Soft drinks packaging market set for growth
The global soft drinks packaging market is expected to exceed €26 billion, growing 4% by 2020, according to a recent report by Technavio.
The demand for plastic packaging in the soft drinks market is growing at a steady rate compared to other packaging materials, and is expected to exceed €10 billion by 2020 with a 4% growth. PET is increasingly gaining preference over glass bottles, jars, containers and metal containers, according to the company, because of the various properties possessed by plastics such as their light weight, low cost and variable design availability.
PET offers consumer convenience, extensive scope for innovation and good potential for brand differentiation. “However, the increase in demand for sustainable, environmentally friendly packaging is increasing pressure on rigid plastic manufacturers to introduce recyclable options for consumers,” explains Sharan Raj, lead analyst at Technavio for packaging research.
The global soft drinks packaging market by glass is expected to exceed €6.7 billion by 2020, growing 2%. The demand for glass packaging in the soft drinks market will grow at a slow pace during the forecast period compared to other types of packaging solutions, with the emergence of other packaging materials which are considered easier to carry, distribute, store, and dispose of.
In comparison to plastics, glass is 100% recyclable and can be recycled endlessly without loss in quality or purity. But it is not considered ideal for food and beverage packaging due to its inconvenience in storage and transportation as it is heavy and requires a lot of shelf space, says Technavio.
“However, an increase in demand for alcoholic beverages globally sustains the moderate growth for glass as it is used as a packaging material for alcoholic drinks such as beer, wine and whisky,” adds Raj.
It is estimated that the global soft drinks packaging market by paperboard will reach €6.7 billion by 2020, growing 7%. The market for paperboard as a packaging material will grow rapidly during the forecast period. Corrugated boxes and containers are the types of paperboard packaging products that are experiencing significant growth in the global market.
Coated, unbleached Kraft paperboard is primarily used as cartons for packaging beverages. Paperboard products are easy to recycle, which is why they are preferred for packaging. However, increasing competition from other substitute packaging materials, including plastic, acts as a major barrier to the growth of this segment.
Meanwhile, the global soft drinks packaging market by metal will reach €3.5 billion by 2020, growing at 2%. A large number of light weight cans can be transported in one truck, ensuring less energy consumption and reduced emissions. With the growing trend towards sustainable packaging, cans are easily recyclable. In Europe, the recycling rate of metal packaging is 75%, and the recycling and use of recycled content in cans save up to 90% of the energy used for the production of virgin materials.
However, increasing demand for rigid and flexible plastic packaging products poses a major challenge to the market, says Technavio, as consumers prefer low cost plastic packaging that has similar functions and features compared to metal.