Glass Beverage Container Demand Expected to Post Modest Growth
U.S. demand for beverage containers is expected to increase 1.7% per year through 2017 to 265 billion units, valued at $29.1 billion, according to a new study from The Freedonia Group Inc. Unit gains will reportedly be driven by ongoing consumer preference for single-serving containers in many markets, increasing interest in alternatives to carbonated soft drinks, and a proliferation of new product introductions accompanied by aggressive marketing campaigns. In addition, favorable demographic trends, such as healthy gains in millennials and in the older population, will bolster demand for certain beverages (e.g., wine) and related containers.
Plastic containers will remain both the largest and fastest growing segment, with gains supported by good prospects for polyethylene terephthalate (PET) containers in the ready-to-drink (RTD) tea, sports drinks, and other noncarbonated RTD beverage markets. Plastic containers will also see solid growth in the bottled water market, although increasing maturity and environmental concerns related to the volume of PET bottles in landfills will hold back growth.