As the beverage market sees more and more brands and products enter the market, the need for reliable contract manufacturers has continued to grow. In Mordor Intelligence’s report “United States Beverage Contract Bottling and Filling Market,” the market research firm values it at $4.13 billion in 2025 with a forecast to reach $5.98 billion by 2030, a 7.67% compound annual growth rate (CAGR) during the period.

The report notes that interest in select beverage categories is fueling this growth.

“Demand from premium water, functional juice, and RTD alcohol keeps high-margin SKUs flowing through outsourced lines, allowing contract operators to amortize specialized assets such as high-pressure processing (HPP) cells across multiple customers,” the report states.

With a forecast of 11.42% CAGR for the period, ready-to-drink beverage alcohol is expected to be the fastest growing, but bottled water remains the top category with 34.01% of U.S. beverage contract bottling and filling market size in 2024, the report notes.

“Beer maintains steady volumes but yields share to higher-margin hard seltzers, redirecting stainless capacity toward flavored malt lines,” the report states. “Functional and sports drinks capitalize on immunity and electrolyte claims, nudging co-packers to install multi-ingredient dosing systems. Carbonated soft drinks remain core but face sugar-tax pressures that catalyze zero-calorie extensions.”

Given this, it’s not surprising to see so many contract manufacturers investing in advancements to their facilities.

Most recently, Caraway Tea Co., a U.S. manufacturer and co-packer of premium teas, wellness blends, and supplement-infused beverages, announced its relocation to a new facility in Poughkeepsie, N.Y. Part of a 115,000-square-foot industrial complex, the site provides Caraway Tea with an initial 20,000 square feet of dedicated production, blending, and fulfillment space, with additional capacity available to support future growth, it says.

“This move represents an exciting new chapter for Caraway Tea,” said Michael Caraway, chief operating officer of Caraway Tea Co., in a statement. “Our expanded footprint will allow us to scale manufacturing, improve workflow efficiency, and continue innovating in the wellness and tea categories. The building offers room to grow as our partnerships and product lines expand.”

This summer also saw Pittston Co-Packers (PCP), Pittston, Pa., inaugural launch of its first high-volume beverage manufacturing facility, providing full-service co-packing solutions. The new 403,000-square-foot facility meets the needs of today’s leading national beverage brands with end-to-end manufacturing capabilities, it says.

Located for efficient East and West Coast distribution, the facility supports both low- and high-acid product lines for cold fill and features advanced aseptic and PET technology for cartons, bottles and more. PCP is equipped to produce a broad range of beverage types, including juices, blended juices, fresh-brewed iced teas, plant- and nut-based milks, protein drinks and electrolyte beverages, the company says. The facility is in full compliance with regulatory standards, ensuring an expedited path to production approval.

The new operation was developed by seasoned industry veterans, including CEO Christopher J. Reed, founder of Reed’s Inc. and California Custom Beverage. Joining him is John P. Holzemer, a seasoned plant operator with more than 38 years of experience managing beverage plants, previously for fairlife LLC and The Coca-Cola Co.

“Having founded a leading beverage brand and working in the industry for 38 years (and counting), I understand the unique challenges brands of all sizes are facing today,” Reed said in a statement at the time of the announcement. “At Pittston Co-Packers, we want to meet brands wherever they are in their journey and provide them with turnkey, scalable solutions to accelerate their growth.”

Additionally, in late 2023, DrinkPAK, a contract manufacturer of premium alcohol and non-alcohol beverages, announced it was investing more than $200 million in constructing a state-of-the-art manufacturing facility in the Dallas-Fort Worth (DFW) area. The facility will occupy 1.4 million square feet, it noted in a company blog post.

Having opened in late 2025, the facility will manufacture energy drinks, teas, sodas, waters, hard seltzers, beer, wine, and spirits in most can sizes and packing formats, the blog post added.

In a press release from Newmark Group Inc., which represented DrinkPAK in the real estate transaction, Nate Patena, CEO of DrinkPAK, stated: “We are excited to expand our advanced manufacturing organization with two new state-of-the-art facilities that will enable us to manufacture more high-quality drinks for the best brands in the world. This expansion positions DrinkPAK at the forefront of innovation in the beverage industry, offering unique opportunities for the creation of canned low-acid products.”

As demand for innovative beverages continues to grow, contract manufacturers are investing their operations to support those needs.