Wine Packaging

Growth will be supported by continued favorable gains in domestic wine consumption and production, and by changing alcoholic beverage preferences of younger consumers in favor of wine.

US demand to rise 4.4% annually through 2019

Demand for wine packaging in the US is projected to increase 4.4 percent annually to $3.0 billion in 2019. Growth will be supported by continued favorable gains in domestic wine consumption and production. In addition, advances will be spurred by increasing disposable personal incomes and changing alcoholic beverage preferences occurring with younger consumers. These changes include the preference for wine over beer among millennials and a larger share of millennials consuming wine on a daily basis than that in other age groups. Opportunities for related packaging will benefit from its key role in marketing since it is the packaging that creates an initial impression of the wine and also has the ability to enhance the perception of the wine’s quality.

Alternative wine packaging to outpace glass bottles

Glass bottles, the long-time traditional wine container, will continue to dominate the container mix in value and volume terms. However, competition is increasing from a growing variety of alternative package formats and sizes offering greater economy or convenience. The fastest gains for containers will be outside the dominant 750-milliliter size, including both smaller- and larger-sized offerings. While most of these alternative containers have not captured substantial volume, they have become more prominent in recent years and are valued by smaller wineries seeking to make their products stand out on retail shelves that typically feature a sea of glass bottles and boxed wines. Robust advances will occur for single-serving container options such as plastic bottles, aseptic cartons, aluminum cans, and cups and goblets as these containers boast the advantage of enabling wine to be taken to or sold in places that typically prohibit glass containers. Bag-in-box packaging will experience above average growth due to its lower cost per unit of volume and greater adoption of the format for 1.5- and 3-liter premium offerings, thereby changing the image of “boxed wine” as being inferior in quality to bottled wines.

Closures to benefit from a widening array of types

Wine closure opportunities will be driven by rising packaged wine production, with changes in the container mix necessitating a widening array of closure types. This trend will fuel strong opportunities for aluminum and plastic screw caps and plastic dispensing closures. Though continuing to face intensified competition from alternative closures, cork demand will be sustained by the entrenched position of glass bottles in the wine industry and the cost-competitiveness and improved performance of technical corks. Cork demand will also benefit from the stronger cultural preference for corks in the US than in other countries.

Study coverage

This Freedonia industry study analyzes the $2.4 billion US wine packaging industry. It presents historical demand data (2004, 2009 and 2014) and forecasts (2019 and 2024) by container (e.g., glass bottles, bag-in-box packaging, plastic bottles, aseptic cartons), closure (e.g., natural corks, synthetic corks, aluminum screw caps), accessory (e.g., labels, capsules, boxes and carriers, wire hoods) and bulk packaging type (IBCs, flexitanks, drums). The study also considers market environment factors, details industry structure, evaluates company market share, and profiles 36 industry competitors, including Ardagh Group, Owens-Illinois, and E&J Gallo Winery.

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Table of Contents

INTRODUCTION viii

EXECUTIVE SUMMARY

MARKET ENVIRONMENT

General

Macroeconomic Outlook

Demographic & Household Trends

Consumer Income & Spending

Retail Sales

Alcoholic Beverage Industry Overview

Wine Industry Overview

Supply & Demand

Bulk Wine

Product Trends

Packaging Industry Overview

Paper

Plastic

Metal

Glass & Wood

Environmental & Regulatory Issues

OVERVIEW

General

Foreign Trade

Pricing

World Market

CONTAINERS

General

Glass Bottles

Bag-in-Box Packaging

Plastic Bottles

Aseptic Cartons

Other Containers

Pouches

Aluminum Cans

Cups & Goblets

Kegs

All Other

CLOSURES

General

Natural Corks

Full Natural Corks

Technical Corks

Synthetic Corks

Aluminum Screw Caps

Other Wine Closures

Plastic

Dispensing

Other Plastic

All Other

ZORK

Glass Stoppers

Crowns

Flexible Lids

OTHER WINE PACKAGING

General

Accessories

Labels

Capsules

Boxes & Carriers

Wire Hoods

Bulk Packaging

Intermediate Bulk Containers

Flexitanks

Drums

INDUSTRY STRUCTURE

General

Market Share

Glass Bottles

Non-Glass Wine Containers

Closures

Wine Packaging Accessories

Acquisitions & Divestitures

Competitive Strategies

Manufacturing

Marketing & Distribution

Cooperative Agreements

Company Profiles

Amcor Limited

Ardagh Group SA

AstraPouch, see Vine Valley Ventures

Avery Dennison Corporation

Ball Corporation

Bonar Plastics, see Snyder Industries

CCL Industries Incorporated

Collotype Labels USA, see Multi-Color

Constar International, see PlastiPak Holdings

Corticeira Amorim SGPS SA

DIAM Bouchage, see Oeneo

Encore Glass Incorporated

Enoplastic SpA

EnVino

Environmental Packaging Technologies Incorporated

Exal Group

Gallo (E&J) Winery

G3 Enterprises Incorporated

Guala Closures SpA

Hoover Container Solutions Incorporated

International Paper Company

Janson Industrie SA

Liqui-Box Corporation

Maverick Enterprises Incorporated

Metro Label, see Tapp Label

Multi-Color Corporation

Nomacorc, see Vinventions

Oeneo SA

Ohlinger (Rudolf), see Vinventions

Owens-Illinois Group Incorporated

Plastipak Holdings Incorporated

PPi Technologies Group

Saverglass sas

Scholle Corporation

Silgan Holdings Incorporated

Silva (MA) Cortiças Limitada

Snyder Industries Incorporated

Tapp Label Company LLC

Tetra Laval International SA

TricorBraun Incorporated

UPM-Kymmene Corporation

Verallia North America, see Ardagh Group

Vine Valley Ventures LLC

Vinventions LLC

Vitro SAB de CV

Additional Companies in Wine Packaging

List of Tables

EXECUTIVE SUMMARY

Summary Table

MARKET ENVIRONMENT

Macroeconomic Indicators

Population & Households

Personal Consumption Expenditures

Retail Sales

Alcoholic Beverage Supply & Demand

Wine Supply & Demand

Bulk Wine Supply & Demand

Wine Production by Container Size

Packaging Supply & Demand

OVERVIEW

Wine Packaging Demand by Type

US Foreign Trade in Wine Packaging

Selected Prices for Wine Packaging

CONTAINERS

Wine Container Demand by Type

Glass Bottle Demand in Wine Packaging

Bag-in-Box Demand in Wine Packaging

Plastic Bottle Demand in Wine Packaging

Aseptic Carton Demand in Wine Packaging

Other Wine Container Demand by Type

CLOSURES

Wine Closure Demand by Type

Natural Cork Closure Demand in Wine Packaging

Synthetic Cork Closure Demand in Wine Packaging

Aluminum Screw Cap Demand in Wine Packaging

Other Wine Closure Demand by Type 100

OTHER WINE PACKAGING

Other Wine Packaging Demand by Type

Wine Packaging Accessory Demand by Type

Label Demand in Wine Packaging

Capsule Demand in Wine Packaging

Box & Carrier Demand in Wine Packaging

Wire Hood Demand in Wine Packaging

Wine Bulk Packaging Demand by Type

INDUSTRY STRUCTURE

US Wine Packaging Sales by Company, 2014

Selected Acquisitions & Divestitures

Selected Cooperative Agreements

Wine Packaging

Growth will be supported by continued favorable gains in domestic wine consumption and production, and by changing alcoholic beverage preferences of younger consumers in favor of wine.

US demand to rise 4.4% annually through 2019

Alternative wine packaging to outpace glass bottles

Closures to benefit from a widening array of types

Study coverage

Purchase Wine Packaging by the Section

Wine Packaging

1 INTRODUCTION

2 EXECUTIVE SUMMARY

Table | WINE PACKAGING DEMAND

3 MARKET ENVIRONMENT

3.1 General

3.2 Macroeconomic Outlook

Table | MACROECONOMIC INDICATORS

3.3 Demographic & Household Trends

Table | POPULATION & HOUSEHOLDS

3.4 Consumer Income & Spending

Table | PERSONAL CONSUMPTION EXPENDITURES

3.5 Retail Sales

Table | RETAIL SALES

3.6 Alcoholic Beverage Industry Overview

Table | ALCOHOLIC BEVERAGE SUPPLY & DEMAND

3.7 Wine Industry Overview

3.7.1 Supply & Demand

Table | WINE SUPPLY & DEMAND

3.7.2 Bulk Wine

Table | BULK WINE SUPPLY & DEMAND

3.7.3 Product Trends

Table | WINE PRODUCTION BY CONTAINER SIZE

CHART II-1 WINE PRODUCTION BY CONTAINER SIZE, 2004-2024

3.8 Packaging Industry Overview

Table | PACKAGING SUPPLY & DEMAND

3.8.1 Paper

3.8.2 Plastic

3.8.3 Metal

3.8.4 Glass & Wood

3.9 Environmental & Regulatory Issues

4 OVERVIEW

4.1 General

Table | WINE PACKAGING DEMAND BY TYPE

CHART III-1 WINE PACKAGING DEMAND BY TYPE, 2014

4.2 Foreign Trade

Table | US FOREIGN TRADE IN WINE PACKAGING

4.3 Pricing

Table | SELECTED PRICES FOR WINE PACKAGING

4.4 World Market

5 CONTAINERS

5.1 General

Table | WINE CONTAINER DEMAND BY TYPE

CHART IV-1 WINE CONTAINER DEMAND BY TYPE, 2014

5.2 Glass Bottles

Table | GLASS BOTTLE DEMAND IN WINE PACKAGING

5.3 Bag-in-Box Packaging

Table | BAG-IN-BOX DEMAND IN WINE PACKAGING

5.4 Plastic Bottles

Table | PLASTIC BOTTLE DEMAND IN WINE PACKAGING

5.5 Aseptic Cartons

Table | ASEPTIC CARTON DEMAND IN WINE PACKAGING

5.6 Other Containers

Table | OTHER WINE CONTAINER DEMAND BY TYPE

5.6.1 Pouches

5.6.2 Aluminum Cans

5.6.3 Cups & Goblets

5.6.4 Kegs

5.6.5 All Other

6 CLOSURES

6.1 General

Table | WINE CLOSURE DEMAND BY TYPE

CHART V-1 WINE CLOSURE DEMAND BY TYPE, 2014

6.2 Natural Corks

Table | NATURAL CORK CLOSURE DEMAND IN WINE PACKAGING

6.2.1 Full Natural Corks

6.2.2 Technical Corks

6.3 Synthetic Corks

Table | SYNTHETIC CORK CLOSURE DEMAND IN WINE PACKAGING

6.4 Aluminum Screw Caps

Table | ALUMINUM SCREW CAP DEMAND IN WINE PACKAGING

6.5 Other Wine Closures

Table | OTHER WINE CLOSURE DEMAND BY TYPE