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World Drinks Packaging

Fast growing drinks sectors, such as bottled water, beer and carbonated soft drinks (CSD’s) are set to continue to provide great opportunities for drinks packagers throughout the world. According to the new 'World Drinks Packaging Report 1998', these three drinks sectors will see growth in volume consumption of more than 60%, 43% and 34% respectively between 1996 and 2006. In particular, CSD consumption in the Asia-Pacific, currently the world’s fourth largest CSD consuming region, is set to soar by more than 148% between 16. Leading this growth will be China and India where consumers are embracing western-style soft drinks. This is good news for companies such as Coca-Cola and PepsiCo, looking for growth outlets from maturing US and European markets, and for packaging suppliers which are now following their customers into such regions. The drinks packaging industry has already well outperformed the packaging industry as a whole in the 1990s. By 2001, for example, China will have overtaken the US to become the world’s largest beer consumer. Driven by such demand, growth in drinks packaging output in China and other fast growing markets will be impressive. Chinese beverage can shipments are expected to rise from around 7 billion units in 1996 to 48 billion in 2006, fuelled by major investments in canmaking lines from foreign companies such as Ball Corporation, Pechiney and Crown Cork & Seal. Although glass bottles will lose share in the packaging of beer and other drinks to cans and PET bottles, China will also become the world’s largest glass container producer by 2001. Worldwide, PET and other plastic bottles will increase their dominance from the current 43% share they hold in non-alcoholic drinks packaging. The greater convenience and consumer appeal of PET bottles, combined with the falling price of PET resin, has resulted in PET bottles now generally being regarded as the optimum container for most beverages. The introduction of PET and PEN bottles suitable to packaging sensitive drinks such as fruit juices and beer, is likely to provide a further impetus to growth. However, beverage cans will remain a popular single-serve pack for a wide range of drinks and product developments such as Coca-Cola’s curvy can, self-cooling cans and embossed cans will continue to add to this formats reputation for innovation. Beverage cans will increase their share of the global beer market at the expense of glass bottles. Beverage cans are forecast to account for 64%, 33% and 68% of the US, Western European and Japanese beer markets respectively by 2006. The report takes an extensive look at the developments occurring in each drinks packaging material sector and assess the continued trend towards proprietary packaging, now an undoubted requirement for the major drinks companies to achieve brand differentiation. In terms of corporate moves, Johnson Controls’ sale of its huge US PET container division to Germany’s Schmalbach-Lubeca and BTR’s divestment of its global glass and and PET bottle businesses to Owens-Illinois, are highlighted as major events in what are becoming increasingly concentrated packaging sectors. Increased concentration in the drinks industry is also a factor; the recent formation of Diageo by Grand Metropolitan and Guinness suggesting that bigger is better in this industry. 'World Drinks Packaging 1998' is one of series of market research reports that Market Tracking International has produced in association with the leading packaging publication Packaging Magazine (formerly Packaging Week). The report provides an overview of the world drinks packaging industry, in-depth analysis of regional and national markets, a detailed review of packaging material trends, company profiles and forecasts to the year 2006. Other publications complementing this report include European Food Packaging 1997/1998 and World Packaging Companies 1995/1996. 'World Drinks Packaging Report 1998' is available from MTI Ltd, 7 Archway Business Centre, Wedmore Street, London N19 4RU at a cost of £1,220 ($1,950). For further information contact: Chris Brockman on tel: (00 44) 17, fax (00 44) 17, e-mail: , website: http://www.marketfile.co.uk