Abstract
Aseptic Packaging Enterprises Must Reduce Purchase- and Installation-Related Capital Costs
The twenty-year-old U.S. aseptic packaging markets have witnessed tremendous growth only in the
last two years. To sustain this trend, participants need to overcome high capital costs involved in
purchase and installation of aseptic equipment. These huge capital costs, expensive and
time-consuming installations, low efficiency of filling equipment, and the requirement for highly
skilled technicians are increasing the overall costs of these equipment. Further, the markets face
stern competition from established technologies such as hot fill. To face these challenges,
enterprises need to capitalize on factors such as longer shelf life, low distribution costs, and
flexibility in designing and labeling. They are also venturing into niche segments such as liquid
eggs, sauces, puddings, and meal-replacement drinks.
This Frost & Sullivan research service provides a comprehensive overview of the North
American aseptic packaging markets, segmenting them into paperboard cartons, flexible packages, and
plastic containers. The study identifies the key market drivers and restraints pertaining to each
segment and includes in-depth market and competitive analysis and strategies that can be employed by
market participants to improve their market positions.
Aseptic Packaging Carries Less Distribution and Transportation Costs
Space is a major constraint in retail outlets and during the distribution process. Cans and glass
bottles, the main packaging materials for the food and beverage industry for years, pose a problem
in terms of high transformation costs. "Aseptic packaging drastically reduces the distribution
costs as the cartons can be easily folded to occupy less space, allowing more volume to be
transported in a single vehicle," points out the analyst of this research. "Also, these
cartons do not need cold-chain distribution, which further brings down the overall expenditure.
"Aseptic packaging allows dairy products to have a shelf life of six months, which is
beneficial for customers who are constantly on the move.
Technological Advancements Make Aseptic Packaging More Viable for End Users
Technology plays a crucial role in the highly competitive food and beverage market, where aseptic
packaging manufacturers face stiff competition from hot fill technology. "Certain established
companies are conducting extensive research on developing safe and easy-to-operate high-speed
equipment," notes the analyst. "Aseptic packaging technologies provide better options in
terms of overall designing and packaging, which are superior to other packaging alternatives."
By constantly reinventing their products and accommodating changes, these manufacturers and
suppliers can bring about market growth.
In particular, aseptic packagers need to focus on the beverage market where there is a demand for
products with new flavors and high nutritional value. Certain flavors and nutrients are sensitive to
high temperatures, which makes hot fill packaging unsuitable for them. Aseptic packaging uses
techniques emphasizing on high temperature-less time, making them ideal for these emerging consumer
goods.