Glass packaging is available in the form of glass bottles and jars that are used to package the beverage. They are primarily used to package the beverage in order to prevent the contamination and maintain the texture of the beverage. Glass packaging also prevents the moisture and air by acting as a strong barrier between moisture and product. Moreover, glass packaging is also used in the packaging of medicine and drugs as it provides superior chemical resistance to medicines and is also easy to sterilize. Glass packaging is also used in the cosmetic industry for packaging perfumes, nail polishes, and other cosmetic products.
The global glass packaging market was estimated to be valued more than US$ 60.0 billion in terms of revenue in 2019 and is predicted to grow at a CAGR of 3.4% during the forecast period (2020 to 2027).
Increasing consumption of beer is a prime factor fueling the market growth of the glass packaging. According to Kirin Holdings Company, the global beer consumption stood at approximately 188.79 million kiloliters in 2018, up 0.8% from 2017. Increasing disposable income coupled with the rising adoption of western cultures around the globe are contributing to increasing consumption of beer. Moreover, increased in the millennial population is also another major factor fueling demand for a beer this is turn augmenting market growth of glass packaging.
Product innovation and technological advancement in order to develop a lightweight bottle and recycle bottle are expected to offer potential opportunities to the market. For instance, in January 2020, Verescence has partnered with start-up What Matters to launch a range of 100% recyclable bottles with a non-slip effect. Thus, product innovation by the manufacturer is expected to propel the market growth of the glass packaging over the forecast period.
Workplace hazard associated with the manufacturing of glass materials at glass factory is expected to restrict the market growth of glass packaging. Some of the common health hazards at the glass factory are exposure to respirable airborne substance and noise pollution. Thus, such environmental, as well as health issues associated with the production of glass, will hamper the market growth.
On the basis of application, alcoholic beverages dominated the global glass packaging market in 2019 with around 50% of market share in terms of revenue, followed by beer and food & beverages, respectively.
Rapidly growing e-commerce retail packaging is expected to foster the market growth of the glass packaging. According to the packaging gateway, India’s e-commerce revenue is predicted to be the highest rate in the world, growing at an annual rate of 51% and increasing to $120bn in 2020 from $30bn in 2016. Therefore, growth in e-commerce retail packaging is expected to foster market growth over the forecast period.
Acquisition and merger by major players for expanding their business across the globe are some of the major trends in the market. For instance, in July 2019, Owens-Illinois (O-I) has acquired Nueva Fàbrica Nacional de Vidrio (Nueva Fanal) from Grupo Modelo for approximately US$ 188 million. Nueva Fanal has four furnaces, assisting the production and supply of 300,000 tons of glass containers each year. Such business strategy by major players will favor the market growth over the forecast period.
Global Glass Packaging Market - Impact of Coronavirus (Covid-19) Pandemic
Glass packaging manufacturers are encouraging recycling of packaging on during the pandemic so that these materials can be converted into new products. This scenario is expected to prevent disturbance in supply chain.
Key players are operating in the global glass packaging market are Amcor Ltd, Ardagh Group, Gerresheimer, Hindustan National Glass & Industries Ltd, Koa Glass Co. Ltd., Owens Illinois Inc, Piramal Glass Limited, Saint-Gobain, Heinz-Glas, Wiegand-Glas, Vidrala SA, Vitro Packaging, Nihon Yamamura, Bormioli Rocco Spa, China Glass Holdings Limited, Consol Glass Limited, Stolzle-Oberglas GmbH, and Vetropack Holding AG