Market Trends of Africa Glass Bottles and Containers Industry
This section covers the major market trends shaping the Africa Glass Bottles & Containers Market according to our research experts:
Beverages is expected to Hold Major Market Share
- Africa is home to more than 500 wineries and produces wines for local and international markets. Huge vegetation creates close-to-perfect temperatures, and the presence of sandy loams aids in cultivating and harvesting vineyards. This is coupled with hot days and cool nights that set the right environment to grow and harvest grapes and ferment the same to manufacture wine.
- According to the International Organization of Vine and Wine, 10.6 million hectoliters of wine was produced in South Africa in 2021, up 2% from the previous year, which was comparatively higher than other countries such as China and Germany, producing only 5.9 million hectoliters and 7.9 million hectoliters of wine in 2021. The production is expected to scale during the forecast period, which is expected to drive more opportunities for glass bottle manufacturers in the region.
- Multiple initiatives that drove investments from local beer manufacturers are expected to drive the demand for glass bottle packaging further. For instance, in September 2022, The South African Competition Commission permitted Heineken to acquire South African wine-and-spirits company Distell. Additionally, it has approved Heineken's full acquisition of Namibia Breweries (NBL). This is expected to increase beer exports and the production volume of beer in the region. Thus driving the demand for the market in the region.
- Non-alcoholic beverages such as carbonated drinks are also expected to integrate more regional glass bottles. For instance, in February 2022, Coca-Cola announced that it intended to sell 25% of its beverages in returnable and reusable glass bottles by the year 2030, concentrating most of its efforts on the markets in Africa, Latin America, and the Southwest of the United States.
Understand The Key Trends Shaping This Market
Download Sample
Egypt is anticipated to Grow with the Highest Growth Rate
- Egypt was an importer of glass until 2010, but in 2012, the country was able to achieve self-sufficiency with the product category and began exporting locally-produced glass. According to the Federation of Egyptian Industries, Egypt exports about 30% of its glass production.
- Neighboring African markets, which are unable to manage domestic production, are the primary purchasers of Egyptian glass, especially the Arab and African markets and the countries associated with Egypt in trade agreements, such as the COMESA countries, which include Libya and Eswatini.
- Egypt also exports large quantities of raw material, nearly 1 million tons annually. A switch to exporting finished products instead of raw materials could result in better financial revenues for the country with the added benefit of the growth of the manufacturing sector.
- Using locally collected raw materials in industries helps to regulate investments within the country before it leaves it, premising local development in several aspects, offering more opportunities to developing the industry.
- The country has been attracting foreign investments for glass manufacturing. For instance, in August 2022, with an investment of USD 400 million, Vitro Architectural Glass intends to expand into Egypt and construct two facilities. Vitro is interested in the construction of a glass production facility with 1.1 million square feet and 493,000 feet of land to create container glass. The plant's output will be exported by the company.
Get Analysis on Important Geographic Markets
Download Sample
