Distribution is down. Shelf space is shrinking. So how do independent brewers break through? PMMI’s latest report has clues.
The U.S. craft beer landscape continues to tighten. As noted in multiple industry reports, distribution demand is frighteningly low at the moment. For smaller breweries, this means fewer handles, less shelf space and growing pressure to compete with larger players and emerging beverage trends. But there’s valuable intel to be found in the newly released 2025 Beverage Industry Packaging Trends white paper from PMMI, The Association for Packaging and Processing Technologies. Let’s dig into the report’s most useful insights — especially for indie brewers looking to stand out in a saturated, slow-growth market. From the press release:
“Our latest beverage packaging trends report confirms what many in the industry already sense — this is a transformative moment,” says Jorge Izquierdo, vice president, market development, PMMI. “We’re seeing rapid innovation in formats, materials, and machinery, driven by consumer demand and sustainability goals. PACK EXPO Las Vegas is the place where these trends translate into action — where ideas turn into strategies and solutions.”
Why packaging investment is exploding in beverage overall
According to PMMI’s research, 68% of beverage companies expect to increase packaging machinery investments in the next two to three years. Nearly 90% are planning some kind of equipment purchase.
Why? Three reasons:
- Rising consumer demand for new products and formats
- Rapid company expansion, especially among co-packers
- Constant innovation in automation and packaging tech
But more telling for craft brewers are the areas where this spending will go.
The top investment targets:
- Filling, capping, and closing systems (62%)
- Conveying and material handling (51%)
- Palletizing and load stabilization (50%)
- Labeling and printing (46%)
These are the systems helping brands adapt to more SKUs, new can sizes, recyclable materials, and quick product pivots.
Packaging trends that should be on your radar
PMMI’s report identifies several macro shifts that should matter to craft brewers looking to get noticed:
1. Paper and flex are rising
Rigid plastic and glass use is trending down. Paper-based packaging is projected to grow by 43%, flexible packaging by 30%, and liquid cartons by 16%. For sustainability-minded craft brewers, this presents new options.
2. SKUs keep multiplying
Consumer demand for new flavors, formats, and health-forward drinks is driving the need for packaging versatility. Smaller breweries that can quickly pivot their packaging to align with seasonal beers, collabs, or RTD products will gain a competitive edge.
3. Ready-to-drink is here to stay
From THC beverages to mocktails, there’s explosive growth in single-serve, alternative formats. Craft breweries already experimenting in this space (e.g., NA beers, spritzers, or beer-wine hybrids) should consider how nimble packaging can unlock new revenue streams.
Actionable takeaways for craft brewers
You don’t need millions to benefit from this research. Here’s what you can do:
Rethink your packaging materials
Can your brand adopt a more recyclable or sustainable option without compromising product integrity? Paperboard carriers, slim cans, and lighter materials are trending up.
Plan for format flexibility
As shelf space shrinks, uniqueness in format can get you noticed. Do you offer mixed packs? Seasonal cans? Limited edition art wraps? Flexibility wins when your beer’s next to ten others.
Partner with a smart co-packer
PMMI highlights the expanding role of co-packers — especially those specializing in small-volume, high-variety SKUs. These partners often invest in the equipment so you don’t have to.
Invest in easy-to-use equipment
Labor is tight. Automation matters. If you’re investing in new machinery, prioritize intuitive, multi-format gear that can scale as you grow.
Focus on labeling and printing
With more brands than ever on the shelf, label quality can mean the difference between a sale or a pass. Consider digital printing options for quick-turn, short-run customization.
Challenges remain — but so does opportunity
Inflation, supply chain delays, labor shortages, and sustainability expectations aren’t going away. But smart investments in packaging — whether internal or through co-packing partners — can help independent breweries punch above their weight. Craft brewers who embrace evolving consumer expectations and innovate at the packaging level will be better positioned to survive tight distribution and thrive in local, DTC, and retail markets.
Want to see the full picture?
The PMMI 2025 Beverage Industry Packaging Trends report is a detailed, data-rich resource. It includes insights from 78 beverage companies and 15 in-depth interviews with industry leaders. Download the report right here.
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