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The Europe glass packaging market size was valued at USD 19.24 billion in 2019 and is projected to reach USD 22.01 billion by 2027, exhibiting a CAGR of 4.38% during the forecast period.
Glass packaging has been predominantly used by the food and beverage industry due to its ability to remain inert to the contents and safe for consumers. Moreover, it is 100% recyclable and can be used for infinite number of times thus, making it a true sustainable packaging solution. Further, it is used in a wide range of applications in cosmetics, pharmaceuticals, fragrance and various others. Although, the COVID-19 outbreak has halted the operations of most of the industries in Europe, the production of this packaging has not been stopped and has been considered an essential commodity in the European region. It has played a pivotal role in this time of crisis even though the demand for this has been dipped to new lows in the first half of the year 2020.
Glass Packaging Industry Has Been Hit Hard as Demand Dips New Low
The Europe glass packaging industry has been growing steadily in recent years as consumers are shifting to this packaging solutions from other forms due to ecological benefits and sustainable future. However, the outbreak of COVID-19 has temporarily disrupted the supply chains and there has been uncertainty in the demand. In March 2020, FEVE (The European Container Glass Federation) released its position paper to counter the impacts of COVID-19. It requested the authorities to support and recognize its pivotal role during the time of crisis as glass packaging has a wide range of applications in the pharmaceutical and food & beverage industry, which are the most basic needs of humans during this COVID-19 outbreak. There has been a shortage of recycled glass in the region due to the absence of manpower and other challenges pertaining to the lockdown norms. Also, the beverages industry, especially alcoholic, has been hit hard by the COVID-19 pandemic resulting in weak demand for the glass containers.
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Europe is determined to achieve the circular Economy
European Countries have significantly increased the recycling of glass packaging products in the past 15 years. It has increased by over 139%. It has developed the recycling infrastructure that enables it to collect & recycle around 74% of the all post-consumer glass packaging in the European Union. The industry is adopting European Green Deal set by the European Union in its agenda for sustainable growth where it has aimed to achieve glass collection rate of over 90% by 2030. The initiative is backed with the collective efforts by the manufacturers, packaging recovery organizations, processors, brands and municipalities. Taking into considerations the ambitious goal set by the European glass packaging industry along with the lawmakers, other developed region such as North America are expected to ramp up their efforts in creating circular economy.
Increasing Usage of Bottled Beverages is Bolstering Growth
The glass packaging demand is greatly determined by the performance of beverage industry, majorly the alcoholic beverage segment. More than half of Europe’s demand for glass containers is registered to be for the beer industry. Spirits (including craft spirits), wine and other alcoholic beverages also account for recognizable highest shares in this market. The rising awareness about health has boosted the sales of non-alcoholic beverages in the region, especially the western European countries. For instance, in the UK, the industry experts estimated around 60% growth in sales of non-alcoholic beer. Furthermore, consumers prefer glass packaging in terms of non-alcoholic beverages such as juices, sauces, milk, and others, due to its premium feel and safe packaging.
Availability of Substitutes to Restrict the Growth
The packaging industry is fragmented as the materials required for packaging are procured as per the end-use needs. Plastic packaging segment dominate the market owing to broad applications at lower costs. Plastics have been replacing glass packaging in several applications across wide range of industries including diary, cosmetics, food and others. Even though the fight against plastics have paced in recently, the plastic packaging demand has not witnessed any slowdown owing to its high penetration.
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Alcoholic Beverages Segment is Likely to Garner Lion’s Share Over Forecast Period.
Alcoholic beverage industry is growing rapidly globally and hence its dominance in fueling the market demand. Beer industry accounted for a key share in growth in most countries in the world, especially the western countries. Food industry accounts for second largest Europe glass packaging market share and is anticipated to be fastest growing segment in the market owing to rising adoption in the food industry as an effective alternative to plastics. The pharmaceuticals segment is poised to witness a spike in demand for this type of packaging as a result of the COVID-19 pandemic and its increased use in various medical applications. Healthcare experts have already warned about the shortage of vaccine vials and the industry & world needs to buckle its shoes to ramp up the production of vaccine vials to support the medical needs of the global population.
The market is expected and dominated by the western European countries like Germany, Italy, France, and the UK. Together, they are accounting for more than 55% of the regional demand in 2019. Germany is the forerunner in the market with around 19% share, followed by France and Italy. There has been an increasing inclination in glass packaging solutions amongst the consumers owing to the environmental advantages. As per a survey conducted by FEVE & Friends of Glass in 2016, around 48% of European citizens recognized glass packaging as the best packaging material for addressing climate change. In a 2018 survey, it showed that around 91% Europeans recommend glass as the best packaging material which signifies the role of government and FEVE in promoting glass packaging solution. Moreover, Europe is vanguard to the world when it comes to recycling. The region has already achieved 74% recyclability and has aimed for over 90% recycling rates by 2030. Other countries such as Norway, Sweden, and Finland have achieved over ambitious recycling figures of over 90%.
Merger & Acquisition to Emerge as top strategy Adopted by Key Players
The packaging industry has always been majorly adopting mergers and acquisition strategies, and the glass packaging industry is no exception. This industry has witnessed a few remarkable collaborative agreements in the past such as acquisition of Vidrimon by Berlin Packaging, which has strengthened its position in South European countries such as Spain and Portugal. Other players such as Owens-Illinois have invested in installing new furnace technologies to gain flexibility in the operations. Verallia, on the other hand is set to complete its installation of a new furnace and expansion by the end of year in Italy and Spain.
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The european glass packaging market research report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, end-use industries and countries. Also, the report offers insights into market, current market trends and highlights the vital industry developments. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the growth of the market over recent years.
An Infographic Representation of Europe Glass Packaging Market
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Value (USD Billion), Volume (Kilotons)
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By End-use Industry
Fortune Business Insights says that the market size was USD 19.24 billion in 2019 and is projected to reach USD 22.01 billion by 2027.
In 2019, the market value stood at USD 19.24 billion.
Growing at a CAGR of 4.38%, the market will exhibit a steady growth in the forecast period (2020-2027).
The beverage segment of the market is expected to be the leading segment in this market during the forecast period.
Environmental benefits of using this type of packaging solution is soaring the demand in Europe.
Verallia, Ardagh Group, and Owens-Illinois are few of the leading players in the global market.
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