Packaged Beverage Container Production to Increase

Production of packaged beverages in the United States will approach 39 billion gallons in 2010, resulting in $19.7 billion in demand, according to a report from the Cleveland-based market research firm the Freedonia Group.

The Freedonia Group study predicts that plastic containers will continue to represent the growth segment of the beverage container industry, having captured a significant share of the market from metal, glass and paperboard containers over the past several decades. Advances will be fueled by robust prospects for PET bottled water.

While bottles are expected to remain dominant, more rapid growth is anticipated for pouches as ready-to-drink beverages are converted to pouch packaging based on advantages in terms of reduced material consumption and portability.

Metal containers, the leading beverage container type in unit type because of heavy usage in the soft drink and beer markets, will post limited advances based on marginal growth in soft drink demand, a flat outlook for domestic beer production and inroads by glass bottles into the beer market, according to the study. However, the study predicts that areas of opportunity will exist with faster-growing beverages such as energy drinks and 8-ounce soft drink cans.

The outlook for glass containers will reflect a continuing recovery as large-scale replacements of glass with plastic have generally been completed, according to the report. Glass will continue to expand its share of the slow-growing beer container market as producers strive to compete against import beers and rely on premium beers in glass to achieve an upscale image.