US Ready-to-Drink Packaging Market 2025 – 2034

Reports Description

As per the US Ready-To-Drink Packaging Market analysis conducted by the CMI team, the US ready-to-drink packaging market is expected to record a CAGR of 6.57% from 2025 to 2034. In 2025, the market size was USD 42.16 Billion. By 2034, the valuation is anticipated to reach USD 74.54 Billion.

Overview

The US ready-to-drink packaging market is basically shaped by regulations laid down pertaining to recycling mandates, materials usage, and environmental impact. State and Federal regulations (for instance – California’s plastic packaging reduction mandates) are pushing manufacturers toward biodegradable, recyclable, and recycled-content packaging. As an outcome, traceability, compliance, and sustainability have turned out to be embedded aspects of the operations of the industry.

The present scenario is such that most of the carbonated soft drinks are sold in PET bottles and aluminum cans. The other way is that of selling in bulk in foodservice vertical via soda fountains. Ready-to-drink iced tea has grown on a considerable note owing to rise in demand on its part. The vendors are providing specialized recycle packaging for RTD tea. For example – Graham Packaging does offer recyclable plastic packaging for proving longer shelf life for single-serve packaging. HDPE is broadly used for making various kinds of containers and bottles. The unpigmented bottles are strong and translucent, are endowed with proper barrier properties, and conducive to the products with shorter life span, such as energy drinks and juices.

Key Trends & Drivers

• Rise in Consumption of Performance & Sports Drinks

Growing consumption of performance & sports drinks is driving growth of the US ready-to-drink packaging market. RTD beverages contain protein, electrolytes, and vitamins, thereby making appropriate packaging necessary for preserving their freshness and quality. Packaging materials offering protection against temperature fluctuations, oxygen, and light are important in order to maintain taste and efficacy of such beverages.

Performance & sports drinks do have specified packaging needs owing to their ingredients as mentioned above. This has, in turn, resulted in increased usage of PET bottles that are simple to handle, lightweight, and resealable. Also, packaging does play a vital role in branding and marketing strategies of manufacturers of sports drinks. Enchanting graphics and designs on packaging are capable of influencing the buying decisions of consumers, thereby contributing to building a positive brand image. This focus on aesthetics is driving innovation in the US ready-to-drink packaging market.

• Growing Demand for Functional Drinks

Functional drinks encompass a broad spectrum of products inclusive of energy drinks, RTD teas, sports drinks, wellness shots, and likewise. These product offerings do create opportunities for various beverage packaging companies to develop various specialized packaging solutions aligned with exclusive requirements of beverages. Packaging materials that are equipped with light barrier properties and oxygen do play a vital role in the maintenance of efficacy and freshness of various functional beverage ingredients all through their shelf lives. Also, there is a rise in emphasis on numerous packaging solutions, thereby driving development of recyclable packaging formats, compostable packaging, and biodegradable plastics.

What’s trending in the US Ready-to-Drink Packaging Market?

In the US, carbonated drinks stand second with respect to the most-consumed drinks, with water leading the way. Plastic is used in over 80% of soft drinks packaging. Population explosion has resulted in rise in demand for carbonated soft drinks products. Research states that cola style soft drinks held the largest share of the US ready-to-drink packaging market in 2020, such that the sales crossed US$ 13 Bn. It further states that citrus carbonated soft drink varieties came in second, with sales accounting for nearly US$ 4.6 Bn.

Key Threats

• Higher Investments Needed for Developing Packaging used in Ready-to-Drink Beverages

Ready-to-drink beverages need specialized machinery as well as equipment for tasks like can forming, bottle molding, sealing, and labeling. Such machines are often costly to lease or buy, and they ned occasional upgrades and maintenance for ensuring optimal performance.

Besides, raw materials such as aluminum, plastic resins, paperboard, and glass could be expensive, thereby raising set-up costs on the whole. Also, fluctuations in prices of raw materials could adversely affect production expenses, thereby making it difficult for the companies to foretell and manage the costs effectively. Such factors could pose as threats for the market players.

Opportunities

Expansion of retail sector is a good opportunity for the US ready-to-drink packaging market. This expansion implies multiple retail channels including hypermarkets, supermarkets, online retail platforms, convenience stores, and specialty beverage shops. Every channel needs customized packaging solutions addressing specific requirements like display capabilities, shelf space optimization, and consumers’ preferences. The key players are also showing inclination toward adoption of recyclable materials, thereby minimizing packaging waste.

Category Wise Insights

By Material

• Glass: Glass bottles often imply premium, high-quality products, thereby improving the value of RTD beverage. Moreover, the elegance on the part of glass packaging is capable of helping brands in creating a discrete identity. besides, consumers are seen perceiving glass as a more sophisticated and luxurious packaging material, wherein it turns out to be one of the preferred choices for RTD beverages such as kombucha and craft beers. Also, glass is chemically inert, which means that it does not change the quality or taste of beverage. Its impermeability dos render protection to the contents against contaminants and air, which helps in extending its shelf life. The sustainability quotient (SQ) is higher as glass is 100% recyclable.

• Plastic: Manufacturers of RTD drinks prefer plastic due to it being durable, lightweight, and cost-effective. PET, in particular, makes RTDs simple to transport and handle, which is important for the trend of being on the move. The durability also ascertains that the product stays intact during usage and distribution. Plastic also costs less than metal or glass, thereby making it one of the attractive options for mass manufacturing and distribution. The portable and resealable nature of the plastic bottles does make them one of the convenient choices for consumers.

• Paper & Paperboard: Paper & paperboard are broadly recognized for their biodegradability and recyclability, which makes them feasible for environmentally-friendly companies and consumers. Paperboard is obtained from wood pulp (a renewable resource), thereby improving its appeal as one of the sustainable packaging options. Moreover, sterner regulations with regards to waste reduction and single-use plastics are compelling companies to go for paper and paperboard. Expansion of online retail and e-Commerce is pressing the need for reliable and strong packaging. Herein, paperboard, especially corrugated boxes, is conducive.

• Metal: Metal (aluminum in particular) is capable of being melted down and reused on numerous occasions without compromising on quality, thereby aligning with the consumers’ demand regarding sustainable packaging. Also, aluminum is known for having lower carbon footprint in comparison with the other materials such as plastic. This, in turn, does make it one of the attractive options for environmentally conscious brands and consumers. Metal cans are simple to carry, lightweight, and do offer single-serving, convenient format to appeal to consumers battling busy lifestyles.

By Product

• Cans: Cans are recyclable, lightweight, and cost-effective. They are preferred for concerts, outdoor activities, and consumption on the move. Their compact size helps in chilling and storage as well. The application areas include a broad range of beverages inclusive of alcoholic drinks such as pre-mixed cocktails and craft beer, along with flavored seltzers and energy drinks. The manufacturers of cans are also putting in creative designs on the cans for attracting consumers and improving shelf appeal. Novel aluminum can manufacturing facilities are getting established for meeting the rising demand, thereby showing a positive outlook for the US ready-to-drink packaging market.

• Cartons: Cartons are generally made out of paperboard that is derived from the renewable resources, which appeals to the eco-conscious consumers. Plus, advancements in recycling technology are simplifying recycling of cartons. These days’ cartons are found to feature spouts/other dispensing mechanisms that makes them simple to simple to pour as well as use. Aseptic carton packaging allows to have shelf-stable beverages without getting refrigerated, which reduces need for preservatives. Cartons are gaining popularity for packaging RTD tea and coffee products, and also plant-based milk alternatives.

• Bottles: Bottles are used across packaging of juices, water, alcoholic drinks, and dairy products. Glass and plastic bottles are amongst the popular choices, with plastic providing shatter-resistant and lightweight properties and glass offering superlative barrier protection. Bottles provide flexibility with respect to embossing and placement of labels, which pave the way for creative branding. They also serve the purpose of several distribution channels inclusive of vending, retail, and foodservice.

• Pouches: Pouches that include spouted and stand-up ones offer a portable and convenient packaging solution for the RTD beverages, especially the ones aimed at on-the-go consumers and kids. They are adaptable for the single-serve formats that are popular for kids’ drinks and smoothies, thereby resonating with demand for portion-controlled and convenient options. The ongoing trend of sustainable packaging is also bolstering the US RTD packaging market as pouches could be made out of recyclable materials.

By End-use

• Alcoholic Beverages: RTD alcoholic beverages, especially the ones in cans, do offer an invincible portability and convenience in comparison with conventional glass bottles. This caters to the ones who enjoy outdoor activities, social gatherings, and sporting events. Rise in popularity of RTD cocktails and craft beer, usually sold in cans, is amongst the key factors regarding growth of alcoholic RTD packaging market. Such products are especially aligned with the youth who find embracing portable packaging options easy.

• RTD Tea & Coffee: RTD tea and coffee provide an easy and a quick alternative to conventional brewing methods, thereby addressing demand for fast-paced, modern lifestyles. The manufacturers of RTD tea and coffee are coming up with low-calorie, low-sugar, and functional ingredients (antioxidants, vitamins, etc.) for catering to the health-conscious consumers. Various physical retail channels such as convenience stores, supermarkets, and food outlets also play a vital role in making such beverages accessible. Also, RTD tea and coffee market is visibly competitive, with both – new entrants and beverage giants vouching for market share, which calls for an increased demand for efficient RTD packaging.

• Bottled Water: Bottled water is easily available in several locations, thereby making it one of the convenient choices for consumers with those on the move. The portability and ease of purchase of single-serve bottles do appeal to the ones who are seeking fast hydration. Also, rising awareness regarding health risks linked with sweetened drinks coupled with fitness culture are catalyzing demand for bottled water as one of the healthiest alternatives. The consumers are also asking for bottled water added with nutrients such as vitamins and electrolytes. The bottled water industry is into development of eco-friendly packaging solutions inclusive of biodegradable and recyclable bottles for addressing environmental concerns.

• Fruit Juices: On-the-go consumption habits are driving the demand for RTD options such as fruits juices. Hectic schedules and rise in urbanization are compelling consumers to seek portable and convenient hydration sources and nutrition. Juices with extra functional ingredients such as antioxidants and probiotics are gaining traction. The perceived nutritional value provided by fresh and cold-pressed juices are pushing consumers toward them. Also, expansion of retail infrastructure inclusive of convenience stores, supermarkets, and online platforms improves accessibility on the part of packaged fruit juices.

• Dairy-based Beverages: Dairy-based beverages, especially RTD options, are contributing toward expansion of the US ready-to-drink packaging market with growing demand for protein shakes, flavored milk, and various other dairy-based drinks in several drinking formats. These beverages are looked upon as sources of calcium, protein, and the other nutrients, thereby catering to the interests of consumers in functional and healthy foods. The brands are also incorporating premium flavors, targeted functional claims, and clean-label positioning for attracting specified consumer segments, thereby driving diversification further.

• Plant-based Beverages: Plant-based beverages are increasingly being sought by consumers as they are more environmentally-friendly. Also, there is a rise in demand for lactose-free, vegetarian, and vegan diets. Plant-based carbonated soft drinks such as lemonades stay a staple in several diets and are preferred in social occasions. The manufacturers are responding by development of a broader spectrum of plant-based RTD products inclusive of fortified and flavored options, and also expanding the distribution channels.

• Carbonated Soft Drinks: Demand for carbonated soft drinks (CSDs) does increase during festive seasons and summers. Moreover, widespread availability on the part of CSDs in several foodservice and retail outlets inclusive of convenience stores, fast-food chains, and vending machines improves their consumption and accessibility. The manufacturers, in the interest of health of consumers, are coming up with sugar-free and low-calorie options, which are driving the growth of the US ready-to-drink packaging market.

• Functional & Energy Drinks: Consumers are asking for beverages offering additional benefits such as enhanced focus, energy, and strong immune support. RTD packaging lets consumers easily incorporate such drinks into daily routines, with the ones having busy lifestyles in particular. The gen Z and millennials are drawn to energy and functional drinks, thereby driving demand for healthier options. The brands are into development of innovative functional beverages such as cold brew coffee, protein shakes, and vitamin-infused water, thereby expanding the scope of the US ready-to-drink packaging market.

How are Plant-based Beverages transforming the US Ready-to-Drink Packaging Market?

Plant-based beverages include almond, soy, rice, oat, and coconut milk-based drinks. They generally come in unflavored and flavored formats and are generally used in the form of dairy alternatives. As such, they cater to lactose-intolerant consumers and vegans at large. New flavors, eco-conscious packaging, and added nutritional advantages (like B12, calcium) are strengthening the footprint of plant-based beverages in the US ready-to-drink packaging market.

Report Scope

Key Developments

The US ready-to-drink packaging market is witnessing a significant organic and inorganic expansion. Some of the key developments include –

• In July 2024, Ardagh Glass Packaging-North America introduced a novel series of 12-ounce craft beverage glass bottles in the US It is available in three colors – emerald green, amber (brown), and flint (clear). Such bottles are manufactured and developed domestically from 100% recycled, high-quality glass that could be recycled with quality retained.

• In April 2024, Amcor plc introduced the first one-liter polyethylene terephthalate (PET) bottle for carbonated soft drinks (CSDs) produced from 100% post-consumer recycled (PCR) material.

Leading Players

The US Ready-to-Drink Packaging market is highly competitive, with a large number of service providers globally. Some of the key players in the market include:

• Amcor plc
• Ball Corporation
• Tetra Pak
• Berry Global Inc.
• ALPLA
• Smurfit Westrock
• Crown
• SIG
• Silgan Plastics
• Graham Packaging
• DrinkPAK LLC
• Others

These firms apply a plethora of strategies to enter the market, including innovations, mergers and acquisitions, as well as collaboration. The US Ready-to-Drink packaging market is shaped by the presence of diversified players that compete based on product innovation, vertical integration, and cost efficiency.

The US Ready-to-Drink Packaging Market is segmented as follows:

By Material

• Glass
• Plastic
• Paper & Paperboard
• Metal

By Product

• Cans
• Cartons
• Bottles
• Pouches

By End-use

• Alcoholic Beverages
• RTD Tea & Coffee
• Bottled Water
• Fruit Juices
• Dairy-based beverages
• Plant-based Beverages
• Carbonated Soft Drinks
• Functional & Energy Drinks