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What accounts for 30 percent of the cost of a drink? Yes, packaging--but that word includes many aspects. For example, consider shape, the choice between bottle or can, the closures, labels and secondary packaging materials, as well as the "green" issue and sustainability concerns.
Beverage Industry's Beverage Packaging Survey investigates why specific packages are popular and which materials complement certain drinks. The survey discusses what is important for packages at retail, as well as how and why beverage packaging materials will evolve during the next five years. This study shows the extent to which beverage processors are incorporating sustainability into their packaging. Also, the report's analysis of motives and drivers for increasing use of certain packaging materials vs. others offers processors the opportunity to consider their direction in comparison to the industry's general direction during the next five years.
It's a slam-dunk for PET. Nine of 10 soft drink manufacturers, juice processors and water bottlers will increase the amount of PET they use during the next five years. It does not seem to matter that 75 percent experienced a price hike for PET this year compared to 2006. One of the main drivers for using more PET is consumer preference. PET is seen as a trendy alternative to aluminum cans. "The product volume growth will continue and PET is the package of choice," verifies a juice processor.
"PET packaging is becoming more popular because of the ability to reseal," says a marketer. The "potential cost savings for freight and convenience to consumers," motivates a winery respondent to look at PET. We're "moving out of cans in vending wherever possible--better economics," explains a soft drink manufacturer.
Alcohol beverages seem to present best in glass, but PET is a strong alternative. Glass is used by almost all alcohol beverage manufacturers, and 61 percent plan to use more during the next five years in response to customer demand. Almost all wineries and distilleries have experienced a price increase for glass this year compared to last. But this is not the experience at breweries, where half report no such penalty.
In addition to sales, processors like the message glass gives to consumers. Glass has a "gourmet look, natural feeling and inspires quality," explains a bottler of all-natural juices. "Glass bottles match our premium brand focus, while also matching a growing need among organics," says a water bottler.
Currently, almost all soft drink manufacturers use aluminum cans, but more than half--54 percent--are planning to cut back in the coming years in favor of PET bottles. The data suggest that soft drinks could retail in a variety of package materials during the next few years.
We are "declining our use of cans and increasing PET," is the message from one global soft drink manufacturer. PET is the "preferred package by customer and cost," explains another who anticipates changes ahead.
Most growth in HDPE will come from dairies …