Market Trends of NA Glass Bottles/Containers Industry
This section covers the major market trends shaping the North America Glass Bottles/Containers Market according to our research experts:
Beverages Segment is Expected to Witness Significant Growth
- Beverages hold the maximum market share in the market studied. With consumers getting increasingly careful about what they consume and in what material it is packaged, the perception towards glass is increasingly becoming positive due to the prime reason that glass is the neutral packaging material with an almost zero rate of chemical interaction, ensuring product integrity.
- For instance, in March 2020, Ardagh Group, Glass expanded its production at Wilson, North Carolina, plant. It partnered with O'Connor Brewing Company to manufacture all of its 12oz long-neck glass bottles. The 12oz long-neck amber beer bottles for O'Connor Brewing Company are likely to be designed and manufactured by Ardagh Group using 100% recyclable amber glass.
- As more and more population is turning toward eco-friendly solutions to increase their contribution, glass packaging is seen as an endless recyclable alternative to plastic packaging. Glass can be 100% recycled as well as re-usable, without losing quality. According to a survey by G&S Business Communications, glass bottles and jars came out on top, with 57% of the US consumers believing that it is the most sustainable.
- Besides, governments across the world are imposing bans on plastic packaging in beverages, due to which beverage companies, such as 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 alternate for that is expected to be glass bottles.
- Moreover, industry estimates have suggested that the US on-premise channel sells accounts USD 10 billion of alcohol. But, as per Rabobank's survey, the ban on sit-down dining could lead to losses of between USD 15-20 billion in alcohol. Whereas, on the e-commerce channels for alcohol sales are picking up rapidly. For instance, the delivery platform named Drizly announced that sales from new customers have been 500% higher, along with sales from repeat customers increased to 125%.
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United States is Expected to Account for Major Market Share
- The United States is one of the strongest packaging markets worldwide and consists of many key players producing glass bottles and containers for food and beverage, personal care, and pharmaceutical products, among others. As the economy is continuously growing, increasing consumer spending on food and beverages and personal care is driving the demand for glass bottles and container packaging solutions.
- Alcoholic beverages dominated the glass bottles segment in the United States. A high percentage of distilled spirits and wines are packaged using glass containers, while in the beer segment, the percentage of glass containers has decreased significantly. On the other hand, in the non-alcoholic segment, glass holds a tiny percentage and is used in CSDs, milk, and newer ready-to-drink beverages.
- In 2020, 82% of all beer was domestically produced, and 18% was imported from more than 100 different countries around the world (source: U.S. TTB and U.S. Commerce Department, 2021). The alcohol beverage marketplace and the three-tier system have evolved rapidly over the years. Since 2012, over 2,300 alcohol beverage laws have been passed around the country (Source: NBWA Industry Affairs, 2021). Such instances address the major adoption of glass packaging.
- Moreover, glass packaging is the most dominant form of wine packaging. The properties of glass are well suited to the nature of wine, not matched by plastic or even metals. According to Beverage Information Group, in July 2020, the consumption of table wine amounted to approx. 310.72 million 9-liter cases in the United States.
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