Despite the impact of the COVID-19 pandemic, retail sales of beverages are set to continue growing over the forecast period to 2024. This is driven by rising health consciousness in soft drinks and demand for lightweight packaging of PET bottles. Meanwhile, metal beverage cans are set to grow in alcoholic drinks due to their light weight and convenience. Sustainability is becoming a key focus area as manufacturers become more environmentally conscious and launch recycled packaging.
In 2020, the volume of beverages in Asia Pacific declined by 12% from 2019 to reach 548 billion units, due to the lockdown. Nevertheless, post-pandemic, over the forecast period 2020-2024, it is expected to recover with 5% CAGR growth.
Soft drinks, which accounted for 67% of the 2020 retail volume, will drive the bulk of volume growth due to rising health consciousness and increased home consumption. Alcoholic and hot drinks were hit hard due to the lockdown restrictions caused by COVID-19, which resulted in declining sales in foodservice channels in 2020.
Although PET bottles remain the key leading pack type, other pack types such as metal beverage cans are set to rise, competing in traditionally glass-dominated categories such as beer and energy drinks due to their light weight and portability.
Smaller pack size trends have been seen across many categories within the beverage industry. While the COVID-19 pandemic has resulted in a decline in impulse purchases, smaller pack sizes continue to appeal due to their portability, portion control and price affordability.
With increasing environmental awareness in Asia Pacific, various stakeholders are coming together to push for greater use of recycled pack types and recycling initiatives, ensuring a strong ecosystem for sustainability in the long haul.
More packaging labels are set to incorporate QR codes or enable the packaging designs to be scanned with mobile devices, providing an augmented reality experience for consumers.
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