Analyst insight by Rosemarie Downey, global head of packaging research atEuromonitor International(www.euromonitor.com) says that world retail demand for packaging reached 4 trillion units in 2011, with a robust 3% growth set for 2012.
Soft drinks is the absolute
stand-out industry that offers the most dynamic volume gains for packaging, with
global retail demand set to expand by a further 6% CAGR between 2012 and
2016. World events like the UK Olympic Games serve to provide a short-term boost to this growth trajectory,
particularly for the beverage industry.
Notably strong categories for
development are still bottled water, RTD tea and juice drinks. These three
beverages are set to account for 69% of all retail packaging gains in 2012,
with PET bottles the winning pack format.
In terms of the most prospective
country opportunities, Asia Pacific holds significant potential for
development. The region will account for 73% of global retail packaging
volume growth between 2012 and 2016, very much spearheaded by the Chinese
market. Rising incomes and the ongoing Chinese population shift from rural areas to
towns and cities are creating an ever greater
propensity among consumers to buy branded and packaged goods. India is another
Asian hot spot for packagers with bottled water the leading soft drinks
category for packaging growth, further indication of the global wellness trend
that is also very much at play in fast-developing Asia Pacific countries.
Innovation in sizing amongst less
dynamic beverages is also evident, to meet the different consumer portion and
pocket needs and drive onward packaging growth for brand
owners. Coca-Cola’s 300ml bottle, launched in 2011 for the Chinese market,
succeeds on a number of levels; retailing at a unit price of RMB3 makes it an
affordably-priced format to reach the mass consumer base and as a smaller pack
size, makes it an easy-to-carry portable pack solution, ideal for on-the-go
consumption amongst the fast-growing number of urban consumers in China.
In RTD tea, a booming category
across a number of countries as part of the ongoing wellness trend, there are
opportunities for bigger sizes to do well. In March in France, Nestea launched
a 500ml beverage can, while in the US, the third-largest RTD tea brand Snapple
launched Snapple Diet Half n‘Half Lemonade Ice Tea in, not only in the national
standard 16-ounce size but also in 32- and64-ounce sizes too, indicative of
growing consumption and interest in bigger pack sizes.
Innovation in pack size and pack
design will continue as a means to attract consumers, says the research fromEuromonitor International. Alongside pack shaping, pack size, closure type and
design, the use of thermochromic inks is yet another area of development
witnessed in beverages. The Coors beer brand has been
active in using thermochromic inks on beverage cans, glass bottles and
multipacks as an indicator to consumers for when the beer is cold enough to
drink. More recently, we see the use
of thermochromic inks has also been extended to spirits with the Tuaca liqueur
brand using this on a limited edition bottle, retailed in the US.
Beverage packaging demand boosted by innovation in size and design
August 20, 2012