Bag-in-Box Container Market Size, Share & Trends Analysis Report By Application (Food & Beverage, Industrial Liquids, Household Products), By Region, And Segment Forecasts, 2020 - 2028

Report Overview

The global bag-in-box container market size was estimated at USD 3.5 billion in 2020 and is expected to expand at a compounded annual growth rate (CAGR) of 6.5% from 2020 to 2028. The growth of the industry can be attributed to the growing product adoption in industry segments such as alcoholic beverages, household cleaners, and milk and dairy products.

The bag-in-box container industry has been witnessing a soaring demand from the wine industry. The production of wine is expected to register a steady increase with the manufacturers adopting advanced packaging solutions such as bag-in-box containers as alternative packaging. The market for the bag-in-box container in the alcoholic beverage segment is expected to increase owing to the increasing alcoholic beverage consumption. Growth in the consumption of alcoholic beverages in developed economies is expected to drive growth in the market. North America is expected to be the largest consumer of alcoholic beverage products followed by Europe. 

The growing demand for household products is expected to drive the market for bag-in-box containers over the forecast period. The increasing consumption of household cleaners such as surface deodorizers and surface cleaners is expected to drive the demand for bag-in-box containers in this segment. The growing urban population in the region has accounted for an increase in the demand for hygiene-promoting products such as household cleaners. In addition, the market is expected to be driven by the demand for low-foam detergents that are being packaged in bag-in-box containers.

The demand for the bag-in-box container is expected to be hampered by the growth in the substitute product market such as plastic and glass bottles. The abundant availability of plastic bottles at lower prices is expected to hinder the growth. The increasing demand for plastic bottles by the soft drink industry is expected to hamper the growth of the market over the forecast period

Bag-in-box containers face a high threat of substitution from other packaging products and packaging materials. Predominant among them are pouches. Pouches are among the most widely used products for the packaging of beverages. They are preferred for their convenience of use and portability. Furthermore, pouches are available in various formats, from as small as 50 ml to larger or multi-serving formats and sizes. Such factors have made pouches popular for on-the-go usage. From a marketing standpoint, pouches encourage sampling in the form of trial or on-the-go sizes.

The global market has several players, which are involved in technology development in terms of design and packaging solutions. Rising demand for innovative packaging designs for food and beverage products to catch consumer attention is expected to have a positive impact on industry growth over the forecast period.

The manufacturers are coming up with new ideas in order to tap the rising consumer demand. For instance, U.K. based company, Elite Packaging, has developed a gusseted bag that is sealed in every corner. This design offers the product more stability and efficiency. In addition, it reduces the space required for the bag-in-box container, making it more compact for application.

The consumption of non-essential goods such as alcoholic beverages and carbonated soft drinks was sluggish at the beginning of the year 2020 due to the emergence of the COVID-19 outbreak. This factor in turn negatively affected the packaging market including the bag-in-box container demand. For instance, the total revenue of DS Smith declined from USD 7,852.0 million in FY 2020 to USD 7,481.8 million in FY 2021.

However, demand for sanitizing and cleaning products was on the rise due to increased awareness regarding health and hygiene among the population during the pandemic. Market players were focusing on developing new packaging for various cleaning products. In May 2020, Smurfit Kappa launched Vitop Blue tap for Bag-in-Box cleaning products. The product is intended to be used for bag-in-box hand sanitizer packaging during the COVID-19 pandemic

Application Insights

The food and beverage application segment dominated the market and accounted for the largest revenue share of 65.8% in 2020. In addition, factors such as rising disposable income and health concerns among the older population in developing countries are expected to drive the demand for hygienic packaging solutions. Improved lifestyle, higher disposable income, and growing awareness about healthier products have resulted in a heightened demand for food and beverage products. The introduction of such packaging solutions that offer ease of consumption to the consumers and the production of a large number of new soft drinks will emerge as major growth drivers over the forecast period.

In addition, manufacturers are adding various options such as adding nutritious products to their product line, offering healthier snack items, and innovative packaging, thereby driving the adoption of bag-in-box containers resulting in considerable market growth.

The increasing concerns among consumers regarding personal hygiene coupled with the rising use of household cleaning products are expected to propel market growth over the forecast period. Rising demand for household cleaners such as surface deodorizers and fabric fresheners is expected to drive the market in this segment.

Regional Insights

In Asia Pacific, the market is expected to witness the fastest CAGR of 7.4% over the forecast period. The growing food and beverage market in Asia Pacific is expected to have a positive impact on the bag-in-box container industry growth over the forecast period. Increasing industrialization in countries such as India and China, coupled with the rising adoption of packaged food and beverage products in the region, is expected to propel demand over the forecast period.

Household products emerged as another major segment owing to the introduction of eco-cleaning household products. In addition, technological advancements including automatic dishwashing products are expected to drive the market.

The demand for bag-in-box containers in Europe is expected to grow owing to the growth of the product in the food and beverage industry. Changing consumption patterns of the consumers and high levels of urbanization, coupled with the increasing popularity of such packaging is expected to increase market growth over the forecast period. Increasing investments in R&D by the packaging manufacturers to enable the incorporation of new features including shape, size, and features is likely to increase the demand for the bag-in-box container in this region over the forecast period.

Increasing health concerns of people coupled with demand for hygienic products is likely to drive the market over the forecast period. Increasing consumption of packaged nutritional food products, with benefits such as food safety and quality at reasonable prices, is likely to drive the market in this region over the forecast period. The presence of major food and beverage companies including PepsiCo Inc.; Tyson Food Inc.; and Kellogg’s Co. in this region is expected to propel the growth of the market over the forecast period.

Key Companies & Market Share Insights

The competitive landscape for the market is characterized. Major companies in the market mostly operate through North America with their dedicated distribution and manufacturing locations present across the globe. These companies enter into a long-term agreement with the raw material suppliers to reduce the production cost and ensure a constant supply of the materials and gain a competitive edge over the other small-scale, local players.

Companies such as Smurfit Kappa Group, DS Smith, DuPont, and Amcor Ltd. are involved in the production of bag-in-box containers on a large scale through high capacity production lines and a large number of production facilities spread across the regions. The companies operate a large product portfolio comprising products across multiple application segments. The companies procure raw materials from major raw material suppliers in North America including The Dow Chemical Company and Arkema Group.

The companies resort to multiple mergers and acquisitions in a bid to gain market share in a particular region. In some cases, the companies build technological collaborations for the production of an advanced product with superior performance characteristics to increase revenue. The companies are also involved in the production of customized products in order to cater to the demand-supply gap as demonstrated by the consumers. Some prominent players in the global bag-in-box container market include:

• Amcor Ltd.

• Smurfit Kappa

• DS Smith

• Liquibox

• Scholle IPN

• CDF Corporation

• Arlington Packaging (Rental) Limited

• CENTRAL PACKAGE & DISPLAY

• Accurate Box Company, Inc

• TPS Rental System Ltd

• Optopack Ltd

• Zarcos America

• Aran Group

• BiBP Sp. z O.O

• SLF INDUSTRY AND TRADE CO., LTD.

Bag-in-Box Container Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global bag-in-box container market report on the basis of application and region:

• Application Outlook (Revenue, USD Million, 2017 - 2028)

  • Food & Beverage

    • Alcoholic Beverages

      • Wine

      • Beer

      • Others

    • Non-Alcoholic Beverages

      • Soft Drinks

      • Juices & Flavored Drinks

      • Water

    • Others

      • Tomato Products

      • Milk & Dairy Products

      • Liquid Eggs

      • Edible Oil

      • Others

  • Industrial Liquids

    • Oils

    • Industrial Fluids

    • Petroleum Products

  • Household Products

    • Household Cleaners

    • Liquid Detergents

    • Liquid Soaps & Handwash

    • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2028)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • Japan

    • India

  • Central & South America (CSA)

    • Brazil

  • Middle East & Africa (MEA)