Beverage Cans Market: Energy Drinks Impact

Sports and energy drinks are considered as the promising user application for aluminum cans globally. Energy drinks are mostly sold in cans owing to the aesthetic features and shelf life benefits offered by these containers. The increasing volume sales of energy drinks is the primary factor supporting the growth of the beverage cans industry. The global energy drinks market is likely to surge at double-digit growth rate owing to the increasing demand in the U.S. and Europe regions. Sports drinks are estimated to grow at nearly 5%.

According to the statistics of beverage associations, Red Bull the world’s largest brand of energy drinks has reported sales of 6.8 billion cans in 2018 which is 8% higher than that of the previous year. The emphasis of most of the leading brands towards product diversity in terms of nutritional content and flavours is likely to pose significant potential for consumption growth and thereby new avenues for the beverage cans industry.

Rise in health consciousness along with the change in consumer lifestyle among teenager and rise in awareness toward health wellness products as well as the increasing number of supermarkets is on an increase in almost all major cities, with rapid urbanization in various emerging economies such as India, China and others are the key drivers that have pushed the market forward worldwide.

The Alcoholic Beverage Market was valued at USD 11,062.74 million in 2018 and the market is estimated to grow at a CAGR of 3.64% in the forecast period to reach a market value of USD 14,655.70 million by 2026.

The growth of the global alcoholic beverages market is driven by an increase in global young‐adult demographic, surge in disposable income, and rise in consumer demand for premium/super premium products. Efforts by alcoholic beverage manufacturers for strengthening distribution channels and extension of purchase channels, such as online stores, and convenience stores, is also contributing substantially to the growth of the global alcoholic beverages market.

There is also a high demand for energy drinks in the United States. For instance, According to an article published by Chicago-based Information Resources Inc. (IRI), the energy drinks category saw dollar sales of over USD 11.7 billion in the United States. Multi-outlets for the 52 weeks ending June 16, an 11.3% rise over the prior-year period, Up 13.2%, energy drink mixes also are flourishing, racking up sales of more than USD 110.3 million.

The most basic RTD (Ready to Drink) tea includes three ingredients namely water, tea and ascorbic acid. The continuous increase in demand for carbonated drinks and RTD by the global population is supporting the augmented production of beverage cans across the world. RTD Tea is one of the most important beverage categories in Thailand. For instance, according to the report, in 2017, the RTD Tea market was worth more than 13,237 million Baht. At the end of the year 2017, Oishi had a market share of 40.6 %, followed by Ichitan at 22.4%, YenYen 10.4%, JubJai 5.6 % and others accounting for the rest 21.0 % of the market share. With the increased use of RTD beverages, there is an expected increase in beverage cans.

Beverage cans industry is expected to grow owing to increasing consumption of performance enhancement beverages such as energy and sports drinks globally. Growth in the demand for rehydration drinks and caffeine based drinks is expected to create lucrative opportunities for market development in the upcoming years. This shift in preference towards slimmer cans is in part due to increasing consumer preference for premium-looking products that feature unique or differentiated packaging. Advanced printing and decorating options, such as Crown’s Soft Touch varnish or Pectoris high quality printing, can help to demonstrate the premium image on the beverage cans.

In August 2019, Novelis and Ball announced sustainable aluminum can packaging where the goal is to bring light-weighting into applications. It is an essential part of Novelis’ European production system which has enough capacity to recycle every aluminum beverage that can be sold in the United Kingdom. Although the accelerating growth momentum will offer immense growth opportunities, the anticipated rise in steel prices during the forecast period will challenge the growth of the market participants. To increase their beverage can market share, companies should focus more on the growth prospects in the fast-growing segments while maintaining their positions in the slow-growing segments.

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