Low alcohol beverages offer opportunities to paper-based packaging suppliers: Smurfit Kappa

31 Jan 2019 --- Saxon Packaging (which is owned by Smurfit Kappa, one of the world's largest manufacturers of paper-based packaging products), has revealed a 61 percent increase (compared to 2017) in demand for packaging solutions for low and non-alcoholic beverages from its customers. Additionally, the company notes a staggering 377 percent increase (compared to 2017) in the quantity of drinks packaging manufactured for use in the low and non-alcoholic beverage market. Saxon Packaging believes the rise of Generation Z (16-25-year-old) consumers is a driving factor behind this type of behavior.

According to a survey conducted by the UK Office of National Statistics in 2017, the percentage of people drinking alcohol in Britain is reducing.

Key statistics from the survey revealed:

• In 2005, 64 percent of those surveyed stated that they had consumed alcohol in the seven days prior to the survey, this figure dropped to 57 percent in 2017. 
• Sixty-five percent of people aged 45-64 years stated that they had consumed alcohol in the week prior to the survey, compared to only 48 percent of those aged 16-24 years old. 
• Twenty percent of respondents indicated they did not drink alcohol at all and are “teetotal.” 

Saxon Packaging believes that a major influence on this behavior is the rise of Generation Z (16-25-year-old) consumers, who are a more conscientious generation, concerned more about their personal and career advancement and health and wellbeing than socializing and attending parties. Thanks to the rise in social media, this younger generation is obliged to visit bars, pubs and clubs far less for social purposes, the company describes.  

According to Saxon Packaging, there is also far less pressure for people to consume alcohol from their peers. People are now opting to choose low and non-alcoholic beverages through personal preference.  

With this rising behavior, there is an opportunity for drinks manufacturers to attract this new market by offering healthier, flavorsome and interesting low and non-alcoholic alternatives. Many have predicted that this trend will result in bartenders creating a broader range of “mocktails” and sophisticated adult soft drinks.  

Alcohol reduction is also a key theme for 2019 and has formed a platform in the “balancing act” trend that the food and beverage industry has spoken of for several years. An Innova Market Insights survey (US, UK, France, Germany, China and Brazil) found that one in four consumers had cut down on their alcohol consumption in the past year. Offering solutions to target these groups that are lower in alcohol but still full of flavor will be on trend in 2019 and beyond, with “session” products remaining on trend, says the market researcher.

The need for manufacturers to obtain the attention of the consumer is paramount and eye-catching packaging can aid this movement, according to  Saxon Packaging. Consumers engage with packaging and packaging can trigger an emotion which is memorable to the consumer, the touch of the packaging, the excitement opening the packaging or even just the aesthetics, says the paper-based packaging provider. 

Saxon Packaging customers: The rise of the low-alcohol option
Saxon Packaging, which was acquired by in 2016  Saxon Packaging, hopes to further support and provide packaging solutions for all their customers in 2019, says the company. In light of  Saxon Packaging’s research, the company is well-positioned to deliver packaging for low and non-alcoholic beverages.

Joe Benn, Ugly Drinks Co-Founder and UK General Manager says: “We want to create an exciting experience for our Ugly fans and with Saxon, we've been able to develop vibrant, high-quality packaging that fits with our outgoing brand personality and attitude. Ugly is a flavored sparkling water containing no sugar, no sweetener and nothing artificial – and we believe choosing a non-alcoholic or healthier option should be just as exciting. Our packaging has a big part to play in this.” 

Jack Scott, Co-Founder of Dash Water also notes: “Dash offers a sugar-free option for those seeking an alternative to the usual soft drinks available in pubs and restaurants such as lemonade and coke by infusing sparkling water with a variety of flavors. Our packaging reflects its purity and flavor.” 

The company also notes that gift packaging is also a good way for a consumer to purchase a product for a friend or family member and give your product “gift-worthy” credentials.