Europe Alcoholic Drinks Packaging Market - Growth, Trends, and Forecasts (2023 - 2028)

The US alcoholic drinks packaging market is expected to record a CAGR of 5.5% during the forecast period (2022-2027). The packaging of alcoholic beverages plays a significant role in the brand promotion of alcoholic drinks. It helps brands to communicate with their consumers as they can touch and feel the product through packaging. Recent innovation such as lightweight glass and effective recycling is driving the market.

Key Highlights

• Due to the COVID-19 pandemic, overall consumption of alcoholic beverages did not change much: beer and wine sales rose, whereas hard liquor sales declined. Demand for budget and mid-priced spirits increased, while demand for high-end super-premium and ultra-premium spirits decreased. As consumers limit interactions and spend more time at home, there have been considerable spikes in wholesale wine and beer demand. Consumers are also spending more per bottle than before the pandemic.
• Manufacturers of canned wine and beer witnessed considerable demand for aluminum can packaging due to the broader acceptance of cans among young consumers. A significant cultural shift has increasingly driven this trend since millennials are keen adopters of different wine formats that offer convenience.
• Increasing demand for alcoholic beverages in the United Kingdom, Italy, Germany, and Finland is expected to boost the growth of the packaging market in Europe. The increasing trend of alcoholic beverage drinking at social gatherings creates favorable opportunities for alcoholic beverage packaging manufacturers throughout Europe. Beer and wine are gaining popularity among young consumers throughout Europe.

Europe Alcoholic Drinks Packaging Market Trends

Glass Packaging is Expected to Experience a Decline in the Long Term

• Packaging material, like glass, accounted for the largest segment of the packaging market since glass does not react with the chemicals present in drinks and, therefore, preserves the aroma, strength, and flavor of these beverages, making it a favorable option for packaging. Due to this, most of the beer volume is sold in glass bottles. This trend is expected to continue over the forecast period. Glass packaging is 100% recyclable, making it a desirable packaging option from an environmental point of view.
• More and more liquor manufacturers are becoming conscious of using recycled materials in their packaging and increasing the percentage of recycled glass used in their bottles. For instance, Swedish premium vodka manufacturer 'Absolut' has vowed to minimize the packaging waste by launching a limited-edition design made from 41% recycled glass.
• In 2021, a prominent brand in whisky 'Johnny Walker' will launch a limited-edition whiskey in a paper-based bottle. It's just one of the steps toward the brand's sustainable goal of minimizing its environmental impact. But suppose Johnny Walker applies this sort of packaging at mass level in the future and other brands also start to switch toward paper-based packaging. In that case, it will significantly impact the glass packaging market in the long term.
• With the changes in people's shopping habits, lifestyles, demographics, and drinking occasions, Bag-in-Box (BIB) has become a hot trend in the wine market. Existing bottled wine consumers have turned to the BIB category in droves, and new consumers have appreciated the quality, convenience, and value for money that boxed wine brings and the lasting freshness once it is opened. Boxed wine also brings environmental and sustainability benefits - necessary for the industry and consumers to make more eco-friendly choices. Since glass packaging always remained dominant in the wine category, it may lose its significant share in the long run if people kept moving toward new packing that replaces the glass completely.

The United Kingdom is Expected to Hold Significant Market Share

• According to Jefferies Group LLC, the UK alcoholic beverage market is expected to be the largest alcohol market in Europe by 2027, with a projected market value of about USD 85.6 billion. Germany and France follow the ranking with a market value projected at around USD 78.25 billion and USD 72.56 billion, respectively.
• According to Barth-Haas Report 2020, the United Kingdom was one of the leading producers of beer in Europe, with 40.84 million hectoliters. In 2020, the country's wine consumption reached 13.3 million hectoliters, and it ranked fourth in Europe, according to OIV. The growing trend of using sustainable packaging like rPET, paper-based packaging, etc., is resulting in the overall growth of the packaging market.
• Accolade Wines partnered with Garcon Wines, a British manufacturer of wine bottles and related packaging, to create a flat bottle made from 100% recycled plastic. This new bottle is featured in Accolade Wines brand Banrock Station's Merlot and Chardonnay wine. In 2020, it was launched only in UK cooperative stores. The 750 ml bottles are made of rPET plastic, which, according to Accolade wines, require 75% less energy to produce and emit 79% less CO2 than virgin PET. The bottles are also recyclable and certified carbon neutral.
• In February 2021, a United Kingdom-based plastic packaging company, Berry M&H, launched a new lightweight postal 50 ml PET spirit bottle. This launch comes after seeing the response to the growing popularity of gins and the continuing increase in online drinks sales. The bottle is available in both round and square designs, and the clarity of the bottle will help convey a premium image for drinks. Brands can fully personalize the packs as per their brand requirements through a variety of printing and labeling options.

Europe Alcoholic Drinks Packaging Market Competitor Analysis

The availability of several players providing packaging solutions for alcoholic beverages has intensified the competition in the market. Therefore, the market is moderately fragmented, with many companies developing expansion strategies. Some of the recent developments are:

• December 2020 - Berlin Packaging acquired glass packaging supplier 'New Pack' for expanding its offering to the wine market. The company's distribution network extends across Northern Italy, including the Liguria, Piedmont, and Veneto regions. The acquisition of New pack allows Berlin Packaging to increase its offering in the wine sector, an important market in Europe.
• October 2020- Owens-Illinois Inc. collaborated with Krones AG, a Germany-based packaging and bottling machine manufacturer, to increase innovations in its glass packaging segment. The partnership aims to improve glass filling, packaging speed, and efficiency with enhanced agility and flexibility by introducing sustainable glass systems and digital solutions such as direct to glass printing technology.

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