Market Trends of Asia-Pacific Glass Bottles and Containers Industry
This section covers the major market trends shaping the APAC Glass Bottles Containers Market according to our research experts:
Beverages Driving the Sales of Glass Bottles
- Glass is among the most preferred packaging material for packaging alcoholic beverages, such as spirits. The ability of glass bottles to preserve the aroma and flavor of the product is driving the demand.
- Various vendors in the market studied are also observing the increasing demand from the spirit industry. For instance, Piramal Glass, whose clients include Diageo, Bacardi, and Pernod Ricard, mentioned that it sees an increase in the demand for short-run specialty bottles for spirits.
- The glass bottle is most favored in wine packaging, especially colored glass because wine should not be exposed to sunlight; otherwise, it gets spoiled. The growing consumption of wine is expected to spearhead the glass packaging demand over the forecasted period.
- Additionally, the rise of plant-based biodegradable plastic is also expected to introduce high competition compared to glass due to its many benefits in terms of weight, recyclability, and emphasis on reducing plastic.
- However, a quick and efficient closed loop operational cycle is necessary to reuse and recycle glass bottles at a mass level. Therefore, companies are preferring to set up the entire process domestically in respective regions.
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India is Driving Towards Growth In Glass Bottle and Container Market
- The spread of the COVID-19 virus in China arrived after US tariffs on Chinese glass bottles jumped to 25% last year. In 2020, the global COVID-19 outbreak further impacted glassware production in China since the high-end plants were quarantined in the country, and the demand was also declining from worldwide consumers. At the starting of 2020, these scenarios created the opportunity for many low-cost production countries in the region, such as India.
- India's healthcare and pharmaceutical industries are growing markets, owing to the country's rapidly increasing pharma investments. However, foreign pharmaceutical businesses are having difficulty conducting business in the country due to recent legislative reforms, particularly when it comes to market access and pricing regulation. As a result, local players may see an increase in demand for glass bottles and containers from these enterprises, creating a potential growth opportunity.
- Also, in India, AGI Glaspac collaborated with the Cheers Group to manufacture hand sanitizer in AGI Glaspac’s liquor glass bottles. According to the All India Distillers' Association (AIDA), more than 150 distilleries produce hand sanitizers. Recently, the Ministry of Consumer Affairs also stated the state governments grant licenses to distilleries and sugar companies to manufacture hand sanitizers to meet the demand.
- In the studied market, many companies are also reporting that due to a halt in the supply chain of raw materials from China, demand in the local Indian market has increased significantly. However, the fragmented nature of the supply side leads to industry challenges, as packaging as a product category is unbranded in the country, hence many foreign companies are still skeptical about the product quality and prices.
- Japan, Singapore, and South Korea are also emerging as major suppliers of equipment to contain COVID-19. In India, the Food Safety & Standards Authority of India (FSSAI) announced that hotels could replace plastic bottles with paper-sealed glass bottles for in-house guests as long as water safety standards are met and the bottles are not sold.
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