Hot Drinks Packaging market growth is expected to reach a CAGR of 4.8% with a market value of USD 13347.2 million by the year 2028. The growth of the hot drinks packaging market can be contributed to the increasing demand for coffee. Manufacturers over the last few years have been focusing on the flexible packaging of hot beverages. This includes designing gas valves in a way that it can release carbon dioxide to prevent oxygen from mixing with the beverages.
In addition to use, hot drinks packaging is commonly used in tea, coffees, or others. Due to the increase in the number of coffee drinkers, it is estimated that the hot drink packaging market growth will expand extensively. However, the use of single-use plastics in hot drink packaging has increased many environmental issues.
The hot drink packaging industry requires several raw materials that are procured from suppliers located globally. Due to the imposition of national lockdowns, there is a high huge gap between the demand and supply of raw- materials. Also, strict social distancing norms pressure the manufacturers and production units to operate on partial capacities.
Also, there are huge fluctuations in demand for hot beverages. Due to series of lockdowns, people are stockpiling products that have increased demand for coffee in developed regions. In addition to this, in some emerging economies demand for non-essential items has dropped substantially due to high unemployment and increasing prices.
In the year 2017, it was estimated that the CAGR for hot drinks packaging market size will reach 3.3%. Thus, the growth of the hot drinks packaging industry is being witnessed for years. Due to busy lifestyles, the high demand for convenient foods has increased. It is assumed that there has been growth in the consumption of tea and coffee. Convenient Packages of hot drink beverages will drive the hot drinks packaging market growth.
Another driving factor will be efficient packaging machines on global fronts. It helps in preserving the quality as well as the flavour of the hot drinks. Besides, convenient packagingmaterials have reduced production costs and energy consumptions. Due to which manufacturers are increasingly spending on research and development for flexible packaging.
Single-use plastics are banned in many countries which have restricted the market growth. Thus, high concerns for waste disposal and sustainable practices will provide opportunities for manufacturers. Development in recyclable packaging material will in witnessing long-term growth.
The overall market growth is highly dependent on roasted and grounded coffee. However, the majority of hot drinks products are packaged in glass and plastic materials which stales the beverages in the long run.
Some innovations in the packaging of hot drink beverages have been done. This includes opening and closing ease, high sensitivity to pH and temperature, sealed packages with pressure, and instant consumption packages. However, it increases the costs of final products which further restricts the hot drinks packaging market growth amongst the customer base.
Parchment of coffee coupled with high environmental pollution due to packaged material poses high challenges to the manufacturers. In addition to this, producers of coffee and tea face high costs for transportation. This is further coupled with hugerecycling expenses that reduce hot drinks packaging market share globally. Hence, the development of packages like stand-up pouches is required to be developed for reducing costs, environmental harm, and flavor degradation.
To reduce environmental concerns, coffee producers and packaging manufacturers are investing high. Thus, the development of durable and eco-friendly products will help in reducing transportation costs and high recycling expenses. It will also help in reducing environmental damage. Thus, the hot drinks packaging industry can explore regions of the U.S., Europe, and Canada for expanding customer base. As the regions have stringent policies to preserve the environment.
Over the years, there has been an increasing trend in the number of hot drink beverage drinkers. Due to changes in lifestyles andhigh health awareness. However, the challenges in transportation and preserving the product, the global market is highly impacted. Government regulations are also tightened for the safe usage and disposal of packaging materials.
Hence, the hot drinks packaging industry is witnessing high investment growth for innovative packaging methods. This might include recyclable packages and customized boxes that are space-efficient which would prevent the product from leaking.
The segmentation of the hot drinks packaging industry includes material and products
Hot drinks are mostly packaged in plastic and glass. However, companies are researching flexible and sustainable packing solutions. In addition to this, glass packaging materials dominate the hot drinks packaging market share. In the year 2018, glass packaging accounted for a 45.9% share in total revenue. Glass is a reusable option while it is also providing aesthetic value to the products.
Besides, plastics are the fastest-growing raw material which extensively used in all sectors. Due to its features of cost-effectiveness, ease of transporting along reduced handling requirements.
The product segmentation includes roasted coffee, premium coffee, tea, and others. In the developed regions, demand for coffee has increased for few years. This trend is similar with tea as the majority of regions of Asia- Pacific are ardent tea drinkers.
The hot drinks packaging industry is very competitive as it is consists of many players.
North America is the highest contributor to hot drinks packaging market share. High demand for tea and coffee will increase the growth of the packaging industry. Moreover, long-term market growth is estimated due to the presence of established firms like Black Rifle Coffee Company.
Europe also holds a high market share due to the high demand for hot drinks from countries like UK, Italy, Germany, and others. This region is dominated by developed nations with high disposable income earners that is an encouraging factor for investment in research. Followed by Europe, Asia- Pacific regions constitute of fastest-growing economies. There has been an increase in the working professional from past few years. This has increased demands for hot drinks which will fuel growth.
In the year 2016, Amcor announced its built-in vent controls especially for whole beans and ground coffee. The company earned gold in technological advancement and packaging. It has also received silver appreciation in 20 Ounce Vitamin water bottles for Responsible Packaging.
Gosport Borough Council has collaborated with Huhtamaki for providing recycling and collection services. Also, in the year 2017 merger has taken place between Crown Beverage Packaging and La Colombe Coffeefor catering innovative products. Besides, MiniVault provides high-quality ground coffee in disposable cups that ease usage.
The report is prepared with secondary information which includes analysis covering different heads that are Market Overview, COVID-19 Analysis, Market Dynamics, value chain analysis, segment overview, competitive landscape, regional analysis, and recent development.
|Market Size||2030: Significant Value|
|CAGR||3.3% CAGR (2022-2030)|
|Forecast Period||2022 to 2030|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Material and Product|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Associated British Foods, Jacobs Douwe Egberts, Nestle S.A, Strauss Group Ltd., Tata Global Beverages Ltd., Unilever, Apeejay Surrendra Group, Bettys & Taylors Group Ltd., Barry’s Tea, Cantarella Bros Pty Ltd and Eight O'Clock Coffee Company.|
|Key Market Opportunities||New product launches and R&D Amongst major key Players|
|Key Market Drivers||
The market growth will reach 4.8 % during the forecast period.
During the forecast period, it is expected that the hot drinks packaging market value will be USD 13347.2 million by 2030.
The market segment is sub-divided into products and materials. In the product market, tea and coffee hold the largest share while in the material segments, glass holds a significant market size.
Efficient packaging machines and high demand for hot drinks will be the main drivers for the hot drinks packaging market size.
High market growth is dependent on the volume sales of grounded and roasted coffee. The major restraints are the usage of single plastics and glass. This impacts the freshness of the products while also damages the environment.
Sustainable packaging materials will provide the highest market opportunities for manufacturers.
The market players are majorly located in the US while it is highly competitive. Some of the key players include Bemis Company Inc. (U.S.), Sonoco Products Company (U.S.), Alcoa Corporation (U.S.), Saint- Gobain (France), Crown Holdings (U.S.), and Reynolds Group Holdings Ltd (Virginia).
Pandemic has severely impacted industries due to social distancing norms and supply chain disruptions.
Key market players have adopted merger and acquisition strategies for expanding their position.
There is a ban on single-use plastics in many nations. Also, globally the governments are creating stringent policies for encouraging sustainable practices and limiting environmental damage.