Bag-in-box packaging is a packaging system that involves filling beverages or liquid food products into a bag stored inside a corrugated box. It offers various advantages such as space and cost efficiencies over traditional cans, bottles, or other rigid containers. Growing consumption of packaged wine, beer, fruit juices, and other beverages has propelled the demand for bag-in-box packaging.
The global Europe Bag in Box Packaging Market is estimated to be valued at US$ 1790.52 Mn in 2023 and is expected to exhibit a CAGR of 2.4% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The opportunity for size reduction and cost efficiencies associated with bag-in-box packaging is expected to drive the market growth over the forecast period. Bag-in-box packaging reduces the volume and weight of packed products as compared to rigid containers. This provides advantages in terms of reduced transportation and warehousing costs to the end-use industries. Further, bag-in-box packages are inexpensive to manufacture as compared to bottles, cans, or other rigid containers. The compact packaging solution enables Bag-in-box to save 30-60% of transportation and warehousing space and 30-40% of production cost. This offers an attractive value proposition to industries involved in production or packaging of beverages and liquid food products.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the Europe bag in box packaging market size is moderate as it requires significant capital investments and R&D to conform to stringent regulations set by regulatory bodies. However, new players can partner with existing suppliers and manufacturers to expand their presence.
Bargaining power of buyers: The bargaining power of buyers is moderate as buyers have several established players to choose from offering a wide range of products at competitive prices based on applications.
Bargaining power of suppliers: The bargaining power of suppliers is high as raw material suppliers hold a strong position in the market and alternatives are limited. This allows suppliers to influence pricing.
Threat of new substitutes: The threat of new substitutes is moderate as bag in box packaging is widely used due to ease of handling, pouring and storing applications. However, alternative pouches and aseptic packaging offer competition.
Competitive rivalry: The competitive rivalry is high due to the presence of numerous regional and international players offering innovative products.
SWOT Analysis
Strength: Wide product portfolio and innovative product designs towards sustainability. Expanding applications in food, beverages and industrial end-uses drive demand.
Weakness: Vulnerable to fluctuations in raw material prices. Dependence on limited suppliers exerts pricing pressure.
Opportunity: Growing demand for eco-friendly and recyclable packaging solutions. Lucrative growth prospects in Eastern European countries.
Threats: Stringent regulations pertaining to food contact materials. Increased preference for plastic pouches and aseptic cartons.
Key Takeaways
The Europe bag in box packaging market is expected to witness moderate growth over the forecast period. The global Europe Bag in Box Packaging Market is estimated to be valued at US$ 1790.52 Mn in 2023 and is expected to exhibit a CAGR of 2.4% over the forecast period 2024 to 2031.
The ever-expanding food and beverage industry accompanied by innovations in manufacturing processes will augment market revenues. Products made of paper and bio-based PE offer lucrative opportunities for sustainable packaging solutions. Germany accounted for the largest market share of over 20% in 2024 owing to strong demand from wine and juice producers.
Key players operating in the Europe Bag in Box Packaging market are Copperhead Industries, LLC, American Wire Group, Inc., Nehring Electrical Works Company, Kris-Tech Wire, MWS Wire Industries Inc., AFL, LEONI Wire Inc., Fisk Alloy Inc., and Elecref Industries Inc. Italy and France are other major regional markets driven by growth in dairy and non-carbonated beverage fillings. Stringent food safety regulations and preference for eco-friendly materials will mold future industry trends.
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Many manufacturers favor semiautomatic bag-in-box packaging machines as they are best suited for limited production.
The report provides analysis of global market for the period 2015-2026, wherein 2019 to 2026 is the forecast period and 2018 is considered as the base year.By type of machine, the packaging machine bag-in-box market is separated and integrated independently.
An integrated bag-in-box packaging machine consists of one single packaging line, with simulation software or control systems connected to all the operations.
The automated bag-in-box storage device industry is maturing in advanced nations such as the US, Germany, France, the UK, and Italy, and is anticipated to experience small to mild development over the prediction era.
Bag-in-box alternatives are used end-use by meat, drinks, agricultural goods, family goods, lacquer and lubricants, as well as medical and personal care.
The demand for bag-in-box packaging machines in the European region is expected to affect all these factors.
