Category Intelligence on Bag in Box EMEA covers the following
Bag and tap are an integral part of the production process, these are highly customized and very specific to the buyers need. Hence, bag converters provide the bag-in-box packaging with tap attached. Their power in the supply chain is fairly higher compared to a standardized carton manufacturer.
Value creation is the highest in integrated model due to the critical importance of package being in contact with product. Furthermore, most of the innovations are centered around bags which increases their power in the value chain.
The bag-in-box wine packaging market is expected to grow by 4 percent until 2020. Apart from wine, bag-in-box packaging is making significant in-roads in various other end-uses including the recent innovation from Smurfit Kappa for motor oils.
Engaging with integrated global players like Smurfit Kappa or Rapak (DS Smith) provides cost advantages and introduction of innovative products in the market. The market also has a good mix of regional players eliminating any risk of supply shortage.Wine packaging is the primary driver for bag-in-box packaging within Europe. This is expected to increase by 2-3 percent during the next five years.
African wine consumption is expected to increase by 33 percent during the next 5-7 years. South Africa is the largest market within Africa, with wine consumption growing by 6-7 percent in 2016
•There has been more than 14 percent growth over the last two year in local wine sales, with bag-in-box packaging playing a vital role
•Growth in sales is directly proportional to the adoption and increase of bag-in-box packaging, this serves as a cost effective alternative to other packaging formats
•South Africa is a dominant market (75 percent of Africa's wine demand) followed by Angola and Tanzania. Growing consumption of wine and introduction of premium brands through bag-in-boxes facilitate growth in these countries
Raw Material Supply
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