Tiger economies spur growth of the beverage can

— Jozef Salaerts President Crown Asia Pacific Holdings Ltd

 LONG known for its efficiency and reliability, the beverage can is gaining ground, as the format of choice across the Asia-Pacific region thanks to its ability to respond to needs of both brand owners and consumers. To gain insight into what's driving this growth, we recently spoke with Jozef Salaerts, president, Crown Asia Pacific Holdings Ltd, a division of Crown Holdings, Inc. (www.crowncork.com).

How is the Asian beverage market performing?
In general, the Asian beverage market is doing very well. We expect to see continued strong growth, driven mainly by rising income levels and changing consumer lifestyles. This growth is driving demand for innovative beverage packaging that is also reliable and safe, and in turn, has set the stage for increased can consumption.

What sectors are seeing growth?
Like many parts of the world, Asia is seeing growth in market segments such as energy drinks, ready to drink coffees and teas, wine and other nutraceutical beverages like juices. In the case of the latter, however, the market is much more developed than in the rest of the world. This could be because health has been an obsession for Asians for some time, whether in terms of discovering new ways to maintain it or turning to foods and beverages as trusted remedies for common ailments.
For example, herbal tea has been a longstanding, go-to solution for dispersing 'heat' caused by new urban habits like keeping late nights and not getting enough rest because of increasing work-life demands. Another great example is the brand Wong Lo Kat. You can find this popular herbal tea beverage almost everywhere in China, including supermarkets, restaurants and hotels. Fruit and vegetable juices are also growing in popularity due to increased interest in preventive healthcare and awareness of the benefits of consuming such beverages.
I expect these sectors will experience further growth in the coming year, as will the energy drinks market. We anticipate this growth for many of the same reasons the nutraceuticals beverage market has flourished: as more people work longer hours, they seek functional beverages that can help them maintain energy levels whilst also providing on-the-go convenience.
And finally, whilst not new market segments, carbonated soft drinks (CSD) and beer continue to perform very well. Demand for CSD remains steady and beer is rising in popularity as the beverage of choice for parties and other social occasions.

Metal is becoming more prevalent in the packaging mix we're seeing on shelves. Why do you think this is?
There are several factors contributing to the increase in can consumption. First, consumers are spending more time socialising with their peers at home, in part due to a desire to spend less as well as increasingly strict drinking and driving laws in countries like Singapore and Australia.
A second reason for the shift to metal packaging is the growing popularity of local drinks and beers. For instance, Chinese beers like Tsingtao Beer, Harbin Beer and Yanjing Beer, were traditionally brewed and enjoyed locally within the province they were manufactured in. Beer was packaged in glass bottles, with breakage only a minor concern due to the short distances products needed to be shipped. However, as these beers gained popularity across provinces and internationally, brand owners needed a more reliAir Jordan IX High