Beverage Industry’s 2007 Packaging Survey
By CATHERINE PENN
Processors consider package variety an investment for success
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.
Primary packaging
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 where 90 percent will be increasing their usage through 2011, largely driven by sales and growth. This year, 78 percent of dairies paid more for HDPE.
Aseptic packages are used by 16 percent of beverage processors across all categories — but no category uses aseptic exclusively. While juice processors have the highest use of aseptic packaging, there is no consensus about what will happen during the next five years. Half will buy more; the other half expect to use the same or less from now to 2011. Most processors using aseptic packaging report prices holding steady this year.
Aseptic “takes the need for cold storage out of the distribution chain and also improves shelf life,” explains a juice processor. “We would like to enter the aseptic juice box market for foodservice and kids,” says another natural juice processor.

At this time, this study finds 3 percent of processors using PLA bottles. One processor would like “more PLA and at more economical pricing.”
Finishing touches
Plastic screw-top is the most popular closure for soft drinks, juices, bottled water and dairy beverages; and metal crowns are preferred for energy drinks and beer. Wine — goes without saying really — is almost always cork.
Looking at all processors in all categories, pressure-sensitive labels are used by 57 percent. Cut-and-stack as well as shrinksleeve labels often are used by larger processors. Two of three use cut-and-stack and half use shrinksleeve. One processor responding to the survey uses “corn-based shrinksleeve labels.”
The two most popular secondary packaging materials are paperboard and shrinkwrap. Paperboard is pretty much ubiquitous, used by 86 percent of beverage processors, and used exclusively by 63 percent. Shrinkwrap is used by 61 percent, of which a quarter say shrinkwrap is their preferred choice.
During the next five years, processors will increase their use of shrinkwrap and flexible packaging. On the other hand, use of paperboard and ring-top carriers will remain at current levels or decrease.
Overall, 41 percent of processors plan to increase their use of paperboard boxes through 2011, 36 percent plan to hold steady, and 18 percent will cut back. A small majority — 53 percent — paid more for paperboard this year compared to last.
An increased use of paperboard reflects sales and growth; but, compared to responses about shrinkwrap, this packaging is not necessarily preferred. Fifty-one percent of manufacturers with more than $100 million in annual revenue expect to keep their use of paperboard boxes at current levels through 2011. Twenty-seven percent will cut back on paperboard.
The data suggest that shrinkwrap is the growth trend in secondary packaging materials for drinks — even though more processors currently use paperboard. Two-thirds of processors use shrink-wrap, and a quarter use it most often. Moreover, 68 percent of manufacturers using shrinkwrap plan to increase the amount they use during the next five years. This compares to 41 percent increasing their use of paperboard.

While growth and sales drive usage most of the time, shrinkwrap is preferred by 37 percent of respondents. Processors say shrinkwrap costs less, looks great, is easy to use and is the next generation of packaging. A few indicated they use shrinkwrap because it means using less corrugated.
Shrinkwrap is an “inexpensive solution to bundling requirements. New printing technologies allow a custom appearance,” explains one processor. “The shrinkwrap packages give the consumer a better look,” says another. “It’s cheaper and displays the product better,” adds another.