Wine, an alcoholic drink made from fermented grapes has a huge presence in many house parties, get together, meetings, diners etc. which kept wine industry in great demand for a long period of time. An opened wine bottle pertains its original taste for a few days after which it starts degrading in contact with air. Wine packaging is thus an important task before shipping it to the desired location. Wine bottles are packaged in boxes of variety of materials such as paper, wood, polypropylene, Kraft paper etc. depending on the wine bottle quality and customer requirements.
The global wine packaging boxes market is estimated to surpass US$ 2,412.79 million by the end of 2028 in terms of revenue, exhibiting a CAGR of 5.5% during the forecast period (2022 to 2028).
Deterioration of wine when exposed to air for a long period is a big market driver for wine packaging boxes market. Too much exposure to air causes wine to undergo oxidation which converts it into vinegar by reacting with ethanol and forming acetaldehyde. This oxidation causes flattening of taste and changes the odour and flavour of the wine substantially. Wine does not become toxic after oxidation, it just gets converted to vinegar and loses its original taste. In order to minimize the contact of wine surface with oxygen, wine bottles are stacked into packaging boxes before they become ready to be transported. A good packaging of wine bottles into boxes ensures least contact with air, minimal turbulence/shaking of bottles.
Figure 1. Global Wine Packaging Boxes Market Revenue Share (%), By Region, 2021
Cardboard packaging boxes are one of the most favoured boxes used by many shippers due to its durability and low price. But it does fall short in providing safety to the product inside after experiencing a heavy impact and is not effective for shipping heavy items. Despite of its strength, cardboards can be crushed, dented, or damaged under some conditions. Also, they are not waterproof and cannot withstand weather conditions like rain or snow, and prove ineffective while keeping the product inside the box free from water and snow molecules. So, they need to be sealed with waterproof tapes before shipping and also due to the fragile nature of glass wine bottles they need to be handled with care, this clauses increases the packaging and shipping costs. Wooden boxes are costly and takes up space, while polypropylene boxes after its shelf life form plastic debris which accumulates and impacts the environment. These are some restraints which can hamper the growth of wine packaging boxes market in the forecast period.
|Base Year:||2021||Market Size in 2021:||US$ 1,658.64 Mn|
|Historical Data for:||2018, 2019, and 2020||Forecast Period:||2022 to 2028|
|Forecast Period 2022 to 2028 CAGR:||5.5%||2028 Value Projection:||US$ 2,412.79 Mn|
Super Wood Touch, Acorn Paper Products, DS Smith, International Paper, DIGRAF, Smurfit Kappa, MosPackaging, Golden State Box Factory, Riverside paper Co., Cross Country Box Co. Inc,.Sealed Air, Taylor Box, ALPPM, Evergreen, Spirited Shipper
|Restraints & Challenges:||
One of the common trends which is being followed in Wine Packaging Boxes is to show-off the wine brand inscribed in the box. Window wine boxes are uniquely designed to enhance the exterior look while providing buyers a peek at the wine inside. These boxes are used by many wine distributors to show-off the wine brand and grabbing attraction of the customers and luring them into buying it. This is a marketing strategy used by many sellers as these boxes have inserted windowpanes on top or in the front through which the product is visible and hence the bottle is not fully covered and helps the retailer to display it. Also, it becomes easy for the customers to choose among different brands of wine without exposing the bottles completely and disturbing the packaging and provides an assurance to the buyer to ensure the desired choice of wine brand before he/she wants before they can buy it.
Window Wine Packaging boxes are customizable and are designed according to the manufacturer with use of colors, logos, slogans, brand name and festival wishes on the box making it look more attractive.
Figure 2. Global Wine Packaging Boxes Market Revenue Share (%), By Product Type, 2021
Among the product type the corrugated segment dominated the market in 2021 by holding a share of 37.8% followed by wooden, and paper & Kraft paper.
Global Wine Packaging Boxes Market - Impact of Coronavirus (Covid-19) Pandemic
The Covid-19 pandemic created a global impact and affected a lot of institutions, businesses excluding from medicinal and emergency domain. The incorporation of social distancing and Lockdown around the globe sterilized many businesses including the Wine Packaging Boxes market. The impact of the pandemic influenced purchase of wine, A study conducted by Wittwer and Anderson showed a reduction of 14% in the value of domestic consumption of wine is due to the insurgence of the covid-19 virus in Western Europe.
Key players operating in the global wine packaging boxes market includes Super Wood Touch, Acorn Paper Products, DS Smith, International Paper, DIGRAF, Smurfit Kappa, MosPackaging, Golden State Box Factory, Riverside paper Co., Cross Country Box Co. Inc,.Sealed Air, Taylor Box, ALPPM, Evergreen, Spirited Shipper.
As the pandemic forced restaurants and bars to close all over the country and restricted consumers from dining in hotels, restaurants, more wine than ever before was ordered online last year as consumers were left with dine in their own homes. The mandatory stay-at-home orders forced many consumers to buy wines online thus having a wide selection of wines across regions without being bound by limited wine selection from shelves of their local retail shops. The e-commerce sector will register a positive growth as more wineries are investing in digital marketing strategies. According to a report published by ‘The Direct-to-Consumer Wine Shipping Report’ in collaboration with Sovos ShipCompliant and Wines Vines Analytics cited that the direct-to-consumer (DtC) was the most utilized sales channel as they don’t have wholesalers and retailers to share their profit margins with. The report analyzed a shipment data from more than 1,100 U.S. wineries to consumers for each month and marked a shipment number of around 40 million over the course of the year of 2020.
The ‘DtC’ channel did face difficulties, irregularities due to the pandemic like any other sector, but also at the same time benefited from home isolation orders. Most of the wine bottles are made of glass and need to be handled with care before, during and after the shipment, and here’s when packaging boxes come into play. The increasing shipment activities have bolstered the production of packaging boxes, according the same report, around 8.39 million cases of wine were shipped to consumers for the year of 2020 in US which was 27% more than the previous year which led ‘DtC’ to be the most dominant sales channel. The average price of the bottled wine shipped in 2020 also decreased by 9.5% that is around $37.72 per bottle which further led to the increased demand of wines and its shipment activities and also caused a reduced visitation to wineries, restaurants favoring the stay at home orders.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.