United Arab Emirates (UAE) Container Glass Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The United Arab Emirates (UAE) Container Glass Market is segmented by End-user Vertical (Beverage, Food, Cosmetics, Pharmaceuticals).

Market Snapshot

United Arab Emirates (UAE) Container Glass Market CAGR
Study Period: 2020-2027
Base Year: 2021
CAGR: 4.31 %

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Market Overview

The United Arab Emirates (UAE) container glass market is expected to register a CAGR of 2.31% over the forecast period (2022 - 2027). The UAE population's expenditure on various commodities is expanding along with their high and rising disposable incomes. The United Arab Emirates had a GDP per capita of approximately USD 42,883.69 in 2021, according to the International Monetary Fund (IMF). The value is estimated to be in the range of USD 54,393.06 in 2027. The number of exports in the United Arab Emirates is also growing, which is expected to impact the market growth positively.

  • Additionally, the COVID-19 pandemic increased demand for glass packaging from the food, beverage, and pharmaceutical industries, as well as for medication bottles, food jars, and beverage bottles. According to AGI Glaspac, the packaging of food and beverages accounted for about 90% of all glass containers.
  • Pharmaceuticals are imported into the United Arab Emirates from 72 different nations. According to trading economics, approximately 80% of the total supply comes from the United Kingdom, Switzerland, Germany, Belgium, the United States, France, Spain, Italy, and Australia.
  • There is a market opportunity for container glass producers because most significant research-based pharmaceutical companies have had a long-standing presence in the nation through contract manufacturing or local distribution channels.
  • Prominent global corporations with a presence in the local market include Bayer, Abbvie, Eli Lilly, Pfizer, Novartis, GlaxoSmithKline (GSK), Merck, Abbvie, Sanofi, BMS, and Amgen.
  • Consumers in the nation utilize glass to carry food and beverages for hygienic reasons and to preserve the environment from plastic bottles. Additionally, consumers in the country choose to drink juices, flavored drinks, and other liquids from glass bottles. Compared to other materials, people can use glass containers for various purposes. However, due to the region's adherence to Islamic Sharia Law, which forbids the use or drinking of alcohol for religious purposes, the supply of alcoholic beverages is extremely restricted, if not nonexistent.
  • The Covid-19 pandemic opened possibilities for the study market's expansion because of the huge demand for vaccines resulting from their manufacturing being increased globally. For instance, the Chinese pharmaceutical company Sinopharm started manufacturing the COVID-19 vaccine in March 2021 at a new facility in Abu Dhabi. The activity was a component of a joint venture between Sinopharm and the technology company Group 42 in Abu Dhabi.

Scope of the Report

The glass keeps the original flavor of the drink without changing its taste or quality because it is a versatile material used in container manufacture. According to the current demand, there are many different colors, forms, and sizes of glass containers on the market.

The study's scope includes glass container trends, needs, and wants in UAE end-user industries such as beverages, food, pharmaceuticals, and others.

Further, the impact of COVID-19 has been considered for current market estimations and future growth projections.

End-user Vertical
Beverage
Food
Cosmetics
Pharmaceutical
Other End-user Verticals

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Key Market Trends

Beverages Segment to Hold Significant Market Share

  • The natural flavor of the drink is preserved without affecting the quality due to the versatility of glass as a packaging material. According to the DCCI's (Dubai Chamber of Commerce and Industry) report, online F&B sales are forecasted to reach USD 619 million by 2025. Saudi Arabia, Oman, and Iraq have the biggest potential for beverage exports from the United Arab Emirates. This element influences market demand.
  • According to a report from the DCCI (Dubai Chamber of Commerce and Industry), the food and beverage trade in the UAE progressively increased to approximately USD 20 billion in the first nine months of 2021, driven by rising demand and enhanced efforts to improve food security and diversify food imports. From January through September 2021, imports valued at USD 12.8 billion made up most of the UAE's F&B trade. Exports came in second at USD 4.1 billion, while re-exports came in third at USD 1.1 billion. The reports include dairy products which hold 10% of the imports, which could enhance container glass demand in the region.
  • Due to the region's adherence to Islamic Sharia Law, which forbids the use or drinking of alcohol for religious purposes, alcohol is exceedingly scarce, if not completely unavailable.
  • Additionally, the market of non-alcoholic beverages includes packaging options for juice, soda, milk, ready-to-drink coffee and tea, carbonated beverages, sports and energy drinks, and ready-to-drink coffee and tea. As people become increasingly interested in various flavor alternatives for their health and wellness, flavored drinks are becoming more popular.
  • Additionally, consumers are switching to smaller-sized bottles. The demand from consumers for items with price-sensitive container glass packaging also rises with the expectation that this trend will last throughout the forecast period.
  • However, the non-alcoholic beverage industry's use of plastic is a fierce competitor in the market for glass containers. However, because they offer a practical packaging solution, returnable glass bottles continue to be a crucial method of product distribution for all significant businesses in the non-alcoholic beverage sector.
  • As consumers worldwide favor zero percent alternatives to alcoholic beverages, non-alcoholic beverage businesses are developing to capture their hearts, minds, and market share in the UAE. For instance, in August 2022, Dusit Thani Dubai launched NoLo, the city's first bar without alcohol. With one significant distinction, NoLo offers the same experience. Instead of alcohol, the glasses are filled with creative and well-made craft 0% cocktails.
  • Moreover, due to its sustainability attributes, the trend has aided glass packaging options in maintaining their market share and growing acceptance. In addition, during the past five years, technological developments have lowered the weight of glass packaging by 30% while maintaining the same strength. The trend has significantly increased demand for glass bottles and containers, particularly in the non-alcoholic beverage industry.
United Arab Emirates (UAE) Container Glass Market - Key Market Trends1

Pharmaceutical Segment is Expected to Grow Significantly

  • Middle Eastern nations rely heavily on pharmaceuticals and medical supplies. The United Arab Emirates has similar geographic and climatic characteristics and adheres to the same trend. In October 2021, the UAE passed its highest government budget, at AED290 billion, for 2022–2026. The AED 4.9 billion (8.4% of the total general budget) allocated to health care and community protection in 2022 will provide the highest health care services. Due to increased spending to tackle the COVID-19 pandemic, the UAE government boosted its healthcare budget to USD 1.4 billion and 8.1% of the entire budget in 2021.
  • The pharmaceutical sector uses amber bottles extensively because of light and UV concerns. For example, amber-colored bottles are required for many medications and offer the best protection against all visible light wavelengths.
  • Government programs in the region have also helped to advance the market. A proper recycling chain is established with the help of government and supply chain participants, which may benefit the market's vendors and is anticipated to reduce costs.
  • For instance, the UAE Ministry of Economy gave the business and investor community full authority under the CEPA agreement in April 2022. If import levies were eliminated or significantly reduced, trade volumes would take five years to increase from USD 40 billion to USD 100 billion. However, the Comprehensive Economic Partnership Agreement's (CEPA) full benefits will go beyond trade to include investments, the inflow and outflow of technological transfers, and a boost for the startup community.
  • Additionally, patented pharmaceuticals account for the most percentage of sales in the UAE. The government of the UAE has introduced two innovation-focused national plans, the Abu Dhabi Vision 2030 and the Dubai Industrial Strategy 2030, which both prioritize the development of the biopharmaceutical industry. Therefore, it suggests that the MoH aims to collaborate with local businesses to strengthen the licensing rules for current medication producers, which will help the market growth throughout the forecast period.
  • Further, generic drug adoption is rising in the region and has the highest adoption of glass packing in the area. According to the MOHAP (Emirati Ministry of Health and Prevention), in 2021, 6,176 generic medications and pharmaceuticals were available in the UAE. Drugs and medical supplies are produced in 16 plants across the nation. Because generic medicines cost 60 percent less than branded medications, they make it possible for patients to obtain appropriate and affordable care.
United Arab Emirates (UAE) Container Glass Market - Key Market Trend2

Competitive Landscape

The level of market concentration is low, while the advertising expense is moderate. The power of competitive strategy is also supportive, while firm concentration is medium. Competition to capture the best geographic position and lowest costs is high in the market studied. Exiting the market is also difficult, as the investment made by the companies active in the market increases and can result in sunk costs if they wish to leave. Overall, the intensity of competitive rivalry is high. Some of the key players in the market include Frigoglass SAIC, Middle East Glass Manufacturing Company SAE, and Saverglass SAS, among others. Some key recent developments in the market are:

  • January 2022 - The Iraq-based Royal Can Making Company intends to build a container glass factory with a daily production capacity of roughly 1150 tons. The project will export some of its products to neighboring Arab markets, mainly UAE, Lebanon, Jordan, Syria, and Iraq, and meet the domestic demand for glass containers, which is currently completed at a high cost by imports from abroad.

Major Players

  1. Saverglass SAS

  2. Middle East Glass Manufacturing Company

  3. Frigoglass SAIC

  4. Majan Glass Company SAOG

  5. RAK Ghani Glass LLC 

Picture4

Recent Development

  • July 2022 - One of Gerresheimer's two furnaces is currently being replaced at the German facility in Tettau, Bavaria. The Gerresheimer Group has set a goal to cut its CO2 emissions by 50% by 2030 compared to 2019 as part of its global sustainability plan. Manufacturing container glass using cutting-edge furnace technology is a crucial aspect of this project. The company has facilities in Western Asia, Europe, America, and the Rest of Asia, making premium glass packaging for the pharmaceutical, food, and cosmetics industries. 
  • June 2022 - Emirates Glass announced plans to increase its presence throughout the GCC and the Middle East to become the go-to provider of glass products that fulfill local and international rules and standards while also being a quality supplier.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Value Chain Analysis

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

    4. 4.4 Assessment on the Impact of COVID-19 on the Market

    5. 4.5 Import/Export Analysis

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Downstream Demand from End-user Industries

    2. 5.2 Market Restraints

      1. 5.2.1 High Competition from Other Packaging Materials

  6. 6. MARKET SEGMENTATION

    1. 6.1 End-user Vertical

      1. 6.1.1 Beverage

      2. 6.1.2 Food

      3. 6.1.3 Cosmetics

      4. 6.1.4 Pharmaceutical

      5. 6.1.5 Other End-user Verticals

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 Frigoglass SAIC

      2. 7.1.2 Saverglass SAS

      3. 7.1.3 Middle East Glass Manufacturing Company SAE

      4. 7.1.4 RAK Ghani Glass LLC

      5. 7.1.5 Majan Glass Company SAOG

      6. 7.1.6 Gerresheimar AG

      7. 7.1.7 Piramal Glass Private Limited

      8. 7.1.8 Unitrade FZE

    2. *List Not Exhaustive
  8. 8. INVESTMENT ANALYSIS

  9. 9. MARKET TRENDS AND FUTURE OPPORTUNITIES

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Frequently Asked Questions

The UAE Container Glass Market market is studied from 2020 - 2027.

The UAE Container Glass Market is growing at a CAGR of 4.31% over the next 5 years.

Saverglass SAS, Middle East Glass Manufacturing Company, Frigoglass SAIC, Majan Glass Company SAOG, RAK Ghani Glass LLC are the major companies operating in UAE Container Glass Market.

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