Alcohol Packaging Market Report

Due to the rising demand for high-end alcoholic drinks, specially craft beer, the alcohol industry is forecasted to advance significantly in the forthcoming decade. The requirement for exclusive packaging solutions to set these goods apart in a competitive market also contributes to this. Low-alcohol cocktails and shim drinks are becoming an upward trend, attracting to health-conscious consumers who want a lighter, more moderate drinking experience. Shim drink manufacturers are responding to this promising market sector by evolving innovative and useful packaging options that highlight the unique qualities of their products on retail shelves. Since modified container solutions for craft beer and other beverages enable producers to reach a new customer base and increase their industry share, the market is anticipated to rise. Wine boxes, made of wood, paper and paperboard protect wine bottles from any damage during transportation and storage. The global trend for wine consumption is increasing and the demand for efficient packaging in the wine industry is expected to impact the wine industry in the upcoming decade. Also, the demand for alcoholic beverages among young consumers has grown significantly due to increase in alcohol-serving facilities.

Due to rising environmental awareness, consumers and regulatory bodies are aggressively looking for sustainable practices and sustainable solutions in the alcohol packaging industry. Thus, the growing environmental responsibility is driving demand for eco-friendly packaging solutions, such as compostable, biodegradable, or recyclable materials. The alcohol packaging industry heavily relies on raw materials such as aluminium, paper, plastic, and glass. Thus, any type of fluctuation in raw material is expected to have an impact on packaging production, not just the availability of raw material, but the cost of these raw materials also affects the packaging cycle. Also, the problem of economic downturns often leads to reduced consumer spending on premium or luxury items, including beverages. Thus, the drop in demand directly impacts the alcohol packaging market. Consequently, the packaging industry may see a decline in the adoption of sophisticated packaging technologies and materials during periods of economic uncertainty.

In December 2023, Bacardi and Carnival Cruise Lines introduced a reusable, closed-loop packaging system called ecoSPIRITS to ships in the ocean cruise line industry. Meanwhile, British spirits brand owner Diageo, the maker of Johnnie Walker whisky, Don Julio tequila, and Guinness beer, among other popular brands, announced its own global agreement with the circular economy technology company. Yet another partnership between ecoSPIRITS, a Las Vegas hotel, and a local craft distillery landed the format on Terra Firma in the U.S. In November 2018, Krones Modulfill HES: the expert for filling beer. From bottle infeed, plus filling and closing, right through to bottle discharge—the Modulfill HES had been completely revamped by Krones. For example, numerous new technological features and design enhancements ensured that the filling system offered several specifics in terms of safety, operator friendliness, space savings, and hygiene.

North America can be considered a promising market due to the increasing consumption of alcohol. According to the data of the NIAAA, the consumption of beer has experienced a decline. According to the report, the consumption of beer peaked in 1981, when an individual American used to have 36.7 gallons, but in 2021 the consumption fell to 26.5 gallons. The fall of beer resulted in the rise of wine consumption, where individual wine consumption has rose from 3.2 gallons to 3.8 gallons. Also, according to the data of the OEC, the United States was ranked first in the list of the top five alcohol importers. According to the data, the United States has imported a total of US$ 10.9 billion of alcohol, or 26.8% of global trade for alcohol. Thus, North America, especially the United States, looks like a promising market. Also, the European market needs to be focused due to its vast and expanding beverage industry. Also, Asia Pacific shows lucrative opportunity for the alcohol market, as the imports of China in 2022 were recorded at US$ 2.5 billion, which makes them the second largest importer. Also, according to the data of the Indian Council for Research on International Economic Relations, India is the fastest-growing market for alcohol, where it recorded a market size of US$ 52.5 billion in 2020 and predicted a compound annual growth rate of 6.8% per annum for the years 2020-2023. Also, Singapore can be considered a lucrative market, as the imports of alcohol for the year 2022 were recorded at US$ 1.47 billion. Thus, the North American and Asia Pacific markets can be considered as promising markets.