Market Trends of Glass Packaging Industry
This section covers the major market trends shaping the Glass Packaging Market according to our research experts:
Beverage Industry to Hold the Highest Market Share
- Premiumization trends have played a role in selecting glass packaging for various beverage categories, including soft drinks. Soft drinks hold a significant share of the market studied, owing to the popularity of such drinks worldwide. Soft drinks offer a wide variety of flavors and formats, with something to suit every drinking occasion.
- The market for glass packaging in the alcoholic beverage industry faces intense competition from the metal packaging segment in the form of cans. However, it is expected to maintain its share during the forecast period due to its usage of premium products. The growth is expected across different beverage products, like juices, coffee, tea, soups, and non-dairy beverages.
- Among alcoholic beverages, beer witnessed tremendous growth in the past few years. The majority of beer volume is sold in glass bottles, driving the need for increased production rates in the glass packaging industry. The increasing demand for premium variants of alcoholic drinks is driving the growth of glass bottles. Developing nations, like India, are also showing a much higher quality perception of beer.
- Returnable glass bottles are a cost-effective option for companies to deliver their products. This form of packaging is used mainly in the non-alcoholic beverage industry. About 70% of the bottles used for natural mineral water are made of plastic. The choice of bottled-water packaging material is increasing, considering environmental considerations.
- Beverage companies like Coke and PepsiCo are trying to avoid plastic packaging. For instance, PepsiCo is looking to prevent the use of 67 billion plastic bottles through 2025, and the alternative for that is expected to be glass bottles.
- The global dairy industry has been witnessing a shift from plastic to glass bottles, driven by consumer demand for environmentally friendly milk. Diary companies such as Milk & More and Parker Dairies have found a substantial increase in the demand for glass bottles as consumers are willing to pay a little extra for the service rather than plastic in their efforts to help the environment.
- The introduction of growlers and sustainable glasses/mugs has enabled taprooms and microbreweries to increase their sales from delivery and takeaway.
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Asia-Pacific Holds Largest Market Share
- The increasing consumption of alcoholic beverages is driving market growth in the Asia-Pacific region. The beer packaging industry in the Asia-Pacific region is mainly driven by changing cultural trends, growing populations, urbanization, and the growing popularity of beer among the younger lot. Owing to various investments and the increasing diffusion of beer in different regions, changing trends are expected to continue in this region, which in turn can stimulate the glass bottles and containers market.
- China is one of the world's largest pharmaceutical markets. Compared to many industrialized countries, healthcare spending is still modest. The country is steadily improving its domestic drug research and development skills and its domestic medication production, allowing the government to provide affordable health care to an increasing number of Chinese people.
- Additionally, alcohol consumption in China has been significantly increasing over the years. As per the Brazil-based bank Banco do Nordeste, the consumption of alcoholic beverages in China is expected to increase the demand for glass packaging in the upcoming years. Also, many alcoholic beverage companies seek to expand in the country to seize the opportunity.
- Furthermore, Japan has been emphasizing recycling glass containers and bottles to reduce its carbon footprint and has built multiple glass recycling plants across the country. Currently, it has over 18 glass recycling plants accepting glass bottles and containers to form glass culets and powder. The robust recycling infrastructure, in a way, promotes the use of glass packaging due to its functional property advantages.
- Also, developing countries such as India have increased beer consumption. Re-usage of glass packaging solutions, especially bottles, is increasing in India as Indian consumers emphasize health; they prefer glass packaging over other options, as it prevents leaching from the surface.
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