Focus on Italian beverage

FIGURES AND TRENDS Focus on production, market trends and types of packaging for alcoholic beverages and soft drinks: analysis of 2012 and forecasts for 2013.

In terms of the global production of beverages in Western Europe, Italy is in fourth place with a share of 15%, after Germany (22%), Great Britain (20%), France (16%) and Spain (15%). Depending on the different families of beverages, there are obvious differences in market shares: Italy for example occupies a prominent position in the production of mineral water (share of around 62%).
Also with regard to still and sparkling wines, Italy is among the top three producers in the world along with France and Spain (its market share in this case is about 16%).
With regard to the vast area of soft drinks (carbonated and non carbonated beverages, fruit juices and energy drinks), when you consider the overall European market of just over 85 billion litres, Italy holds a market share of around 7%.
European consumption of alcoholic beverages (wine, beer and spirits) varies significantly from country to country, depending on the popularity of the given types.

The beverage market in Italy

In 2012 25,908 million litres of beverages were produced in Italy: 21% of which alcoholic, 79% falling under the area of soft drinks.

Alcoholic beverages: consolidated data and forecasts
After the fall in production in the 2008/2009 period and the recovery in the following two years, for alcoholic beverages 2012 ended with a decline of 2.1% (referring to marketed packaged product). In particular, there was a decrease of 1.5% in exports and a -0.5% in domestic demand; imported products were up 6.5%, while Italian production for the domestic market fell by 2.5%.

Wine. In 2012 there was a decrease of marketed product of around 4.5% with reference to the packaged product; the drop was both due to a slight dip in exports and a sharp decline in domestic demand.

Beer. Beer closed 2012 with a production growth of 4.8% due mainly to the excellent performance of domestic consumption and a substantial stability of exports.

Spirits. It is estimated that spirits, digestives and alcoholic aperitifs concluded 2012 with a decline of 2-3% of marketed production. The decline resulted primarily from a significant reduction in domestic demand, not offset by the growth in exports.

Vermouth. This product ended the year in sharp decline (about -5%), due to a dual drop in domestic consumption and exports.

Forecasts. According to first estimates, in 2013 the area of alcoholic beverages seems to be geared to a slow recovery driven by exports, particularly those relating to areas outside the EU.
More precisely, growth in the production of packaged wine is assumed to stand at 2%, that of the beer (also supported by domestic demand) at 3%. More contained the growth of spirits and vermouth, determined solely by exports.

Soft drinks: consolidated data and forecasts
Figures for 2012 show a modest increase (0.3%) in production compared to 2011. In quantitative terms, the main sector is that of mineral water (71% of global production) followed by carbonated soft drinks (18%).
The production of soft drinks continues to be mainly influenced by domestic demand, which, in total, accounts for the use of 90% of production. Also in quantitative terms, the export volumes of mineral water (68% of total exports) are the only ones that can be deemed significant.

Mineral water. Mineral water concluded 2012 with a limited growth (0.5%), driven by modest growthrates in both domestic demand and exports. Thanks to a possible expansion of the export flows, 2013, is expected to show growth slightly better than the preceding trends.

Soft drinks. Related as they are to domestic demand the figures for 2012 substantially confirmed the quantities consumed in 2011, essentially driven by the growth of colas. Here too, in 2013, a slight improvement in growth trends of domestic consumption are expected.

Fruit juices. For the second consecutive year a drop in production of 3-5% was seen. Starting from 2013 a slow recovery is assumed.

Miscellaneous. On the whole, the other segments of the non-alcoholic beverages (energy drinks, tea based beverages and flat fancy drinks) in 2012 showed a production increase of 2-3% due to the positive performance of exports, while domestic consumption dipped slightly. During 2013 as well the growth possibilities of this beverage category will mainly depend on exports.

Beverage packaging
Packaging continues to be a strategic variable for the beverage sector: as well as protecting the product and enabling its handling it is also an important marketing tool.

Alcoholic beverage packs. The packaging mix for the area of alcoholic beverages sees the glass bottle in pole position in all sectors, although other types of packaging are emerging, especially for wine and beer (areas in which, at any rate, the solutions show a greater variety).

Wine packaging sees the glass bottle accounting for 71.5%, the cellulosic polylaminate container 11%, bag-in-box 9% and the remaining 8.5% divided between 5 litre PET or glass “Chiantigiane”, PET bottles and kegs for on tap distribution.
Beer is bottled 77% in glass (returnable+ disposable) and 7.5% in cans (mainly aluminum); distribution on tap accounts for 15.5% and shows growth (the restaurant trade is clearly oriented to serving wine from the tap).
The glass bottle is the only packaging solution for spirits and vermouth.

Soft drink packs. Different and more varied the packaging solutions adopted in this field.
The PET bottle prevails fully and is tending to extend its share in the mineral water and carbonated soft drinks sectors.
The glass bottle continues to maintain an interesting position in the mineral water sector, in particular for returnables: although limited to HoReCa, the presence of bottles customized according to filler customer needs is growing. The situation is different for family consumption where the orientation is clearly towards the PET bottle, even for "door to door" deliveries.
In the field of soft drinks, the most widespread packaging solution after the PET bottle is the prevalently aluminum or tin can.

The polylaminate cellulose container predominates in fruit juices packagings, even if the PET bottle shows significant growth.
Of note the clear predominance of the PET bottle in the area of flat beverages (tea, fantasy fruit soft drinks and energy drinks), but aluminum cans and plastic beakers with aluminium easy peel top are also putting in good performances.
Soft drinks are also packaged in flexible "cheerpack" type pouches which show a good potential for further expansion.        

Plinio Iascone
Istituto Italiano Imballaggio