Beverages packaging regional insights

Beverage packaging performance and growth prospects vary by region, reports Rosemarie Downey, packaging research manager at Euromonitor International. Emerging markets in Asia Pacific and Latin America hold greatest potential as economies strengthen and the opportunity to purchase packaged beverages widens. 

Asia Pacific
In Asia Pacific, the emerging economies are integral to both current and forecast volume growth as consumer spending power strengthens, the retail infrastructure develops and subsequent consumption of packaged beverages rises. China, India and Indonesia will provide greatest growth opportunities in this region.

Australasia
Australasia shows a strong preference for glass in contrast to other developed regions such as Western Europe and North America where glass takes a secondary position. The overriding strength of glass comes from the importance of beer, which accounted for 36% of 2009 retail beverage packaging sales.  RTDs, wine and spirits will continue to offer good growth for glass.

Eastern Europe
Eastern Europe experienced steady packaging growth of 3% in 2009. Glass is the favoured format but is losing position to re-closable PET and the “modern” beverage can. The region is unique in the importance of PET for beer, led by Russia, Ukraine and Romania.

Latin America
In Latin America, increasing consumption of bottled water is a key driver to packaging sales growth; this enabled PET to displace glass as most sold pack format in 2009. Health awareness and rising incomes will continue to be a stimulus for growth and augurs well for functional drinks and juices in PET and liquid cartons. A strong returnable system will ensure a stable outlook for traditional glass in beer and carbonates.

North America
North America is characterised by beverage can losses as consumption of carbonate sales fall. Brand owners and packaging suppliers seek to answer the convenience, health, environmental and cost concerns of the North American public within a highly competitive marketplace. Future packaging growth opportunities lie in health-orientated beverages – juices and RTD tea to do well.

Western Europe
Core pack formats, PET, glass and beverage cans accounted for 84% of Western European beverage packaging sales in 2009. Bottled water, beer and carbonates are key recipients and these beverages will contribute most to forecast packaging volumes.  Some slowing is apparent as seen in bottled water owing to competition from more economical filtered/tap water. Turkey is an exceptional growth country to highlight. In more developed European countries, differentiation through new brand launches and premium packaging formats abound to capture consumer interest - beverage cans in wine is just one example.

1 December 2010 - Rosemarie Downey