The Alcohol Packaging Trend That Thinks Inside the Box

The Signal: Suppliers of boxed and canned wine had reason to pop the cork in 2020. Sales surged as consumers swapped bar stools for couches and shopped in bulk.

US boxed wine sales during the week of March 7, 2020, rose 53% compared to the same week in 2019. The top seven brands saw combined growth of 13.5% to 53.4M cases in 2020. One of them, Bota Box, gained ~1M customers.

As for canned wine, volume sales this March were up 3,800%+ from 2017.

These trends look set to continue, paving the way for a host of new opportunities.

The connoisseur niche: Boxed wine used to be synonymous with cheap and tacky. Now, there are plenty of decent wines available in this format. Some even get the nod from a Michelin-starred restaurant.

Stigmas are fading; 42% of wine drinkers said that they would consider buying canned wine in 2020, compared to 33% in 2017.

Boxed wine stays fresh for six weeks after opening, whereas a bottle lasts just days. This makes boxes ideal for discerning drinkers and restaurants that serve by the glass.

The quality of boxed brands has improved, but there is still a gap in the market for premium products, especially in larger formats for restaurants and bars. Fine and premium wines are set to grow at a compound annual growth rate (CAGR) of 8% through 2022, compared to 6% for non-premium wines.

*Source: Mekko Graphics

As for cans, you could leverage the trend toward premiumization with single-serving cans of premium wines for both high-end events and the growing number of single adults who may not want to open a full bottle at home.

Luxury boxes could double as gift bags. Opportunities include ready-to-gift corporate, wedding, and Father's Day wines.

Do it for all the right Rieslings: Alternatively, packaged wine carries eco-credentials. Boxed wines produce half the emissions of bottles, and cans are recycled at a higher rate than glass.

Research says that shoppers are more likely to buy wines labeled "environmentally friendly" or "sustainably produced," and demand for organic wine is rising.

*Source: Beverage Daily

Many businesses target "conscious" wine lovers:

• Plonk Wine Club offers an organic, small-batch wine subscription.
• Mysa Natural Wine partners with a food bank.
• McBride Sisters supports women in the wine industry.
• Vegan Wines are (surprise!) vegan.

One idea is a subscription for socially and environmentally friendly wines in box format.

Boxed wine would pair well with plant-based meal delivery services (like Purple Carrot), organic vegetable subscriptions (like Abel & Cole), and restaurants with a sustainable-eating focus.

Conscious shoppers may be interested in groceries like oils, vinaigrettes, soups, and sauces in box format, or even boxed liquid hand and dishwashing soap with built-in dispensers.

You could look beyond boxes to sustainable solutions like this wine bottle refill service, or these refillable 10 liter wine kegs.

Burning Man, beach days, and BBQs: Cans and cartons allow for innovative, youth-targeted branding.

• Bandit Wines' cartons feature national parks.
• Beach Juice promotes a surfer lifestyle.
• Babe wines are a spinoff of the Twitter account White Girl Problems.

*Source: Instagram - @beachjuice.co, @banditwines, @katie_ragan

Single-serving boxes could suit campers and hikers because they are light and easily flattened once empty.

Resealable cartons would be ideal for in-flight service. They can be easily stowed for turbulence (or whenever the chatty guy in the window seat needs to get out). They could also protect women from drink spiking in clubs.

Cans would suit sports venues, where fans often carry multiple drinks to their seats. Babe, for example, is the official wine sponsor of the NFL.

Canned wine vending machines at motels, theaters, and festivals would save on bar infrastructure, although the legal framework for these is still evolving and varies by state.

Sparkling wines match the fun-in-the-sun image of canned wines, and are expected to remain popular. A focus on bubbly would be wise.

The health niche: The low- and no-alcohol drinks market is predicted to grow 31% by 2024, as 52% of Americans seek to reduce their consumption. And 78% of drinkers aged 18-35 say they are looking for low-calorie alternatives.

*Source: Instagram

Wine spritzers tick both boxes. A medium glass of wine contains 13% alcohol and 159 calories, whereas products like Smirnoff's Vodka & Soda Rose (4.5%), Ramona "Ruby Grapefruit" (7%), and Hoxie Spritzer (5%) contain <100 calories.

Canned spritzers leverage the trend toward ready-to-drink (RTD) beverages, the fastest-growing product category in the alcohol market.

That's the spirit: The low-cal trend is driving drinkers away from wines and beers, and towards other beverages.

*Source: USA Today

Fermented alcoholic beverages like hard seltzer and hard kombucha had their moments in 2019 and 2020, and brands like Tanqueray have developed their own RTD cocktails.

Founders could explore RTD cocktails in large boxes for parties or restaurants. Boxed spirits with built-in dispensers and measurements would help bartenders measure shots and do stocktake.

You could get into the festive "spirit" with cocktails like eggnog to be heated and enjoyed at home.

How are your favorite wines packaged? Share below!