Fruit Juice Australia News
Volume and safety to drive drinks packaging demand
Fri 06 July 2007
By Ahmed ElAmin
05/07/2007 - Demand for beverage containers in China is projected to increase 8.9 per cent per year to 2010, to about 181 billion units in 2010, according to a new study.
Volume will drive sales worth €9.2bn and will be driven by increased consumer demand for enhanced or functional beverages, and beverages with possible health benefits, according to the Freedonia Group.
Safety concerns over unpackaged distilled spirits and rice wines, and continued high levels of new product introductions accompanied by aggressive marketing campaigns, will also drive the growth trend, said the market research analyst.
Growth in packaged beverage production, and hence related container sales, will be driven by healthy levels of such consumer spending, the market analyst stated.
Glass containers accounted for the largest share of packaged beverages in 2005 measured by volume. The packaging category benefited from the large amount of beer produced in China, nearly all of which is packaged in glass bottles.
The use of returnable glass bottles in the beer market, however, limits unit demand, Freedonia stated. Glass packaging demand is forecast to rise by 5.8 per cent in the 2005 to 2010 period.
Plastic held the largest share of beverage container demand in unit terms in 2005 and will remain the leading material used in almost all non-alcoholic beverage markets, the company said.
The company forecasts that demand for plastic beverage containers will grow by 9.5 per cent in the 2005 to 2010 period.
While bottles will remain the dominant form of plastic container, Freedonia forecasts demand for pouches will have a more rapid growth.
Paperboard has surpassed metal to become the third largest beverage container material in China.
The use of metal containers will increase in the beer market and in some smaller fast-growing non-alcoholic beverage markets, such as functional drinks, ready-to-drink coffees and protein beverages, the firm stated.
Milk will continue to be the largest single market for beverage containers, as well as one of the fastest growing, forecasts Freedonia.
Fruit beverage containers will post the fastest advances among the major non-alcoholic beverage markets. Growth in the fruit beverage segment will continue to be driven from the move toward more nutritional drinks and from the introduction of novel flavour blends and packaging forms, the company forecast.
Carbonated soft drinks will be among the slower growing container markets. Demand for containers for alcoholic beverages will trail demand for containers
for non-alcoholic beverages.
"Nevertheless, beer will continue to be the second largest overall beverage container market and wine and rice wine containers will post above average advances, although from comparatively small bases," Freedonia stated.
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