Global Wine Packaging Market - 2023-2030

Overview

Global Wine Packaging Market reached US$ 5.1 billion in 2022 and is expected to reach US$ 7.9 billion by 2030, growing with a CAGR of 5.6% during the forecast period 2023-2030.

Glass continues to be the preferred option for wine packaging due to its capability to maintain wine's sensory attributes more effectively when compared to other options. Single-serve wine packaging has gained popularity, especially during the pandemic. It includes options like single-serve cups, plastic bottles, cartons, aluminum cans and other convenient formats.

Cork closures remain a strong choice, particularly for traditional wines. However, advancements in cork technology have led to more cost-effective and reliable options. DIAM a significant, manufacturer of corks is making natural cork particles that are glued together. It aim to reduce the risk of TCA contamination while providing a reliable seal.

The wine industry is increasingly focused on reducing its carbon footprint and environmental impact. It includes efforts to reduce packaging weight and improve recyclability. Packaging options that are lightweight, recyclable and made from sustainable materials are gaining traction. Brands like Bacardi are exploring biopolymer bottles made from seed oil that biodegrade within 18 months. Boxed wines, bag-in-box options and bag-in-a-bottle designs are mentioned as examples. The alternative packaging solutions aim to reduce waste, offer convenience and appeal to consumers looking for sustainable choices.

North America holds a significant share of the wine packaging market. The wine packaging industry focusing towards more sustainable alternatives. The use of recycled bottles has significantly gained momentum in the region with growing government and consumer influence. The Glass Packaging Institute is focusing towards increasing the glass recycling rate to 50% by 2030. Achieving this target could result in a substantial reduction of approximately 1.4 million metric tons of greenhouse gas emissions annually.

Dynamics

Innovations in Wine Packaging: Beyond Traditional Glass Bottles

The wine packaging market is undergoing significant advancements and innovation. The introduction of wine in cans has rapidly gained popularity, particularly in U.S. It format caters to on-the-go lifestyles and a new generation of wine drinkers. The use of cans makes wine more accessible and convenient and it has the potential to challenge the traditional glass bottle market. Also, the integration of AR technology into wine labels is enhancing consumer engagement.

While glass packaging remains popular in the wine industry, innovation is not limited to materials other than glass. Ardagh Group introduced new glass bottle designs, including unique shapes and textures that aim to engage consumers on an emotional level. The designs provide opportunities for differentiation and appeal to modern consumers. Near-field communication (NFC) technology is being applied to wine bottles, offering various benefits. NFC-enabled closures provide consumers with information about the wine, including tasting notes and expert reviews. Additionally, NFC technology is used for product security and anti-counterfeiting measures, which are crucial for maintaining the authenticity of wine products.

Eco-Friendly Trends in Wine Packaging: Sustainability Takes Center Stage

The wine packaging industry is increasingly focusing on sustainability and all major players are focusing on eco-friendly alternatives for packaging, Garcon Wines, for instance, introduced flat wine bottles made from 100% food-grade, post-consumer recycled PET. The bottles are not only eco-friendly but also more cost-effective for e-commerce and reduce carbon emissions during transportation. As sustainability becomes a more significant focus, eco-friendly packaging options gain traction.

Eco-friendly packaging options, such as cans and lightweight PET bottles, are being embraced as they have a lower environmental impact. Amcor Rigid Packaging (ARP) and Ron Rubin Winery have collaborated to create a 100% recycled polyethylene terephthalate (rPET) wine bottle with a silicon oxide (SiOx) barrier coating. It innovative bottle is part of Ron Rubin Winery's new line of Blue Bin wines, which includes various varietals like Vin Rosé, Pinot Grigio, Chardonnay and Sauvignon Blanc, all packaged in 750-mL rPET bottles.

High Costs of Wine Packaging Materials

The cost of wine packaging materials, including bottles, corks, capsules/foils, labels and the bottle filling process, can be substantial. High-quality packaging materials and design contribute to higher production costs for wineries, especially those aiming to position themselves in the high-end market. It cost is a significant part of the overall production expenses. The high cost of packaging can impact a winery's ability to position its products in the market. Premium wines often justify their higher price points with the quality of packaging, but this can limit accessibility to a certain consumer segment.

Premium wine bottles, especially those with thicker glass walls and unique shapes, often come from Europe, primarily France and Italy. The bottles are heavier and require more resources for manufacturing and transportation. The environmental impact, including carbon emissions, is higher for such bottles, contributing to sustainability concerns. Also, high-end label designs may require substantial investments, impacting overall packaging costs.

Segment Analysis

The global wine packaging market is segmented based on material, product, end-user and region.

Glass Dominates the Wine Packaging Market Due to Sustainability and Consumer Preference

Glass holds the largest segment in the wine packaging market, glass is considered a sustainable packaging material as it is made from all-natural raw materials, including recycled glass. It aligns with the growing consumer demand for environmentally friendly packaging options. A significant majority of consumers, approximately 85%, prefer to buy wine in glass bottles. It strong consumer preference drives the demand for glass packaging in the wine industry.

Glass containers can be recycled indefinitely without any loss in quality. The recycling process for glass is highly efficient, it only takes about 30 days for recycled bottles to return into the market as new bottles. Glass production in United States benefits from a stable supply chain as all the necessary raw materials can be sourced locally in North America. It ensures consistent production and supply of glass bottles for the wine industry.

Geographical Penetration

North America Dominates Wine Packaging Market with Robust Glass Container Industry

North America expected to hold about 1/3 share of the wine packaging market. According to Scott DeFife, President of the Glass Packaging Institute, the domestic glass container industry in US has shipped approximately 16.2 billion bottles and jars to customers and end markets through the third quarter of 2022. Ardagh Glass Packaging - North America, the company is positioned as the largest domestic glass packaging supplier in United States.

Furthermore, as per "The National Association of American Wineries", US wine industry has a significant global presence in terms of exports. In 2018, US wine exports reached a substantial value of US$1.46 billion, with 95% of these exports originating from California. The country's wine export volume reached 375 million liters or 41.7 million cases. The top five export markets for US wine include the European Union, Canada, Hong Kong, Japan and China.

Competitive Landscape

The major global players in the market include: Amcor Plc, Owens-Illinois Group, Ardagh Group, Verallia, Smurfit Kappa Groups, Gerresheimer AG, Guala Closures Group, Liqui-Box Corp, Encore Glass and Veritiv.

COVID-19 Impact Analysis:

COVID-19 pandemic has had a significant impact on the wine packaging industry, export orders for wine have been largely delayed or put on hold, affecting international trade in the wine industry. The disruption in global logistics has impacted the ability to ship wine products to various markets. The wine industry is adapting to the changing landscape by exploring novel ways to create profits

The global logistics industry has been affected by the pandemic, which has consequences for the wine industry. Cargo ships with wine shipments may face delays if crew members have been exposed to the virus. Furthermore, China's role as a major manufacturer of wine packaging supplies, such as labels, caps, glass bottles and packaging materials, has been disrupted, affecting the production of wine.

Russia-Ukraine War Impact

The Russia-Ukraine war has had a notable impact on the wine packaging industry, particularly in terms of glass bottles and glassware. Russia-Ukraine war led to the surge in the prices of glass bottles and glassware. Wine producers have seen substantial increases in the cost of bottles, with some reporting price hikes of 15% to 20% initially and an additional 22% later. It has put pressure on wineries, leading to higher production costs.

The glass manufacturing industry relies heavily on continuous operations and most glass furnaces are powered by gas. Due to the war, energy prices have risen dramatically, up to 15 times higher. Glass factories cannot shut down their furnaces, as doing so would lead to the solidification of molten glass and machinery damage. As a result, industries dependent on glass, including wineries, have been forced to stockpile glassware to secure their supply.

By Material

• Glass
• Wood
• Paper and Paperboard
• Metal
• Plastic

By Product

• Bottles
• Bag-in-Box
• Barrels & kegs
• Cans
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico

• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe

• South America
  • Brazil
  • Argentina
  • Rest of South America

• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific

• Middle East and Africa

Key Developments

• In June 2023, Ron Rubin Winery proudly introduced BLUE BIN, a groundbreaking development in the wine industry as United States' first premium wine bottles crafted entirely from 100% recyclable materials. Collaborating with Amcor, a renowned global leader in responsible packaging, BLUE BIN's innovative bottles are designed to be environmentally friendly, smaller, lightweight, shatterproof and fully recyclable.
• In March 2022, CCL Container, a prominent manufacturer of recyclable aluminum packaging in North America, introduced an innovative aluminum wine bottle in response to the growing demand for sustainability and freshness in the wine industry. It 750 ml aluminum bottle, designed using CCL Container's BodyShapes technology, features a resealable threaded cap, enhancing its ability to preserve wine freshness compared to traditional glass bottles. Aluminum bottles exhibit superior thermal conductivity and chill retention, ensuring rapid cooling and extended temperature retention. Importantly, the entire container, crafted from virgin aluminum, is 100% recyclable, with the cap's threading being plastic-free.
• In May 2021, Altia has unveiled wine bottles where all the PET material is sourced from recycled content. The rPET wine bottles are remarkably lighter, weighing 90% less than traditional glass bottles and contribute to a substantially reduced carbon footprint. According to Altia's life-cycle assessments, the carbon footprint of the new rPET wine bottle is nearly 50% smaller than that of a bottle made from virgin materials.

Why Purchase the Report?

• To visualize the global wine packaging market segmentation based on material, product, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of wine packaging market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global wine packaging market report would provide approximately 53 tables, 51 figures and 204 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies