Retail Glass Packaging Industry Analysis in GCC

GCC Retail Glass Packaging Industry Outlook from 2023 and 2033

Sales of retail glass packaging in GCC are projected to total US$ 778.3 million in 2023 and US$ 1,548.9 million by 2033. Over the forecast period, retail glass packaging demand across GCC is predicted to increase at a CAGR of 7.1%. The GCC retail glass packaging revenue totaled US$ 715.9 million at the end of 2022 and is forecast to exhibit a y-o-y growth of 8.7% in 2023.

Attributes	Key Insights
Base Value (2022A)	US$ 715.9 million
Estimated GCC Retail Glass Packaging Business Revenue (2023E)	US$ 778.3 million
Projected GCC Retail Glass Packaging Business Value (2033F)	US$ 1,548.9 million
Value-based CAGR (2023 to 2033)	7.1%

Analysis of the GCC Retail Glass Packaging Business Trends and Growth Drivers

• Increasing glass packaging demand in the GCC retail sector
• Escalating demand for sustainable and eco-friendly packaging is expected to bolster retail glass packaging sales in the GCC
• Rapid expansion of the food & beverage sector is set to boost the growth of retail glass packaging in the GCC
• Development of innovative retail glass packaging solutions will create growth prospects for manufacturers
• Growing demand for glass bottles and availability of customized solutions are key trends in glass packaging for retail use
• Rising awareness about the benefits of glass is expected to create opportunities for manufacturers of retail glass packaging in GCC
• Increasing usage of glass packaging for branding purposes will bode well for the target business
• Surging demand for packaged food and beverages is predicted to bolster sales of retail glass packaging in GCC
• Increasing government initiatives to promote recycling is expected to foster the growth of the retail glass packaging business in GCC
• Growing popularity of e-commerce and expansion of the personal care & cosmetics sector is projected to fuel glass packaging demand in the GCC

Historical Performance Vs. Retail Glass Packaging Sales Forecast in GCC

The GCC retail glass packaging business grew at a CAGR of 5.0% during the historical period, with overall revenue totaling US$ 715.9 million at the end of 2022. From 2023 to 2033, sales of retail glass packaging solutions in the GCC region are projected to rise at a 7.1% CAGR.

Historical CAGR (2018 to 2022)	5.0%
Forecast CAGR (2023 to 2033)	7.1%

Several factors are expected to drive the demand for retail glass packaging in GCC. These include the expansion of sectors such as food and beverage, pharmaceuticals, and cosmetics. Rapid population growth, urbanization, and increased need for glass packaging solutions in GCC would also aid demand.

Due to its aesthetic appeal, capacity to be recycled, and ability to maintain the integrity of the contents, glass packaging is a preferred option in GCC. It is widely used to package a variety of products, including food, beverages, pharmaceuticals, and cosmetics.

The growing adoption of glass packaging solutions in the GCC is expected to boost sales during the assessment period. Similarly, the rising need for safe, sustainable, and versatile packaging will likely fuel demand for glass packaging in the Gulf Cooperation Council nations.

The GCC’s two leading pockets for retail glass packaging are Saudi Arabia and the United Arab Emirates, where huge investments are being made in the food and beverage sector. The need for glass packaging in these nations is significantly influenced by the pharmaceutical and personal care & cosmetics businesses.

Top firms such as Saverglass SAS, Majan Glass Company SAOG, RAK Ghani Glass LLC, and Frigoglass SAIC, among others, operate in the region's extremely competitive glass sector. To fulfill the increasing demand for glass packaging in the area, these firms are making investments in product innovation and business growth.

Semi-annual Update

Particular	Value CAGR
H1	6.9% (2022 to 2032)
H2	6.7% (2022 to 2032)
H1	7.4% (2023 to 2033)
H2	7.2% (2023 to 2033)

Outline of Important Trends in Retail Glass Packaging Shaping Growth

• Growing Demand for Sustainable Packaging Solutions

Customers are preferring more environmentally friendly packaging solutions as they become more environmentally concerned. In comparison to other materials, such as plastic, which is non-biodegradable and can harm the environment, glass packaging is considered to be more environmentally friendly. As a result, GCC is witnessing an increasing demand for glass packaging options.

Governments across GCC countries are enacting policies to encourage sustainability and lessen waste. For instance, the United Arab Emirates's introduction of a charge on plastic bags has prompted shops to convert to more environmentally friendly packaging materials, such as glass.

The use of glass packaging solutions in the area has been facilitated by regulatory body assistance. Compared to other materials, glass has a better-developed recycling infrastructure. Glass packaging can be recycled more effectively and easily. This has prompted businesses in the GCC to include glass-packaging options in their sustainability plans.

• Expanding Food and Beverage Business to Uplift Demand in GCC

Food and beverages are best packaged in glass containers as they maintain the contents' quality and freshness. Hence, the expansion of the food and beverage sector will create a high demand for glass containers.

Glass containers prevent light from infiltrating and influencing the taste and quality of the product, which is crucial for items such as beer and wine that are sensitive to light. As a result, there is now a greater need for glass packaging solutions in GCC due to the growing food and beverage sector.

Glass packaging offers a high-end appearance and feel, which is crucial for the food and beverage sector. Premium goods such as fine spirits, gourmet meals, and specialty drinks are frequently packaged in glass. The GCC region's growing food and beverage sector will continue to elevate the demand for high-end glass packaging options.

Comparative View of Adjacent GCC Retail Glass Packaging Businesses

The peer or tangential businesses in the packaging division will likely affect the GCC retail glass packaging business. This includes businesses such as glass bottles and beverage packaging. On analysis of these related sectors, the report has detected profound insights that will be helpful for developing unique differentiating strategies to pursue growth and opportunity.

For instance, a positive growth projection in the glass bottle business will eventually create growth prospects for retail glass packaging manufacturers. Similarly, the rising demand for beverage packaging is set to positively impact retail glass packaging sales and boost the growth of retail glass packaging sector in GCC.

GCC Retail Glass Packaging Demand Outlook:

Attributes	GCC Retail Glass Packaging Demand Outlook
CAGR (2023 to 2033)	7.1%
Value (2023)	US$ 778.3 million
Growth Factor	The growing food and beverage sector and rising customer concern for environmental sustainability are expected to drive growth in the GCC retail glass packaging business.
Key Trend	Surging demand for customized packaging and shifting preferences for eco-friendly packaging solutions are key trends in GCC retail glass packaging.

Glass Bottle Sales Forecast:

Attributes	Glass Bottle Sales Forecast
CAGR (2023 to 2033)	5.7%
Value (2023)	US$ 40.2 billion
Growth Factor	Growing demand for eco-friendly packaging is expected to boost sales of glass bottles.
Key Trend	Increasing bottled beverage consumption creates new opportunities for glass bottle manufacturers.

Beverage Packaging Industry Analysis:

Attributes	Beverage Packaging Industry Analysis
CAGR (2023 to 2033)	4.2%
Value (2023)	US$ 108.7 billion
Growth Factor	Rising consumption of alcoholic and non-alcoholic beverages globally is expected to drive demand for beverage packaging.
Key Trend	The introduction of novel packaging materials will bode well for the target business.

Country-wise Insights

The section below highlights the retail glass packaging business across prominent GCC countries. Out of all the countries profiled, Qatar, the Kingdom of Saudi Arabia, and the United Arab Emirates are expected to witness lucrative CAGRs of 8.8%, 7.5%, and 6.8%, respectively, through 2033.

Countries	Value CAGR
Kingdom of Saudi Arabia	7.5%
United Arab Emirates	6.8%
Kuwait	5.3%
Bahrain	6.4%
Oman	4.7%
Qatar	8.8%

Expansion of Food and Beverages Sector Driving Demand in Saudi Arabia

As per the latest analysis, Saudi Arabia is expected to offer lucrative opportunities for retail glass packaging companies during the forecast period. It is set to exhibit a CAGR of 7.5% throughout the forecast period. This is attributable to favorable government support, expansion of the food & beverage sector, and growing usage of glass containers for retail applications.

The Saudi Arabia government has launched several programs to support domestic businesses, notably the food and beverage sector. For instance, the Saudi Vision 2030 seeks to boost the GDP contribution of non-oil businesses and improve employment possibilities in the private sector. As a result, the food and beverage sector is expanding, which in turn raises the demand for retail glass packaging.

With a strong infrastructure and helpful regulations, Saudi Arabia is renowned for having a welcoming business environment. The retail glass packaging business benefits from this since it makes it simpler for firms to run and expand.

Key retail glass manufacturers also benefit from the increasing number of Hajj pilgrims. Several companies are introducing novel glass bottles for Zamzam (holy water). For instance, Al-Zamazameh Company launched new glass Zamzam water bottles in 2023.

Shift toward Sustainable Packaging to Fuel Sales in the United Arab Emirates

Sales of retail glass packaging in the United Arab Emirates are projected to soar at a CAGR of 6.8% during the forecast period. It is set to hold a prominent share of GCC by 2033. This is due to increasing government initiatives and rising demand for sustainable packaging.

The United Arab Emirates government has established challenging goals for sustainability and waste minimization, which are anticipated to support the nation's retail glass packaging sector. A long-term plan called UAE Vision 2021 has as one of its goals encouraging sustainable growth in the nation.

The ‘Green Economy for Sustainable Development’ pillar, which emphasizes waste reduction and sustainability promotion, is one of the plan's central tenets. As a result, there is now a higher need for environmentally friendly and long-lasting packaging options such as glass packaging.

Category-wise Insights

The section below shows the bottles segment witnessing a healthy CAGR of 8.4% during the assessment period. Based on end-use, the beverages segment is expected to hold a prominent value share, thriving at a CAGR of 6.2% between 2023 and 2033.

Bottles to Remain Highly Sought-after Glass Packaging Formats

Product Type	Value CAGR
Bottles	8.4%
Jars	6.3%

As per the latest GCC retail glass packaging, demand is expected to remain high for bottles across GCC countries during the forecast period. The target segment is anticipated to thrive at 8.4% CAGR through 2033. This is attributable to the rising usage of bottles in diverse businesses.

In GCC, bottles are frequently used for packaging beverages, cosmetics, and pharmaceuticals. Sales of glass bottles are expected to rise rapidly across GCC due to the growing demand for bottled goods.

Glass bottles are becoming an ideal packaging option to package a wide variety of liquids, including water, wine, juice, and beer. Hence, increasing consumption of these products is anticipated to elevate the demand for glass bottles across GCC.

Glass bottles can be recycled endlessly without losing quality and are entirely recyclable. The capacity to recycle glass bottles has also grown in importance for consumers who are becoming more environmentally conscious, which could result in increased profitability for businesses that use glass bottles.

Usage of Retail Glass Packaging Remains High in the Beverages Sector

End-use	Value CAGR
Beverages	6.2%
Food	7.9%

Based on end-use, the adoption of retail glass packaging remains high in the beverages sector across GCC. This is due to the rising consumption of non-alcoholic beverages and the safe, versatile, and sustainable nature of glass packaging. As per the latest report, the beverages segment will likely expand at a CAGR of 6.2% during the forecast period.

In GCC, juices, energy drinks, and carbonated soft drinks are becoming highly popular because of the growing interest in health and wellness. These products are best packaged in glass, which maintains the contents' freshness and quality without altering taste or flavor.

The non-alcoholic beverage manufacturing sector is experiencing a surging demand for glass packaging solutions. This is because non-alcoholic beverage manufacturing companies are increasingly employing glass packaging to give their goods a high-end and opulent appearance.

Glass bottles are frequently connected to high-end and luxury goods, which can contribute to a powerful brand image and raise the product’s perceived worth. Growing preference toward packing beverages in glass packaging solutions due to their attractive features will boost the target segment.

Competitive Landscape

Key manufacturers of retail glass packaging in GCC are adopting different strategies to strengthen their presence and boost their revenues. These strategies include new product launches, mergers, facility expansions, acquisitions, collaborations, and partnerships.

Recent Development in the GCC Retail Glass Packaging Business:

• In September 2020, Saverglass in Fairfield, California, opened a new 430,000-square-foot multi-services warehouse.

Report Scope for Retail Glass Packaging in the GCC

Attribute	Details
Estimated Value (2023)	US$ 778.3 million
Projected Value (2033)	US$ 1,548.9 million
Expected Growth Rate (2023 to 2033)	7.1% CAGR
Historical Data	2018 to 2022
Forecast Period	2023 to 2033
Quantitative Units	Revenue in US$ million, Volume in 000 tons
Report Coverage	Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends and Pricing Analysis
Segments Covered	By Packaging Formats By Grade By Capacity By End-use By Country
Key Companies Profiled	Saudi Arabian Glass Company Saverglass SAS National Company for Glass Industries (Zoujaj) Majan Glass Company SAOG Frigoglass SAIC RAK Ghani Glass LLC Al Wara Unitrade FZE Jebel Ali Container Glass Factory Gulf Glass Manufacturing Co. K.S.C (GGMC) Pragati Glass Gulf LLC

GCC Retail Glass Packaging Industry Analysis by Category

By Packaging Formats:

• Bottles
• Jars
• Vials
• Ampoules
• Syringes
• Cartridges
• Others (Descanters, Containers)

By Grade:

• Type I
• Type II
• Type III
• Type IV

By Capacity:

• Up to 50 ml
• 51 to 250 ml
• 251 to 750 ml
• Above 750 ml

By End-use:

• Food
  • Sauces & Jams
  • Spices & Condiments
  • Tea & Coffee
  • Bakery & Confectionery
  • Snacks
  • Olive Oil
  • Dairy
• Beverages
  • Alcoholic Beverages
    • Wine
    • Beer
    • Spirit
  • Non-alcoholic Beverages
    • Soda
    • Juices
    • Mineral Water
    • RTD
• Personal Care & Cosmetics
  • Perfumes
  • Color Cosmetics
• Pharmaceuticals
  • Syrups
  • Probiotics
  • Vitamin Supplements
• Other Industrial

By Country:

• Kingdom of Saudi Arabia
• United Arab Emirates
• Kuwait
• Bahrain
• Oman
• Qatar

Frequently Asked Questions

How big is the glass packaging business in GCC?

Total revenue in GCC is anticipated to reach US$ 778.3 million in 2023.

What is the sales forecast for GCC retail glass packaging in 2033?

Sales in GCC are expected to total US$ 1,548.9 million in 2033.

What is the demand outlook for retail glass packaging?

Demand for retail glass packaging in GCC is set to rise at a 7.1% CAGR through 2033.

Which end use will garner significant value share by 2033?

The beverages segment will hold a dominant revenue share by 2033.

What are the trends in the GCC retail glass packaging business?

The shift toward sustainable packaging solutions is a key trend.

Which are the top glass packaging companies in GCC?

Leading companies in the GCC are Saudi Arabian Glass Company and Saverglass SAS.