Glass Bottles Market Intelligence

Glass Bottles Market Overview

The global market for glass bottles is expected to reach 65.4 MMT by 2022 while growing at a continuous CAGR of 3-4 percent. The demand will be driven by increasing consumption of alcoholic beverages in developing markets such as India and China. Globally, the market for glass containers is estimated to be operating at 60-70 percent of its installed capacity. This could lead to slow demand for alcoholic beverages, with a growth of 1-2 percent in the West.

Alcoholic beverages, which hold over 70 percent of the glass bottles market share in the end-user segment, will continue to dominate the glass bottles market for the next decade. This is due to the increasing consumption of beer and wine in the APAC. The APAC region is a key driver in the glass container market with a 35 percent market share. Maturing consumption of alcoholic beverages in the West might drive the buyers to expand to developing markets, like India, China, Vietnam, Thailand, Mexico, etc. Emerging markets have high growth potential, driven by the increasing consumption and trade attractiveness of the glass packaging market.

Global Glass Bottle Market Analysis

• The global glass container market is expected to grow at a CAGR of 1–2 percent during 2020 (E)–2025 (F) and reach 63.4 MMT by 2025, driven by lower consumption of alcoholic beverages across the markets during 2020 (E) 

• The pharmaceutical segment is expected to witness a CAGR of 4–6 percent from 2020 (E) to 2025 (F), highest among other end-use segments, driven by increasing demand for drugs globally

Global Glass Container: Market Overview

• The global glass container market expects to grow at a CAGR of 1–2 percent, due to the COVID-19 impact and its ripple effect likely to be witnessed in the next three years. However, rapidly increasing consumption of food & beverages in the APAC region is expected to drive the glass container growth in the next five years

• The global glass container market is expected to have lower production in 2020 by 11 percent to reach 51.8 MMT, this is due to the COVID-19 impact. Post-2020 crisis, business is likely to pick up to reach 2019 production levels, a slower rate is expected in 2023. Growth of 1–2 percent (CAGR) from 2020 (E) to 2025 (F) and forecast to reach around 63.4 MMT by 2025 (F). Slower growth will be primarily driven by the lower consumption of beverages & cosmetics from the end-use industries

• Developing markets, like APAC, Middle East, and Africa, are expected to witness fresh investments by domestic and international suppliers, owing to the increasing domestic beverage consumption and emerging export opportunity to the developed markets

• The global supply base of container glass is fragmented, as the top five players, including Owens-Illinois, Ardagh, Verallia, Anadolu Cam, etc, have a combined market share of around 35 percent. However, North American and the EU markets are fairly consolidated with over 50–60 percent of the market share held by the top 2 or 3 players

• Light weighting, sustainability, and premiumization will be key market trends for glass beverage bottles. However, factors like material substitution, breakage and slowing consumption of alcoholic beverages in the EU (CAGR ~1 percent) and the US (CAGR 2–2.5 percent) might hinder the growth prospects of glass containers in the long term

• Globally, the container glass market is estimated to be operating at 60–70 percent of its installed capacity, owing to overcapacity in the market, coupled with slow demand for alcoholic beverages, growing at 1–2 percent in the West

• Suppliers in the West are primarily investing to upgrade plant equipment, in order to achieve higher energy saving and reduce carbon emissions. Emerging markets will experience increasing investments in new furnace installation and refurbishment over the next 3–5 years

• Beverages form over 70 percent of the container glass and glass bottles market size globally, with beer bottles being the largest end-use segment.

• The global supply base of container glass is fragmented. However, the North America glass packaging market is fairly consolidated with over 50–60 percent of the market share held by the top two or three players.

• The European supply base is consolidated with global players having over 50 percent of Europe glass packaging market share.

• The cost drivers for the glass packaging market include labor, energy and raw material costs. 

• The Indian glass packaging market holds around 6 percent of the overall exports share. The exports are expected to increase over the next five years, owing to increasing exports to other Southeast Asian countries

• Globally, the glass container market is expected to be operating at 60–70 percent of its installed capacity, owing to overcapacity in the market, coupled with slow demand for alcoholic beverages, growing at 1–2 percent in the West 

• Glass convertors in the West are focusing on developing lightweight and high esthetic value products, triggered by the shift in demand toward premium and sustainable packaging formats. Suppliers in developing markets, like India and China, are primarily focused on expanding production capacities, in order to cater to the domestic glass demand and tap the export opportunities to the neighboring markets 

• Increasing material and high utility cost in the West will trigger the growth opportunity for emerging markets, like Turkey, Poland, UAE, etc., where both local and global suppliers are expected to expand their production 

• Increased investment in the furnace refurbishment activity and improving recycling system are expected in the next 3–5 years, in order to bring down the production cost and reduce carbon emission by increasing the use of recycled cullet in the batch

• APAC is the largest glass market and also a major growth engine for the category for the next five years, with a growth 2–3 percent, owing to the increasing consumption of alcoholic beverages in this region. On the contrary, North America and Europe’s alcoholic beverages (including beer) are estimated to grow at ~1 percent (CAGR) from 2020 (E) to 2025 (F), owing to growing health awareness and shifting drinking preference toward alternative beverages, like craft beer,  sports drinks, RTDs, etc., which are available in can packaging, taking over some share of container glass demand for soft drink bottles and beer bottles 

• Globally, the pharmaceutical segment is expected to register a strong growth rate across all the end-use segment, with an estimated ~5 percent CAGR from 2020 (E) to 2025 (F), owing to the emerging branded generics market in the developing region, especially India, which is the leading branded generics producer across the globe 

• Glass containers and glass jars are gradually getting substituted with alternative packaging formats, like bag-in-box in wine segment, metal can in CSD and beer, stand-up pouches, and PET bottles in food & condiments, etc., triggered by the low cost, durable, and lightweight nature of these packaging formats. This change is seen in the soft drinks as well as sauces and condiments market.

Glass Bottles Market Outlook and Why You Should Buy This Report

• The glass bottles market report gives details on the global and regional market outlook, market drivers and constraints and the trade dynamics in emerging and developed markets.
• It describes innovations in the container glass market such as the single-serve wine bottles from the Ardagh group and the glass bottle with sugar control design by Kolibri & Beatson Clark.
• The report also provides a regional market outlook in areas such as North America, Europe, APAC, and LATAM, followed by an overview of global imports and exports as well as a glass bottle market forecast.

Methodology for writing this Report

Beroe gathers intelligence through primary sources that include industry experts, researchers, and consultants, as well as current suppliers, producers and distributors. Secondary sources can include business journals, newsletters, magazines, market research data, company sources, and industry associations. Following data collation, analysis, and strategic review, the Final Research Report is published on Beroe LiVE.