BAG-IN-BOX CONTAINER MARKET ANALYSIS

Global Bag-in-Box Container Market was valued at US$ 3.62 Bn in 2022, and is expected to exhibit a CAGR of 5.9% over the forecast period (2023-2030) and is expected to reach US$ 5.73 Bn by 2030. The increasing product adoption in market segments such as alcoholic beverages, household cleaners, and milk and dairy products can be credited with the industry's expansion. The wine industry has been one of the biggest consumers of bag-in-box containers. With the manufacturers implementing cutting-edge packaging solutions such as bag-in-box containers as an alternative packaging, the production of wine is anticipated to experience a steady increase. Due to the rising consumption of alcoholic beverage, the market for the bag-in-box container in the alcoholic beverage segment is anticipated to grow in the forecast period (2023-2030). The market is anticipated to grow as alcoholic beverage consumption rises in developed economies. The region that consume the most alcoholic beverage products is predicted to be North America, followed by Europe.

Global Bag-in-Box Container Market - Impact of Coronavirus (COVID-19) Pandemic

COVID-19 began in Wuhan (China) in December 2019 and has since spread rapidly throughout the world. In terms of confirmed cases and reported deaths, the U.S., India, Brazil, Russia, France, the U.K., Turkey, Italy, and Spain are among the worst affected countries. As a result of the pandemic, the chemical and materials industry is one of the major industries experiencing severe disruptions such as supply chain breakdowns, technology event cancellations, and office closures.

The closure of various plants and factories in leading regions such as North America, Europe, Asia Pacific, South America, and the Middle East and Africa has impacted the global supply chain and negatively impacted manufacturing, delivery schedules, and sales of various goods. Furthermore, several companies have already announced possible delays in product deliveries and a drop in future sales of their products. The pandemic has had an impact on the market global bag-in-box container due to a decrease in production as well as a halt in construction projects due to the global lockdown.

Global Bag-in-Box Container Market: Growth Drivers

Rapidly Growing demand for food and Beverages industry

The growth of the online food retail sector, the rise in the trend of eating out, particularly in developing countries, and other factors have all contributed to the expansion of the food and beverage industry. Due to the benefits mentioned above, the bag-in-box packaging is widely used in the food and beverage industry. Additionally, the automotive industry frequently uses bag-in-box packaging to deliver vital fluids like lubricants and motor oil used by cars. Additionally, the personal care and hygiene products sector uses bag-in-box packaging for items such as shampoo, detergent, and other comparable items. Additionally, a rise in disposable income, population growth, and business-friendly government policies in many nations all contribute significantly to the acceleration of industrialization. As a result, it is anticipated that the growth of all the aforementioned industries, which make extensive use of bag-in-box containers, will fuel the market's expansion over the coming years (2023-2030).  For instance, in May 2020, Smurfit Kappa introduced the Vitop Blue tap for use with Bag-in-Box cleaning products. During the COVID-19 pandemic, the product is intended to be used for bag-in-box hand sanitizer packaging. Smurfit Kappa is a FTSE 100 company and one of the leading providers of paper-based packaging in the world, with operations in over 30 countries.

Figure 1. Global Bag-in-Box Container Market, By End Use, in 2022

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Increased Demand for sustainable packaging

Packaging extends the product's shelf life and improves its shelf presence in addition to keeping it safe during transportation. As it is a sustainable packaging method that uses less plastic and more paperboard, which is readily recyclable, bag-in-box technology has gained popularity in the industry. Furthermore, as it is essentially a flat packaging, it takes up less space than a bottle and is therefore simpler to transport. Additionally, it can be used for packing a variety of dry and liquid products across the industry, including products for storing chemicals, motor oil, lubricants, wine, juices, and other liquid consumer products. For instance, in May 2021, New SIOC (Ships-In-Own-Container) approved bag-in-box packaging for liquid products was unveiled by Scholle IPN, a provider of bag-in-box and other packaging solutions. According to coherent market insights, this packaging can save up to 75% more energy overall and up to 67% on carbon emissions.

Global Bag-in-Box Container Market: Market Restraints

High cost of bag-in-box and Availability of alternative

The high cost of bag-in-box packaging solutions compared to conventional packaging options is anticipated to restrict the adoption of bag-in-box, in turn, expected to hinder the market growth over the forecast period. This factor is expected to inhibit the adoption of bag-in-box across various industrial applications and further restrict the market growth during the forecast period (2023-2030).

The growing usage of plastic bottles in the packaging of soft drinks due to cost-effectiveness is projected to restrain the market growth of bag-in-box over the forecast period. Moreover, fluctuation in the supply of raw materials that are used to produce bag-in-box containers is further expected to propel the market growth over the forecast period.

Global Bag-in-Box Container Market: Market Segmentation

On the basis of end use, in 2022, food and beverage accounted the largest market share of 49% in terms of revenue, followed by Household Products, Industrial Liquid Products respectively. Furthermore, factors such as rising disposable income and health concerns among the developing world's elderly are expected to drive demand for hygienic packaging solutions. Improved lifestyles, increased disposable income, and growing consumer awareness of healthier alternatives have resulted in increased demand for food and beverage products. The introduction of such packaging solutions that provide consumers with ease of consumption, as well as the production of a large number of new soft drinks, will emerge as major growth drivers during the forecast period. Furthermore, manufacturers are expanding their product lines with nutritious products, healthier snack options, and innovative packaging, driving the adoption of bag-in-box containers and resulting in significant market growth. Consumers' growing concerns about personal hygiene, combined with the increased use of household cleaning products, are expected to drive market growth over the forecast period. The market for bag-in-box containers in this segment is expected to be driven by rising demand for household cleaners such as surface deodorizers and fabric fresheners.

Figure 2. Global Bag-in-Box Container Market, By Region, 2022

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Global Bag-in-Box Container Market: Regional Analysis

Europe dominated the market, accounting for 44.5% of total revenue in 2022. The growth of the product in the food and beverage industry is expected to drive up demand for bag-in-box containers in Europe. Consumers' changing consumption patterns, high levels of urbanization, and the increasing popularity of such packaging are expected to drive market growth over the forecast period. Increased R&D investments by packaging manufacturers to enable the incorporation of new features such as shape, size, and features are expected to increase demand for the bag-in-box container in this region over the forecast period. Over the forecast period, the market for bag-in-box containers is likely to be driven by rising consumer health concerns and the demand for hygienic products. Over the course of the forecast period, an increase in the consumption of packaged nutritional food products with advantages such as food safety and quality at affordable prices is likely to drive the market in this region. Major food and beverage companies such as PepsiCo Inc., Tyson Food Inc., and Kellogg's Co. are present in this region, and their presence is anticipated to fuel the market's growth over the forecast period.

Over the forecast period, Asia Pacific is anticipated to experience the fastest rate in (2023-2030). Over the course of the forecast period, the expansion of the bag-in-box container industry is anticipated to benefit from the expanding food and beverage market in Asia Pacific. Demand is anticipated to increase over the forecast period as a result of rising industrialization in nations such as China and India, as well as rising regional adoption of packaged food and beverage products. Due to the introduction of eco-friendly household cleaning products, household products have become another significant market segment. In addition, the market for bag-in-box containers is anticipated to be driven by technological developments such as automatic dishwashing products.

Global Bag-in-Box Container Market: Recent Developments

• In 2020, Liqui-Box, a global supplier of flexible bag in box packaging for the bulk food industry and dairy, beverages, purchased the plastics division of DS Smith PLC. With this acquisition, the business can combine its technological know-how and create ground-breaking products. This will help it connect with a variety of customers and establish a strong presence in the market. DS Smith is a leading provider of sustainable packaging solutions, paper products and recycling services worldwide.
• In 2021, a new line of bag-in-box packaging for liquid products that is SIOC and Amazon ISTA-6 certified has been unveiled by flexible packaging solutions provider Scholle IPN. The new environmentally friendly packaging can be used for items like cleaning agents, laundry detergents, lawn care agents, automotive fluids, and beverages. Scholle IPN is a global leader in total flexible packaging solutions like barrier films, ergonomic fitments, and state-of-the-art filling.

Global Bag-in-Box Container Market: Key Companies

Key players active in the global bag-in-box container market are Smurfit Kappa Group, DS Smith, Amcor Limited, Liqui-Box, Scholle IPN, CDF Corporation, Vine Valley Ventures LLC, Parish Manufacturing Inc., TPS Rental Systems Ltd, and Optopack Ltd.

*Definition: Bag-in-box is a type of container that is widely used for the transportation of liquid products. It has a bladder or a plastic bag that is made up of low-density polyethylene (LDPE) which is seated inside the fiberboards. Low-density polyethylene, ethylene vinyl acetate and ethylene vinyl alcohol are some of the major material types used to produce Bag-in-box. This container finds applications across liquid foods, food & beverage, household products, and alcoholic & non-alcoholic beverages. Bag-in-box is highly reliable as it reduces the packaging waste, chemical resistance, and barrier to oxygen and moisture.