Asia-Pacific Kegs Market – Industry Trends and Forecast to 2029

Asia-Pacific Kegs Market Analysis and Size    

The Asia-Pacific kegs market is being driven by the increase in applications for kegs across industries. Additionally, the growth of the market is fueled by rising demand for alcoholic and non-alcoholic beverages. However, the primary factors limiting the market growth are the high costs associated with commercial kegs. As a result of the rising demand for kegs, manufacturers are putting more effort into launching new products with cut-edge technology and certified by authorized institutes. The market's expansion is ultimately aided by these choices.

Some of the factors driving the market growth are growing applications of kegs in chemical sector and food & beverages sector and increasing consumption of beverages due to gradual lifestyle changes. However, limitations in terms of slow replacement of kegs due to their prolonged lifespan are expected to hamper the market growth.

Data Bridge Market Research analyzes that the Asia-Pacific kegs market is expected to reach a value of USD 246.02 million by 2029 with a CAGR of 3.7% during the forecast period.

Market Definition

Kegs are little barrels. Beverages, chemicals, oils, and various liquids are transported and stored in kegs constructed with various raw materials. A keg is generally often made of stainless steel, however, aluminum can also be used if it has an interior plastic coating. Beer is frequently transported, served, and stored in it. A keg can also hold additional alcoholic and non-alcoholic beverages that are carbonated or not. It is common practice to maintain the pressure of carbonated beverages to keep carbon dioxide in the solution and prevent the beverage from going flat.

Asia-Pacific Kegs Market Dynamics

This section deals with understanding the market drivers, advantages, opportunities, restraints, and challenges. All of this is discussed in detail below:

DRIVERS

• Growing application of kegs in chemical sectors

A chemical storage keg is a high-quality storage container used by a wide range of industries to hold various types of chemical substances. They are available in a range of forms and sizes and have always been popular. An industrial chemical storage keg is a significant chemical storage system. Because chemicals are corrosive, they must be stored in a secure location. Chemical kegs are chemical storage containers that are frequently utilized in the chemical industry. They are available in a range of sizes and shapes and are used for static storage, processing, mixing, and transportation of both raw materials and finished chemical products.

Nowadays, most keg and chemical enterprises are investing in R&D, which leads to a surge in the applications of kegs in the chemical sector.

For instance,

• In November 2020, Indian Chemical New published an article titled “Role of R&D in Making Chemical Industry Aatma Nirbhar”. It said that according to the most recent statistics available, the Indian Chemical Industry spends roughly 2-3% of its total sales on R&D, compared to 9-10% for MNCs in other nations. According to Oxford Economics, the chemical industry spent USD 51.00 billion on R&D in 2017. China had the highest chemical R&D budget at USD 14.6 billion, followed by the U.S.and Japan at USD 12.10 billion and USD 6.90 billion, respectively. India was rated 7th with USD 1.80 billion investment in R&D in 2017. To compete with the international chemical sector, the industry must make significant investments in R&D. In addition, the Indian government provides numerous tax breaks to stimulate R&D investments.

Increasing R&D investments result in the construction of a wide application of kegs in the chemical sector, which eventually acts as a driving force for market expansion.

• Rising trend of long-term packaging and preserving solutions

The use of kegs as a packaging solution in the beverage industry is anticipated to have a promising future. Plastic kegs can be recycled and cost less to send back. On the other hand, keg adoption has expanded as a result of the popularity of kegs encouraging manufacturers to offer kegs for leasing. Single-use kegs are a more economical and effective alternative to traditional steel kegs, and it is anticipated that they will become widely used in near future. Additionally, the microbrew sector is expanding due to consumer enthusiasm for craft ales, which has bolstered the global keg industry. Keg use is anticipated to be encouraged by legislative constraints that favor lower package weight limits. Kegs are also used for preserving the solutions like beverages, oils, and chemicals to preserve the quality and flavor of the product.

For instance,

• In September 2021, Newsmatics Inc. published an article titled “Kegs have Become More Popular as a Promising, Long-term Packaging Solution” and tells that as a packaging option for beverages, kegs are anticipated to have a promising future

Rising end-user awareness of keg applications such as long-term packaging and preserving solutions is driving market growth.

RESTRAINTS

• Slow replacement of kegs due to their prolonged lifespan

Kegs have a longer lifespan, so customers purchase the product less frequently. Since it takes a lot of time to switch from old kegs to new ones, this time lag could act as a barrier to market expansion.

For instance,

• In March 2020, Keg Works published an article entitled “How Long Does a Keg Stay Fresh?”. It mentioned that a keg of pasteurized beer has a shelf life of around 90-120 days (or 3-4 months) and unpasteurized draught beer has a shelf life of about 45-60 days (or 6-8 weeks) when stored at the right temperature

Life span of various kegs is mentioned in the table given below:

Although kegs with a longer lifespan may assist end users, the slowdown replacement of kegs may function as a barrier to the growth of the buying market.

• High cost associated with commercial kegs

A price decline will almost certainly result in new consumers or keg sales. A high price, on the other hand, encourages buyers to buy less products, resulting in loss of sales for the company. The high cost of commercial kegs is a market barrier since end-users cannot afford to continue investing in these commercial kegs. It eventually acts as a barrier to market growth.

For instance,

The pricing of commercial kegs indicated above is higher, and they are beyond reach for end consumers. As a result, the market expansion will eventually slow down.

OPPORTUNITY

• Increasing advancements in technologies in kegs such as cutting-edge technology

Automation and technological developments have made keg manufacturing more efficient. These facilities may better manage their costs and key systems, thanks to smart keg tracking sensors linked to the Internet of Things (IoT) using both GPS and RFID technology, as well as temperature controls among other things. Keg automation technologies include smart sensors, mobile tablets and smartphones, software, APIs, and cloud databases. Technology-driven automation in kegs among other things enhances fulfillment and improves storage and transportation of alcoholic or non-alcoholic drinks, carbonated or non-carbonated, and other beverages.

The quick increase in R&D and technological progress in keg manufacturing will help in providing an opportunity for market growth and expansion.

As a result, opportunities in the market are anticipated to arise from ongoing technological developments in keg manufacturing.

CHALLENGE

• Growing stiff competition among players

Since there is intense competition among the current kegs industry players, this will result in lower prices and less overall profitability for the sector. Kegs is a highly competitive packaging and container market. The organization's total long-term profitability is affected by this competition. Due to the intense rivalry, businesses primarily concentrate on increasing the number of product releases, campaigns, and marketing to attract consumers. So, this competition among the players will be a challenge for the market.

Companies that produce and supply comparable goods are more competitive with one another, which could threaten the market due to large supply and low demand.

Post-COVID-19 Impact on Asia-Pacific Kegs Market

Post-pandemic, the demand for kegs increased as there were no restrictions on movement, hence, the supply of products was easy. The persistence of COVID-19 for a longer period affected the supply chain as it got disrupted, and it became difficult to supply the food products to the consumers, initially increasing the demand for products. However, post-COVID-19, the demand for kegs increased significantly owing to good nutrient content and other nutritional availability.

Recent Developments

• In May 2021, Lumiere Technologies became BLEFA's new India partner. Lumiere Technologies is based in Bangalore. It is a subsidiary of the SpectraA Group. SpectraA is well-known in the Indian brewery industry because it provides breweries with a complete solution. Similarly, the company provides a comprehensive solution to distilleries, food & beverage establishments, soft drink plants, and other businesses.

Asia-Pacific Kegs Market Scope

The Asia-Pacific kegs market is segmented into four notable segments based on material, capacity, end user, and distribution channel. The growth amongst these segments will help you analyze major growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Material

• Plastic
• Tin
• Stainless Steel

Based on material, the market is segmented into plastic, tin, and stainless steel.

Capacity

• Up To 20 Litre
• 20 Litre To 40 Litre
• 40 Litre To 60 Litre
• Above 60 Litre

Based on capacity, the market is segmented into up to 20 litre, 20 litre to 40 litre, 40 litre to 60 litre, and above 60 litre.

End User

• Alcoholic Beverages
• Non-Alcoholic Beverages
• Cooking Oil
• Chemicals
• Others

Based on end user, the market is segmented into alcoholic beverages, non-alcoholic beverages, cooking oil, chemicals, and others.

Distribution Channel

• Supermarket/Hypermarket
• Commercial Liquor Store
• Others

Based on distribution channel, the market is segmented into supermarket/hypermarket, commercial liquor store, and others.

Asia-Pacific Kegs Market Regional Analysis/Insights

The Asia-Pacific kegs market is analyzed and market size insights and trends are provided by country, material, capacity, end user, and distribution channel as referenced above.

The countries covered in this market report are Japan, China, South Korea, India, Australia & New Zealand, Singapore, Thailand, Indonesia, Malaysia, Philippines, Taiwan, Hong Kong, and Rest of Asia-Pacific.

China is dominating the kegs market in Asia-Pacific region. Growing demand for beverages is the major reason for market growth in Asia-Pacific. Moreover, the beverages market is growing progressively in the Asia-Pacific region. The growth of this market will directly impact the growth of the kegs market. However, high cost of commercial kegs is likely to restrict the market growth.

The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like downstream and upstream value chain analysis, technical trends and porter's five forces analysis, and case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of Asia-Pacific brands and the challenges faced due to large or scarce competition from local and domestic brands, and the impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.

Competitive Landscape and Asia-Pacific Kegs Market Share Analysis

The Asia-Pacific kegs market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in R&D, new market initiatives, Asia-Pacific presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, and application dominance. The above data points provided are only related to the companies' focus on the market.

Some of the major players operating in the market are SHINHAN INDUSTRIAL CO,. LTD., BLEFA GmbH, and Petainer Ltd. among others.

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