With an estimated market revenue of US$ 939 million in 2023, the kegs market is set for substantial growth, projected to hit US$ 1.5 billion by 2033. The impressive compound annual growth rate (CAGR) of 4.5% from 2023 to 2033 underscores the market’s resilience and increasing significance. This growth is propelled by a rising demand for kegs across various industries, including the beverage sector. As businesses seek reliable and sustainable packaging solutions, kegs emerge as a preferred choice, contributing to the market’s consistent upward trajectory and establishing it as a key player in the packaging industry landscape.
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 Opportunities:
- Growing Beer Consumption:
- The global rise in beer consumption is a significant driver for the kegs market. As the demand for craft beers and specialty brews increases, breweries may prefer kegs for packaging due to the protection they offer from light and oxygen.
- Preference for Stainless Steel Kegs:
- Stainless steel kegs are durable, reusable, and provide a longer shelf life for beverages. Breweries and beverage companies may favor stainless steel kegs, contributing to market growth.
- Sustainability and Reusability:
- Increasing emphasis on sustainability and environmental concerns may drive the adoption of reusable kegs. Many businesses are looking for eco-friendly packaging options to reduce their carbon footprint.
- Rising Popularity of Microbreweries:
- The growth of microbreweries and the craft beer movement can boost the demand for kegs, especially smaller-sized kegs suitable for limited releases and experimental batches.
- Advancements in Keg Technology:
- Innovations in keg design and technology, such as improved cleaning and filling processes, can make kegs more attractive to beverage producers, influencing market growth.
Market Restraints:
- High Initial Cost:
- The initial investment required for kegging equipment, especially for smaller breweries or new entrants, can be a significant barrier. This may limit the adoption of kegs in favor of alternative packaging solutions.
- Logistical Challenges:
- Transportation and handling of kegs can pose logistical challenges due to their weight and size. This may be a concern for businesses operating in regions with inadequate infrastructure.
- Competition from Alternative Packaging:
- Bottles, cans, and other packaging formats may compete with kegs, depending on the preferences of consumers and the distribution channels used by breweries. Some beverage producers may opt for alternatives for ease of distribution.
- Cleaning and Maintenance:
- While kegs are reusable, the cleaning and maintenance processes can be time-consuming and require specialized equipment. This may be a consideration for businesses, especially smaller ones with limited resources.
- Limited Use in Certain Beverage Segments:
- Kegs are predominantly associated with beer, and their use in other beverage segments may be limited. The market may face constraints in segments where other packaging formats are more popular.
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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