A Quick Roundup On The Global Glass Packaging Market

The global glass packaging market was 54.4 MMT in 2017. Beroe’s market intelligence report states that there is expected to be a growth of 3% to 4% by 2020 or about 65.4 MMT. The production size of the market in the Asia Pacific is 18.9 MMT, in production size is 15.6 MMT in Europe, and in North America, the production size is 10.2 MMT. Asia Pacific holds a market share of 35%, while the CAGR is estimated to be 4% to 5% by the end of 2022 in these regions. Beroe estimates that the production size of APAC by the end of 2022 will be more than 24.1 MMT. The cost components include raw material, labor, and energy.

The global supply of the glass packaging market is fragmented in nature. The top glass bottle manufacturing companies include Owens Illinois, Verallia, and Ardagh. Owens Illinois has a 19% production share while Veralia and Ardagh have production shares of 6% and 7%, respectively. In North America and Europe, the top 3 suppliers have up to 60% market share. Developing markets, on the other hand, are fragmented. China is the leader when it comes to producing glass containers. China comes on the top when it comes to exporting glass containers, too, and there are more than 900 convertors that are present in the glass market.

One of the key trends in the glass packaging industry is recycling. Suppliers are looking for new ways to cut down the production cost and to reduce landfill. This has led to an increase in the use of cullet. Another key trend in the industry is a decrease in weight. The weight of the glass container has decreased by 30% in the last decade, and suppliers are working on reducing the weight even more. This decrease in glass container weight has helped to decrease the costs related to logistics, and so more manufacturers are working on this. The glass bottles market is going through developments and innovations that are making it more sustainable.

The alcoholic beverages industry accounts for 70% of the end-use segment market share. Beroe’s experts predict this trend is likely to continue because of higher demands from emerging markets such as India and China. India’s beer consumption is predicted to grow at CAGR of up to 14% while China’s beer consumption is likely to have a CAGR of 8%. As alcoholic beverage consumption is increasing in the APAC region, this alone is a big factor in driving the growth of the glass bottles market. The APAC has a 35% market share, and coupled with the trade benefits, the future is bright for the alcoholic beverage industry, which in turn will boost the glass packaging material market.

Glass is versatile, and this has helped it to become one of the most preferred packaging materials. Since glass is available in various sizes, shapes, and colors, the demand can be easily met according to suppliers. The reason glass is preferred in the alcoholic beverage industry is because it is able to preserve the taste. Moreover, glass doesn’t change the quality of what is inside. This has made the global glass packaging market surge. When you compare the end-use applications according to volume, glass containers have a higher market share in comparison. It is easy to make the product inside look appealing when you have a glass container compared to other packaging materials.

There are other end-use applications of glass packaging. Glass bottles are used in the food industry as well. They are popular in the pharmaceutical industry as well. Beroe’s market intelligence report suggests that the pharmaceutical segment is going to show the fastest growth. There is expected to be a CAGR of up to 6% in this segment by the end of 2022. This is because of the global increase in OTC drugs. Glass is able to remain chemically safe and pure even when it comes in contact with other substances. Deterioration of products inside the glass bottle doesn’t occur and there is no fading and straining either, which makes glass excellent for a range of applications.

While the developing countries show positive growth in the glass packaging industry, the same cannot be said about the EU and the US. This is because the growth rate in the EU has a CAGR of 1%, while the US has a CAGR of up to 2.5%. Factors such as a decline in alcoholic beverage consumption, along with breakage, can impact the growth of the market. Material substitution is another major factor that can impact the growth of the glass bottles market. The developed regions are focusing on saving energy and reduction of carbon emissions, according to Beroe. Developing nations and emerging markets can see an increase in investments in the next few years.

Josh Linus
Josh Linus
Josh can talk films for hours on end, discussing the really good cinema, the really bad, and anything in between. He enjoys everything - from epic fantasies to horror, from rom-coms to crime and action thrillers, from sci-fi to musical dramas.

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