LONDON--(BUSINESS WIRE)--Technavio’s latest report on the global alcoholic beverage packaging market provides an analysis on the most important trends expected to impact the market outlook from 2016-2020. Technavio defines an emerging trend as a factor that has the potential to significantly impact the market and contribute to its growth or decline.
The top four emerging trends driving the global alcoholic beverage packaging market according to Technavio transportation and logistics research analysts are:
- Increased adoption of pouch packaging
- Technological innovation
- Recycling benefits of steel and glass
- Growing demand for premium alcoholic beverages
Increased adoption of pouch packaging
Pouch packaging is currently gaining traction in the global alcoholic beverage packaging market. Gin, vodka, and tequila are available in pouch packaging. Pouches are made of multi-level laminates that maintain the quality of alcoholic beverage products. Many alcoholic beverage packaging companies have started the use of stand-up pouch packaging. Sustainable stand-up pouches are eco-friendly as they are non-toxic and biodegradable. These pouches are also efficient in protecting the quality and essence of the product inside.
“The global stand-up pouch market was valued at over USD 6 billion in 2014. The increased use of pouch packaging is expected to propel the growth of global alcoholic beverage packaging market during the forecast period,” says Sharan Raj, a lead analyst at Technavio for research on packaging.
Technological innovation
One of the major factors for the growth of the global alcoholic beverage packaging market is due to technological innovation in the packaging of alcoholic beverage products. Innovation in technology has led the demand for water-based coating technology. This is because it is odorless, tasteless, and environmentally-friendly. It also reduces the use of spray powder. Modern microprocessor-based controllers and intelligent control systems are used to make hi-tech glass, which is resistant to extreme conditions of temperature and pressure. The technology adoption starts from the manufacturing process and continues up to the selection of compounds to be used in the high-grade raw materials to suit customer requirements. Packaged alcoholic beverage companies are demanding highly competitive, cost-efficient, and visually appealing packaging solutions. Such demands have compelled vendors to use new technologies to innovate their product offerings. For instance, Sidel launched pasteurisable lightweight PET bottles for beer with a non petaloid base in 2014. The bottle looks like a glass bottle through its base design and the use of a crown cap but has all the benefits of PET, including increased mechanical properties, light weight, and safety that PET offers.
Recycling benefits of steel and glass
Unlike plastic and other packaging materials, glass is 100% recyclable. Glass is made from natural minerals such as silica in the form of sand, soda ash, and limestone. This renewable resource does not contain chemicals that can leach into the material inside the containers and it is easily recycled. The recycling rate for glass bottles can be as high as 50-80%. This ensures a significant saving in raw materials, thus preserving natural resources. Glass recycling saves energy as it melts at a low temperature.
“Vendors are changing the melting process to minimize the environmental impact. The more efficient melting process, the less energy requirement to melt the raw material,” says Sharan.
Growing demand for premium alcoholic beverages
The presence of popular brands like Kendall-Jackson, Jack Daniels, and Absolut has increased the demand for premium-quality beer, cognac, vodka, whiskey, and wine. Premium brands are in high demand compared to economically priced products due to rise in disposable income, consumption of alcohol as a status symbol, and the association of 'premium' labels with beverage quality and taste. The high demand for premium alcohol among consumers is because it is better in smoothness and mouthfeel and is perfect for sipping.
Even in mature markets like the US and France, premiumization is driving the market and consumers are shifting from local spirits to premium spirits. Hence, the trend for premiumization across all product categories is expected to boost the growth of the alcoholic beverage packaging market during the forecast period.
Browse Related Reports:
- Alcoholic Beverage Market in the US 2016-2020
- Beverage Packaging Market in Europe 2015-2019: Forecast, Trends Analysis
- Global Beverage Packaging Market 2015-2019
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