Africa Glass Bottles and Containers Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The Africa Glass Bottle and Container Market is expected to register a CAGR of approximately 5.67% during the forecast period (2021-2026). The Covid-19 pandemic has affected most of the end-user industries in Africa. Owing to the lockdowns imposed by the governmental authorities in the region to curb the spread of the virus, there has been an adverse effect on both demand and supply of packaging products. However, major disruptions were witnessed in the first half of 2020 with factory shutdowns. In April 2020, Coca-Cola announced that it has forced shut down one of its biggest manufacturing plants in Gauteng after an employee tested positive for Covid-19. Such shutdowns were witnessed across different end-user industries and have directly impacted the demand for glass bottles and containers.

• Alcoholic drinks, like beer, account for the major segment of the market, as glass does not react with the chemicals present in drinks and, therefore, preserves the aroma, strength, and flavor of these beverages, making it a favorable option for packaging. It is packed in dark-colored glass bottles for preserving the contents, which are prone to spoilage when exposed to UV light.
• Beer consumption is also increasing in the region, creating a demand for glass bottles and containers. According to the data published by Kirin (December 2020), a Japanese beverage company, the annual beer consumption in Africa increased from 14.05 million kiloliters in 2018 to 14.7 million kiloliters in 2019. 14.7 million kiloliters are equivalent to about 23.3 billion beer bottles of 633 milliliters each.
• As part of the initiative, the company partnered with the Dortmund system for improving PET and glass bottle washing. According to the company, one of the machines processes returnable PET at respective capacities of up to 26,400 1.5-liter bottles an hour and up to 19,200 2.0-liter bottles per hour.
• There has been a push toward improving the local production of medications in Africa by governmental authorities, bringing new opportunities for glass packaging. According to International Finance Corporation (IFC), pharmaceutical imports comprise as much as 70% to 90% of drugs consumed in most Sub-Saharan Africa. The dependence on imports leaves citizens vulnerable to shortages of medication.
• In addition, the heavy investments directed toward developing and manufacturing COVID-19 vaccines also create a need for glass vials and other forms of packaging. In July 2021, World Bank and government institutions from the United States, Germany, and France offered a EUR 600 million loan to Aspen Pharmacare, one of the biggest pharmaceutical companies in Africa, for manufacturing vaccines.
• The vendors in the region are also investing heavily to improve the process of manufacturing along with expansion. In May 2021, Nigerian glass manufacturer, Frigoglass, began the construction of a new furnace at its Beta Glass site located in Agbara, Nigeria.

Scope of the Report

The Glass Bottles and Container market of this region is segmented based on end-user industries such as beverages, food, cosmetics, pharmaceutical, and other end-user industries. Moreover, the beverages segment is further divided into alcoholic beverages and nonalcoholic beverages.

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Key Market Trends

Beverages is expected to Hold for Major Market Share.

• Africa is home to more than 500 wineries and produces wines for both local markets and international markets. Huge vegetation creates close to perfect temperatures and the presence of sandy loams aids in cultivating and harvesting vineyards. This is also coupled with hot days and cool nights that set the right environment to grow and gravest grapes and ferment the same to manufacture Wine.
• According to the International Organization of Vine and Wine, the wine production in South Africa accounted for 10.4 million hectoliters, which were comparatively higher than other countries such as China and Germany, producing only 8.4 and 6.6 hectoliters of Wine in 2020. The production is expected to scale during the forecast that drives more opportunities for the glass bottle manufacturers in the region.
• Further, wine exports from Africa in 2020 were found equivalent to the wine exports in the United States according to the International Organization of Vine and Wine. Africa and the US exported 3.6 million hectoliters of Wine in 2020 and are expected to outrun the United States during the forecast. This further drives newer opportunities for the vendors in the market.
• Multiple initiatives that drove investments from local beer manufacturers are expected to drive the demand for glass bottle packaging further. For instance, in October 2021, Heineken approached Nambian Breweries to purchase a 25% stake to establish a joint venture for Heineken South Africa. The venture is expected to help NBL reduce loss-making investments (attributed to losses of NAD 339 million) that were attributable from the past five years. This is expected to increase the beer exports and the production volume of beer in the region. Thus driving the demand for the market in the region.
• Furthermore, in April 2021, Nigerian Beer Brand star Lager announced the expansion in the United States by expanding its distribution capacity for a premium cold-filtered lager. This is expected to drive the demand for glass bottle packaging as the number of exports and demand for African beer increases. Also, according to the company, out of 8,000 breweries in the United States, 60 of them are black-owned. This indicates the demand for African beers in the United States and thus drives the market studied.

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