Alcohol Packaging Market Size, Share & Industry Analysis, By Material (Glass, Metal, Plastic, Paper and Paperboard, and Others), By Product Type (Bottles, Cans, Bag-in-box, Brick Carton, and Others), By Application (Beer, Wine, Spirits, and Others), and Regional Forecast, 2024-2032

The global alcohol packaging market was valued at USD 67.10 billion in 2023. The market is projected to grow from USD 70.19 billion in 2024 to USD 106.34 billion by 2032, exhibiting a CAGR of 5.33% during the forecast period. Asia Pacific dominated the alcohol packaging market with a market share of 35.75% in 2023.

Alcohol packaging protects the product or enhances its brand visibility and plays a significant role in consumer decision-making. While intricately designed packaging might catch attention, customers are more inclined towards brands that offer simplicity in their presentation. Yet the evolution of alcohol encasements takes a different turn with innovation touching on design, durability, and even eco-friendliness for takeaway options. In a quest to strike a balance between showcasing their brand prowess and environmental conservation (as well as providing convenient takeaway packages), manufacturers are coming up with unique packaging specifications that make it easier for consumers to be swayed into buying their product. The choice of spirit presented matters greatly when establishing brand recognition and carbon footprints through these efforts.

Due to the stringent government regulations, the labor shortage, and the high raw materials prices, production was hampered at the time of COVID-19 pandemic, resulting in the contraction of demand for alcohol packaging. The drinking habits of people shifted significantly from consuming unhealthy beverages to soft drinks and other non-alcoholic beverages during the pandemic. Bars, restaurants, and hotels witnessed a downfall, thus restricting the alcohol packaging market development.

Alcohol Packaging Market Trends

Distinctive Packaging and High-Quality Packaging used to Convey Brand Identity and Value to Propel Market Growth

Alcohol packaging plays an important role in the beverage sector. It plays a major part in the consumer choice of what to drink. It goes beyond just being functional and portrays the brand essence and quality of the spirit it contains. Unique alcohol packaging solutions allow brands to be unique in the marketplace. Designs that are made specifically to show the individuality of the alcohol brand and appeal to those who consume them can greatly increase their market share.

Creating a visual identity through alcohol packaging design that speaks to the brand's tradition yet appeals to today's consumer is an art. It calls for expertise in materials and staying updated on branding design trends— not forgetting the emotional and psychological elements underpinning buyer behavior. A successful liquor package design must be able to fuse form with function creatively, depicting the spirit in its literal essence while also guaranteeing quality preservation yet aesthetic appeal for consumers who come into contact with it.  Glass bottles remain the premium choice for their purity and recyclability, enhancing the perceived value of the alcohol. Innovations in bottle design and labeling, including eco-friendly materials and techniques, reflect the brand’s commitment to sustainability and craftsmanship, propelling market growth.

Alcohol Packaging Market Growth Factors

Digital Printing and Customization to Drive Market Growth

The pandemic saw the rise of customization, driven by consumers desiring to craft ‘affordable luxury’ experiences within their abodes. This led to a willingness to spend more on higher-quality products in all alcohol categories, notably spirits. With this shift, the spirits industry metamorphoses and sees packaging as pivotal in its revolution. Customization enables spirit brands to hold back price increments across their offerings. Instead, they introduce new high-quality products that draw an expanding clientele of value-spenders, thus avoiding alienation from existing customers even though dramatic price hikes would have otherwise deterred them. Moreover, the rising demand for digital printing further propels this market growth.

Increasing Demand for Aluminum Alcohols in Pharmaceutical Sector to Boost Market Growth

Recently, different alcohol brands have changed the mechanism and the material used in packaging within an eco-friendly model. When brands adopt sustainable practices, customers feel a moral alignment, establishing lasting connections and loyalty. Recycling is one of the pillars of sustainable packaging and can potentially improve the industry's carbon footprint. Because glass packs can be refilled endlessly, it is a highly sustainable alternative to single-use packaging, such as plastic bottles or cans. Excess waste and landfill pollution can, therefore, be effectively reduced.

Innovations in lightweight glass further enhance its eco-friendliness for consumers who value sustainability and for environmentally responsible brands. Some alcohol producers have started using closed-loop recycling systems, in which empty bottles and cans are collected and then transformed into new containers for the same beverage. It allows for a closed loop of use and reuse, leading to a genuine reduction of virgin material consumption and a drastic decrease in footprint.

RESTRAINING FACTORS

Impacts of Using Plastic Packaging on Environment Hampering Market Growth

Plastic packaging types for alcohol are generally not recyclable or reusable, meaning they usually end up in oceans or landfills, adversely impacting the environment. Moreover, producing plastic can be energy-demanding and have an undesirable effect on air quality, thus impeding market growth.

Alcohols are a prevalent choice for products such as pharmaceuticals, skincare, cosmetics, and small convenience items. Although these alcohols are inexpensive and lightweight, some may also comprise toxic chemicals that can harm the environment. Using these alcohols can also discharge chemicals from the plastic into the product, which can result in harmful chemicals being absorbed or ingested through the skin during use, causing skin irritation and restricting the growth of this market.

Therefore, other environmentally friendly alternatives to plastic alcohols should be considered, such as cardboard containers with biodegradable or biodegradable linings.

Alcohol Packaging Market Segmentation Analysis

By Material Analysis

Glass Packaging Accounts for Largest Share Due to Premium Packaging is Propelling Market Growth

Based on the material, the market is segmented into glass, metal, plastic, paper and paperboard, and others.

The demand for glass as a prominent material for alcohol packaging is experiencing the largest share in the market. Glass is used in alcohol packaging due to its durability, quality, and 100% recyclability. Glass does not affect the aroma, strength, and flavor of the alcohol as it has a zero rate of chemical interaction, which favors its demand in the market.

Metal is the second-most dominant segment of this market. The increasing popularity of metal cans among consumers will drive the alcohol packaging market. Metal cans are highly durable and cost-effective, which propels the alcohol packaging market growth.

By Product Type Analysis

Rising Popularity of Premium Glass Bottles Augmenting Market Growth

The market is segmented into bottles, cans, bag-in-box, brick cartons, and others, based on the product type.

Bottles segment holds the largest market share. It is essential to look at the alcohol packaging design for a particular product and a brand. At the same time, all alcohol packaging has common requirements and must be water- and alcohol-resistant, as no one should feel the taste of oxygen penetration through the packaging. The package must not lead to product aging, no taste changes, and no dilution of the required alcohol content.

The cans segment holds the second-largest share in the market. Cans for alcohol packaging were invented to improve convenience of usage and reduce the packaging weight, which takes up much space.

By Application Analysis

Beer Packaging is Augmenting Due to Popularity of Beer Among Consumers, Driving Segment’s Growth

Based on application, the market is segmented into beer, wine, spirits, and others.

Beer segments hold the largest share of this market. The oldest and most consumed alcoholic beverage around the world is beer. It’s the world's third most consumed drink after coffee and tea. Beer is a favorite party drink for the millennials and a necessary part of the banquet as it promotes social group cohesion.

The second growing segment is spirits. The main factors propelling the global alcohol industry include the rising number of breweries and the global demand for spirits. The industry has seen an increase in the sale of low-alcohol beers due to growing demand from health-conscious consumers.

REGIONAL INSIGHTS

The market is analyzed across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

Asia Pacific holds the largest alcohol packaging market share. China is one of the largest consumers of alcohol worldwide. Alcohol consumption is traditionally accepted in the country at social events, such as Chinese New Year and weddings. Additionally, alcoholic beverages are now frequently used to reduce stress and improve relationships, particularly between managers and employees.

The size of the European alcohol packaging market is expected to grow significantly during the forecast period. Improving economic conditions, increasing consumer disposable income, and rising alcohol consumption will drive the growth of the bottled alcohol market over the forecast period.

The North American beverage packaging market is expected to generate significant revenue and drive its growth. New packaging techniques such as active packaging, smart packaging, and engineering science have continued to evolve over the years, making packaging easier. The company embraces eco-packaging, using biodegradable packaging, that can be reused, recycled, and reused.

Latin America is an established market for alcohol packaging. The market in the region is anticipated to grow significantly soon. Innovations in product design upgrades are likely to augment the market in the region.

The Middle East & Africa market is expected to grow moderately during the forecasted period. The inclination towards various alcoholic beverages among younger and elderly populations is augmenting the region’s growth.

KEY INDUSTRY PLAYERS

Key Participants in Market are Witnessing Significant Growth Opportunities

The global alcohol packaging market is highly fragmented and competitive. In terms of market share, the few major market players dominate the market by offering innovative packaging in the packaging industry. These major players in the market are constantly focusing on expanding their customer base across the regions and innovation.

Major players in the market include Albéa Group, ALPLA, Amcor plc, ALLTUB, Essel Propack Ltd., and others. Numerous others are focused on delivering advanced packaging solutions.

List of Top Alcohol Packaging Companies:

• Glassworks International (U.K.)


• Crown Holdings (U.S.)


• Graham Packaging Company (U.S.)


• Ball Corporation (U.S.)


• Verallia (France)


• Vidrala S.A. (Spain)


• Refresco Group (Netherlands)


• Berry Global Inc. (U.S.)


• Gerresheimer AG (Germany)


• Smurfit Kappa (Ireland)


• Owens-Illinois Inc. (U.S.)


• Beatson Clark Ltd. (U.K.)


• Vetreria Etrusca (Italy)


• Ardagh Group S.A. (Luxembourg)


• Orora Packaging Australia Pvt Ltd. (Australia)

KEY INDUSTRY DEVELOPMENTS:

• May 2024 – U.S.-based alcohol start-up Jinx Drinx announced its Boozy Punch in Las Vegas, Nevada. The pouch, designed by Zenpack, has an in-built safety feature. The proprietary beverage pouch contains a sealed-in straw and recently received an award for design excellence.


• May 2024 – The Johnnie Walker Scotch Whisky and Guinness maker Diageo announced its new packaging plans for Baileys, the Original Irish Cream Liqueur. A new paper-based bottle trialed by Diageo could set new standards for sustainable packaging in the industry.


• May 2024 – Amcor announced a significant shift towards sustainable packaging. The company pioneers sustainable wine and spirits packaging with 90% recycled tin. The company's tin capsules are forecast to achieve a certified GHG emission level of 1.6t of CO₂e per ton of tin.


• June 2023 – Absolut Vodka launched a three-month pilot of a single-mold paper bottle in the British supermarket chain Tesco. The company is the first global spirits brand to sell single-mold paper-based bottles commercially in the U.K., part of its journey to create a fully bio-based bottle.


• July 2020 – Diageo launched the world’s first 100% plastic-free paper-based spirits bottle made from sustainably sourced wood. The bottle will debut with Johnnie Walker, the world’s number-one Scotch Whisky, in early 2021.

REPORT COVERAGE

The market research report provides a detailed analysis of the market. It focuses on key aspects such as leading companies, competitive landscape, product/service types, Porter’s five forces analysis, and leading end-use industries of the product. Besides, it offers insights into the market trends and highlights key industry developments. In addition to the above mentioned factors, it encompasses several factors that contributed to the market's growth in recent years.

REPORT SCOPE & SEGMENTATION