Glass Container Market

How is Future Outlook for Glass Container in Comparison to Historical Pattern?

Consumption of glass container is strongly influenced by the alcoholic beverage industry since a majority of manufacturers sell alcoholic drinks filled in glass bottles. Alcoholic drinks comprise one of the most lucrative segments within the beverages industry, accounting for higher market share in terms of volume in comparison to other end-use applications. Demand for glass is augmented by the strong growth evident in the luxury packaging world, particularly in liquor and cosmetics.

Development of innovative and lightweight products with attractive design and vibrant color combinations at lower production costs has remained a key growth enabler. The need for establishing production lines with advanced systems so as to respond to increasing requests for customization with high efficiency and small lead time have left profound impact on the market. These efforts have been historically crucial in fuelling the demand for glass container. According to FMI’s analysis, glass containers market exhibited 3.8% CAGR between 2016 and 2020.

Due to the disruptions in the supply chain, the COVID-19 pandemic has affected the packaging industry. However the food, beverage and healthcare industries despite being affected have responded to the crisis to accommodate increasing demand for food and medicines among consumers as they entered quarantine.

While the pandemic pressed the pause button for food & beverage facilities such as dine-in restaurants, bars, school/college cafeterias, sports stadium, initially, industries such as retail packaging, e-commerce, and logistics are projected to undergo a swift turnaround. However the turnaround is expected to be sluggish for food & beverage providers, as customers remain reluctant to dine out due to health and hygiene concerns.

Will glass containers become the first choice in luxury & premium packaging?

The luxury packaging market is gaining traction across the globe. Key market participants are introducing various luxury packaging products to increase their product line and market share. For instance in Sep 2019, Ardagh Group S.A introduced a sparkling wine bottle for Allure Winery which is a luxury edition. Furthermore, Allied Glass Containers Ltd a U.K. based company mainly focuses on manufacturing of luxury glass bottles with cliental base from food & beverage and personal care & cosmetic industry. As per FEVE.org, glass accounts for more than half of the total market share in the luxury packaging market. Demand for glass is augmented by the strong growth evident in the luxury packaging world, particularly in liquor and cosmetics. Various market leaders claim that it is nearly impossible to replace glass in luxury applications.

What is the potential of lightweight glass containers?

Bottle weight reduction is the key focus of manufacturers. Thanks to modern technologies light weight glass bottles are easily available, which has been aiding in overall expansion of the market. Lightweight bottles minimize the use of raw materials and the expense of logistics. With focus on sustainability rising, manufacturers are increasingly aiming towards optimally using resources and curbing wastage.

This trend is driven by changing behavior pattern in consumers. Soaring environmental concerns have rendered them conscientious about packaging. As a result, an increasing number of companies are seeing manufacturing sustainable bottles using lightweight glass.

 Vetropack, for instance, has replaced blow-and-blow process with more contemporary narrow-neck-press-and blow process that guarantees production of sustainable glass bottles that weigh significantly less yet are stronger and more stable than their heavier predecessors.

How are Stringent Regulations Affecting Glass Container Sales?

Demand for pure, green and sustainable packaging is propelling sales of glass containers. Besides this surging focus on health and wellness will enable growth in the near future. Glass remains chemically inert and pure even when it comes in contact with many. This incredible property makes it safe for use in packaging food and pharmaceuticals. Glass containers never deteriorate, fade or smear, so the product remains intact for longer time.

Glass containers are considered preferred alternative to plastic and metal containers for sustainable packaging. A new packaging symbol was unveiled in November 2020 in Brussels that was designed to highlight environmental and health benefits of products using glass packaging at ones. This hallmark is now available for licensed use.

According to the European Container Glass Federation (FEVE), the symbol markets the first milestone of their journey towards working in closely with brands and consumers alike to offer sustainable packaging solutions. Besides this, glass bottle sales are poised to surge especially as stringent regulations are implemented to ensure environmental sustainability.

For instance, European Parliament and Council Directive 94/62/EC on packaging waste has been implemented to ensure manufacturers are taking adequate steps to increase recyclability and counter industrial waste. 

Country-wise Insights

How big is the opportunity in US?

FMI has projected the U.S. to remain one of the most lucrative markets throughout the course of the forecast period. According to 2019 National Survey on Drug Use and Health (NSDUH), nearly 85.6% of people aged 18 years or above reported that they consumed alcohol at some point in their lifetime. With alcohol consumption forecast to rise consistently, the demand for glass containers is expected to increase in response.

The presence of key players such as Owens Illinois Inc. also is supporting growth in the U.S. Owens-Illinois offers glass containers in various shapes, sizes and colours of beverages, including beers, flavoured malt beverages, wines, spirits, soft drinks, juices and for pharmaceuticals. The company’s major customers include: Nestle, Carlsberg, Diageo, Heineken, PepsiCo., SABMiller, Saxco International, Kirrin and MillerCoors among others.

What Supports Glass Container Sales in Germany?

Due to an increase in alcoholic beverage consumption, Germany is expected to remain one of the highly lucrative markets for glass containers. As per the American Addiction Centers, Inc. (AAC), an average citizen in Germany consumes 11.3 liters of alcohol in a year while the global average in 8.9 liters.

Also, as per the Organization for Economic Development and Co-operation (OCED), the distribution of alcohol consumption is heavily concentrated in the country. It has been stated in a study that the heaviest-drinking twenty percent of the population accounts for the consumption of 60% of all alcohol. With alcohol consumption in Germany forecast to remain high, the demand for glass containers is expected to rise in response.

According to FMI, glass container sales will keep rising at a positive pace in the country, after registering contraction due to COVID-19 outbreak in 2020.

How is Healthcare and Beverage Investment Enabling Glass Containers Sales in China?

Owing to COVID impact there have been a surge in demand for glass containers like ampoules, vials, bottles, and others in China. The demand rose further with high number of COVID-19 cases. The rise in the demand for glass containers is influenced by various factors.

For instance, rising healthcare spending will create lucrative opportunities in the country. According to the World Bank, healthcare spending in China accounted for 5.35% of GDP in 2018. Additionally, large scale reforms in China’s healthcare fields will continue to aid growth within the sector. According to the World Health Organization, pharmaceutical spending in China constituted significant share of the total healthcare expenditure and is forecast to continue rising, creating lucrative opportunities for glass container sales through the forecast period.

Besides this, demand registered in the country is attributable to the increasing consumption of beer and other alcoholic drinks. As per Direct China Chambers of Commerce, in terms of beer intake, China contribute to about 20 percent of global beer consumption. This is indicative of high demand for glass containers in the country.

What is Cosmetics & Perfumery Packaging Fuelling Glass Container Demand in France?

Glass containers being one of the most preferred packaging formats for luxury items like perfume, cosmetics, and others find increasing demand within France’s booming cosmetics and perfumery packaging sector. Also, France being the market leader when it comes for perfume and cosmetic products with a share of nearly 25% in 2019 as per The International Fragrance Associations is home to some of the leading international brands like Paco Rabanne, L'Oréal S.A., Kering S.A., Yves Rocher, and others. Because perfumery packaging is always done in glass containers, France will remain a key market through the forecast period.

What Big is Opportunities for Glass Containers Market in U.K.?

As per British Soft Drinks Association, glass accounted for nearly 7% of the total soft drink packaging formats in 2019. However, when it comes for alcoholic beverages, this share for glass packaging reaches 80% of the total packaging formats used for packaging of alcoholic beverages. Furthermore, an average resident in U.K. consumes 10.2 liters of alcohol in a year which is more than the global average. The expanding beverages industry will present attractive opportunities for glass containers sales within the country.

Category-wise Insights

Will Big is Glass Bottles Segments?

Glass bottles are highly sought-after as glass containers and are projected to account for over 69% containers sold in 2021. Furthermore, some of the end-use industries such as beverages and pharmaceuticals still prefer glass bottles as their packaging option since they are both cost effective and eco-friendly. In glass the bottles segment, sauce bottles and French square bottles sub-segment collectively account for nearly 1/3^rd of the global market owing to their extensive usage in food applications.

Beverages Packaging to Dominate Glass Containers Sold

The rising consumption of beverages, coupled with an increasing focus on sustainable packaging solutions, has been creating lucrative prospects for glass containers sales. FMI has forecast the beverages industry to account for over 67% of glass containers sold in 2021. Of these, alcoholic beverages will account for the dominant share. Rising alcohol consumption in China, the U.K., and other countries will aid expansion in the segment.

Which Color is More Preferred for Glass Containers?

Amber glass containers are highly preferred for packaging across various industries. FMI has forecast it to continue dominating the market in terms of color through the forecast period. However, the adoption of clear glass containers is likely to increase at a higher rate in the coming years. Amber glass is more preferred because it offers protection against light wavelengths and has an ideal spectrum to protect the contents inside the container against UV radiations. This is one of the key factors why amber glass is more preferred for packaging within both beverages and pharmaceutical industries.

Competitive Landscape

It is estimated that the glass container market will welcome new entrants in the coming years, due to an increase in consumer preference for environmentally friendly products. In the near future, multinationals and other established players in the market are likely focus on expansion. Besides this, focus on expansion will continue to increase through the forecast period.

For instance:

• In January 2020 - Ardagh Group S.A., a corporate unit of the group and the biggest domestic glass bottle producer for the wine industry in the US launched six new sophisticated glass wine bottle designs.
• In November 2019 Owens-Illinois established a glass collection center at its headquarters. The glass was gathered by O-I and shipped for processing to the Rumpke Recycling plant. In order to be repurposed into fiberglass or fresh wine and beer packages, some of the recyclables will later be delivered to the glass production sites of O-I in Zanesville, Ohio, and Lapel, Indiana.

Some of the leading companies operating in the market are:

• Ardagh Group S.A
• Amcor Plc
• Consol Glass (Pty) Ltd
• Owens-Illinois, Inc.
• Saverglass Group
• BA Glass
• Hindusthan National Glass & Industries Limited
• Nampak Ltd
• Wiegand-Glas
• Vidrala S.A.

*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report.

Scope of the Report

Key Questions Answered in the Report

Q1. Which is the most lucrative market for glass containers?

U.S. and China are highly attractive markets for glass containers. Rising demand across diverse industries, including beverages, pharmaceutical, and cosmetics, will continue fuelling demand in these countries.

Q2. Which is the top-selling glass containers?

Glass bottles are highly sought-after in every market. The demand for glass bottles is expected to remain high in the near future, especially due to ease of usage.

Q3. Which are some of the leading companies offering glass containers?

Some of the leading companies offering glass containers are Ardagh Group S.A, Amcor Limited, Consol Glass (Pty) Ltd, Owens-Illinois, Inc., Saverglass Group, BA Glass, Hindusthan National Glass & Industries Limited among others.

Q4. Which type of glass container is more preferred?

Amber glass containers are more preferred because they offer protection against UV radiation. In the coming years however the demand for clear glass containers is expected to rise at a higher rate.

Q5. Which end user accounts for driving sales of glass containers?

Since most manufacturers sell alcoholic beverages in glass bottles, the global glass container market is heavily affected by the alcoholic beverage industry. Alcoholic beverages are a broad product segment of glass bottles, accounting for a high market share in volume relative to other end-use applications.

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Key segments

Product Type

• Glass Bottle
  • Sauce / Syrup Bottle
  • French Square Bottle
  • Boston Rounds Bottle
  • Glass Jug
  • Others (Rio rounds, woozy bottles, pill packer etc.)
• Glass Jar
  • Mason Jar
  • Hexagonal Glass Jar
  • Paragon Glass Jar
  • Straight Sided Jar
  • Others (Facet jar, tempered round jar, etc.)
• Glass Vial
  • Food Grade Vial
  • Pharma Grade Vial
• Candle Glass Container

Color

• Amber Glass Container
• Blue Glass Container
• Clear Glass Container
• Frosted Glass Container
• Other Coloured Glass Container

End-Use Industry

• Cosmetics & Perfumes
  • Perfumes
  • Color Cosmetics
• Pharmaceuticals
• Food Packaging
  • Generic Food Packaging
  • Specialty Food Packaging
• Beverage Packaging
  • Alcoholic Beverages
  • Non Alcoholic Beverages
• Other Products

Region

• North America
• Latin America
• Europe
• Asia Pacific (APAC)
• Middle East & Africa (MEA)