Glass Packaging Market Size, Share & Industry Analysis, By End-use Industry (Alcoholic beverages, Food, Non-Alcoholic beverages, Pharmaceuticals, and Others), and Regional Forecast, 2020-2027

The global glass packaging market size was USD 60.32 billion in 2019 and is projected to reach USD 81.00 billion by 2027, exhibiting a CAGR of 3.95% during the forecast period.

Glass packaging is prominently used in the food & beverage industry due to its inert nature and is safe for consumers. Besides, it is 100% recyclable and can be used for infinite number of times which makes it a sustainable packaging solution. It is used in wide array of industries including, pharmaceuticals, food & beverages, cosmetics, pharmaceuticals, perfume and numerous others. It is considered to be a premium packaging solution due to its high quality and elegant looks. It has been included in the essential commodity industry and has been granted the permission to continue production in the outbreak of COVID-19 in most parts of the world. However, the disruption caused by this pandemic has lowered the demand as consumers have been locked inside their houses and hotels & other industries being partially or completely shut.

MARKET TRENDS

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Increasing Recycling Rates is leading to the Sustainable Growth of the Glass Packaging Industry

Recycling of glass is rapidly increasing across the globe, especially in developed countries. Europe leads in terms of recycling on the back of high recycling rates. This is setting new standards for consumers as well as stakeholders around the world. As per the FEVE (Federation of European manufacturers of glass containers and machine-made glass) statistics, Europe has already achieved a glass collection rate of 76% and aims to reach to 90% by 2030. An average batch of glass manufacturing in the EU (European Union) contains 52% of the recycled content. This is helping the industry in creating a circular economy and meets the UN Sustainable Development Goals.

MARKET DRIVERS

Increasing Consumption of Bottled Beverages across the Globe to Proliferate the Market Growth

The demand for glass packaging is single-handedly driven by the beverage industry, particularly alcoholic beverage segment. More than half of the global demand for glass containers is registered to be from beer industry. Spirits, wine and other alcoholic beverages also account for a significant share in the market. Countries such as China, USA, Brazil, Germany, and Russia, are the largest consumers of alcoholic beverages in the world. In 2019, China consumed more than 55 billion liters of alcoholic beverages, whereas, US consumed more than 30 billion liters of alcoholic beverages. Also, in packaging of non-alcoholic beverages such as milk, juices, sauces, and others, consumers prefer glass material due to its inertness and premium look. As the population rises around the world, the consumption of these essential non-alcoholic beverages is poised to increase healthily. Thus, the increasing consumption of beverages is driving the growth of glass packaging market.

Environmental Benefits of Glass Will lead to High Demand

Being a 100% recyclable material, glass is attracting just enough attention in the market as an effective and eco-friendly packaging solution, which is likely to increase the demand for glass packaging over the forecast period. Glass recycling directly saves the raw material resources as well as reduces its carbon footprint. For instance, one ton of glass directly saves over one ton of virgin raw materials used to manufacture glass and saves about 580kg of CO2 from getting added to nature throughout the supply chain. It also cuts water pollution by 50% and air pollution by 20%. These benefits are making it a popular choice in the packaging industry. Moreover, consumers are changing their packaging preferences and are turning towards eco-friendly & sustainable packaging solutions which are positively impacting the growth of the market.

MARKET RESTRAINT

Strong Presence of Substitutes to Hinder the Market Growth

The glass packaging market is highly fragmented and as per customer needs and application packaging material is adopted in the market. Plastics packaging materials dominate the global packaging market due to wide range of applications and low cost. Plastics have replaced glass packaging in many applications across various industries such as dairy, food, cosmetics and numerous others. Though, the war against plastics has emerged in recent years, the demand for plastic packaging has no signs of slowdown due to its high penetration and low cost. Other substitute materials such as paper & board, and metal packaging are eco-friendly alternatives to the glass solutions which hamper the market growth and expansion.  

SEGMENTATION

By End-use Industry Analysis

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Alcoholic Beverages Industry to Emerge Leading

The alcoholic beverage industry is rapidly increasing across the world and so its dominance in driving the demand for glass packaging. It accounts for over three-fifth of the global demand. The beer industry accounts for a major share in growth in most countries in world, especially the western countries. But, in countries like India, liquor industry drives the demand for the product in the region. Food industry accounts for second largest share in the market and is anticipated to be fastest-growing segment in this 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 product as a result of COVID-19 pandemic and increased use in various medical applications.

REGIONAL ANALYSIS

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The market in Asia Pacific stood at USD 22.20 billion in 2019 where-in China accounts for around two-third of the market. The alcoholic beverage industry drives the market in the region, strongly supported by rising disposable income and improving standard of living. The food and pharmaceutical industries are poised to drive most of the demand over the course of the pandemic. However, the industry is expected to recover fast after the pandemic on the back of effective measures and fast response from the Asia Pacific countries such as India, Japan, South Korea and others. The alcoholic beverage industry has been hit hard due the outbreak of pandemic and is likely to slow down the demand for the product in 2020. Many manufacturers in the region are witnessing raw material shortages and logistical challenges as many countries have entered lockdown. For instance, AGI glaspac, which is a prominent manufacturer of glass packaging in India, has been hit by the lockdown challenges with over 60% of its employees working from home, which has hampered its production and disrupted supply chain. However, it is trying to cope with the increased demand from the pharmaceutical sector but continues to struggle. The company contributes around 30% of the glass packaging demand in India’s pharmaceutical industry.

Europe is the second-largest region in the global market and it has also been hit severely amidst the COVID-19 outbreak. Although the production of glass containers has not been halted in the region, the end-use demand has significantly decreased. As the glass furnace cannot be turned off due to safety and economic reasons, manufacturers continue to supply the glass packaging to food, beverage and pharmaceutical industry in the region. North America, dominated by the United States, is the worst affected region by the COVID-19 and face reduced demand from the end-use industries. The rise in demand in the region is expected to be low in 2020. The market in the Middle East & Africa is unaffected by the COVID-19 outbreak. The tourism industry, which greatly drives the demand for alcoholic beverages in the region, has been worst hit in recent times and other crisis such as crude oil crisis, the political crisis of Libya, Iran, and others have deteriorated the situation. Latin America, which is already in economic and political turmoil, is expected to witness moderate growth over the forecast period with hopes of improvement in the current situation.

KEY INDUSTRY PLAYERS

Merger & Acquisition Remains the Most Widely Adopted Strategy by Major Companies              

The packaging industry has always been in the center of mergers and acquisition activities and glass packaging industry is no exception. The industry has witnessed a few major company mergers & acquisitions in the past such as the acquisition of Saint-Gobain Containers, Inc. by Ardagh Groupresulting in the dominance of Ardagh group and Owens-Illinois Inc. in the North America region. These two companies supply more than 75% of the alcoholic beverage glass packaging in North America. In 2016, CVC Capital and BV glass Company acquired Anchor Glass container Corp, acquired by Ardagh group in 2013; later acquired by KPS capital Partners in 2014. Even, in recent years, mergers and acquisitions remain amongst the key strategies adopted by major stakeholders in the market.

LIST OF KEY PLAYERS PROFILED:

• Ardagh Group S.A. (Ireland)


• Anchor Glass Container Corporation (BA Glass B.V.) (U.S.)


• Verallia (U.S.)


• Owens-Illinois Inc. (U.S.)


• TOYO GLASS CO., LTD. (Japan)


• Heinz Glas GmbH (Germany)


• Vetropack Group (Switzerland)


• AGI Glasspack Ltd. (India)


• Yantai NBC Glass Packaging Co., Ltd. (China)


• Yantai Changyu Glass Co., Ltd. (China)


• Others

KEY INDUSTRY DEVELOPMENTS:

• July 2019 – Ardagh Group, a key manufacturer of glass and metal packaging solutions headquartered in Ireland, announced spin-off of its metal packaging business in a deal of USD 2.5 Bn and merging the same with Exal Corporation, an aluminum container manufacturer headquartered in the United States. The resultant company is formed as Trivium Packaging, making it one of the largest players in metal packaging business. 


• July 2019 – Owens-Illinois, Inc., a key player in glass packaging market headquartered in the United States, announced successful acquisition of Nueva Fanal, a manufacturer of glass container in Mexico and subsidiary of Grupo Modelo, for a transaction value of USD 188 Mn. The company has 4 furnaces with around capability of producing 300 Kilotons of glass containers annually. This is expected to generate USD 140 Mn in revenue annually for Owens-Illinois, Inc.

REPORT COVERAGE

The glass packaging market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the glass packaging industry trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.

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