REUSABLE BARRELS MARKET ANALYSIS

Global reusable barrels market was valued at US$ 141.9 Mn in 2022, exhibiting a CAGR of 6.0% in terms of revenue, over the forecast period (2023 to 2030) to reach US$  226.7 Mn by 2030. 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.

Covid-19 Impact on Global Reusable Barrels Market

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, By Material Type, 2022

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Global Reusable Barrels Market- Drivers

• Rising demand for Scotch whisky throughout the course of the projected period

The market will probably be driven by rising demand for Scotch whisky throughout the course of the projected period. In Scotch whisky distilleries, used barrels are frequently used to age whisky. Reusable barrel demand from Scotch whisky distilleries is anticipated to increase as the market for the beverage expands. Due to customers' increased spending capacity, the desire for premium and high-quality alcoholic drinks is driving the market for Scotch whisky.

• Multiple advantages associated with the use of bourbon aged barrels

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.

Global Reusable Barrels Market- Restraints

• Volatile nature of the raw material used to make barrels

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. Moreover, the expense of the American oak barrels and the availability of oak may restrict the global reusable barrels market.

Global Reusable Barrels Market- Segmentation

On the basis of material type, the French oak wood segment dominated the global reusable barrels market in 2022, accounting for around 49% of market share, in terms of revenue, followed by French oak wood and others, owing. American Oak is a hardwood common to the eastern U.S. and is considered a hard and heavy wood with low stiffness and medium crushing and bending strength. It has extremely good steam-bending properties and is easy to machine, nail, glue, and screw. It stains easily and can take a wide variety of colors.

Figure 2. Global Reusable Barrels Market, By Region, 2022

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Global Reusable Barrels Market- Opportunities

Increasing regulations and consumer demand for eco-friendly products

The reusable barrels market is poised for significant growth as sustainability becomes a priority for businesses and consumers alike. Consumer demand for eco-friendly products, industries are actively seeking alternatives to traditional packaging. Reusable barrels not only align with environmental goals but also offer cost savings in the long run by reducing packaging waste, transportation costs, and disposal expenses. As innovation continues to drive improvements in barrel design, materials, and logistics, the market for reusable barrels is expected to expand further, penetrating new industries and driving the shift toward a more sustainable future.

Global Reusable Barrels Market- Trends

Continuous product innovation by key players

Continuous product innovation by key players is one of the growing trends in the global reusable barrels market and this trend is projected to drive the market growth during the forecast period. Manufacturers are focused on using bourbon aged barrels to launch new products in order to expand their product portfolio. For instance, , Lillie’s Q (a supplier of complete range of traditional, deep-rooted barbecue sauces based in Chicago, U.S.) launched its limited edition bourbon barrel aged smoky sauce. The new sauce is Lillie’s Q popular Memphis-style sweet smoky recipe aged for six months in 20 Kentucky bourbon barrels.

Global Reusable Barrels Market- Regional Insights

Europe dominated the global reusable barrels market in 2022, accounting for a 58% share, in terms of revenue, followed by North America and Latin America.

Global Reusable Barrels Market- Key Developments

• In May 2021, Nefab expanded its footprint in the North America. The company has added production sites in Houston (Texas), Tucson (Arizona), and Gainesville (Florida) in the U.S.
• In March 2021, Suhutz, in order to meet the requirements in the supply chain and fulfill customer expectations, added the new Ecobulk MX 560 to its extensive product range. This new IBC (Insolvency and Bankruptcy Code) has a lower height than standard models and a nominal volume of 560 liters or 150 gallons, which makes it ideal for applications where smaller containers are an advantage, but where maximum performance and the highest quality are also decisive.
• In 2021, Schoeller Allibert introduced a pallet box made from recycled fishing nets. With this up cycling result, the company is reinforcing its sustainability strategy in recent years. Under the motto 'Making plastic packaging too good to waste,' the company further focuses on increasing the sustainable benefits of its packaging products.

Global Reusable Barrels Market- Key Players

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.

*Definition: 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