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The Demand for Metal Beverage Cans Surges in China
DUBLIN, Ireland-(Business Wire)-February 14, 2008 - Research and Markets (http://www.researchandmarkets.com/reports/c82634) has announced the addition of "Beverage Packaging in China" to their offering.
Our Beverage Packaging in China report offers insight into key trends and developments driving packaging of all major types of beverage products: alcoholic drink, soft drinks and hot drinks. The report also examines trends and prospect for various pack types and closures: metal packaging, rigid plastic, glass, liquid cartons, paper-based containers; flexible packaging.
Why buy this report?
— Get a detailed picture of the beverage packaging industry;
— Pinpoint growth sectors and identify factors driving change;
— Understand the competitive environment, the market's major players and leading brands;
— Use five-year forecasts to assess how the market is predicted to develop.
EXECUTIVE SUMMARY
The Application of Pet Booms
PET, which was jointly promoted by the most dynamic soft drinks categories including RTD tea and fruit/vegetable juice, experienced double-digit volume growth in 2006. PET's application was significantly widened in alcoholic drinks packaging also, where more local spirits manufacturers launched both large and small size packs. Bottlers and beer breweries have signed contracts to use newly developed lightweight packaging with lower transportation costs than fragile glass.
The Demand for Metal Beverage Cans Surges
Shaped by the activities of modern distribution channels, represented by chained supermarkets and convenience stores, beverage packaging players have increasingly demanded light packaging with small logistic costs. Powerful retailers therefore preferred metal beverage cans to glass bottles. Retailers have shown a strong preference for metal beverage cans, mainly due to the highly fragile nature of glass and the high costs involved in transporting glass packaging. On-the-go consumption has further fuelled the sales of metal beverage cans in convenience stores, as single-serve cans respond better to the needs of consumers.
Pouches Enjoys Wider Application
In 2006 and 2007 pouches enjoyed continued retail volume growth and increased applications. Pouches were used for more hot drinks products, mostly in powder form. Reshaped flexible plastic pouches can considerably upgrade brand image and the positioning of products. The shelf stable feature of pouch packaging is highly valued by both consumers and retailers. With the rise in production volumes, the cost of pouches was considerably reduced over the review period, resulting in the wider use of pouches by beverage producers.
Family Consumption Drives Large Packaging
Beverages is deeply segmented, and new products targeting different consumer groups are launched frequently. The targeting of families was one of the most popular marketing strategies in China's beverage packaging industry in 2006. Family packaging not only means large-size packaging to consumers, it also signifies promotional packaging offering cost savings. Many family size products are launched with advertisements printed on the packaging stating that a volume percentage is free. Large liquid carton packaging is among the biggest beneficiaries of this trend. With the deepening penetration of liquid carton closures, liquid carton packaging plays an increasingly important role in health drinks such as 100% juices and nectars.
Investment and Innovation Support the Development of Beverage Packaging in China
Significant progress has been made in terms of beverage packaging technology in China. The development of PET-packaged alcoholic drinks, liquid carton-packed soft drinks and alcoholic drinks, and pouch packaging for hot drinks shows the potential of beverage packaging in China. The heat of the Chinese economy will not cool in the medium term, thereby ensuring that beverage consumption continues to increase in both retail value and volume terms. The expansion of both beverage producers and bottlers will accelerate the investment in technology, bringing packaging innovations in terms of materials and techniques. Beverage packaging in China offers great growth opportunities. Foreign investors and multinational brands cannot afford to ignore the opportunities in this industry. A more flexible government policy in China would create an increasingly friendly environment for foreign investment.
For more information, visit http://www.researchandmarkets.com/reports/c82634.
Source: Euromonitor International
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