The persistent need to protect consumer interests will drive players in the global alcohol packaging market to innovation. And, it is on the back of innovative products that the market for alcohol packaging will sustain at a 5.5% CAGR during 2017-2025, a recent report finds. While this 5% might seem like a competent growth rate, it is significant for a market that was valued at US$ 40 billion (approximately Rs 2,87,931.20 crore) in 2017.
The evolution in consumer demand emerges from the growing awareness about alcohol. With exposure, consumers are spread across age groups, demography and gender. As a result, alcohol companies have to define consumer requirements categorically. A fallout of this approach invariably results in companies looking at fresh packaging designs to lure consumers, laying the basis for growth in the global alcohol packaging market.
As we speak of consumerism, it is important to understand that user-behavior is typically short-lived, and this is common for the global alcohol packaging market. This will push companies to stay on their toes and grab on anything that can make a difference to their revenue figures. From new materials to design, alcohol packaging companies are expected to try to their hands on every profitable idea. Results of proven analysts and experts from the industry indicate that the global alcohol packaging market will have the potential for business worth US$ 57.74 billion (approximately Rs 4,15,557.67 crore) by the end of the forecast period.
Bottles or cans?
Stacks of designer bottles neatly arranged on modern furniture is the first attraction for a consumer or a collector. It is the sight of light-to-dark colored bitter liquids gleaming out of glass bottles that adds value to the appearance of alcohol. Many companies in the global alcohol packaging market are consistently tweaking their design to offer something ‘new’ for their consumers.
Among several materials available in the market, glass is the most preferred one, accounting for more than 80% share in the global alcohol packaging market. It is sought-after for packing both, beer and liquor. While printing is a tough task for players manufacturing glass bottles for alcohol, the advantage lies in shaping the bottles and more importantly preserving the taste of alcohol. On the other hand, metals, though occupying a minute share in the global alcohol packaging market, is preferred by beer manufacturers as they are convenient to print.
Polyethylene terephthalate (PET) is a common material used for making bottles across the food and beverages industry. However, multiple studies have proven that PET bottles are difficult to recycle. Moreover, countries have introduced laws that restrict the use of plastic in multiple forms, especially in the food and beverages industry.
For instance, California was one of the first states in the US to impose a ban on plastic bags. And, after a successful attempt to curb the use of plastic bags, lawmakers now propose to phase out single-use plastics by 2025. This is a cue for companies in the global alcohol packaging market as it might be the right time for them to look at glass or metal as an alternative for tomorrow’s product line. Glass is more feasible as it might offer multiple uses with sustainable investment for facilitating reusability of bottles.
These insights are based on a report on Alcohol Packaging Market by Transparency Market Research.