April 20, 2024
Europe Bag in Box Packaging Market

Europe Bag in Box Packaging Market is Anticipated to Witness High Growth Owing to Increasing Demand for Flexible Packaging Solutions in Beverage Industry

The bag in box packaging market in Europe continues to experience high growth due to rising demand for convenient and flexible packaging formats in the beverage sector. Bag in box systems have emerged as a cost-effective and efficient packaging solution for various liquid products like fruit juices, wine, milk, edible oils, and other beverages. The key advantages of bag in box packaging include ease of handling, high pouring rates, longer shelf life, reduced material costs, minimized risk of contamination, and resealability. Due to these benefits, beverage producers are widely adopting bag in box solutions for packaging non-carbonated drinks and wine products.

The Europe Bag In Box Packaging Market Demand is estimated to be valued at US$ 1790.52 Mn in 2024 and is expected to exhibit a CAGR of 2.4% over the forecast period 2024 to 2030.

Key Takeaways
Key players operating in the Europe Bag in Box Packaging are Copperhead Industries, LLC, American Wire Group, Inc., Nehring Electrical Works Company, Kris-Tech Wire, MWS Wire Industries Inc., AFL, LEONI Wire Inc., Fisk Alloy Inc., and Elecref Industries Inc. These companies are investing in new manufacturing plants and focusing on developing innovative and sustainable bag in box packaging solutions to gain a competitive advantage.

The key opportunities in the Europe bag in box packaging market include growing demand for single-serve and on-the-go beverage formats and expansion of retail landscape. Increasing popularity of portion-sized drink packaging among millennials and generation Z consumers is fueling the sales of bag in box packaging. Moreover, the growing number of hypermarkets, supermarkets, convenience stores, and online retail channels in Europe provide a large addressable market for bag in box packaged beverages.

Key players in the Europe bag in box packaging market are undertaking various strategic initiatives like mergers and acquisitions to expand their global footprint. For instance, in 2021 American Wire Group acquired Tekni-Plex’s European industrial market business to strengthen its product portfolio and customer base in the Europe region. Furthermore, companies are investing in new production facilities in Central and Eastern European countries to cater to the rising demand from these markets.
Market Drivers
One key driver for the Europe bag in box packaging market is the growing demand for flexible and more sustainable packaging formats in the beverage industry. Bag in box packaging uses significantly less material compared to traditional cans and glass bottles, which reduces material and transportation costs for beverage producers. Moreover, bag in box packaging generates less waste as the empty bags are lightweight and flat, increasing recycling rates.
Market Restraints
The major restrain for the Europe bag in box packaging market is requirement of expensive filling and packaging equipment. The high capital and operational costs associated with setting up bag in box packaging lines is a deterrent for small and mid-sized beverage companies. Additionally, absence of standardized regulations and infrastructure for collection and recycling of empty bag in box packages acts as a challenge for increased adoption of this packaging format.

Segment Analysis
This market has two major segments – Below 5 liters and 5-10 liters. The below 5 liters segment dominates the market with around 60% share. This is because most wine and edible oil producers use below 5 liters packaging for their consumer products. The ease of handling and storage of smaller bag in box packages drives the demand for below 5 liters segment.

The 5-10 liters segment caters to commercial applications like restaurants, cafes and takeaways. However, its market share is nearly 40% as the individual commercial establishment requirement is also not very high.

Regional Analysis
Europe bag in box packaging market is dominated by Western Europe region with over 50% market share. Countries like France, Italy, Spain and Germany are major markets in Western Europe. This is due to high consumption of wine which is a major application of bag in box packaging in the region.

Eastern Europe is the fastest growing region during the forecast period. Countries like Poland, Czech Republic and Russia are witnessing rising demand from industrial and consumer sectors. Investments in food processing and beverage industries offer potential for bag in box packaging in Eastern Europe region.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it