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Freedonia Projects Growth for Beverage Containers in China (posted 6/12/09)

June 12, 2009
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Glass will remain the second largest beverage container material (behind plastic), with a projected market share of 24% of units in 2012.

According to “Beverage Containers in China,” a new study from The Freedonia Group, demand for beverage containers in China is projected to increase 8.2% per year to 298 billion units in 2012. Gains will be driven by increasing personal income levels, which in turn will support robust growth in packaged beverage consumption. Continued utilization of single-serving containers in many markets and high levels of new product introductions that are accompanied by aggressive marketing efforts will also contribute to beverage container gains.

Plastic containers, which accounted for 42% of unit beverage container demand in 2007, will continue to lead the market and capture market share from traditional metal and glass containers. Advances will be buoyed by plastic’s increasingly widespread usage in almost all market segments. The rising popularity of smaller plastic bottles, such as single-serving PET bottles, will also support unit gains.

Glass will remain the second largest beverage container material, with a projected market share of 24% of units in 2012. Gains will benefit from the upscale, premium image conveyed by glass. Beer will continue to offer the best prospects for glass bottles based on strong increases in beer consumption. The expanding use of nonreturnable beer bottles will additionally bolster sales gains in glass bottles.

Paperboard was the third largest beverage container material in 2007. Demand for paperboard containers is projected to increase to nearly 64 billion units in 2012, representing the fastest growth among all beverage containers. Gains will track the favorable production outlook for milk, fruit beverages and other nonalcoholic beverages, benefiting from robust gains in consumer spending and sustained consumer interest in the health benefits of these beverages.

Milk containers are expected to remain the leading market for beverage containers, followed by beer, with unit market shares of 33% and 19%, respectively, in 2012. Fruit beverages are forecast to overtake all other beverages to become the third largest drink container market in 2012, benefiting from a positive nutritional profile and the introduction of new flavor blends and packaging forms.

For additional information, visit www.freedoniagroup.com.

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