In 2023, the kegs market is forecasted to yield market revenue of US$ 939 million, with a projected increase to US$ 1.5 billion by 2033, reflecting a compound annual growth rate (CAGR) of 4.5% over the period. This growth trajectory highlights the enduring demand for kegs in various beverage industries, including beer, wine, and soft drinks. Kegs continue to be a preferred packaging solution due to their durability, sustainability, and cost-effectiveness. The projected expansion underscores the importance of kegs in facilitating efficient storage, transportation, and dispensing of beverages, driving steady growth in the market.
Rising alcohol consumption among individuals is expected to drive the demand for alcoholic keg containers, given their ability to preserve the flavor and properties of the contents. Additionally, the expanding reach of retail outlets has facilitated greater accessibility to beverages, thereby fueling the demand for kegs. As more consumers seek convenient ways to enjoy alcoholic beverages, the surge in keg demand reflects a broader trend influenced by both changing preferences and the accessibility afforded by retail channels. This underscores the integral role kegs play in maintaining beverage quality and meeting the evolving demands of a growing consumer base.
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Key Takeaways from the Kegs Industry:
- The United States kegs market is projected to attain market value of US$ 325.7 Million by 2033, growing at a CAGR of 5.2% in the coming years. Increasing automation in the industry, thanks to technologies like smart sensors, APIs, software, and cloud databases, is propelling market growth in the country.
- China market is estimated to grow at the fastest growth rate of 6% CAGR, to arrive at US$ 167.7 Million by 2033. The growing application of kegs in beverages and pharmaceutical sectors is leading the market expansion.
- The United Kingdom kegs market is expected to achieve a market valuation of US$ 81.5 Million by 2033 end, exhibiting a CAGR of 4.9% in the coming years. Increasing efforts by the keg manufacturers to release new products with breakthrough technology and authorized by formal regulatory bodies.
- The market is observing increasing preference for kegs having a capacity of 20L to 40L. Large breweries, bars, and restaurants are making use of kegs with this much capacity to preserve beverages, alcoholic or non-alcoholic. The ever-increasing growth of beverage sector is predicted to keep up the demand for kegs.
Business Growth Drivers:
- Craft Beer Boom: The surge in popularity of craft beer globally has significantly boosted the demand for kegs. Craft breweries prefer kegs for packaging their products due to their durability, reusability, and ability to maintain product quality.
- Preference for Sustainable Packaging: As consumers become more environmentally conscious, there’s a growing preference for sustainable packaging solutions. Kegs, being reusable and recyclable, align well with this trend, leading to increased adoption by beverage producers.
- Rising Demand for Draught Beer: On-premise consumption of draught beer has been steadily increasing, especially in bars, restaurants, and entertainment venues. This trend has directly contributed to the demand for kegs.
- Expansion of Beverage Offerings: Apart from beer, kegs are also used for dispensing other beverages like wine, cider, cold brew coffee, and kombucha. The diversification of beverage offerings has expanded the potential market for kegs.
- Technological Advancements: Innovations in keg design and manufacturing processes have made them more efficient, durable, and easier to handle. This has encouraged adoption by beverage producers and distributors.
- Growth in Hospitality Sector: With the growth of the hospitality sector globally, there’s an increased demand for kegs to serve draught beverages, driving the market forward.
Industry Restraints:
- Capital Intensive: Establishing or expanding keg manufacturing facilities requires significant capital investment. This can be a barrier to entry for new players and may hinder market growth to some extent.
- Regulatory Compliance: Compliance with regulations regarding beverage packaging, transportation, and distribution can pose challenges for keg manufacturers and beverage producers. This includes regulations related to hygiene, safety, and environmental standards.
- Logistical Challenges: Transporting kegs, especially over long distances, can be logistically challenging and costly. This can affect the overall supply chain efficiency and limit market expansion in certain regions.
- Competition from Alternative Packaging: While kegs offer advantages in terms of sustainability and product quality, they face competition from alternative packaging formats such as cans and bottles, particularly in retail settings.
- Maintenance and Cleaning Costs: While reusable, kegs require regular maintenance and cleaning to ensure product quality and safety. These costs can add up over time, impacting the overall cost-effectiveness for beverage producers.
- Market Fragmentation: The kegs market is relatively fragmented, with numerous small and medium-sized manufacturers competing for market share. This can lead to pricing pressures and margin constraints for players in the industry.
The Key Players Are:
- Ardagh Group S.A
- Petainer UK Holdings Ltd.
- Blefa GmbH
- Schaefer Container Systems
- The Metal Drum Company
- Julius Kleemann GmbH & Co KG
- THIELMANN – The Container Company
- American Keg Company
- NDL Keg Inc.
- Shinhan Industrial Co, Ltd.
- Ningbo BestFriends Beverage Containers Co. Ltd.
- Maisonneuve Group
Easy Recyclability and Reduced Transportation Costs of Plastic Kegs to Drive its Adoption
The plastic kegs segment is poised to lead the market throughout the forecast period, projecting a notable Compound Annual Growth Rate (CAGR) of 4.1%, an increase from the 3.3% CAGR observed in the historical period. Manufacturers are directing significant investments into PET plastic kegs, driven by the cost efficiency associated with their production and recycling compared to metal kegs. The growing preference for plastic kegs, attributed to their easy recyclability and reduced transportation costs due to their lighter weight, is expected to drive a surge in demand for this segment.
Concurrently, the stainless-steel segment is forecasted to expand to 1.4 times the current market value by the end of 2033. The increasing adoption of steel kegs is driven by their ability to protect contents from UV lights and other external environmental factors, further contributing to market growth.
New Developments Shaping up the Kegs Market:
- In June 2022, Ara Partners (“Ara”) unveiled that it has acquired Petainer Ltd., a global producer of sustainable beverage packaging solutions based in the UK. Ara collaborated with Next Wave Partners LLP affiliates and Petainer Management to make this acquisition.
- In May 2022, BLEFA got together with other major companies dealing in keg supply chain to introduce new Steel Keg Association (SKA) to provide the advantages of steel kegs to beverage companies and breweries, as well as restaurants and bars.
- In May 2021, Lumiere Technologies turned into a new Indian partner of BLEFA. The company is based in Bangalore, and is a subsidiary of the SpectraA Group. The latter is a famous company in the Indian brewery industry as it offers breweries with one-stop platform for all solutions. Likewise, the firm offers a comprehensive solution to soft drink plants, food & beverage establishments, distilleries, and other businesses.
- In January 2020, Blefa Kegs and American Keg revealed technological investment and considerable equity by Blefa in the future growth of American Keg. With this agreement, American Keg is forecast to witness robust growth in employment and production over time.
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Key Segmentations–
Capacity:
- Upto 20 L
- 20 L to 40 L
- 40 L to 60 L
- Above 60 L
- Material:
- Plastic
- Tin
- Stainless Steel
End Use:
- Alcoholic Beverages
- Beer
- Wine
- Spirits
- Cider
- Non-Alcoholic Beverages
- Soft-Drinks
- RTD Beverages
- Juices
- Others
- Cooking Oil
- Chemicals
- Others
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