Global Market Outlook on Glass Containers

  • The global glass container market is expected to grow at a CAGR of 3–4 percent during 2017–20 and reach 65.4 MMT by 2022, driven by increasing consumption of alcoholic beverages in the developing markets, like India and China. Maturing consumption of alcoholic beverages in the West will be offset by the developing markets 
  • Pharmaceutical segment is expected to witness the fastest CAGR of 5–6 percent from 2016 to 2022 across end-use segments, driven by increasing consumption of OTC drugs globally. Cosmetics segment will contribute to the value growth, owing to the increasing demand for high aesthetics 
  • Suppliers in the West are primarily investing to upgrade plant equipment, in order to achieve higher energy saving and reduce carbon emission. Emerging markets will experience increasing investments in new furnace installation and refurbishment over the next 3–5 years

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Regional Demand Overview

Growing consolidation of supply base and maturing consumption of alcoholic beverages, especially in the West, might drive the buyers to expand their  presence in the developing markets, like India, China, Vietnam, Thailand, Mexico, etc

Global Glass Container Market Overview

  • The global glass container market expects a growth of 4–5 percent, primarily driven by the APAC market. Rapidly increasing consumption of food & beverages in the APAC region is expected to drive the glass containers growth in the next five years
  • The global glass containers market expects a value growth of 5 -6 percent (CAGR) from 2017–2022, to reach around $71 billion by 2022. Growth will be primarily driven by the increasing consumption of alcoholic beverages in the emerging markets, like India and China, where beer consumption growth is estimated to grow around 13–14 percent and 7–8 percent (CAGR), respectively 
  • 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 bottles. However, factors like material substitution, breakage and slowing consumption of alcoholic beverage 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 glass container market is estimated to be operating at 60–70 percent of its installed capacity, owing to over capacity 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 aesthetic 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