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Beverage Suppliers Facing Challenges and Opportunities

Consumer demand is pushing SKU expansion and innovative new product opportunities for beverage manufacturers, but supply chain disruption has also created challenges.

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In 2019, there were an estimated 3,000 beverage manufacturing locations in the US, including contract manufacturers and packagers. (Not including alcohol or dairy.) While consumer trends are pushing manufacturers to create new flavors, new formats, and new packaging, this SKU expansion and demand for innovative products has created production challenges and the need for equipment or line improvements.

The pandemic has also increased interest in e-commerce, product safety, and active health management, and has disrupted the supply chain immensely. Nearly all beverage manufacturers interviewed for PMMI Business Intelligence’s new report stated that they are experiencing sourcing shortages for both materials and ingredients. This is having a significant impact on business operations, particularly for those looking for aluminum, PET and rPET, and corrugated. Said one Director of Engineering, “The can shortage is global; we delayed moving a product from PET to cans since we are already on allocation now with our suppliers.” Manufacturers are also reporting rising prices for both ingredients and resins.


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Read this story on corrugated shortage, or this story on can shortage.


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