Bag-in-box Market Size, Share & Industry Analysis, By Capacity (Less than 5 Liters, 5 to 10 Liters, 10 to 20 Liters, and Above 20 Liters), By Type (With Tap and Without Tap), By Application (Beverages {Alcohlic Beverages and Non-alcoholic Beverages}, Food {Milk and Dairy Products, Edible Oils, Baby & Toddler Food, Others}, Chemicals & Lubricants, and Others), and Regional Forecast, 2024-2032

The global bag-in-box market size was valued at USD 4.35 billion in 2023 and is projected to grow from USD 4.58 billion in 2024 to USD 7.38 billion by 2032, exhibiting a CAGR of 6.22% during the forecast period. Asia Pacific dominated the bag-in-box market with a market share of 38.16% in 2023.

The bag-in-box (BIB) industry covers the production, distribution, and consumption of flexible packaging systems used for storing and dispensing liquid and semi-liquid products. This packaging solution consists of a plastic bag, typically made from multiple layers of metalized films or other plastics, enclosed in a sturdy outer box, and is crafted from corrugated fiberboard. The design allows for efficient storage, transportation, and dispensing of contents while minimizing waste and maximizing shelf life. Beverages are one of the most significant segments, covering products, such as wine, juices, syrups, and dairy products. BIB packaging helps extend shelf life and maintain the taste and quality of beverages.

The COVID-19 pandemic substantially affected several industries globally, including the bag-in-box market. The global supply chain faced disruptions due to factory shutdowns, transportation restrictions, and labor shortages. There was an increasing demand for cleaning products and sanitizers, many of which utilize BIB packaging for bulk and institutional supply. The need for safe, hygienic dispensing solutions became critical during the pandemic, helping the market recover immediately after the relaxation of the pandemic restrictions.

Bag-in-box Market Trends

Smart and Tech-integrated Bag-in-Boxes to Emerge as Key Market Trends

The incorporation of smart technologies into BIB packaging is an emerging trend. This includes features, such as RFID tags and QR codes that provide real-time data on product status, inventory levels, and supply chain tracking. Smart packaging solutions help in monitoring product freshness, managing stock more efficiently, and preventing counterfeiting.

Sensors embedded in BIB packaging can monitor environmental conditions, such as temperature, humidity, and light exposure. This is particularly crucial for perishable goods, such as beverages and food products, ensuring they are stored and transported under optimal conditions. While smart packaging technologies add upfront costs, the benefits in terms of improved efficiency, reduced waste, and enhanced consumer satisfaction can lead to long-term cost savings and higher profitability. Companies need to weigh these factors when investing in smart packaging solutions. These aspects are anticipated to increase the bag-in-box market growth in the future.

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Bag-in-box Market Growth Factors

Convenience and Functional Advantages to Fuel Market Growth

BIB packaging is lightweight and easy to handle, making it convenient for both consumers and retailers. The flexible bag inside the box collapses as the product is dispensed, minimizing space requirements and allowing for efficient storage and transportation. Such packaging often includes dispensing taps or valves that allow for precise portion control. This is particularly important in food service and hospitality settings where accurate dispensing of liquids is essential. The ability to dispense exact amounts of product reduces waste and ensures consistent quality.

BIB packaging is versatile and suitable for a wide range of liquid and semi-liquid products across various industries, including food & beverage, industrial, pharmaceutical, and healthcare. This versatility makes BIB packaging an attractive option for businesses seeking efficient and cost-effective packaging solutions that can accommodate different product types and packaging requirements.

Reduced Carbon Footprint and Innovations in Material Technology to Bolster Market Expansion

There is a growing emphasis on using eco-friendly materials for both the inner bag and the outer box. Manufacturers are increasingly using recyclable and biodegradable materials. Innovations include biodegradable films and plant-based plastics, which offer the necessary barrier properties while reducing environmental impact. Companies are also exploring the use of Post-Consumer Recycled (PCR) content in their products to further enhance sustainability. BIB packaging is inherently more sustainable compared to traditional rigid packaging due to its lower material usage and lighter weight, which translates into reduced transportation emissions. Companies are capitalizing on this by optimizing their supply chains to minimize carbon footprints.

RESTRAINING FACTORS

Recyclability Issues and High Capital Investment to Hinder Growth of Bag-in-box Market

A substantial obstacle in the bag-in-box sector is the development of recyclable and biodegradable materials. The current multilayer structures in BIB packaging can be challenging to recycle due to the combination of different types of plastics. This complicates the recycling process and can be a significant drawback in regions with stringent recycling regulations and environmentally conscious consumers.

The production of BIB packaging requires specialized equipment for filling, sealing, and handling the flexible bags and outer boxes. The initial capital investment for such machinery can be substantial, particularly for Small and Medium-sized Enterprises (SMEs) seeking to enter the market or expand their production capacity.

Bag-in-box Market Segmentation Analysis

By Capacity Analysis

Ease of Use and Portability of Less than 5 Liter Packages Boosts Their Demand

Based on capacity, the market is classified into less than 5 liters, 5 to 10 liters, 10 to 20 liters, and above 20 liters. The less than 5 liters segment holds the largest share of the market. Smaller BIB packages, typically less than 5 liters, are designed for easy handling and storage. They are lightweight and compact, making them convenient for consumers to carry, pour, and store in limited spaces. These smaller packages are highly portable, catering to on-the-go lifestyles. They are ideal for outdoor activities, picnics, and travel, where convenience and ease of transport are critical.

5 to 10 liters holds the second position in the market. Buying in larger quantities often offers cost savings for consumers. Packaging of this capacity is widely used in commercial and institutional settings, such as restaurants, catering services, and schools, where larger quantities are necessary to meet demand.

By Type Analysis

Portion Control and Practicality of BIB Packages With Tap Augments Their Adoption

Based on type, the market is segmented into with tap and without tap. The with tap segment holds the largest share of the market as with tap allows precise portion control, making it easier for consumers to dispense the exact amount needed. This is beneficial for products, such as wine, juices, and sauces, where controlled pouring enhances the user experience. BIB packaging with taps is highly favored in commercial and institutional settings, such as restaurants, cafeterias, and catering services, where large volumes of liquid need to be dispensed efficiently. The tap mechanism simplifies the dispensing process and enhances operational efficiency.

Without tap containers are the second dominant segment of this market. Bag-in-box packaging without taps is typically less expensive to produce, making it an attractive option for cost-conscious consumers and manufacturers. This segment is popular for products where price sensitivity is high and the convenience of a tap is not a primary concern.

By Application Analysis

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Advantages of BIB Packaging for Beverage Industry Made it Dominating Application Segment

Based on application, the market is segmented into beverages, food & containers, chemicals & lubricants, and others.

The beverages segment holds the largest bag-in-box market share. BIB packaging offers excellent barrier properties that protect beverages from oxygen and light, which can degrade their quality and flavor. This is particularly crucial for products, such as wine, juices, and liquid dairy, which are sensitive to oxidation. It includes built-in taps or valves that make it easy to dispense beverages without spillage or contamination.

Food products accounts for the second leading position in the market. BIB packaging is ideal for edible oils as it protects the oil from light and air, which can cause rancidity. This extends the shelf life and maintains the quality of the oil.

REGIONAL INSIGHTS

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

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Asia Pacific holds the largest share of the global market. The region is home to a massive and swiftly growing population. The expanding middle class population in China and India is driving the demand for packaged beverages and food products. BIB packaging is gaining popularity due to its affordability and convenience.

North America holds the second leading position in the market. It is a mature market for BIB packaging, particularly in the beverage industry. Products, such as wine, juice, and non-alcoholic beverages are commonly packaged in BIB format due to consumer demand for convenient and sustainable packaging solutions.

Europe also holds a prominent position in the market and is projected to attain promising growth in the future. European consumers are highly environmentally conscious, favoring packaging solutions that are recyclable and sustainable. BIB packaging aligns well with these preferences, particularly in the wine and juice segments.

Latin America’s economic development is fueled by an increasing interest in affordable and sustainable packaging solutions, particularly in the beverage sector.

The Middle East & Africa is expected to achieve moderate growth rate over the analysis period. Growing urbanization, shifting consumer lifestyles, and rising middle class population are key contributors the region’s growth.

KEY INDUSTRY PLAYERS

Key Market Participants are Focused on Innovation to Increase Market Share

The global bag-in-box sector is highly fragmented and competitive. In terms of share, a few major market players dominate the market by offering innovative packaging solutions. These players are concentrated on increasing their consumer pool through innovation.

Significant firms in the market include Amcor plc, International Paper, Scholle IPN Corp, Sealed Air Corporation, DS Smith PLC, Smurfit Kappa, and others. Several other companies are deploying advanced packaging solutions to gain edge in the market.

List of Top Bag-in-box Companies:

• Amcor plc (Switzerland)


• International Paper (U.S.)


• Scholle IPN Corp (Switzerland)


• Sealed Air Corporation (U.S.)


• DS Smith PLC (U.K.)


• Smurfit Kappa (Ireland)


• WestRock Company (U.S.)


• CDF Corporation (U.S.)


• Zarcos America (Japan)


• Aran Group (U.S.)


• Goglio (Italy)


• Karl Knauer KG (Germany)


• Hangzhou Hansin New Packing Material Co. (China)


• BiBP SP. z O.O. (Poland)


• Optopack (Bulgaria)

KEY INDUSTRY DEVELOPMENTS:

• February 2024 – Smurfit Kappa announced a €54 million (USD 59 million) investment in a bag-in-box plant located in Alicante, Spain. This investment is set to strengthen the sustainability of both the plant’s operations and the company’s product portfolio.


• February 2024 – Aran Group announced the completion of the acquisition of a majority stake in IBA Germany from previous owner Liquid Concept GmbH (LC).


• January 2024 – WestRock Company announced plans to build a new corrugated box plant in Pleasant Prairie, Wisconsin, to meet the growing demand from customers in the Great Lakes region. Construction is estimated to cost approximately USD 140 million and expected to be partially offset by property sales.


• November 2023 – Smurfit Kappa developed a recyclable film that has similar properties to nylon, in terms of strength and resilience but, unlike nylon, is recyclable and commonly used in bag-in-box products, particularly in the US.


• December 2023 – LIQUI MOLY introduced a bag-in-box packaging for six of its popular motor oils. The bag will offer various benefits, such as significantly less plastic, thanks to recyclable cardboard packaging and more storage space for customers due to space-saving, easily stackable dimensions.

REPORT COVERAGE

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The report provides a detailed analysis of the market and 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, the report encompasses several factors that have contributed to the market's growth in recent years.

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Report Scope & Segmentation