PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1273297
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1273297
According to Stratistics MRC, the Global Beverage Cartons Market is accounted for $17.81 billion in 2022 and is expected to reach $25.55 billion by 2028 growing at a CAGR of 6.2% during the forecast period. Beverage packaging is a substantial part of the ever-growing beverage industry. Beverage cartons are a common type of packaging that preserves juices and drinks while allowing them to be distributed and stored at room temperature or in a refrigerator. These cartons maintain the freshness, flavour, and nutritional value of beverages. Furthermore, their portable design contributes to the trend of on-the-go products that meet the fast-paced lifestyle of the millennial age.
According to a study in Forbes, the U.S. spirits industry experienced a 5.3% increase in 2019, accounting for record sales of USD 29 billion.
The demand for convenience-improving packaging products is expanding rapidly in the developing countries of the Asia Pacific and Latin America, on account of the large population in these regions. The millennial and Gen Z generations make up the bulk of the population. To complement their on-the-go lifestyle, the younger generation has increasingly sought convenience products. They can travel and work for longer periods of time because the packing is easy to carry and tamper-proof. This is projected to contribute to the global beverage cartons market growth over the forecast period.
The swift adoption of beverage cartons and the unavailability of recycling infrastructure have led to large amounts of waste cartons entering landfills. Because these cartons can contain liquids, their introduction into waste streams raises the risk of diseases like malaria spreading. As a result, several nations throughout the world have legislation or are seeking to impose limitations on the use of non-sustainable materials like as plastic linings in the production of these pouch cartons. These rules require corporations to invest extensively in creating alternative resources that perform the tasks of conventional materials, affecting the growth potential of market players, particularly in developing economies.
The packaging business is undergoing a digital transformation, with companies incorporating technology such as artificial intelligence, machine learning, artificial neural networking, and source tracking systems into their goods. These technologies assist them in the assembly of better products, the development of customer data, the purpose of consumer attraction, the tracking of supply chain gaps, and the improvement of profit margins. This trend has spread to the beverage packaging business, including the cartons vertical.
The high cost of beverage cartons is a major factor limiting market growth. The price of raw materials such as paperboard and polyethylene has risen in recent years. Beverage packaging firms use their available resources to assure product quality and safety, however the sustainability aspect raises the entire cost of production, affecting overall profitability. The rising cost of final packaging could have an impact on sales. The increase in raw material costs is projected to stifle the expansion of the beverage cartons market during the forecast period.
The impact of the COVID-19 pandemic was especially obvious across the whole food and beverage sector, even down to the packaging items. Extended lockdowns in numerous countries halted many beverage producers' production activities. However, lockdowns forced the closure of many eateries and cafes. As a result, in order to meet the usual demand for beverages such as coffee, tea, wine, and beer, many consumers turned to packaged alternatives accessible on supermarket shelves or supplied through food delivery services.
The refrigerated cartons segment is estimated to have a lucrative growth. Because of the creation of a healthy environment, many beverage items, such as milkshakes and fruit juices, are prone to microbial proliferation at higher temperatures. As a result, beverage producers are switching to refrigerated cartons that can be maintained at controlled temperatures. Furthermore, when compared to shelf-stable cartons, these cartons are easily recyclable, which drives the segment's growth in the global market.
The other application segment is anticipated to witness the highest CAGR growth during the forecast period, due to the increased demand for these beverages among young consumers. Beverage manufacturers proactively engage with carton producers to capitalise on possible growth prospects in this industry. Furthermore, single-use plastic limitations have stifled the expansion of bottled water, forcing mineral water makers to switch to boxed packaging forms. This aspect is also projected to boost the growth of the other applications segment.
Asia Pacific is projected to hold the largest market share during the forecast period owing to the growing demand for packaged food and beverages in the region. The economic growth seen in the region's growing countries, notably China, India, Malaysia, and Thailand, will firmly sustain the region's dominance. Rapid urbanisation and rising disposable income are expected to increase beverage consumption, expanding the use of beverage packaging such as cartons.
Europe is projected to have the highest CAGR over the forecast period, due to the growing demand for aseptic packaging in the region. The market for low/non-alcoholic and functional ready-to-drink (RTD) beverages is growing in Europe, owing to the younger generation's inclination for lower alcohol drinks with unique flavour profiles. The younger generation wants to explore with different flavours and sensory sensations for their products, which is driving up demand for packaged cocktails and mocktails.
Some of the key players profiled in the Beverage Cartons Market include: Visy, Elopak, Stora Enso, IPI S.r.l., Greatview Aseptic Packaging Co. Ltd., Sig Combibloc Group Ltd., Pactiv Evergreen, Mondi Group, Tetra Pak, Westrock Company, Ball Corporation and Amcor PLC.
In April 2021, SIG announced the construction of a new plant in Queretaro, Mexico. The company announced an investment of about USD 45 Mn in the new plant over the period of 2021-2023. The new plant will have a technologically advanced production capacity covering printing, cutting, and finishing of the carton packs.
In November 2020, Tetra Pak joined forces with Stora Enso to explore the possibility of building a new recycling line to significantly increase the recycling of used beverage cartons in Central and Eastern Europe.