Beverage Packaging Market Report 2025 (Global Edition)

Market Dynamics of Beverage Packaging

Key Drivers

• The increased popularity of carbonated beverages in today's sedentary and hurried lifestyle has boosted the beverage packaging business:

Carbonated beverages have gained in popularity as people's lives have gotten more chaotic. Customers' need for clean-label, gluten-free, low-calorie, and low-carb food products has driven the growth of the low-calorie carbonated beverage industry which in turn has driven the market growth for beverage packaging. The market for functional beverages as a whole is expanding, and consumers' awareness of their health is increasing, pushing demand for low-calorie beverages. The widespread availability of low- or zero-calorie beverages, which can be found at Walmart and other convenience stores, has aided the market's expansion. To attract new clients, large producers are always experimenting with novel and attractive packaging to attract customers more for alcoholic as well as non-alcoholic beverages. 
Consumer demand for carbonated soft drinks, which are differentiated by their variety of flavours and pleasant appeal, promotes the market category's growth. The industry's ability to innovate by offering new flavours and product varieties contributes to meeting customer demands, which supports market growth.

• Fast food restaurants incorporate non-alcoholic beverages with their meals:

It has been a trend over the years that fast food restaurants typically the top players like McDonald's, KFC, Subway, and Domino's, and even the restaurant chains offer non-alcoholic beverages on their menus. This is because it generates enormous profits for the eateries. Soda is inexpensive, and the two dollars, one spends for a large Coke at McDonald's or any other fast food restaurant outlet is nearly entirely profit for the restaurant. On the contrary, the cup, bottle, or carton costs more than the drink for the restaurant. Furthermore, the sweet-tart flavour of Coca-Cola or any other beverage pairs well with the food offered at restaurants. Hence, Fast food businesses may provide low-cost choices such as dollar menus because of high-profit margins on soft drinks. They may lose money on certain things, but they make up for it in drink sales.
Moreover, there is also a psychology fed into the minds of the consumers that meals go better with a soft drink in one hand. This has been brought into the market by passive advertisement, discounts, and combo offers. The creators shoot alternate images of the pizza and a carbonated drink to create a mental association between the two. They strive to imply that a beverage enhances the enjoyment of pizza. It's a good message to relate to a fizzy drink and pizza. However, the glamor photo alone, coupled with the appetizing pizza, makes one crave the combo.
For instance, McDonald's conducted a promotion called #MatchedByYou in which customers could add a Coke or fries for just 45 rupees. This option attempted to satisfy the consumer by pairing the main order with the ideal side dish or drink. This promotion was only accessible in North and East India. (Source: https://www.exchange4media.com/marketing-news/mcdonalds-india-launches-matchedbyyou-campaign-111138.html)
Therefore, the notion built in the peoples' mind as well as the profit earned by the restaurants through the sales of drinks drives the market growth of beverage packaging. 

• Increasing consumption of sports and performance drinks drives the market growth:

The rising consumption of sports and performance drinks is a key driver for the beverage packaging market, particularly in areas like PET bottles and innovative designs. As consumers increasingly prioritize health and fitness, and with more people engaging in sports and exercise, the demand for sports and performance drinks has surged. This increased demand directly translates into a greater need for packaging materials that can effectively preserve the quality, freshness, and appeal of these beverages. 
Furthermore, for instance, approximately 31.0% of young adults reported consuming sports drinks weekly, while 18.8% consumed energy drinks with the same frequency. Among both men and women, regular sports drink intake was linked to greater consumption of sugar-sweetened soda and fruit juice, increased video game use, and the use of muscle-enhancing substances such as creatine (P≤0.01). Eye-catching designs and graphics on packaging can influence consumer purchasing decisions and contribute to building a strong brand image. This emphasis on aesthetics drives continuous innovation in beverage packaging within this category.

Key Restraints

• Due to rising environmental concerns, some governments have prohibited the use of plastic as a packaging material:

Several governments have proposed restrictions on specific types of plastic objects and packaging as a means of reducing environmental effects. These policies, which are usually focused on "single-use" items, include prohibitions, restrictions on public use, limits on government procurement, and other measures aimed at replacing plastic packaging and commodities with alternatives.
Globally, the government's strict and time-consuming regulatory approval processes for food and beverages may stymie innovation and the timely adoption of more modern and efficient plastic-based packaging solutions.
Moreover, plastic water bottles are created from a petroleum product known as polyethylene terephthalate (PET), which needs massive quantities of fossil fuels to manufacture and transport. Every year, 17 million barrels of oil are used to produce bottled water. That is somewhat more than it would take to fill one million automobiles with petrol each year.
Furthermore,80 percent of plastic water bottles individuals purchase end up in landfills. According to studies this results in the chemicals released by decaying water bottles cause several health concerns, including reproductive disorders and cancer.

• Rising raw material price volatility restrains the market growth:

A major challenge constraining the Beverage Packaging Market is the fluctuation in raw material prices. The sector is heavily dependent on materials like plastics, glass, aluminium, and paperboard for packaging solutions. Price instability in these materials can substantially raise production costs for manufacturers. Such volatility is often driven by geopolitical tensions, supply chain disruptions, and shifts in raw material demand. These price swings make it difficult for companies to maintain stable profit margins and cost-efficient operations. To counter these challenges, beverage packaging firms are adopting strategic measures such as diversifying their supplier base and entering long-term agreements to cushion the impact of raw material price fluctuations and stabilize their production processes.

Our study will explain complete manufacturing process along with major raw materials required to manufacture end-product. This report helps to make effective decisions determining product position and will assist you to understand opportunities and threats around the globe.

The Global Beverage Packaging Market is witnessing significant growth in the near future.

In 2023, the Glass segment accounted for noticeable share of global Beverage Packaging Market and is projected to experience significant growth in the near future.

The Alcoholic segment is expected to expand at the significant CAGR retaining position throughout the forecast period.

Some of the key companies Amcor plc , Inc. and others are focusing on its strategy building model to strengthen its product portfolio and expand its business in the global market.

Frequently Asked Questions