Beverage Packaging Market in Europe 2017-2021
About Beverage Packaging
Beverage packaging is essential for product support, protection of the beverage from the external environment, as well as it acts as a tampering resistance for beverages. The different types of materials used in the beverage packaging market include plastic, glass, and metal. These packaging materials are used for the packaging of both alcoholic and non-alcoholic beverages. Alcoholic beverages include wine, beer, and spirits, whereas, non-alcoholic beverages include liquid dairy products, juices, as well as functional drinks.
Technavio’s analysts forecast the beverage packaging market in Europe to grow at a CAGR of 4.19% during the period 2017-2021 .
Covered in this report
The report covers the present scenario and the growth prospects of the beverage packaging market in Europe for 2017-2021 . To calculate the market size, the report considers the revenue generated from the sales of beverage packaging.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Beverage Packaging Market in Europe 2017-2021
Technavio recognizes the following companies as the key players in the beverage packaging market in Europe: Amcor, Ball, Crown Holdings, and Owens-Illinois
Other Prominent Vendors in the market are: Allied Glass Containers, AptarGroup, Ardagh, Can-Pack, CCL Industries, CKS Packaging, Mondi Group, Plastipak Holdings, Inc., Printpack, Promens, Saint-Gobain, Silgan Holdings, and Sonoco.
Commenting on the report, an analyst from Technavio’s team said: “The latest trend gaining momentum in the market is Innovation of lightweight packaging. Lightweight packaging is one of the major trends in the beverage packaging industry in Europe as it helps vendors in reducing the cost of transportation of the products. Beverage manufacturers are also reducing the packaging weight for promoting environmental sustainability and reducing costs across the supply chain. The first way of reducing the weight of packaging is replacing the packaging material already in use with a lighter weight alternative. For instance, Bonfire Wines packages its wine in pouches rather than bottles and has a carbon footprint 70%-80% less than that of bottles. In addition, the pouches store double the amount of wine than bottles.”
According to the report, one of the major drivers for this market is Rise in demand for packaging of functional beverages. Functional beverages include ingredients like vitamins, herbs, minerals, amino acids, as well as raw fruits or vegetables. Beverages, such as sports drinks, ready-to-drink (RTD) teas, energy drinks, enhanced water, enhanced fruit drinks, and soy drinks are functional beverages, and their demand has increased multiple-folds in Europe. The UK dominated the market share of energy drinks in Europe by more than 25% in 2016, which is expected to grow further during the forecast period. Also, the Eastern and Western European sports drink category is growing at a rate of 8%-10% annually, with the UK dominating the market every year.
Further, the report states that one of the major factors hindering the growth of this market is Rise in raw material prices. The rise in the prices of raw materials is a major challenge for the beverage packaging market in Europe. The raw materials used for beverage packaging are plastic, metal, and paper. The increase in the prices of these materials affects the manufacturing cost of packaging, in turn, increasing the overall cost of the product. For instance, Sappi, a pulp and paper industry, increased its prices of all European coated as well as uncoated fine papers by 6%-10% in March 2017. The prices were increased for both reels and sheets of paper. This sharp increase in the price is leading to a rise in input costs, thereby shrinking the profit margins of the vendors. In addition, Sonoco, a global provider of packaging products, increased its recycled paperboard prices by around $60 per ton in Europe in July 2017. Therefore, the vendors have no other option than passing this increase in price through the markets, which, in turn, increases the beverage cost.
Amcor, Ball, Crown Holdings, Owens-Illinois, Allied Glass Containers, AptarGroup, Ardagh, Can-Pack, CCL Industries, CKS Packaging, Mondi Group, Plastipak Holdings, Inc., Printpack, Promens, Saint-Gobain, Silgan Holdings, and Sonoco.