In 2023, the kegs market is anticipated to generate market sales of US$ 939 million, rising at a compound annual growth rate (CAGR) of 4.5% to reach US$ 1.5 billion by 2033. The sustained need for kegs throughout the beer, wine, and soft drink industries is demonstrated by this growth trajectory. Kegs are still a popular choice for packaging because of their affordability, sustainability, and robustness. The anticipated growth highlights how crucial kegs are to the effective transportation, storage, and dispensing of beverages, which propels the market’s consistent growth.
Due to their capacity to maintain the flavor and characteristics of their contents, alcoholic keg containers are predicted to become more and more popular. The growing number of retail locations has also made beverages more accessible, which has increased demand for kegs. The increase in keg demand is indicative of a larger trend where customers are looking more convenient methods to enjoy alcoholic beverages. This trend is driven by both shifting consumer tastes and the accessibility provided by retail channels. This emphasizes how crucial kegs are to preserving beverage quality and satisfying the changing needs of an expanding customer base.
Request Sample Report: https://www.futuremarketinsights.com/reports/sample/rep-gb-6666
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.
Buy Now/Purchase: https://www.futuremarketinsights.com/checkout/6666
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
About Future Market Insights (FMI)
Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer, Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 5000 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.
Contact Us:
Future Market Insights Inc.
Christiana Corporate, 200 Continental Drive,
Suite 401, Newark, Delaware – 19713, USA
T: +1-845-579-5705
For Sales Enquiries: sales@futuremarketinsights.com
Website: https://www.futuremarketinsights.com
LinkedIn| Twitter| Blogs | YouTube
