A reusable barrel is a hollow cylindrical container originally built of wooden planks and held together with wooden or metal hoops. Reusable barrels were utilized in the wine industry in three ways, providing flavors like vanilla, clove, smoke, and coconut. Certain bourbon barrels that do not meet the standards of aging distilled spirits are further used for décor. Rising disposable income and increased spending on remodeling activities is expected to aid the growth for reusable barrels during the forecast period.
Global Reusable Barrels Market was valued at US$ 135.00 Million in 2021 in terms of revenue, exhibiting a CAGR of 4.04 % during the forecast period (2022 to 2030).
Drivers
During the forecast period, the market is likely to be driven by increasing demand for scotch whisky market. Reusable barrels are widely used in scotch whisky distilleries for the maturing of whisky. The growth of the scotch whiskey market is expected to drive demand for reusable barrels from scotch whisky distilleries. The market for scotch whisky is driven by rising demand for premium and high-quality alcoholic beverages, owing to increase in the purchasing power of consumers.
Global reusable barrels market is expected to witness significant growth, owing to multiple advantages associated with the use of bourbon aged barrels. Due to stringent regulations, American whisky manufacturers cannot reuse bourbon aged barrels. However, these barrels are used for distilling other beverages and are used to add unique flavor to scotch whisky, rum, tequila, beer, and others. Moreover, bourbon aged barrels are less costly than sherry casks, which makes it a favorable barrel used in the scotch whisky market. Bourbon aged barrels help in imparting sweetness, scented vanilla, and golden honey flavors to scotch whisky. It also helps in the better preservation of single malt whisky’s primary fruity character.
The COVID-19 has negatively affected the global reusable barrels market. Due to the forced shutdown of bars, pubs, and restaurants, wineries around the world are suffering the impacts of the COVID 19 outbreak. Global reusable barrels market’s financial flows have been affected by the temporary closures of wineries. However, with the advent of home deliveries and internet stores, demand for alcoholic beverages is anticipated to prevail. A temporary imbalance between supply and demand might result from a disruption in the supply chain. Due to the expected reduction in wine sales due to low imports for the year 2020, several wineries have paused or decreased their production capacity. As a result, in the short term, this could restrict the growth of the global reusable barrels market.
Figure 1. Global Reusable Barrels Market Value Share (%), By Region, 2021
Europe dominated the global reusable barrels market in 2021, accounting for 57.8% share, in terms of revenue, followed by North America and Latin America. As a result of increase in demand for scotch whisky industry.
Market Restraints
The volatile nature of raw materials used to make barrels, such as oak, which produces volatile compounds when burned, is restricting the expansion of the global reusable barrels market. Over the forecast period, increased demand for cost-effective and efficient packaging solutions is expected to generate an opportunity for the global reusable barrels market. Moreover, the expense of the American oak barrels and availability of oak may restrict the global reusable barrels market.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2021 | Market Size in 2021: | US$ 135.00 Mn |
| Historical Data for: | 2017-2020 | Estimated Year: | 2022 |
| Forecast Period 2022 to 2030 CAGR: | 4.04 % | Forecast Period: | 2022-2030 |
| Geographies covered: |
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| Segments covered: |
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| Companies covered: |
Annandale Distillery, Rocky Mountain Barrel Company, Exotic Barrels, Esty Inc., Midwest Barrel Co., Mystic Barrels, Red Head Barrels, Kentucky Bourbon Barrel (Independent Stave Company), Country Connection, and Kelvin Cooperage |
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Market Trends
The increased adoption of recyclable raw materials for barrel manufacturing is a significant trend in the global reusable barrels market. One of the main factors driving the global reusable barrels market is the change from traditional materials to biodegradable materials for barrel manufacturing, which is being driven by strong environmental legislation around the world aimed at lowering carbon emissions. Furthermore, one of the major trends is the growing demand for efficient and safe transportation of bulk materials. The global reusable barrels market is also growing due to the vast product array supplied by manufacturers in terms of various shapes and sizes.
Figure 2. Global Reusable Barrels Market value Share (%), By Material Type, 2021
On the basis of material type, the American oak wood segment dominated the global reusable barrels market in 2021, accounting for around 48.4% of market share, in terms of revenue, followed by French oak wood and others, owing to increasing demand for lightweight products in the automotive industry.
Recent Developments
Competitive Section
Major players operating in the global reusable barrels market include Annandale Distillery, Rocky Mountain Barrel Company, Exotic Barrels, Esty Inc., Midwest Barrel Co., Mystic Barrels, Red Head Barrels, Kentucky Bourbon Barrel (Independent Stave Company), Country Connection, and Kelvin Cooperage.
Packaging is an important element of any product's lifecycle since it protects the product from damage such as contamination, leakage, and other issues throughout shipping, use, and storage. The barrel is the oldest type of packaging, and it is considered as rigid bulk packaging. Reusable barrels are commonly used in the chemical and breweries industries, as well as in the food industries. They're also utilized for product protection and transportation. Furthermore, as reusable barrels come in a variety of shapes and sizes, they can be used for a variety of industrial packaging applications. Over the forecast period, the global reusable barrels market is expected to grow at a fast rate.
Market Dynamics
A growing preference for flavored alcoholic beverages is expected to benefit the global reusable barrels market. An expanding consumer lifestyle and higher per capita income are fueling the global reusable barrels market growth, as well as a growing desire for premium products such as craft and draught varieties. Reusable barrels aid in the preservation of alcoholic beverages' original quality and flavor over long periods of time. As the draught beer is typically served from reusable barrels to maintain pressure, on-trade sales of the product are more popular.
On the other hand, strict rules & regulations regarding the usage of reusable barrels is hampering the market growth. The new amendment allows scotch whisky producers to use a wide variety of casks for maturation, including those previously used to age agave spirits, calvados, barrel aged cachucha, shochu, and baijiu, as well as some other fruit spirits. This new amendment is expected to hamper the demand for bourbon aged barrels from the scotch whisky market, as the distillers have a wide range of options for used barrels apart from bourbon aged barrels.
Key features of the study:
Detailed Segmentation:
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