Beverage Sector to Account for Over 65% Bag-in-Box Sales as it Continues Exhibiting Demand for Sustainable Packaging:Study

Among various industries using bag-in-box packaging solutions, the beverage sector has emerged dominant. According to a study by Future Market Insights, the beverages sector is expected to account for over 65% of sales in bag-in-box market.

Within the beverages industry, the wine segment holds the largest share.Using bag-in-boxes for packaging wines are particularly handy when it comes to use by an individual. Bag-in-boxes are lightweight than glass bottles commonly used for packaging, and are easier to be stored away.

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Europe has emerged as a key market and one of the leading producers of wine. The region has been exhibiting increasing application of bag-in-box for packaging and transportation of premium wines. Even wine expertsacknowledge that the wines in bag-in-box have a fully conserved taste.

Manufacturers are adhering to stringent food regulationsto ensure the flavor of the wine stays intact. Besides this, hygienic &useful access to the inside content, the plastic film deliberately guards wines against oxygen and light are some of the important aspects that made bag-in-box a foremost packaging solution for wines.

Several industries are opting for bag-in-box packaging solutions as these collapse easily into a flat bag and box which minimizes shipping cost and storage requirements. These factors are expected to enable growth in the market in the coming years.

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Key Takeaways from Bag-in-Box Market

  • Bag-in-box demand will rise steadily, exhibiting a steady growth at 5.7% between 2022 and 2031
  • Rising demand from various industries will enable the U.S. account for over 86% sales in North America
  • Increasing wine production will fuel demand from Germany, France, and Italy
  • After a period of negative growth, sales in U.K. will revive exhibiting, 1.8% y-o-y growth in 2022
  • China will account for leading share in East Asia, followed by Japan and South Korea

“The rising demand for flexible and sustainable packaging solutions will continue driving sales, especially in food and beverages sector. In order to cater to the rising demand, companies are focusing on various innovations” says FMI analyst.

Additional Equipment Costs Associated with Bag-in-Box Likely to Hamper Growth

Although bag-in-boxes are economical packaging solutioncompared to traditional packagingalternatives, addedequipment costs of bag-in-box are expected to limittheir sales.Costs associated with bag-in-box containers are anticipated to adversely affect the demand for bag-in-box, especially in emerging economies.

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Impact of COVID-19 on Bag-in-Box Market

Withsurge in challenging conditions during COVID-19 pandemic, the sales ofbag-in-boxhas declinesubstantially across the globe. Therefore, the Y-o-Y growth rate in the year 2022 end has been lowered by nearly 1.3% in compare with 2031.Moderate negative influence in the demand for bag-in-boxamongstbeverage, food, and chemical segments has been observed, due to difficulties in the maintaining supply chains.

Opposing to this a study by packaging company Smurfit Kappa Group in association with Wine Intelligence uncoveredthat bag-in-box wine productshad 3.7 million new customersin France and the UK during the last six months of 2020.This is mainly due to people have increasingly shiftedto drinking and enjoining at home due to the limitations caused of the pandemic.

Who is winning?

Smurfit Kappa Group plc, DS Smith plc, Amcor plc, Liqui-Box Corporation, Scholle IPN, CDF Corporation, TPS Rental Systems Ltd, Optopack Ltd., NWB Finland Oy, Aran Group and among others arethe prominent players in the global bag-in-box market. The Tier 3 players in the market hold 50-60% in the global bag-in-box market.

Companies operating in the market are focusing on innovations to cater to the rising demand. For instance:

  • In September 2022, Smurfit Kappa launched innovative new Vitop® Blue tap for Bag-in-Box cleaning products which was first being used for Bag-in-Box hand sanitizer packaging – one of the most sought-after products during the Covid-19 pandemic.
  • MondiStyria have launched a pair of next-generation films developed for multilayer BIB products used to package liquid food products and more.

Bag-in-Box Market Report

Future Market Insights, in its new report, offers an unbiased analysis of the global bag-in-boxmarket, analyzinghistorical demand from 2016-2021 and forecast statistics for 2022-2031. The study reveals growth projections on the bag-in-boxmarket on the basis of  capacity (less than 5 litres, 5 – 10 litres, 10 – 15 litres, 15 – 20 litres and more than 20 litres), material (paper &paperboard and plastic(LDPE, ethylene vinyl acetate, metallized-PET, ethylene vinyl alcohol, nylon, and others))and end use (food (dairy products, sauces, vinegar & flavoring, and liquid egg products), beverages (alcoholic beverages, non-alcoholic beverages, water, and others), chemicals, petroleum, home care, and cosmetics & personal care) acrossseven regions of the globe.

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