A machine’s cost, speed, efficiency, and flexibility are the top considerations when contemplating a purchase.
By Rebecca Marquez, Director of Custom Research, PMMI
Consumer preference drives many of the decisions made by beverage packaging companies. Today’s consumers want additional sizes, flavors, and types of beverages, as well as more sustainable and recyclable packaging options. They also want ready-to-drink and single-serve, smaller-sized packaging, according to the 2025 Beverage Industry Packaging Trends report, from PMMI, The Association for Packaging and Processing Technologies.
“To continue to fulfill consumer needs, creative and unique packaging being developed today will continue to evolve and will be a focus of development in the future,” says Jorge Izquierdo, PMMI’s vice president, market development.
Novel packaging formats require machinery that is up to the challenge. Cost, speed, efficiency, and flexibility are key factors when considering which equipment to buy. So is finding the right supplier — one who will be a true partner far beyond the initial sale, says PMMI’s study. However, the survey revealed that support from suppliers is what many beverage companies feel is currently lacking and could be enhanced.
The answer to today’s packaging challenges may likely be found in the use of technical integration in the coming years. Even as beverage producers contend with inflation, supply chain disruptions, regulatory compliance, and labor challenges, they must still upgrade existing equipment and acquire new machinery.
In fact, many U.S. beverage companies anticipate modest to significant increases in machinery investment over the next three years, primarily driven by optimism surrounding company expansion plans, the introduction of new stock keeping units (SKUs)/products, and increased consumer demand.
Growing consumer demand and interest are also driving the need for more diverse beverage products and packaging sizes, which will prompt a proliferation of packaging formats over the next two to three years, according to PMMI’s research.
Additionally, the opportunities for co-packers to expand production are contributing to increased investment, as they seek to meet rising demand and support new brands. Beverage manufacturers, as well as co-packers, will need to improve and replace infrastructure to ensure they remain efficient and competitive in an evolving market.
However, the increase in investments will not be concentrated on a single type of packaging machinery but will be spread across various equipment categories.
The reasons for these purchases include:
• Expanding production capacity
• Enhancing efficiency
• Increasing flexibility and reducing packaging material
Not surprisingly, cost is the primary factor when determining what beverage packaging equipment to purchase. This includes the overall price of the machinery, parts, and maintenance. Filling equipment is the most planned purchase, followed by conveying, feeding, and handling equipment, as well as palletizing and load stabilization systems.
In fact, affordability is a need mentioned by smaller businesses, such as those in the craft beer and spirits industry, with most finding it difficult to invest even on a small scale. They feel that pricing can be a significant barrier to entry for smaller producers, who want to invest in automated machinery. Plus, many craft manufacturers tend to initially focus on practical applications that can help solve real problems on the plant floor.
Beyond cost, finding the right supplier is equally important for companies of all sizes. In fact, post-sale service and support play a crucial role when selecting a supplier.
Changes in the Offing
Interview participants identified several factors driving changes in how beverages are packaged and processed. Today, beverage companies are adapting to consumer demand by offering a wider variety of sizes, flavors, and beverage types. As a result, they are working to develop more flexible and creative packaging solutions to enhance consumer interest and drive sales growth.
PMMI’s research participants also believe the demand for expanded product choices will continue, as consumers seek an even greater variety of drinks and flavors. It’s no longer just beer, wine, soda, and water. Rather, new flavors and types of beverages are proliferating. In addition, consumers will continue to demand more size and format options, driving an increase in new SKUs each year.
“To meet evolving packaging demands, [survey] participants seek to optimize machinery use by leveraging digital insights and diagnostics for faster, more efficient production,” Izquierdo says. “Downtime directly impacts revenue, making technology-driven troubleshooting a top priority.”
Beverage industry success depends on innovation and an optimized supply chain, as well as social media- and data-driven marketing strategies, even as market fragmentation complicates the landscape with emerging brands challenging established players, according to research from EY Americas, “Trends in the Beverage Industry: Navigating Change and Innovation.”
Innovation is crucial for driving new consumer demand, as evidenced by the rise of hard seltzers, the growth of craft beer brands, and ready-to-drink beer alternatives on the alcohol side.
One of the most significant influences today is the growing emphasis on sustainability and recyclability from both beverage makers and consumers.
However, current packaging does not always align with consumer expectations, which include the desire to move away from plastics. Nevertheless, rigid plastic remains the most commonly used beverage packaging material today.
Sustainability continues to hold promise for craft beer and spirits producers seeking to boost efficiency and profitability. Still, priorities are shifting as these companies attempt to balance environmental mandates with cost and operational necessities.
One threat to the craft beer and spirits industry is the way consumers are changing their view about the consumption of alcohol. A 2024 Gallup survey revealed that 45% of Americans believe moderate drinking is detrimental to their health, with participation in initiatives like “Dry January” rising significantly.
To take a more in-depth look at today’s evolving packaging industry, download PMMI’s 2025 State of the Industry report as well as PMMI’s 2025 Beverage Industry Packaging Trends study.
Fast-track Your
Packaging Projects
Packaging and processing professionals who want to maximize their return on investment (ROI) and fast-track projects should attend PACK EXPO East 2026.
The most comprehensive packaging and processing event in the Northeast and Mid-Atlantic in 2026 will feature more than 500 exhibitors, spread out over 125,000 net square feet of exhibit space in Philadelphia’s Pennsylvania Convention Center on Feb. 17–19, 2026.
With an easy-to-access location convenient to much of the eastern United States, PACK EXPO East allows teams to attend together for maximum ROI. In fact, the show offers numerous opportunities for networking with fellow team members, peers, industry experts, and personnel from established suppliers and prospective vendors.
Offering solutions for more than 40 vertical markets, the show provides in-person interaction with machines, materials, and other products related to packaging and processing. It also features free educational sessions on the show floor, covering best practices, industry trends, new technology, and key concerns, such as sustainability, artificial intelligence, productivity improvement, automation, and workforce development.
The event is big enough to provide attendees with all the solutions they need, but intimate enough for productive, face-to-face conversations with exhibitors to learn how their innovations can solve some of today’s most challenging manufacturing issues.
Register today for PACK EXPO East. Early registration costs $30; after Jan. 23, 2026, the price increases to $130.
