Healthy long-term growth in the paper bottles market slowed last year as the Covid-19 pandemic ate into demand, according to a report, Paper Bottles Market, published by FactMR.
The research showed that the global paper bottles market was valued at US$25.2 million last year, which slipped by 2.6 per cent year on year in the second and third quarters.
However, FactMR suggests this will be a temporary setback, with sales forecast to expand at a cumulative annual growth rate of 6 per cent through the next decade, as more companies adopt the packaging for food and supplements, wine and spirits, personal-care and home-care products.
By volume, global shipments of paper bottles are expected to increase by 5.2 per cent this year to more than 31.8 million units, with packaging bottles – used for consumer beverages – accounting for more than half of the market.
“While demand for non-alcoholic paper bottles is surging, demand for alcoholic paper bottles will witness gradual rise over coming years,” the report concluded.
“Sustainability remains a bedrock of swelling paper-bottle demand globally, with governments in almost all regions aiming to reduce plastic usage and shifting to sustainability in the future. Key manufacturers of paper bottles are considering ESG factors in their business models to foster lucrative growth potential in the market.”
FactMR says the market is being driven by North America, followed by Europe and East Asian.
Collaborations and partnerships between FMCG and liquor companies and manufacturers are likely to continue to drive market growth – combined with increasing consumer demand.
Among the beverage companies trialling the technology already are L’Oreal, Coca-Cola, Carlsberg, and PepsiCo, while Unilever is also looking at converting many household cleaning products to paper bottles.
“Companies in collaboration with paper bottle manufacturers are also investing heavily in R&D to produce much more efficient materials that are ideal for their products. Thus, collaborations and partnerships to manufacture paper bottles for eco-friendly packaging goals are projected to aid market growth over the forecast period,” concludes FactMR.
