Market Trends of Middle East & Africa Glass Bottles And Containers Industry
Pharmaceuticals Segment is Expected to Boost the Market Growth
- The healthcare industry in the MENA region has set strict regulations for drug delivery products due to the increasing importance of biotech and price-sensitive drugs. Numerous businesses in the pharmaceutical glass manufacturing sector are investing in pharmaceuticals due to their focus on packaging, which aims to extend a product's shelf life.
- For instance, identifying the opportunities available in the region, GlaxoSmithKline and Saudi Chemical Company Holding (SCCH), as early as June 2021, made a contract to produce pharmaceuticals in Saudi Arabia. AJA Pharmaceutical Industries, a division of SCCH, is expected to collaborate with GlaxoSmithKline Consumer Healthcare Saudi in a five-year, SAR 100 million (USD 26.66 million) manufacturing agreement. Additionally, the new alliance would contribute to expanding Saudi Arabian jobs in the country's pharmaceutical industry.
- Additionally, it is anticipated that increased lifestyle diseases and strong brand loyalty to foreign medicines in the region are projected to drive up pharmaceutical demand throughout the forecast period. Rising per capita income, a developing healthcare infrastructure, and higher penetration of health insurance firms in the Kingdom are other factors driving the growth of the pharmaceutical industry.
- Moreover, Saudi Arabia's rapidly expanding pharmaceutical packaging demand is primarily due to the rise in non-communicable diseases. Improving healthcare infrastructure and increasing healthcare expenditure are expected to support market growth. Further, according to Alpen Capital, the spending on healthcare for Saudi Arabia totaled USD 60.7 billion in 2022 and will likely reach USD 77.1 billion by 2027.
- Also, Pharmaceutical packaging in Saudi Arabia is dominated by MNCs, who hold a substantial market share. Rising healthcare costs and growing health awareness stimulate market growth during the forecast period.
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South Africa is Expected to Experience Significant Growth
- South Africa is experiencing growth in glass bottles and containers with the establishment of several plants, expansion of the production capacity of existing players, and the entry of new players. In July 2022, Ardagh Glass Packaging Africa (AGP Africa), a subsidiary of Ardagh Group, commissioned a ZAR 1.5 billion (USD 95 million) extension of its Nigel production facility in Gauteng. The extension has increased the facility's ability to produce environmentally friendly glass packaging, which has more than doubled due to the Addition, including a new furnace and production lines.
- Further, in November 2022, Ardagh Glass Packaging Africa (AGP Africa) announced plans to add a third furnace (N3) to expand the glass capacity of its Nigel production facility in Gauteng, South Africa. The expansion announcement follows the recently commissioned ZAR 1.5 billion (USD 95 million) Nigel 2 expansion. The N3 will further ramp up the facility's capacity of glass packaging to support the present and projected growth in demand in the upcoming years.
- Similarly, In February 2023, Altajir Glass Industries' glass factory (Jebel Ali Container Glass Factory), glass bottles and containers manufacturer located in the Jebel Ali industrial zone of Dubai, manufactured glass bottles with a daily output of 4.5 million units. Such regional expansion and investment will boost and support market growth, bolster the government's economic recovery plans, and offer job opportunities in Ekurhuleni. This represents a significant inward investment into South Africa and other markets in which the company operates.
- It's also anticipated that non-alcoholic beverages like fizzy drinks will be included in more localized glass bottles. In line with the same, Coca-Cola declared in February 2022 that it would sell 25% of its beverages in returnable and reusable glass bottles by 2030, focusing most of its efforts on the markets in Africa, Latin America, and the Southwest of the United States. In Addition, according to Krones AG, a German packaging and bottling machine manufacturer, the consumption of packaged beverages in Africa and the Middle East stood at 118.4 billion liters in 2021 and is projected to reach 127.1 billion liters in 2024. Similar trends will be seen during the forecast period, boosting market growth.
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