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Ready to Drink (RTD) Packaging Market Outlook from 2024 to 2034

The ready-to-drink (RTD) packaging market is estimated to hold a valuation of around USD 5.6 billion in 2024. The expansion of the food and beverage sector, driven by the rising demand for convenient and quick meal options, has put considerable pressure on RTD packaging companies to innovate and scale their operations. This sector is anticipated to surpass an overall valuation of USD 7.3 billion by 2034, exhibiting a CAGR of 2.2% during this period.

The increasing preference for convenience among individuals, particularly in urban and semi-urban areas, is a key driver of demand for ready-to-drink beverages.

Busy lifestyles necessitate easily accessible and portable beverage options, prompting manufacturers to invest in developing innovative packaging solutions. Cans, liquid cartons, and pouches are becoming increasingly popular, with single-serve drink options catering to consumers seeking quick, grab-and-go choices.

Global Ready to Drink (RTD) Packaging Industry Assessment

The market is also benefiting from a growing demand for healthier and non-caloric beverages in both developing and developed regions. The recent pandemic has heightened health awareness among the general populace, leading to a surge in demand for small and single-serve cans and tetra-packs of healthier drinks and pre-workouts.

These packaging solutions are particularly appealing to gym-goers and fitness enthusiasts due to their portability and convenience, with younger demographics showing a strong preference for such products.

Attributes Description
Historical Size, 2023 USD 4.9 billion
Estimated Size, 2024 USD 5.6 billion
Projected Size, 2034 USD 7.3 billion
Value-based CAGR (2024 to 2034) 2.2%

Ready-to-drink packaging solutions offer brands significant opportunities for branding and marketing. With aesthetically pleasing designs and graphics, RTD packaging can help products stand out in a crowded marketplace.

Additionally, these packaging solutions enable brands to implement strategic marketing campaigns designed to engage consumers and boost sales. Strategies such as contests, cashback offers, and discounts are commonly used to attract a wider consumer base and enhance brand loyalty.

Technological advancements are playing a crucial role in the evolution of RTD packaging. Innovations in materials and packaging designs are enhancing the durability and functionality of RTD containers.

Moreover, there is a growing emphasis on sustainable practices, with manufacturers exploring eco-friendly packaging solutions to reduce their environmental footprint. This focus on sustainability is not only meeting regulatory requirements but also aligning with consumer preferences for environmentally responsible products.

The RTD packaging market is experiencing varied growth rates across different regions. In North America and Europe, the market is mature, with a steady demand for innovative and convenient beverage packaging.

In contrast, the Asia-Pacific region is witnessing rapid growth due to increasing urbanization, rising disposable incomes, and changing consumer lifestyles. The burgeoning middle class in this region is driving demand for convenient and premium beverage options, further fueling the growth of the RTD packaging market.

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Key Industry Highlights

Sustainable and Eco-friendly Packaging Trends to Dominate the Industry

Consumers are constantly emphasizing the adoption of sustainable practices. Not just consumers, industries are also taking steps to minimize their carbon footprint. Beverage manufacturers are packing their products in sustainable and eco-friendly materials. For instance, Coca-Cola, recently announced to collect and recycle every bottle or can and make packaging fully recyclable by the year 2030.

RTD Brands to Adapt Premiumization Trends to Attract Consumers

In countries like the United States, Germany, the United Kingdom, etc., there is an observed inclination of consumers towards premium-looking beverages. Brands, in response to this, are coming up with premium packaging solutions to attract consumers.

Celebrities and social media influencers are also playing an important part here. For instance, the Prime Energy Drink in the United States, which comes in visually appealing bright-colored packaging options, has gained immense popularity.

Environmental Concerns to Affect the Industry Negatively

Despite the advancements in sustainable packaging, there are still some concerns regarding the impact of single-use packaging after its use. There are still a number of brands in the beverage companies that have not yet switched to recyclable packaging of ready-to-drink products.

Plastic and other non-biodegradable materials contribute to pollution and waste. This creates a negative perception in the minds of consumers which in turn hampers consumption.

2019 to 2023 Global Ready to Drink (RTD) Packaging Sales Outlook Compared to Demand Forecast from 2024 to 2034

The ready-to-drink packaging industry heavily relies on the performance of various sectors, such as food and beverages, packaging, and e-commerce. The industry is also dependent upon the supply chain conditions and trade relations among the leading economies in the world.

The ready-to-drink packaging industry in the last few years has seen a series of ups and downs. The industry is observed to showcase a sustained growth rate since the beginning of the century.

When the pandemic hit the world, governments in almost all countries closed their borders for trade. This led to a serious plunge in the supply of all commodities, including ready-to-drink products.

The RTD packaging industry also faced significant challenges due to the closing of supermarkets and convenience stores in the developed and developing parts of the world in the initial phases of the pandemic.

The RTD packaging industry again started to pick some pace when the trade bans were lifted. In the period of 2019 to 2023, the sector progressed at a CAGR of 2.2%.

Despite this slow growth rate, the ongoing preference for convenient, on-the-go beverages is very likely to take the industry on an upward trajectory. The rise of e-commerce in underdeveloped economies will further expand the need for RTD packaging solutions in the near future.

Ismail Sutaria
Ismail Sutaria

Principal Consultant

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Comparative Market Overview

Responding to the growing consumer need for convenient and ready-to-eat food products, the food and beverage industry has come up with innovative offerings. The growth rates of the frozen ready-meal industry and ready-to-drink beverage industry, along with their ongoing trends and challenges have been mentioned below.

On the basis of these numbers, we can say that the RTD beverage industry is very likely to have a promising future in comparison with the other two.

Frozen Ready Meal Industry Assessment:

Frozen ready meals are gaining immense traction globally owing to their multiple advantages. These meals offer a convenient, versatile, and accessible dining option for consumers looking for quick and hassle-free meal solutions.

Consumer acceptance of packaged food is increasing significantly, and the trend will likely continue through 2034. This, in turn, is expected to propel demand for frozen ready meals.

Attributes Description
Related Market Frozen Ready Meal Industry
CAGR (2024 to 2034) 5.2%
Projected Industry Value (2023) USD 23.1 billion
Growth Factor Rising demand for convenience foods due to hectic lifestyles will likely fuel sales of frozen-ready meals over the next ten years.
Restraint There are still some concerns regarding the nutritional value of these foods in the minds of common people
Trend Brands are investing in the development of healthy and nutritional frozen meals to target health-conscious consumers

Ready-to-drink Beverage Industry Assessment:

Ready-to-drink beverages (RTDs) are single-use beverages that are being made available in varied categories, like canned wines, iced coffees, and kefir yogurt drinks, to entice metropolitan consumers leading busy lifestyles. The industry, in the last few years, has been experiencing tremendous growth, primarily due to the popularization of ‘snacking beverages’ in developed countries.

Attributes Description
Related Market Ready-to-drink Beverage Industry
CAGR (2024 to 2034) 7.6%
Growth Factor Rising demand for clean, functional beverages is inducing big and new brands alike to hop onto this trend.
Restraint The surging incidences of diabetes and obesity in developed economies due to unhealthy dietary habits are impeding the consumption of these drinks
Trends Increasing consumer preference for ready-to-drink beverages that blend well with wellness, convenience, and unparalleled taste.

Category-wise Insights

The ready-to-drink packaging market is segmented based on material, packaging format, and application. The top two categories, i.e., material and packaging format, have been discussed below.

Paper to Retain its Dominance in the Beverage Packaging Industry

Ready-to-drink beverages come in packaging solutions made from various materials such as paper, plastic, glass, and metal. On the basis of material, the paper segment, as of 2024, holds an industry share of 41.2%.

Segment Paper (Material)
Value Share (2024) 41.2%

Paper is being increasingly preferred by beverage companies as they are environmentally less harmful. Paper also decomposes very easily in comparison to their metal and glass counterparts. Besides this, paper also has a high recyclability rate. It is lightweight and can easily be stacked one over the other. This helps businesses store and ship their products across borders.

People are Preferring Cans over Bottles, Pouches, and Cartons

Based on the packaging format, ready-to-drink packaging industry is segmented into three: cans, pouches, and liquid cartons. As of 2024, the cans segment is estimated to hold an industry share of 34.1%.

Segment Cans (Packaging Format)
Value Share (2024) 34.1%

Consumers are increasingly preferring cans over bottles, pouches, and cartons for their beverages as they are highly recyclable. They are also more durable and less prone to breakage compared to glass bottles. Also, their lightweight and compact nature makes cans easy to carry and store. Businesses also opt for cans as they provide an excellent barrier against light and oxygen.

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Country-wise Insights

The section discusses the region-wise analysis of the ready-to-drink packaging industry. Drawing from these numbers, it can be inferred that India, China, and Thailand are some of the most lucrative countries in this industry.

This is primarily due to their enormous population and rising e-commerce sector. The growth prospects of developed economies like the United States and the United Kingdom are also mentioned below.

Countries CAGR 2024 to 2034
India 5.5%
China 4.4%
Thailand 3.9%
The United Kingdom 1.3%
The United States 1.6%

India’s Expanding Retail Sector to Benefit RTD Packaging Industry

The Indian ready-to-drink packaging industry is showcasing a healthy CAGR of 5.5% for the forecast period of 2024 to 2034. India, in the last few years, has been experiencing rapid growth in the retail sector. The influx of a multitude of multinational companies in this industry has changed the dynamics of how Indians buy groceries and commodities.

This has created a conducive environment for RTD packaging companies that are capitalizing on this trend. Besides this, the rising disposable incomes in the hands of the middle-class population are another factor why the beverage industry is expanding, creating opportunities for RTD packaging.

Convenience Culture in the United States to Boost Industry Growth

The United States is also a lucrative marketplace for the ready-to-drink packaging industry. It is slated to showcase a CAGR of 1.6% through 2034. Due to the busy and fast-paced lifestyles in the USA, consumers are magnetized toward the adoption of ready-to-drink packaging.

This, coupled with the on-the-go consumption trends, has fueled the demand for convenient beverage options. Consumers in the United States are also generating a huge clamor for RTD beverages packaged in cans, bottles, and pouches, as they offer convenience and portability.

The United Kingdom to Showcase Sluggish Growth in RTD Packaging Industry

The United Kingdom's ready-to-drink packaging industry is estimated to report a CAGR of 1.3% for the forecast period of 2024 to 2034. The general populace in the United Kingdom is significantly emphasizing sustainable choices, even when it comes to drinking their favorite beverages.

Concerns about plastic pollution and environmental sustainability have prompted both consumers and regulatory bodies in the UK to advocate for more eco-friendly packaging solutions. This has naturally generated a huge demand for RTD packaging solutions in the country.

Competition Outlook

The competition in the RTD packaging industry is marked by strategic innovation from key players. Industry leaders like Tetra Pak and Amcor are prioritizing sustainability and shelf life extension.

Their focus lies in developing high-barrier packaging solutions and utilizing recyclable or compostable materials, catering to the growing demand for eco-friendly options. This is evident in their ongoing investments in R&D for novel packaging solutions tailored to the RTD beverage market.

Meanwhile, niche players like SIG Combibloc and Elopak are carving a space through their specialization in aseptic packaging solutions. This focus caters perfectly to the rising demand for portion-controlled RTD beverages and convenient on-the-go consumption.

Their emphasis lies in continuously improving filling technology and lightweight designs to enhance product portability and consumer convenience. This targeted approach positions them strongly within the RTD packaging space. The competition remains fierce, with each player striving to provide the most sustainable, functional, and cost-effective solutions for the RTD beverage market.

Industry Updates

  • In March 2024, Tetra Pak unveiled a new packaging solution for coffee roasters, tapping into the rising demand for Ready-To-Drink beverages. The move aimed to capitalize on the growing popularity of RTD coffees, particularly among younger demographics, driving innovation in the coffee industry.
  • In March 2024, Vault49 launched a 'Uniquely Bahamian' design for Ricardo Rum's new RTD line, celebrating the brand's significance in The Bahamas. The London studio immersed itself in Bahamian culture to create a modern experience targeting younger audiences.
  • In March 2024, Saxon Packaging collaborated with Edmunds Cocktails, enhancing their RTD packaging for a seamless cocktail experience. By prioritizing efficiency and sustainability, they elevated the brand's commitment to delivering premium, eco-friendly indulgence to consumers worldwide.

Leading Ready to Drink (RTD) Packaging Brands

  • Coca-Cola Company
  • PepsiCo Inc.
  • Nestlé S.A.
  • Danone SA
  • Red Bull GmbH
  • Monster Beverage Corporation
  • Arizona Beverage Company
  • Rockstar, Inc.
  • Starbucks Corporation
  • Keurig Dr Pepper Inc.
  • Asahi Group Holdings, Ltd.
  • Suntory Holdings Limited
  • The Kraft Heinz Company
  • Ocean Spray Cranberries, Inc.
  • Vita Coco
  • Bai Brands, LLC
  • Gatorade (PepsiCo)
  • Powerade (The Coca-Cola Company)
  • 5-hour Energy (Living Essentials LLC)
  • Bai (Dr Pepper Snapple Group)

Key Segments of Market Report

By Material:

In terms of material, the industry encompasses packaging solutions made from glass, plastic, paperboard, and metal.

By Packaging Format:

The packaging format for RTD beverages includes options such as liquid cartons, cans, and pouches, catering to various consumer preferences and product requirements.

By Application:

The application of RTD packaging spans several beverage categories, including RTD tea, RTD coffee, juices and premixes, and flavored milk.

By Region:

As per region, the industry is divided into North America, Latin America, Europe, Asia-Pacific, and the Middle East and Africa.

Frequently Asked Questions

What is the overall global valuation for this industry?

The global valuation is USD 5.6 billion as of 2024.

What does the future of this industry look like?

The market is expected to reach USD 7.3 billion by 2034.

What is the growth of this industry in terms of CAGR?

The market is growing at a CAGR of 2.2% from 2024 to 2034.

Who are the prominent leaders?

Coca-Cola Company, PepsiCo Inc., Nestlé S.A., Danone SA, and Red Bull GmbH.

What was the ready to drink (RTD) packaging market Value in 2023?

In 2023, the global market was valued at USD 5.3 billion.

Table of Content

1. Executive Summary

2. Industry Introduction, including Taxonomy and Market Definition

3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments

4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections

5. Pricing Analysis

6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034

    6.1. Product Type

    6.2. Material

    6.3. Application

7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Product Type

    7.1. RTD Cans

    7.2. Liquid Cartons

    7.3. Plastic Bottles

    7.4. Glass Bottles

8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Material

    8.1. Metal

    8.2. Glass

    8.3. Plastic

    8.4. PET

    8.5. Cartons

9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Application

    9.1. Alcoholic Beverages

    9.2. Tea & Coffee

    9.3. Bottled Water

    9.4. Fruit Juices

    9.5. Milk and Milk Products

    9.6. Carbonated Drinks

10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region

    10.1. North America

    10.2. Latin America

    10.3. Western Europe

    10.4. South Asia

    10.5. East Asia

    10.6. Eastern Europe

    10.7. Middle East & Africa

11. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries

12. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries

13. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries

14. South Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries

15. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries

16. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries

17. Middle East & Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries

18. Sales Forecast 2024 to 2034 by Product Type, Material, and Application for 30 Countries

19. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard

20. Company Profile

    20.1. Crown Holdings Inc.

    20.2. Ardagh Group S.A

    20.3. Amcor Limited

    20.4. Ball Corporation

    20.5. Owens-Illinois Inc.

    20.6. Gerresheimer AG

    20.7. Berry Global Inc.

    20.8. Intrapac International Corporation

    20.9. Beatson Clark Ltd.

    20.10. BA Glass Germany GmbH

    20.11. Vidrala S.A

    20.12. Nampak Ltd.

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