Canada Glass Bottles and Containers Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Market Overview

The Canada Glass Bottles and Containers Market was valued at USD 3.36 billion in 2020 is expected to reach USD 14.97 billion at a CAGR of 4.91% over the forecast period from 2021 - 2026. Glass packaging is entirely recyclable, which makes it a desirable packaging option from the environmental point of view. SIx tons of recycled glass directly save six tons of resources and reduce the emission of carbon dioxide by one ton. One of the main factors driving the growth of the market is the increase in beer consumption in the country. According to Beer Canada, the total beer sales accounted for 21.41 million hectoliters in 2019. Beer is one of the significant alcoholic beverages that use glass bottles for packaging. Beer is generally packed in dark-colored glass bottles to preserve the contents, which are prone to spoilage when exposed to UV light.

• Moreover, Canada has been one of the significant exporters of glass and ranks 27 worldwide. In 2019, the country exported over USD 608.3 million of glass and glassware mainly to the United Kingdom, the United States, and India. Such a high manufacturing facility in the country gives the industry a competitive edge and growth opportunities for expansion. Health Canada's packaging requirements are insufficient to address environmental impacts, so federally licensed producers are stepping up with recycling programs. Most of the dispensaries are opting to store and display the bulk of dried cannabis in large glass jars.
• The food and consumer products industry is one of the prominent sectors, which contributes to over USD 29 billion to the country's GDP annually. It is significantly growing, which is estimated to drive the demand for the glass and containers packaging market. Recently, Oromocto, a Canadian town, launched a glass recycling pilot project, a four-month pilot project for disposing of glass food jars to prevent the recyclable material from ending up in landfills. According to the Department of Environment and Local Government, the pilot project is the first to collect non-beverage glass containers for recycling. Moreover, Stanpac Inc., a packaging manufacturing company in Canada, offers a glass bottle screening equipment to decorate virtually any glass container.
• Due to its many benefits, glass packaging significantly rising for both cosmetics and fragrance. Moreover, emerging economies are anticipated to create a favorable demand for cosmetics and perfume products and their packaging. Canada is one of the fastest-growing markets for cosmetic consumption and production. The value of the cosmetics market in Canada is expected to reach USD 15.8 billion by 2021, which is an increase of USD 3 billion in the past five years. Luxury and premium cosmetics, perfumes, glass bottles, and container packaging are preferred as providers premiums feel. Still, also, there are added benefits that add to the appeal.
• Glass bottles remain one of the most popular packaging types owing to heritage, returnability, and premiumization. Increased urbanization and a higher level of disposable income have propelled the growth of the market studied in the country. According to a survey called World Development Indicators conducted by Wold Bank, the degree of urbanization accounted for 81.41% in Canada in 2018. The aesthetic appeal of glass containers has ensured their usage in packing luxury products, portraying a sense of timeless prestige with which people want to be associated. Growing awareness of the health and environmental benefits of glass has made consumers inclined toward glass bottles and containers.

Scope of the Report

Glass bottles and containers provide an ideal way to keep the consumables safe, fresh, and healthy for a more extended period and ease of transport. Glass bottles and containers are significantly used in the alcoholic and non-alcoholic beverage industry. As part of the scope of the market, various end-user verticals such as beverage, food, pharmaceutical, and cosmetics, has been considered.

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Key Market Trends

Beverage is Expected to Hold Major Share

• Glass bottles and containers are significantly used in the alcoholic and non-alcoholic beverage industry, due to its various properties to maintain chemical inertness, sterility, and non-permeability. Alcoholic drinks, like beer, accounted for the largest 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. Due to this reason, a majority of the beer volume is transported in glass bottles, and this trend is expected to continue over the study period in the country.
• According to UN Comtrade, the trade value of non-alcoholic beverages imported to Canada accounted for USD 842.2 million in 2019. According to StatCan, the total volume of liquor sold reached 3.1 million liters in 2018. The wine sales have witnessed a significant growth of 4.6% and accounted for 32.4% of alcoholic beverage sales. The spirit sales grew by 4.4% and accounted for 23.7% of total alcohol sales. The glass packaging has a significant share in the overall alcoholic beverage market. With the ongoing increase in demand for alcoholic beverages, the market for glass bottles is expected to increase in the forecast period.
• In January 2020, the Quebec government has announced a new, more extensive consignment program that will include all glass, plastic, and metal drink containers between 100ml and 2L. All beverage bottles and containers, including glass bottles for wine and alcohol, will be turned in under the latest deposit system. The government says the goal is to reduce the amount of material that ends up in landfills by recovering and sorting them sooner. Wine and spirit bottles and water bottles and cans that were not part of the previous deposit program, which includes sparkling water, vegetable juices, and green teas, will be included in the new program. 
• With recycling programs suspended around the country due to COVID-19 fears, one of Canada’s largest beer brewers says it is struggling to find enough bottles to keep up with production. In mid-March, Ontario’s beer retailing behemoth, The Beer Store, announced it would stop accepting empties from March 19 to March 31 to protect employees from being exposed to the coronavirus. The suspension expired, but the chain of 450 stores didn’t respond to questions about whether it would resume collecting used bottles and cans, though it said on its website that new information on its recycling program was pending.

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