Europe Canned Beverages Market Size, Share & COVID-19 Impact Analysis, By Product Type (Alcoholic Beverages, Dairy-based Beverages, Sports & Energy Drinks, RTD Coffee & Tea, Fruits & Vegetable Juices, and Others), Distribution Channel (Supermarkets/Hypermarkets, Specialty Stores, Convenience Stores, Online Retail, and Others), and Country Forecast, 2021-2028

The Europe canned beverages market size was USD 154.48 billion in 2020. The European impact of COVID-19 has been unprecedented and staggering, with canned beverages witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the market exhibited a lower growth of 1.23% in 2021 than the average year-on-year growth during 2017-2020. The market is projected to grow from USD 156.38 billion in 2021 to USD 205.99 billion by 2028, growing at a CAGR of 4.0% in the 2021-2028 period. The rise in CAGR is attributable to this market’s demand and growth rate, returning to pre-pandemic levels once the pandemic is over.

Changing dynamics in the food and beverage packaging industry are also adding stimulus to the growth of the market. Packaged beverages are the major source for an individual to keep the body hydrated. Canned beverages are mainly valued for their easy portability, durability, and lightweight nature. Such products are available in different sizes ranging from 200 ml to 1000 ml. Nowadays, companies mainly use recycled aluminum-based tins for their packaged drinks as such tins are easy to process and recycle over other tin materials such as paper, plastic, etc. According to the estimated data presented by the European Aluminum Association, in 2018, the aluminum can recycle rate in the European Union, including the U.K., Switzerland, Iceland, and Norway, reached 76.1%.

Strong Decline in Sales Due to Shutting Down of Bars & Pubs amid COVID-19 Lockdown

Shutting down the bars, pubs, and cafes due to the COVID-19 lockdown restrictions in many European countries has significantly impacted the product revenues from such settings. For instance, Carlsberg Breweries A/S, a major packaged drinks maker, reported a 6.8% decline in its first-quarter revenues of the financial year 2020 due to the imposed COVID-19 lockdown restrictions on bars & cafes in the region. In addition, higher raw material prices during this pandemic situation will negatively impact market growth. Moreover, to avoid getting infected by the coronavirus, consumers are shifting towards at-home eating & drinking from out-of-home drinking. As a result, this will impact the product revenues from bar & pub settings.

However, evolving consumers’ grocery stocking trends positively impact the products’ demand during the pandemic period. Additionally, shifting consumers’ trends towards consuming immunity-boosting foods & beverages is expected to fuel the increasing demand for the region's canned fruits & vegetable juices.

LATEST TRENDS

Evolving Dietary Consumption Pattern is a Prominent Trend

The rising consumer preference towards dairy-free beverage products such as functional drinks and fruit & vegetable-based juices instead of carbonated soft drinks is likely to offer newer market growth opportunities in the region. Additionally, evolving diabetic patients’ & fitness seekers’ consumption patterns of calorie-free & sugar-free drinks will accelerate the demand for healthy packaged drinks among the European population. Additionally, in Europe, people’s consumption pattern is shifting towards fresh fruit juices from frozen & processed ones. This will enhance the associated companies’ sales from such items. Moreover, rising consumers’ preference towards considering small-sized cans as a premium-based drink further uplifts the Europe canned beverages industry.

DRIVING FACTORS

Rising Demand for Soft Drinks to Drive Market Growth

The rising consumer demand for soft drinks to fulfill their daily beverage needs is expected to drive the Europe canned beverages market growth. According to the data presented by the Union of European Soft Drinks Associations (UNESDA), in 2019, the sales volume of soft drinks in Europe reached 50,041.2 million liters, 0.7% up over the previous year. Besides this, the increasing consumer preference towards availing alcohol subscription box services further uplifts the product revenues across Europe. For instance, Craft Gin Club, a U.K.-based bottled & canned gin products’ subscription box service provider, reported USD 13.20 million of its annual revenues in 2018, compared to USD 4.87 million in 2017.

Regular Introduction of Nutritious Canned Drinks by Companies to Support Growth

Regular introduction of nutritious canned drinks by associated companies is likely to attract the consumers’ attention towards buying canned type of beverages, thereby supporting the region's market growth. For instance, in March 2019, The Coca-Cola Company launched a 250 ml, sugar-free & calorie-free canned energy drink in the Spanish and Hungarian markets. It consists of naturally derived sources such as guarana extract and vitamin B in its formulation.

RESTRAINING FACTORS

Governmental Policies Regarding Ban of Alcoholic Beverages to Restrain Market Growth

The Europeans Commission's policies regarding banning alcoholic drinks are expected to hamper the product demand across the European region. Besides this, incidences of health hazards due to the repeated consumption of hard alcoholic drinks are expected to decline the product demand in the region. Additionally, incidences of beverage poisoning due to BPA-based plastic cans are expected to restrain the growth of the market.

SEGMENTATION

By Product Type Analysis

Significant Alcohol Consumption to Help Alcoholic Beverages Segment Dominate the Market

The alcoholic beverage segment is expected to hold a significant Europe canned beverages market share owing to the large alcohol consumption among the European population for their regular beverage needs. According to the data presented by the Economic Cooperation and Development (OECD), in 2018, average alcohol consumption among European adults reached 10 liters. Nowadays, consumer trends are shifting towards the idea of drinking less but better. Such a factor is likely to boost the revenues from the light beers in the region.

The dairy-based beverages segment is primarily driven by the shifting consumer trends towards flavored milk products. Moreover, the rising popularity of consuming whey protein-based canned milk drinks among the European population is expected to fuel the segmental growth. Nowadays, people essentially require instant energy-boosting supplements to strengthen their muscles while doing physical exercise. Such a factor is mainly fueling the consumer demand for the canned energy drinks. Additionally, rising consumer trends towards playing sports & other recreational activities will accelerate the segmental revenues.

Considerable market share of the RTD coffee & tea segment is attributed to the large consumption of tea & coffee among the European population. According to the statistical data presented by the CBI Ministry of Foreign Affairs, Europe accounted for around 34% of the global coffee consumption, accounting for 3.35 million tons in 2019. Besides this, the rising popularity of drinking over-iced canned coffee among the European population is expected to exceed the segmental revenues in the canned beverages sector.

The growing veganism trend mainly drives consumer demand for the canned fruit & vegetable juices in the region. Others’ segment in the Europe canned beverages market includes functional water & cereal-based drinks. Others’ segment is primarily driven by the evolving consumption pattern of lactose-efficient, cereal-based beverage products among the European population.  

By Distribution Channel Analysis

Impulse Grocery Buying to Make Supermarkets/Hypermarkets Segment Dominate the Market

Nowadays, consumer trends are shifting towards impulse buying of food & drinking items. As a result, people can better shop bulk volume of food & other grocery items at supermarkets. Such a factor is primarily driving the product revenues from such a segment. Additionally, the supermarkets & hypermarkets' regular provision of premium-based grocery items by the supermarkets & hypermarkets makes such a segment generate considerable product demand in Europe.

The specialty stores segment, including liquor shops and tea & coffee shops, is primarily driven by the growing peoples’ preference towards consuming over-iced tea & coffee cans. In addition, liquor shops regularly merchandise various bottled & canned beers, whiskeys, spirits, and wines on their order tables. This attracts shop visitors’ attention to consuming various alcohol cans, thereby fueling the segmental growth in the canned beverages industry.

Regular provision of cost-effective fruit juice cans by the retail shops and brick & mortar stores mainly supports the product revenues from the convenience stores segment. In addition, shifting consumer eating & drinking behavior towards at-home from the outdoor settings such as bars, cafes, tea shops, and others significantly accelerates the product demand from the online retail channel.

The Others segment includes various channels such as vending shops, forecourt stores, duty-free & travel retail stores. The segment is mainly driven by the increased consumer preference towards on-the-go food & beverage shopping in Europe.

COUNTRY INSIGHTS

The large consumption of soft drinks makes the European region generate considerable product revenues. According to the data presented by the UNESDA Soft Drinks Association, in 2019, total sales of soft drinks & diluting in Europe reached 128,853.6 million liters. Additionally, increasing European populations’ consciousness about health & fitness is further driving the region's demand for vegan energy drinks.

Germany stood at USD 40.53 billion in 2020. The country is expected to dominate the overall Europe canned beverages market due to large alcohol consumption among the German population. This results in larger revenues from canned alcoholic drinks in Germany. According to the data presented by the Brewers of Europe Organization, in 2018, alcohol consumption in Germany reached 84.65 million hector liters. Additionally, shifting consumer trends towards consuming non-alcoholic drinks in Germany is further driving the market growth in the country.

The U.K. canned beverages market is mainly driven by the rising consumer demand towards in-taking canned ciders in the country. According to the estimated data presented by the European Ciders & Fruit Wine Association, in 2018, the consumption volume of the ciders in the U.K. reached 10.04 million hectoliters. Additionally, shifting consumer trends towards purchasing premium-based beverage cans is further skyrocketing the market growth in the U.K. Evolving consumption pattern of the dietary food & beverage items among the Spanish and Italian population is expected to positively impact the market size.

KEY INDUSTRY PLAYERS

Companies’ Geographical Expansion through Product Launch to Penetrate the Market

Canned beverages manufacturing companies mainly focus on expanding their presence in the European region by introducing canned drinks of different flavors and formulations. For instance, in April 2020, Anadolu Efes Biracilik ve Malt Sanayii A.S., in collaboration with AB InBev, launched Kvass, a non-alcoholic beverage to cater to the rising consumer demand for the tinned light beers in Russia.   

LIST OF KEY COMPANIES PROFILED:

• Anheuser-Busch InBev (Leuven, Belgium)


• Diageo Plc. (London, U.K.)


• Heineken NV (Amsterdam, Netherland)


• Pernod Ricard S.A. (Paris, France)


• Carlsberg Breweries A/S (Copenhagen, Denmark)


• Coca-Cola HBC AG (Zug, Switzerland)


• PepsiCo Inc. (New York, U.S.)


• Anadolu Efes Biracilik ve Malt Sanayii A.S. (Istanbul, Turkey)


• Red Bull GmbH (Fuschl, Austria)


• Nestle S.A. (Vevey, Switzerland)

KEY INDUSTRY DEVELOPMENTS:

• January 2021 – Ellie Goulding, an English singer & songwriter, acquired a significant stake in the U.K.-based premier, hard seltzer brand SERVED. Ellie presented by Ryan, a founder of a company SERVED to expand its canned seltzers’ business in the France, Ireland, and Spanish markets.


• July 2020 – Trip, a U.K.-based CBD-infused products’ company, expanded its business in the U.K. by launching a range of CBD-infused canned drinks in the country. Such drinks consist of limonata-inspired lemon basil flavors in their formulations. 

REPORT COVERAGE

The canned beverages market research report provides a detailed analysis of the European market and focuses on major aspects such as competitive landscape, product type, and distribution channel areas. Besides this, it offers insights into the various market trends and highlights key industry developments. In addition to these mentioned factors, it encompasses several other factors that have contributed to the growth of the market in recent years.

Report Scope & Segmentation