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Which beverage package format will dominate through 2020?

A new market research report estimates the market growth for beverage packaging through 2020 by material, including plastic, glass, paperboard, and metal.

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According to the latest market research study from Technavio, “Global Soft Drinks Packaging Market 2016-2020,” the global soft drinks packaging market is expected to exceed US$30 billion by 2020, growing at a CAGR of almost 4% during the forecast period.

Plastic

The global soft drinks packaging market by plastic is expected to exceed US$11 billion by 2020, growing at a CAGR of almost 4%. The demand for plastic packaging in the soft drinks market is growing at a steady rate as compared to other packaging materials. The soft drinks bottle is made of PET, a strong yet lightweight plastic. It is increasingly gaining preference over glass bottles, jars, containers, and metal containers because of plastics’ 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,” says Sharan Raj, Lead Analyst at Technavio for packaging research.

Glass

The global soft drinks packaging market by glass is expected to exceed US$7.6 billion by 2020, growing at a CAGR of over 2%. The demand for glass packaging in the soft drinks market will grow at a sluggish pace during the forecast period compared to other types of packaging solutions. Use of glass in packaging solutions or products is becoming outdated with the emergence of other packaging materials as they are easier to carry, distribute, store, and dispose of, as compared to glass.

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. “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 whiskey,” says Sharan.

Paperboard

The global soft drinks packaging market by paperboard will reach US$7.6 billion by 2020, growing at a CAGR of almost 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.

Metal

The global soft drinks packaging market by metal will reach US$4 billion by 2020, growing at a CAGR of over 2%. Metal or cans are primarily used for packaging carbonated soft drinks (CSDs) and functional drinks. Aluminum and steel are used for beverage cans, and between the two, aluminum is preferred because of its light weight. A large number of lightweight cans can be transported in one truck, ensuring less energy consumption and reduced emissions. With the growing trend toward 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 as consumers prefer low-cost plastic packaging that has similar functions and features compared to metal.

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