21 October, 2019
RALEIGH, North Carolina, October 18, 2019 - The global market for glass containers is currently estimated to be 58.38 MMT and is expected to grow at a CAGR of 3-4 percent until 2023, according to Beroe Inc., a procurement intelligence firm. The glass containers market is driven by increasing consumption of alcoholic beverages in the developing markets with the pharmaceutical end-user segment expected to witness the fastest CAGR of 5–6 percent.
The APAC region has the largest market share of 35 percent in the global glass containers market, estimated to be growing at a CAGR of 4–5 percent to reach 25.32 MMT by 2023. APAC is followed by Europe with a 29 percent market share growing at a rate of 3-4 percent. The LATAM has the highest growth rate of 5 percent, with a current market share of 10 percent. Suppliers in the West are primarily investing to upgrade plant equipment, in order to achieve higher energy saving and reduce carbon emission.
Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com
Beverages hold over 70 percent market of container glass globally, and are driving the growth of the glass containers market, supported by rising disposable income, changing consumption pattern, and rising populations. Glass containers are regarded to have the highest premium appeal among its counterparts, and are infinitely recyclable with no loss of quality, further increasing their demand. The market faces challenges from high logistics costs due to the weight of the glass, risk of substitution from plastic bottles, liquid cartons, and PET formats, and an increase in labor costs in developed nations.
Glass packaging accounts for around 10 percent of the whole packaging sector. Relevant market trends include the preference of smaller pack sizes due to the increasing demand for single-serve packs and health awareness. Light weighting of packages is one of the focus areas for the convertors in the recent past, in order to achieve better material cost saving, reducing carbon footprint and logistics cost. Glass container weight has reduced by 30 percent over the past decade. Suppliers are gradually increasing cullet usage to reduce landfill and production costs.
The research methodology adopted for the report included:
The cost components for glass containers are power & labor for 40–45 percent of the total costs, raw material for 30–35 percent of costs, (soda ash, limestone, sand, cullet) fuel and molds for 10–15 percent, logistics for 5–10 percent and other overhead charges for plants, machines, depreciation for 10–15 percent. Gross margins for a container glass producer are fairly less, around 8–10 percent.
The report also includes:
Beroe is the world's leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions—leading to lower costs, greater profits and reduced risk. Beroe has been providing these services for more than 13 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies.
To learn more about Beroe Inc., please visit: http://www.beroeinc.com