Demand for wine packaging in the U.S. is projected to increase 4.4% annually to $3 billion in 2019. Growth will be supported by continued favorable gains in domestic wine consumption and production. In addition, advances will be spurred by increasing disposable personal incomes and changing alcoholic beverage preferences occurring with younger consumers. These changes include the preference for wine over beer among Millennials and a larger share of Millennials consuming wine on a daily basis versus other age groups. These and other trends are presented in “Wine Packaging,” a new study from The Freedonia Group, Inc. Glass bottles, the long-time traditional wine container, will continue to dominate the container mix in value and volume terms. However, analyst Esther Palevsky notes, “competition is increasing from a growing variety of alternative package formats and sizes offering greater economy or convenience.” The fastest gains for containers will be outside the dominant 750-mL size, including both smaller- and larger-sized offerings.
The report featured revised data based on findings from the 59th Annual Capacity Survey released May 15. Containerboard production in April 2019 decreased 5.3 percent compared to April 2018 and was down 4.1 percent year-to-date. The average daily production compared to March 2019 was 3.1 percent higher.
The containerboard operating rate bounced back above 90 percent due to the high rate for medium (96.5 percent), while the liner operating rate was at 89.6 percent. In spite of the bounce back, the April operating rate was 6.2 points lower than the same month last year, and the year-to-date operating rate was down 5.8 points compared to last year. Production for export, most of which is liner, was down nearly 20 percent year-over-year and was also down 20.5 percent year-to-date.