BEVERAGE aisles in grocery stores seem to be expanding to reveal countless thirst-quenching options, ranging from flavored water to beverages with texture. As packaging technologies are advancing fast, beverage manufacturers are able to deliver more formulations safely and conveniently to consumers.
For a current perspective of the ready-to-drink market in Southeast Asia, FoodPacific Manufacturing Journal interviewed Cheryl Yong, Head of Marketing Asia Pacific-South at SIG, a leading provider of packaging solutions.
Cheryl Yong, Head of Marketing Asia Pacific-South, SIG
The future of the ready-to-drink (RTD) market in Asia appears to be promising. What can we look forward to in 2025, especially in Southeast Asia?
The ready-to-drink (RTD) market in Southeast Asia is poised for continued growth, with a projected compound annual growth rate (CAGR) of 5% through 2028 (Global Data, 2024). This growth is being fueled by rapid urbanization and the demand for convenient, on the-go beverages, particularly among busy populations in countries such as Thailand, Vietnam and the Philippines. Consumers are looking for beverages that fit their fast-paced lifestyles and offer both convenience and health benefits.
There is a growing preference for health-conscious RTD options, with consumers increasingly looking for beverages that offer functional benefits such as immune support, hydration and energy boosting. Natural ingredients, low sugar content and added nutrients such as vitamins and probiotics are becoming key drivers in the sector.
Looking ahead to 2025, we can expect to see more innovation in the RTD market, with a rise in plant-based beverages and multi-sensory drinks that incorporate particles such as fruits, grains and herbs. As consumers demand more personalized and eco-friendly options, brands will increasingly focus on offering products with innovative flavors, health benefits, and sustainable packaging to meet these evolving preferences.
Create innovative beverages and fill added-value products, such as premium fruit juices and drinkable milk snacks.
What type of multi-sensory beverages are most popular in Thailand, Philippines and Vietnam?
Multi-sensory beverages, especially those with added particles, are gaining significant traction in Thailand, the Philippines and Vietnam. This growing demand is driven by consumers looking for beverages that do more than just hydrate – they want excellent taste, texture and added health benefits. In these markets, the desire for functional beverages is particularly strong, with many consumers increasingly interested in beverages that promote wellness and provide a satisfying, enjoyable experience.
Popular particles in the region include nata de coco, aloe vera and cereal grains. These ingredients not only enhance the texture and appeal of beverages, but also offer health benefits. For example, nata de coco provides a chewy, pleasant texture and is a familiar ingredient in sweet coconut-based drinks. Aloe vera, known for its soothing and digestive benefits, is often used in refreshing health drinks, while cereal grains, with their high fiber profile, meet the growing demand for nutritious beverages. The SIG Drinksplus technology allows these ingredients to be preserved in packaged beverages without compromising taste or texture, offering longer shelf life and convenience while retaining their natural health benefits.
As beverage trends continue to evolve in Southeast Asia, manufacturers are well positioned to innovate with multi-sensory beverages that meet consumers' needs for both enjoyment and wellness, making the most of the functional beverage boom.
Add real and natural food pieces (up to 6mm) -- such as fruit, vegetables, or cereal grains -- to beverages.
A study conducted by Grab1 revealed that Southeast Asians consume an average of four cups of bubble tea per month. Among these, Thai consumers lead the way, averaging six cups per person each month.
Additionally, a report from Momentum Works and Qlub indicates that Southeast Asia spends a total of $3.66 billion annually on bubble tea, with Indonesia accounting for the largest share at $1.6 billion in annual turnover.
As a leading packaging company for beverages, what’s new with SIG at the moment?
SIG has been advancing its sustainability and innovation efforts in the Asia-Pacific region. As part of its commitment to driving positive change, SIG for example partnered with the Ellen MacArthur Foundation to promote a circular economy for packaging. In collaboration with WWF Switzerland and WWF Thailand, SIG has also launched a project to protect forest landscapes in Thailand, aligning with its commitment to create, restore, protect, or improve the management of 650,000 hectares of forest by 2030. The company’s recognition in the Dow Jones Sustainability Indices further highlights its dedication to delivering meaningful impact in ESG standards.
On the innovation front, SIG introduced the SIG Neo Slimline 15 Aseptic, the world’s fastest and most flexible aseptic carton filling machine for multi-serve formats. This breakthrough solution offers customers increased efficiency and flexibility while supporting their sustainability goals. These initiatives underscore SIG’s commitment to driving sustainable growth and providing cutting-edge solutions to meet the evolving needs of the market.
What makes SIG’s end-to-end solutions stand out from other beverage packaging solutions?
SIG's end-to-end solutions offer unmatched flexibility combined with speed, sustainability and efficiency, empowering beverage brands to stay ahead of evolving market demands.
What sets SIG apart is our comprehensive portfolio – from carton and bag-in-box to spouted pouch. This flexibility ensures customers can innovate and make SIG a future proof choice.
The SIG system enables both volume flexibility and the possibility to fill beverages with particulates
Flexibility is a cornerstone of SIG’s solutions. For example, our filling machines for small size aseptic carton packs can handle up to nine different volumes (from 80ml to 200ml) on one and the same machine, giving brands the agility to respond to market trends while managing costs. With speeds of up to 24,000 packs per hour and waste rates as low as 0.5%, SIG's solutions are designed to help brands stay efficient, sustainable and ahead of consumer demands.
By combining innovation, operational efficiency and sustainability, SIG equips its customers to tackle industry challenges while seizing new opportunities in the beverage industry.
Do they allow flexibility for companies that want to produce different products at smaller quantities?
Yes, SIG offers excellent flexibility for companies looking to produce a range of products in smaller quantities. Our global network of co-packing partners offers brands the ability to innovate quickly while keeping costs low. This flexibility allows companies to test new product ideas and scale up quickly without large initial investments.
With three product test filling centers worldwide, SIG works closely with customers to develop customized products and packaging solutions. These centers help brands test, validate and produce real products on a smaller scale, ensuring faster time-to-market and validation. By leveraging our co-packing network and R&D capabilities, customers can bring innovations to market faster and scale production as needed, while optimizing their resources and investments.
Can you elaborate on the filling system? What are the major benefits?
SIG’s filling systems are designed to meet the diverse needs of the food and beverage industry, offering flexibility, speed, and efficiency. Whether it's liquid, viscous, or chunky food products with particulates up to 25mm in size, SIG’s technology ensures aseptic safety while maintaining high-quality standards. With the ability to pack up to 26,500 cartons per hour, manufacturers can produce at scale while minimizing waste.
What truly sets SIG apart is our ability to support innovation. Our SIG Drinksplus solution enables the production and aseptic filling of unique beverages, where particulates can be incorporated into the drink providing a multi-sensory experience. This flexibility in product types, along with the efficiency of our technology, allows brands to quickly respond to consumer trends while keeping costs under control.
SIG’s open sleeve filling system
From bubble tea prepared fresh from the store, to one that is pre-packaged, will there be a difference in the taste, texture, shelf life, and overall quality?
When comparing freshly prepared bubble tea to its aseptically packaged counterpart, one thing stands out: the beauty of aseptic packaging lies in its ability to preserve the quality, taste, and texture of the beverage—including real fruit pieces and jelly bits—without preservatives or refrigeration. The SIG Drinksplus technology is transforming the beverage market by delivering convenience, longer shelf life and exceptional quality.
SIG Drinksplus allows aseptically packed beverages like bubble tea to include real, high quality particulates such as fruit and jelly bits, while also ensuring a long shelf life without the need for refrigeration. This breakthrough has made it possible to create an entirely new category of beverages all over the world. SIG’s technology ensures consistent quality and flavor retention. Consumers can now enjoy the convenience of a ready-to-drink beverage that meets their expectations for both taste and texture, all while maintaining the highest quality standards.
Is there a need to add preservatives or other ingredients to maintain quality?
SIG’s advanced aseptic technology ensures that food and beverage products retain the highest standards of food safety and quality without the need for preservatives. This process makes sure that the natural nutrients, flavors, and vibrant colors maintain their high quality for up to 12 months without refrigeration. The fact that no preservatives need to be used offers SIG consumers to use clean labels and provides a more natural option, all while ensuring exceptional taste and quality.
SIG Drinksplus builds on SIG’s open sleeve filling system and the sealing of the pack above the fill level. This way, we avoid pieces getting stuck in the sealing, which increases products safety and the options to aseptically fill more products in our carton packs. Using agitators in the filling machine makes it possible to fill products with floating particulates.
Special valves have been implemented to prevent the product particulates from blocking the product flow. And customers can also benefit from the flexibility of SIG Aseptic filling machines and select the package volume that best matches the product concept and use occasion.
Does SIG have requirements on the particulates that can be included in the beverage?
The SIG Drinksplus technology is designed to help beverage manufacturers incorporate real, high-quality particulates - such as fruit or vegetable bits as well as grains and chewy pieces - into their products using standard SIG aseptic carton filling machines for beverages. With the ability to incorporate up to 10% particulate content, this technology allows particles to be as large as six millimeters in both length and width, enabling a wide range of textures and flavors in beverages.
Best suited for SIG Drinksplus are fruits bits such as mango, peach, pineapple and apple, and vegetables such as cucumber, carrot and aloe vera. These ingredients retain their natural flavor and texture throughout the aseptic filling process. Whether it's fruit pieces in a juice or vegetable pieces in a wellness drink, the SIG Drinksplus technology offers manufacturers the opportunity to meet growing consumer demand for nutritious, convenient and flavorful beverages. By utilizing SIG's technology, brands can differentiate their products in the competitive beverage market by delivering both innovation and quality.
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1Bubble teacraze at Grabfood. https://engineering.grab.com/bubble-tea-craze-on-grabfood?utm_source=chatgpt.com
2Southeast Asia spends US$3.66 billion a year on bubble tea: Momentum Works-qlub report. https://thelowdown.momentum.asia/press-release-southeast-asia-spends-us3-66-billion-a-year-on-bubble-tea-momentum-works-qlub-report/?utm_source=chatgpt.com
3 Ready-to-Drink (RTD) Beverages Market Trends and Analysis by Product Type, Pack Size, Pack Material and Segment Forecast to 2028. https://www.globaldata.com/store/report/ready-to-drink-beverages-market-analysis/