By: Rebecca Marquez, Director of Custom Research at PMMI
Handling a wide variety of sizes, shapes, and materials at faster speeds requires flexible, automated equipment that provides quick changeovers.
More than 16,000 craft beverage brands are now competing for attention, space, and sales at U.S. retail outlets, according to 2024 Craft Beer and Spirits: Success Through Packaging, a report from PMMI, The Association for Packaging and Processing Technologies. In addition to the large number of brands available, craft beverage producers have been feeling the pinch of rising input costs — from raw ingredients to packaging materials — and higher distribution costs.
To support brand and business growth, many craft producers are actively investing in new machinery. Some also have an aggressive growth plan.
One beer and spirits contract packager cited in the report is trying to determine if its current packaging equipment is strong enough to support an expected doubling in volume in the next year and, with a growing customer base, the possibility of five-fold growth in the next three to five years.
From a machine standpoint, craft beverage brands are almost unanimous in their opinion that their equipment needs to be adaptable, according to the 2024 report. While complete adaptability, such as filling bottles on a canning line, is functionally impossible, OEMs should carefully consider how versatile they can make their machine offerings. For instance, a canning line capable of filling 16- and 12-oz. cans provides some versatility. Still, one capable of switching to 19.2-oz. sizes and running tall, sleek cans would be more desirable for craft producers.
Machinery Flexibility Reigns Supreme
Craft producers need the ability to handle a wide variety of sizes, shapes, and materials at faster speeds, and they need more automated equipment features for changeovers, loading, and feeding.
Multipack formats—including multipacks that contain a variety of products—have remained a popular stock-keeping unit (SKU) option over the past decade. While consumers consistently report liking these formats, they frequently create operational headaches for craft producers because they necessitate alterations in their overall operations.
Special packaging formats also can create significant production challenges. In addition to label and format variations, specialty product releases are typically limited runs. To help craft producers reduce downtime when switching from standard to specialty product runs, OEMs and suppliers are working to expand features, such as automated label changeovers and automated feeding.
The logistics of handling mix packs is challenging for small breweries because it is typically performed with manual labor. Consequently, many craft beer producers seek affordable, automated solutions to help them compete with larger breweries.
For example, some smaller craft brewers need user-friendly push-button equipment and end-to-end solutions to minimize fluid waste. They also require predictive and preventive maintenance software, modular machinery, easier-to-program programmable logic controllers, and simplified, intuitive human-machine interfaces.
Craft producers also want advanced technology features, such as AI machine learning and improved machine sustainability functionality that uses less energy and reduces material waste.
Machines as a service, or MaaS, may have a future role to play in the craft beer and spirits industry when it comes to accommodating tight budgets and limited floor space, but very few operations are currently deploying this strategy, according to the 2024 PMMI report.
Beverage Processors Look to the Future
Technical integration will positively impact beverage packaging and processing operations in the coming years, according to 2025 Beverage Industry Packaging Trends, another report from PMMI. However, inflation, supply chain disruptions, regulatory compliance, and talent acquisition/retention challenges are expected to continue negatively impacting this industry.
The 2025 report states that company expansions, consumer product demands, and technology advances are the top three reasons beverage companies purchase new machinery. In addition, nearly 90% of the 2025 report’s surveyed companies plan to purchase some type of beverage packaging machinery in the next three years.
For instance, 58% of the respondents anticipate their investment in beverage packaging machinery will increase by 10% over the next three years. This includes 26% who expect an increase of more than 20%. Some plan to invest in entire production lines to keep up with demand and/or accommodate new product SKUs they’re developing. Others are focused on improving equipment efficiency to reduce bottlenecks and minimize downtime.
But beverage companies sometimes need more guidance from their suppliers to make the right decisions and keep machinery running. In-person and remote support are important since beverage processors want true partnerships with OEMs that are reliable and consistent for as long as the machine is functioning. In addition, these processors want more support, education, and perspective into what the future holds for new equipment.
Processors are justified in turning to OEMs for this type of assistance. To meet evolving packaging demands, end users need to optimize machinery use by leveraging digital insights and diagnostics for faster, more efficient production and the reduction of downtime, which directly impacts revenue, making technology-driven troubleshooting a top priority.
The degree of a machine’s user-friendliness is also a critical factor. In fact, one 2025 survey respondent believes machinery suppliers should automatically assume that somebody without much experience will be running the equipment every day. “The equipment needs to be smarter and more intuitive to the operator and contain built-in tutorials,” he states.
When it comes to avoiding recalls, sanitation is a major priority in beverage processing. Therefore, processors need machines and parts that are more easily cleaned. Standardized machinery and sanitation templates that work for one facility and can be transferred to others also make sanitation easier, especially for processors with multiple sites.
Over the next two to three years, expanding consumer demand will drive the need for more diverse beverage products and packaging sizes, leading to an overall increase in all packaged beverage formats. As a result, beverage manufacturers and their co-packers must improve and replace infrastructure now to ensure they remain flexible, efficient, and competitive in an evolving market.
To learn more about technologies that boost beverage production, attend PACK EXPO Las Vegas, Sept. 29 to Oct. 1, 2025 at the Las Vegas Convention Center. With 2,300 exhibitors and thousands of cutting-edge solutions, attendees can engage in conversations about emerging trends, challenges, and innovations that are shaping the future of the industry.
At the event, beverage processors can experience hands-on demonstrations of the latest packaging and processing solutions on topics like automation, sustainability, workforce development, and manufacturing efficiency. In addition, more than 100 educational sessions will take place on seven stages/content centers on the show floor, including Sustainability Central, Industry Speaks Stage, Innovation Stages, Processing Innovation Stage, and the Reusable Packaging Learning Center.
Visit packexpolasvegas.com to learn more and register now to connect with industry leaders, discover state-of-the-art innovations, and gain a competitive edge.
