Market Trends of Latin America Glass Packaging Industry
This section covers the major market trends shaping the Latin America Glass Packaging Market according to our research experts:
Rising Demand from the Beverage Market to Drive Market Demand
- The market for glass packaging in the alcoholic beverage industry faces intense competition from the metal packaging segment in 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, non-dairy beverages, and others.
- Among alcoholic beverages, beer witnessed tremendous growth in the past few years. The majority of beer volume is sold in glass bottles. It is driving the need for increased production rates in the glass packaging industry. The increasing demand for premium variants in alcoholic drinks is driving the growth of glass bottles.
- 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. Currently, about 70% of the bottles used for natural mineral water are made of plastic. The choice for bottled-water packaging material is increasing, taking into account environmental considerations.
- Further, the government in Brazil is playing a significant role in boosting local beer manufacturing. For instance, the Communist Party government collaborated with AmBev, the local subsidiary, and AB InBev to launch Magnífica. This beer is both sustainable and affordable.
- Also, in Brazil, the consumption of alcohol between inhabitants is considerably high. Growing consumption of non-alcoholic beverages, like milk and juices, is further expected to create a scope for the region's glass bottles and containers market. According to Argentina's Secretary of Integral Policy on Drugs, the region consumes the most alcohol per capita of any country.
- The supply chain of various industries, such as the beverage packaging industry, has been hit with the COVID-19 outbreak. Beverage companies such as Coca-Cola and Nestle have temporarily suspended production at several manufacturing facilities. They are permitted to provide only essential beverages (bottled water, etc.) to consumers. All of this has significantly affected the beverage packaging industry, which is expected to restrain the market growth during the forecast period.
Understand The Key Trends Shaping This Market
Download Sample
Personal Care Industries expected to Increase Demand Significantly
- One of the most used personal care range of products in glass packaging in the cosmetic packaging segment. This segment includes skincare products, hair care products, and perfumes. There is s growing demand for cosmetic products in glass packaging in the cosmetic industry. The trend is most significant in high-end luxury products due to the glass packaged products looking elegant and premium.
- Brazil has recently upsurged the demand for grooming and personalization. Brazil has become the largest consumer of cosmetic products in Latin America due to an increase in the demand for men's grooming products and woman-centric products in the country.
- The increasing disposable income in countries like Brazil further adds to the demand for premium cosmetics products worldwide. The cosmetics industry in this country is continuously expanding. It has placed itself as one of the fastest-growing and most vibrant cosmetic industries across the world.
- The companies operating in the cosmetic packaging industry reflect the same increasing trend; for example, Verescence (formerly SGD) has sold its Brazilian subsidiary Verescence do Brasil to Wheaton Brasil Videos, the leading producer of high-end glass packaging for the cosmetics, perfume, and pharmacy markets in Brazil. Wheaton consolidates its position in the Brazilian market and becomes one of the world's leading glass manufacturers for the luxury sector.
Get Analysis on Important Geographic Markets
Download Sample
