The Flourishing Bag-in-Box Market in USA & Canada: Projected to Reach US$ 473.0 million by 2033

FMI

Over the upcoming decade, from 2023 to 2033, the bag-in-box packaging market in the USA and Canada is expected to experience substantial growth.

There is a growing demand for environmentally friendly, sustainable, convenient, and protective packaging solutions across various industries. Industries such as beverages, food, and others are increasingly seeking bag-in-box packaging solutions. Bag-in-box products have a lower carbon footprint compared to their plastic and glass counterparts.

Bag-in-box packaging for beverages is gaining popularity among consumers due to its convenience. Consumers are attracted to the increased shelf life, ease of dispensing, and storage benefits offered by bag-in-box solutions.

Manufacturers are utilizing bag-in-box packaging for a range of beverages, including tea, coffee, juice, and other liquid products.

Bag-in-box packaging ensures the safety of liquid products while also providing opportunities for brands to promote their products and build a positive brand image among consumers. Many brands are achieving this by utilizing sustainable packaging materials.

Over the forecast period, the sales of bag-in-box packaging in the USA and Canada are expected to witness significant growth. This growth can be attributed to the increasing popularity of bag-in-box packaging in the North American market.

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Key Takeaways from the USA & Canada Bag-in-box Market

  • The bag-in-box manufacturers across the USA & Canada offering small-sized bag-in-box packaging for commercial usage are witnessing high demand.
  • The sales of bag-in-box packaging in the USA & Canada having a capacity of fewer than 2 liters is anticipated to register a significant growth of 6.9% CAGR between 2023 to 2033.
  • The rise in consumption levels of all types of beverages in the USA & Canada has had a positive impact on the bag-in-box market.
  • The above-mentioned drivers make the beverage industry the largest end-use industry accounting for around 55.4% of the total sales of USA & Canada bag-in-box packaging in 2023.
  • The recyclability and flexibility of polyethylene make it a highly used material. It is used in more than 1/3rd of the total bag-in-box sold in the USA & Canada throughout the forecast period.
  • The rising consumption of wine & spirits in the USA & Canada will make it the significant application segment of bag-in-box containers.
  • This segment is expected to hold a market share of 20% in the year 2023 across the total USA & Canada bag-in-box market.

“The rising awareness amongst consumers for safety in their consumables is driving demand in the bag-in-box market. Freshness is another key concern in this industry. Manufacturers of bag-in-box packaging would find a sizeable opportunity in the forecast period in creating packaging products that keep the ingestible from coming into contact with oxygen.,” says an FMI analyst.

Key Players:

  • Smurfit Kappa Group Plc
  • DS Smith Plc
  • Scholle IPN Corporation
  • Liqui-Box Corporation
  • Aran Group
  • Goglio S.p.A.
  • CDF Corporation
  • Vine Valley Ventures LLC

Competitive Landscape: The USA & Canada Bag-in-Box Market Landscape

The manufacturers of bag-in-box present in the USA & Canada are focusing on developing innovative bag-in-box packaging solutions.

For instance,

In January 2021, Liqui-Box Corporation developed an innovative bag-in-box packaging solution called Eco-Flex. This bag is made from a unique blend of materials that includes renewable resources, and it has a reduced amount of plastic content.

In February 2022, Scholle IPN Corporation developed an innovative bag-in-box packaging solution called Bag-in-Bottle. This technology involves placing a high barrier bag inside a rigid bottle. This system reduces the amount of oxygen that comes into contact with the product, which helps to preserve its freshness and taste.

Some of the key players dominating the USA & Canada bag-in-box market are Smurfit Kappa Group Plc, DS Smith Plc, Scholle IPN Corporation, Liqui-Box Corporation, Aran Group, Goglio S.p.A., CDF Corporation, Vine Valley Ventures LLC, TPS Rental Systems Ltd, ABCO Automation, Inc., International Paper, Mondi plc, Vine Valley Ventures LLC and many more.

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Bag-in-Box Packaging Dominance in North America Driven by Polyethylene Material and Beverage Applications

Polyethylene Bag-in-Box Packaging Holds Strong Market Share in North America

Polyethylene (PE) bag-in-box packaging is currently dominating the North American market due to its cost-effectiveness and superior product holding capacity. With its ability to act as a barrier to moisture and air, polyethylene provides excellent protection for beverages and liquid food products, preventing spoilage. This has led to its widespread use in the region.

Bag-in-Box Packaging Finds Significant Application in Beverage Industry

The beverage industry, particularly wine and spirits, accounts for a significant portion of the bag-in-box market in North America. The rising consumption of alcoholic beverages, coupled with health concerns, has driven a shift towards low-alcohol options like wine and beer. Bag-in-box packaging is preferred for its convenience, safety during transportation, and extended shelf life for wine. Fruit juice also holds a notable share in the market, driven by the demand for convenient and sustainable packaging solutions.

Rising Dairy Products Market in Canada Boosts Bag-in-Box Packaging

In Canada, the rising consumption of dairy products, along with growing awareness of their benefits, has positively impacted the bag-in-box market. Bag-in-box packaging offers attractive, sustainable, cost-effective, and eco-friendly solutions for dairy products. With increased per capita consumption expected in Canada over the next decade, the demand for bag-in-box packaging is projected to grow, providing a boost to the industry.

Overall, the dominance of polyethylene bag-in-box packaging in North America can be attributed to its cost-effectiveness, moisture and air barrier properties, and wide application in the beverage industry. The rising demand for low-alcohol beverages, the popularity of wine and spirits, and the growing dairy products market are key drivers propelling the growth of bag-in-box packaging in the region

Key Trends for the USA & Canada Bag-in-box Market Listed by Future Market Insights (FMI)

  • The rising trend of bag-in-box is driven by the need for lightweight, eco-friendly, and convenient packaging solutions.
  • The bag-in-box packaging offers these benefits as it is made from recyclable materials, lightweight, and easy to store and transport.
  • Technologically, bag-in-box packaging machines have become more advanced. It enables manufacturers to produce bags of various sizes and shapes, adding to the appeal of this packaging format.
  • Bag-in-box packaging is being increasingly adopted by various industries, including food and beverage, pharmaceuticals, and cosmetics.
  • Smart packaging solutions, such as sensors and indicators, can monitor product quality and freshness, ensuring consumer satisfaction.
  • For instance, some bag-in-box packaging solutions come with oxygen barriers that prevent the ingress of oxygen, preserving the freshness and taste of the product.
  • The wine industry is a major consumer of bag-in-box packaging, and this trend is expected to continue in the coming years.
  • Bag-in-box packaging offers cost savings and environmental benefits compared to traditional glass bottles, making it an attractive option for wineries.

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USA & Canada Bag-in-Box Market Outlook by Category

By Capacity:

  • Less than 2 Liters
  • 2 to 3 Liters
  • 4 to 20 Liters
  • 20 to 25 Liters
  • Above 25 Liters

By Material:

  • Polyethylene (PE)
  • Ethylene Vinyl Acetate
  • Metallized-PET
  • Ethylene Vinyl Alcohol
  • Nylon
  • Foil

By Application:

  • Dairy Products
  • Tomato Pulp/Sauces, Vinegar & Flavouring
  • Processed Fruits and Vegetables Puree
  • Liquid Egg Products
  • Wine & Spirits
  • Fruit Juice
  • Water
  • Cookies
  • Cereals
  • Oil
  • Chemical Solutions
  • Liquid Detergent

By End Use:

  • Retail
  • Food
  • Beverage
  • Other B2B Industry
    • Chemical
    • Homecare
    • Cosmetics & Personal Care

By Country:

  • The USA
  • Canada

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Future Market Insights (ESOMAR certified market research organization and a member of Greater New York Chamber of Commerce) provides in-depth insights into governing factors elevating the demand in the market. It discloses opportunities that will favor the market growth in various segments on the basis of Source, Application, Sales Channel and End Use over the next 10-years

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About the Author

Nikhil Kaitwade

Associate Vice President at Future Market Insights, Inc. has over a decade of experience in market research and business consulting. He has successfully delivered 1500+ client assignments, predominantly in Automotive, Chemicals, Industrial Equipment, Oil & Gas, and Service industries.
His core competency circles around developing research methodology, creating a unique analysis framework, statistical data models for pricing analysis, competition mapping, and market feasibility analysis. His expertise also extends wide and beyond analysis, advising clients on identifying growth potential in established and niche market segments, investment/divestment decisions, and market entry decision-making.
Nikhil holds an MBA degree in Marketing and IT and a Graduate in Mechanical Engineering. Nikhil has authored several publications and quoted in journals like EMS Now, EPR Magazine, and EE Times.

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