Global Market Outlook on Cosmetic Glass Packaging

Cosmetic glass containers are highly challenged by alternatives in plastics and metals. Hence, the market is moving towards highly innovative products including lightweight, breakage resistant and intricately decorated alternatives. Cosmetic glass container market is dominated by Premium perfume segment, which currently holds 45 percent market share and is expected to reach around 48 percent in the next three years. Growth is attributed to demand from APAC.

  • The Global Glass container packaging industry is expected to grow at around 4-5% CAGR between 2017-22 majorly driven by the large volume demand from Beverages in the emerging markets like China and India, followed by other end use segments like Food, Pharma and Cosmetics
  • Cosmetics segment is expected to grow at around 4-5% CAGR driven by increasing demand from premium cosmetics segment. Skin care and color cosmetic segments are expected to register high growth rate in the next five years
  • Decorations, Light weighting and sustainability will be key market drivers for glass containers. However, factors like material substitution, durability might hinder the growth prospects of glass containers in the long term.

China Market Outlook

With growing demand from skin care and color cosmetic segment in China, there will be a consistent demand for glass containers for the next three years. With growing demand in China, major global players are likely to expand their presence in China by acquisitions, new plant establishment and plant refurbishments.

  • China Cosmetics and Perfumery glass container market is expected to grow at around 4-5% CAGR between 2017-22 driven by demographic factors like increasing urbanization and high disposable income
  • Beverage is the largest end use segment for glass packaging market in China. Cosmetics segment would be majorly driven by high volume requirement from perfumery and high growth rate from skin and hair cosmetic segments
  • Plastic bottles, tubes, and jars are being increasingly adopted in cosmetics packaging segment due to the reasons like cheap costs and user convenience. However, glass container packaging would continue to retain its position for the reasons like recyclability, better aesthetics particularly in premium cosmetics segment.

Key Trends

  • Smaller pack sizes are gaining preference over the conventional large size bottles owing to the increasing trend towards easy to carry pocket sized bottles
  • Smaller size bottles are increasingly preferred for the reasons like affordability and can be consumed before the expiration date
  • Small size bottles relatively have a better shelf appeal compare to large size bottles particularly in personal care and premium cosmetics segments where aesthetics plays a vital role
  • In the developed markets, Europe is one of the largest user of Post Consumer Cullet for manufacturing new glass containers with an average recycling rate of around 73 percent. Top supplier like Owen-Illinois , Ardagh have reached 90 percent  PCC usage rates across various production sites in Europe.
  • However, market like North America is still lagging in recycling rates behind Europe with an approximate recycling rate of 35 percent  leaving out few production site which maintains over 50 percent  rates.
  • In developing region, major portion of the countries have significantly low rate of recycling (around15-20%) owing to inefficient recycling infrastructure or improper deployment of recycling policies