector.
The packaging of alcohol plays an important role in safeguarding the quality of the products for safe consumption. As per reliable statistics, 52% of consumers tend to repurchase from a particular company that provides excellent packaging. Escalating consumption of alcohol, especially during the coronavirus pandemic due to its resultant physical isolation and mental distress, is one of the major trends characterizing the growth of the alcohol packaging market. Studies suggest that the overall frequency of liquor consumption increased by 14% in 2020 as compared to a year earlier.
The availability of strict regulatory bodies such as the FSSAI (Food Safety & Standards Authority of India), along with the common issues regarding the compliance with the regulations pertaining to the packaging of alcoholic beverages, may create roadblocks to the steady market growth over the estimated timeframe. The FSSAI, for instance, has directed alcohol manufacturers to display a warning of not less than 3-mm on bottles above 200-ml.
In terms of segmentation by packaging material, the glass segment is set to depict a substantial growth rate through 2027, owing to the high transparency & resistance to corrosion. In 2020, Ardagh Group collaborated with Parkway Brewing Company to produce its 12-oz long-neck beer glass bottles in the U.S., in order to create sustainable, premium packaging with high shelf appeal.
Regionally, the Asia Pacific alcohol packaging industry is projected to hold an appreciable share in years to come. This can be credited to the burgeoning alcohol industry, growing high-income population, and increasing spending power in developing nations such as India. Alcohol consumption in India, for instance, is expected to reach over 16.8 billion liters by 2022.
Stora Enso Ojy, Gerresheimer AG, Tetra Laval, Krones AG, Bemis Company, Inc. (Amcor PLC), Crown Holding, Mondi plc, Vidrala SA, DS Smith plc, Ardagh Group, Owens Illinois, Smurfit Kappa Group, Amcor plc, and Ball Corporation are among the prominent players bolstering the alcohol packaging market outlook. These firms are focusing on innovative product launches, M&A, and other strategies to gain a competitive advantage over rivals in the global market.
For instance, in January 2021, MGP Ingredients, Inc. entered an agreement to take over Luxco, with an objective to enhance its product offerings via the addition of a leading beverage alcohol company across varied categories. Meanwhile, Diageo unveiled plans to launch Johnnie Walker in a 100% plastic-free, paper bottle made from sustainably-sourced wood in July 2020, with an aim to ensure sustainability with renewable packaging.
High Alcohol Consumption During COVID-19 & its Impact on Alcohol Packaging Market Trends:
In the wake of the coronavirus outbreak, several medical, sociological, and psychological problems have increased considerably, due to the implementation of lockdown and other strict measures to curb the spread of the virus. Outdoor dining and drinking activities were banned across a large number of countries. These factors, along with the supply chain disruptions and business shutdown, may create hindrance to the alcohol packaging industry over the upcoming years.
However, the level of adult alcohol beverage consumption and purchasing habits have been significantly surging over the past months, mainly due to high stress levels, with certain beverage categories growing in popularity. As such, 41% of the younger consumers between 21-34 years of age showed high preference for beer than other alcoholic drinks as compared to 11% of the consumers who are 35 years or above.
These changing consumption habits and high awareness about the enhanced alcohol packaging designs, along with the significant ease of lockdown measures in several countries, are expected to add impetus to the alcohol packaging market over the foreseeable future.
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