Packaged Beverage Market - Forecasts from 2023 to 2028

The packaged beverage market is projected to grow at a CAGR of 3.47% during the forecast period from US$1,568.389 billion in 2021, to US$1,991.845 billion by 2028.

The packaged beverage market is a dynamic and highly competitive sector of the global food and beverage industry. It encompasses a wide range of products, including carbonated soft drinks, bottled water, energy drinks, fruit juices, ready-to-drink teas and coffees, sports drinks, and alcoholic beverages like beer. There are several factors which are driving the growth of the packaged beverage market such as the change in consumer preferences followed by an increase in health and wellness. Consumer preferences have shifted towards healthier beverage options, including low-calorie and natural products. This trend has led to the rise of beverages like flavored water, herbal teas, and functional drinks with added vitamins and minerals.

Growing consumer preference towards buying online products

With the increasing disposable income, growing working population, hectic work schedule, and change in lifestyle people nowadays have less time to spend on going from one store to another. Additionally, the option to get their products delivered to the doorsteps without any hassle is aiding the packaged beverage market to grow in the coming years. Further, the increasing boost of e-commerce companies can be experienced in developing countries such as India, as these were untapped markets in the past but are gaining popularity in the market in the coming years. Hence, major reasons are anticipated to grow the market for e-commerce packaging in the projected period. As per the estimates by the U.S. Department of Commerce, e-commerce sales have been increasing continuously. According to the data online retail sales contribute around 16% of the total purchase in the US retail industry. In the projected period, this is expected to increase due to factors like increasing refunds and discounts from the e-commerce providers coupled with increasing digitalization in countries such as the United States and increasing penetration of technological advancements in the country are anticipated to aid the market for e-commerce packaging in the projected period.

Asia Pacific is anticipated to be the fastest-growing market

The quick shifts in beverage packaging patterns across the nation are one of the main drivers fueling the packaged beverage market expansion. The use of innovative packaging solutions has grown significantly.

Moreover, the rising consumption of ready-to-drink (RTD) beverages as a result of consumers' busy schedules and inactive lifestyles has also increased the demand. Additionally, the high frequency of gut-related ailments such as gastroesophageal reflux disease (GERD), ulcers, gastroenteritis, etc. has elevated consumer health concerns, which is thought to be the primary driver driving the packaged beverage market growth. The packaged beverage market is anticipated to expand as a result of product launches, upgrades, sustainability, and other factors. For instance, Packamama started in Australia in June 2022 with eco-flat bottles made in Australia. Bottles are made in Melbourne by packaging industry leader Visy from recycled PET that is obtained locally.

It is projected that the packaged beverage market in India will grow steadily.

The food and beverage sectors in India are the main drivers of the packaged beverage market expansion. The expansion of organized retail, the rise in middle-class consumer buying power, and exports all contribute to the packaged beverage market expansion. As a result, uniform packaging is now required to increase shelf life, maintain production efficiency, and guarantee quality. Moreover, the region's beverage sector is seeing an increase in demand for sauces or bottles of ketchup as well as fruit pulp, juices, and other concentrates. Additionally, the rising demand for drinks in the area has been primarily fueled by a variety of health beverages, milk products, beer, and liquors, which has led to the packaged beverage market expansion. Additionally, the top beverage producers in India manufacture a variety of goods, including tea and coffee, to international markets every year. For instance, UFlex Limited, the largest international flexible packaging materials & solution provider in India, has introduced a packaging option for the beverages market called "Asepto Eye." Due to its superior packaging, Asepto's most recent product brings aseptic packaging into the current age and advances the brand's commitment to innovation.

Growth in the carbonated beverages market in India

As per the Indian Brand Equity Foundation, India's market for carbonated beverages is approximately US$ 1.5 billion, compared to US$ 0.25 billion for the market for juice and juice-based beverages. The fruit-drink category is one of the fastest-growing in the beverage sector, expanding at a pace of 25%. Sports and energy drinks, which currently have a low market penetration in India, have enough room to expand. Alcoholic beverage sales have been steadily increasing. According to "The Future of Wine," a report on the health of the wine industry over the past 50 years, the wine market in India was expanding at a rate of more than 25% annually.

Market Key Developments

• In November 2022,Tetra Pak inked a substantial contract worth $2.5 million with Uniboard, marking a significant step in their commitment to sustainability. The agreement is geared towards the establishment of a cutting-edge cardboard recycling facility specifically designed to process used beverage cartons (UBC).
• In May 2022,a noteworthy collaboration unfolded between O-I Glass Inc. and Coca-Cola UNITED. Their joint initiative centered around the recycling of glass bottles, embodying a shared vision of a more sustainable future. By the target year of 2030, Coca-Cola UNITED aims to incorporate a remarkable 50% recycled material into its bottles, underscoring its steadfast commitment to a waste-free world. To achieve this ambitious goal and bolster its collection of recycled glass for the production of new glass bottles, the bottling company has forged a strategic partnership with O-I Glass. This partnership holds the promise of reducing environmental impact and promoting the circular economy.

Segmentation:

By Type

• Alcoholic Beverages
• Non-Alcoholic Beverage
• Juices
• Milk
• Carbonated Soft Drinks
• Bottled Water

By Packaging Type

• Cartons
• Cans
• Bottles
• Others

By Distribution Channel

• Online
• Offline

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• Spain
• United Kingdom
• France
• Others
• Middle East and Africa
• Saudi Arabia
• South Africa
• Others
• Asia Pacific
• China
• Japan
• Australia
• India
• Others