Beverage Crates Market

Introduction

The global beverage crates market is witnessing remarkable growth with the surging demand from the beverages industry. The rise in requirement in various applications such as alcoholic and non-alcoholic drinks is catering to the growth of the market. According to Future Market Insights (FMI), the food sector’s growth rate is at 4.5% CAGR post COVID-19 correction. Consistent expansion of the sector is expected to fuel the demand for beverage caters significantly.

The increase in alcohol consumption is likely to drive the market further in the coming years. According to the 2019 National Survey on Drug Use and Health (NSDUH), 85.6% of people in the United States aged 18 years or older reported that they drank alcohol at some point in their lifetime, while 69.5% reported that they drank in the past year, and 54.9% reported that they drank in the past month.

According to the International Statistical Survey 2016, the global average alcohol consumption is 6.4 liters per person older than 15 per year, while Europe has the highest per capita alcohol consumption (15 liters per person per year) in Czechia, Lithuania, and Moldova. In many Asian countries spirits account for the most of the total alcohol consumption, and in India it is over 90%. As alcoholic drinks are a key segment of the application of beverage crates, the rise in inclination towards consumption of alcohol is expected to fuel the sales of beverage crates.

According to Future Market Insights (FMI), the global beverage crates market is expected to grow at 6.3% CAGR during the forecast period between 2020 and 2030.

Growth in Beverages Industry Fuelling Sales

Beverage crates are large shipping containers made of various materials such as plastics, metals, woods, and others and used to transport or store bulk beverage products such as fruit juices, beer, milk products, and others.

The steady growth of the beverages industry over the past decade has substantially increased the demand for beverage crates. According to the National Statistics of the United States, the user penetration for food & beverages industry in the United States is 30.1% in 2020 and is expected to hit 41.2% through 2025.

According to the Government of Food Processing India, the food & beverages industry in India has over 1.25 billion consumers and it is expanding steadily. The exponential growth of the global food & beverages industry is anticipated to increase the sales prospects for the beverage crates manufacturers in the near future.

Increasing Focus on Sustainability Spurring Growth

With the rise in environmental concerns, the manufacturers of beverage crates are focusing on meeting sustainable goals for the beverage crates. In order to develop reusable and eco-friendly beverage crates, manufacturers are adopting the materials such as wood, recyclable plastics, and others.

For instance, IPL Plastics Inc. launched its new range of sustainable crates such as new FLAPNEST SERIES, SMARTCRATE SERIES, and others in 2020.

Furthermore, various government rules and regulations regarding the use of bio-degradable materials have resulted in higher requirement for sustainable products. For instance, according to the Food and Drug Administration (FDA), the manufacturers must evaluate the chemical contamination of the plastic products to the food as well as to the environment after the recycling process to ensure the maximum safety while manufacturing packages, crates, and others for foods and drinks. This is further propelling the growth of the beverage crates market.

Key Challenges

High-density polyethylene (HDPE) and PP (polypropylene) beverage crates are required in the storage and transportation of beverages because they are lightweight, cost-effective, and non-reactive. But these materials have the disadvantages such as high mould shrinkage, poor UV resistance, susceptible to stress cracking, and others which often limit their usage.

On the other hand wood, metals, and others are considered less-suitable materials for the production of beverage crates due to their heavy weight, higher cost, and more complex process cycles in manufacturing crates. However, despite a few restraints, the market has high potential to expand further in the coming years.

Region-Wise Analysis

East Asia Beverage Crates Market

East Asia is presently leading the beverage crates market and is expected to remain in the position in the coming years. The rising demand for the beverage crates made from HDPE, PP, and other materials in countries such as China, Japan, South Korea, and others is bolstering the growth in East Asia.

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The growing beverages industry in East Asia has created opportunities for growth of the beverage crates market. According to the International Statistics of South East Asia, the food & beverages industry in South East Asia has an estimated revenue of over US$ 4500 million in 2020 while the approximate number of users is 74 million. The food & beverages industry revenue is forecast to reach at over US$ 8300 million through 2025, which in turn is expected to increase the demand for beverage crates in East Asia.

Europe Beverage Crates Market

Europe is the second largest market for beverage crates owing to the rise in consumption of soft drinks and alcohol. The surge in demand in the countries such as the U.K, Germany, Italy, France, and others is spurring the growth in Europe.

According to the National Statistics of Europe, in Europe the average revenue per capita for soft drinks is yearly US$ 150.34 in 2020. The average per capita consumption of soft drinks is ~ 74.8 liter in Europe. Soft drinks segment being a key application of beverage crates is expected to fuel the sales in Europe in the near future.

North America Beverage Crates Market

North America is another lucrative market for beverage crates. The increase in rate of alcohol consumption, rapid expansion of the food & beverages industry, and other factors are catering to the growth in North America.

The rise in demand for various soft drinks such as fruit juices, tea & coffee, milk products, and others in the countries such as the U.S., Canada, and others is fuelling the sales in North America. According to the National Statistics report of North America, the average per capita consumption of soft drinks in North America is ~200 liter yearly in 2020.

According to FMI, the U.S. will emerge dominant in the North America beverage crates market during the forecast period.

Category-wise Insights

HDPE Material to Emerge Dominant

Currently HDPE material is the most preferred type of material used for beverage crates and is anticipated to sustain its position in the coming years. HDPE materials are highly preferred by the manufacturers due to their exclusive properties such as resistance to chemicals and moisture, stiffness, strength, toughness, permeability to gas, and others.

Furthermore, the ease of processing and forming HDPE has made it widely sought-after among manufacturers. With the growing demand from the beverages industry, the manufacturers are opting for HDPE in order to produce cost-effective and efficient beverage crates.

Nestable and Stackable Beverage Crates to Maintain the Lead

Nestable and stackable beverage crates are leading in terms of product type. Nestable and stackable crates have offer double advantage of storing full capacity while stacking, which reduces the effective height taken for storing beverage cans or bottles  to one third while nesting these crates.

Since these beverage crates save significant space in storage in warehouses and during the time of transportation, they are more preferred in the market and are expected to continue dominating the market through the forecast period.

Alcoholic Drinks to Boost Growth

Alcoholic drinks comprise the dominant segment in the global beverage crates market owing to the rising inclination towards alcohol consumption. According to the International Statistics Survey, the total volume of alcohol consumed globally per year has increased by 70% from 1990 to 2017. According to the National Survey on Drug Use and Health (NSDUH) 2019, 25.8% of people aged 18 years or older has reported that they engaged in binge drinking in the past month, while 6.3% reported that they engaged in heavy alcohol use in the past month.

Beverage crates being highly required in the alcoholic drinks segment, for storage and transportation of drinks such as beer, wine, spirits, and others, are experiencing high demand which in turn is creating growth opportunities for the market.

Competitive Landscape

The global beverage crates market is highly competitive. In order to sustain their positions, the manufacturers are emphasizing on improving the qualities of their products.

For instance, Palcon LLC launched its new range of custom beverage crates which are customized by the Palcon engineers to meet the specific requirements and can be heat-treated for export in 2020.

DS Smith Plc. launched its new range of plastic crates manufactured with DS Smith Plastics’ Injection Moulding and available for customization for diverse applications in 2020.

Some of the key market players are-

• Supreme Industries Limited
• Schoeller Allibert Services B.V.
• DS Smith Plc
• Rehrig Pacific Company, Inc.
• TranPak, Inc.
• IPL Plastics Inc.
• Ravensbourn Plastics Ltd
• Craemer UK Ltd
• Zhejiang Zhengji Plastic Industry Co. Ltd.
• Myers Industries, Inc.
• Palcon LLC

*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report

Beverage Crates Market Report: Scope

Key Questions Answered by the Report

• At what CAGR is the beverages crates market expected to grow?

  According to Future Market Insights (FMI), the beverages crates market is expected to grow at 6.3% CAGR during the forecast period between 2020 and 2030.

• Which are the top companies in beverage crates market?

  Some of the top companies in global beverage crates market are DS Smith Plc., Palcon LLC, Myers Industries Inc., and others.

• Which material type is preferred for making beverage crates?

  High-density polyethylene (HDPE) is the highly sought-after material and is expected to maintain the lead throughout the forecast period.

• Which is the most preferred product in the beverage crates market?

  Nestable and stackable types of beverage crates are most preferred product type in the beverage crates market.

• Which is the largest market for beverage crates?

  Presently East Asia is the largest market for beverage crates followed by Europe.

• What are key applications of beverage crates?

  Various alcoholic drinks such as wine, beer, spirits, and others are the key applications of beverage crates.

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• Is this research conducted by Future Market Insights?

  Yes, the research has been conducted by expert analysts of Future Market Insights through a combination of primary research and secondary research. To know more about how the research was conducted, you can speak to research analyst.

• What research methodology is followed by FMI?

  FMI follows a methodology that encompasses demand side assessment of the market, and triangulates the same through supply side analysis. This methodology is based on use of standard market structure, methods and definitions. Request detailed methodology.

• Who are the respondents for primary research?

  FMI speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, industry experts. For a full list of primary respondents, please reach out to us.

• What are the sources of secondary research?

  FMI conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request. 

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Key Segments

Material Type

• HDPE (High-density polyethylene)
• PP (polypropylene)
• Others

Product Type

• Nestable and Stackable
• Collapsible

Application

• Alcoholic Drinks
  • Beer
  • Wine
  • Spirits
  • Other Alcoholic Beverages
• Non-alcoholic drinks
  • Fruit juices
  • Carbonated drinks or soda
  • RTD beverages
  • Bottled water
  • Tea & coffee
  • Milk Products

Region

• North America
• Latin America
• Europe
• South Asia
• East Asia
• Middle East & Africa
• Oceania