EUROPE BAG IN BOX PACKAGING MARKET SIZE & SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

The Europe Bag in Box Packaging Market was valued at US$ 1,505.78 million in 2022, and is expected to exhibit a CAGR of 3.22% during the forecast period (2023-2030) and is expected to grow to a value of US$ 1940.32 million by the year of 2030. Major factors that are expected to boost the growth of the bag-in-box packaging market during the forecast period are the rise in the need for eco-friendly packaging solutions. Furthermore, the growing demand for aseptic packaging in food and pharmaceutical industries is further anticipated to propel the bag-in-box packaging market.

Europe Bag in Box Packaging Market: Regional Insights

As per the European Union’s ban on all types of single use plastics, including food and beverage packaging products made up of environmentally harmful materials. The ban is taken as a step to limit the usage of pollutant materials along with a target to bring a reduction in the national reduction of consumption of the same. The aforementioned rules are boosting the demand for bag in box beverage packaging as these are made up of sustainable raw materials, which include paperboard box on the outside and a recyclable plastic pouch on the inside.

Germany is a major member of the European Union and is expected to accord for maximum sales in bag in box packaging across the region. In addition to that, the environmentally friendly consumer base in the country choosing sustainable packaging products over traditional ones, provides a much-needed boost and profitable growth opportunity to bag in box manufacturers across Germany. Germany is expected to account for around 1/5^th of the total sales of bag in box across Europe over the next decade.

Figure 1. Europe Bag in Box Packaging Market (%), By Region

Europe Bag in Box Packaging Market: Growth Drivers

• Increasing demand for bag-in-box packaging solutions among wine packaging manufacturers

The increasing demand for bag-in-box packaging solutions among wine packaging manufacturers, is one of the main growth drivers of the Europe bag in box packaging market. This is attributable to various advantages it offers over bottle packaging, including the use of much less plastic and the ability to dispense without surging or glugging. Wine producers in Europe and North America are gradually shifting to bag-in-box for packaging. Furthermore, bag-in-boxes are simple to distribute and more cost-effective. According to the European Commission, The European Union is the world's largest wine producer. It accounts for 65% of global production, 60% of global consumption, and 70% of exports of wine. Moreover, oxygen transmission rate is a significant parameter for evaluating the overall quality of wine packaging. Bag-in-box offers a lower oxygen rate of diffusion than glass bottles, making it an ideal choice among wine manufacturer around the world. Around half of the world's population demand for bag-in-box packaging comes from the wine industry.

• Demand for longer shelf lives for liquid contents

The demand for longer shelf lives for liquid contents is strengthening the bag-in-box packaging market's future prospects. Aseptic filling technology have been adopted by packaging companies, as a result, they are able to satisfy new application areas, thereby driving the bag-in-box packaging market growth. For instance, in June 2020, Greatview Aseptic Packaging, an established manufacturer, offering sleeves compatible with SIG Combibloc filling equipment. The company is one of the major manufacturers of roll-fed packaging material for Tetra Pak aseptic filling machines. The demand for bag-in-box packaging is also influenced by the branding options it provides for businesses. The market for bag-in-box packaging has grown in response to rising demand for puncture-resistant packaging. Package manufacturers are finding new opportunities, as consumers become more concerned about the integrity of their products and the aesthetics of their packaging.

Europe Bag in Box Packaging Market: Market Restraints

• Availability of less expensive alternatives packaging such as plastic bottles and increasing manufacturing cost of bag in box packaging

The high cost of bag-in-box packaging solutions compared to traditional packaging alternatives is expected to restrict the bag-in-box adoption, thereby, hindering the market growth during the forecast period. The rising use of plastic bottles in soft drink packaging due to cost-effectiveness is also expected to hamper bag-in-box market growth throughout the forecast period. Furthermore, fluctuations in the supply of raw materials to manufacture bag-in-box containers are expected to restrain the Europe bag in box packaging market growth during the forecast period.

On the basis of capacity the Europe Bag in Box Packaging Market is classified into Less than 1 Liter, 1 to 5 Liters, 6 to 10 Liters, 11 to 15 Liters And More than 15 Liters. Now, according to Material Type, the market is divided into Barrier And Corrugated Box. The different types of Barriers that were observed in this market are Aluminum, Metalized PET, Ethylene Vinyl Alcohol, Polyamide And Others (PDVC, metalized PP) and lastly by the end user the segmentations are Food & Beverage, Industrial and Household & Personal Care

Figure 2. Europe Bag in Box Packaging Market (%), By End User

Europe Bag in Box Packaging Market: Recent Developments

• In February 2021, Liqui-box, a liquid packaging and dispensing company, launched Liquipure, a new mono-material bag-in-box solution. The product follows the Ellen MacArthur Foundation's CEFLEX's, and the Association of Plastics Recyclers' global design requirements for flexible packaging.
• In October 2021, Smurfit kappa Group announced the launch of its new sustainable bag in box, which is made from 53% recycled and renewable materials.
• In July 2021, Liqui-Box Corporation teamed up with WestRock Company to deliver bag in box e-commerce solutions for liquids.

Europe Bag in Box Packaging Market: Key Companies

Key players operating in the Europe bag in box packaging market include Smurfit Kappa, Optopack Ltd., Amcor plc, Montibox, Aran Packaging, Liqui-box, Peak Liquid Packaging, DS Smith, Graficas Digraf Sl, and Goglio SpA

Definition: Bag-in-box is an enhanced packaging method for semi-liquids and liquids that aims to extend their shelf life. The bag-in-box packaging system was developed as a restructuring solution to the problems associated with packaging paste-textured and liquid food products such as water, wine, sauce, juice, fats, purees, and oils.