by Glass packaging is used for packing numerous food and beverage products like alcoholic and non-alcoholic beverages, processed foods, desserts, pharmaceuticals and personal care products. Glass packaging offers excellent transparency, high barrier protection against air, moisture and ultraviolet rays making it ideal for preserving product flavors, aromas and potency. It maintains the freshness and quality of contents for a longer period. Glass packaging provides tamper evidence and is completely reusable and fully recyclable, making it a sustainable packaging solution. The global glass packaging market witnesses huge demand from food and beverage industry for bottled water, carbonated soft drinks, beer, wine and other food products.
The global Glass Packaging Market is estimated to be valued at US$ 63.8 billion in 2024 and is expected to exhibit a CAGR of 3.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the glass packaging market is increasing demand for premium glass packaging for luxury and premium products. Premium glass packaging enhances the visual appeal and prestige of expensive brands offering luxury products. It provides attributes likepremium finish and design to attract customers and increase brand awareness. This has encouraged glass packaging manufacturers to develop innovative, attractive and premium glass packaging solutions like hand-blown glass bottles, artistic decanters and unique jars for premium brands.Growing health consciousness and focus on sustainability is propelling the demand for glass containers in the market. Glass is inert and does not leach chemicals into contents. It is 100% recyclable and reusable, making it an eco-friendly packaging material. Rising environmental regulations restricting polymers and plastic usage will further boost the glass packaging market.
Porter’s Analysis
- Threat of new entrants: The threat of new entrants in the glass packaging market is moderate. The glass packaging industry requires high initial investments for setting up manufacturing plants which acts as a barrier for new players. However, the market is growing steadily which attracts new players.
- Bargaining power of buyers: The bargaining power of buyers in the glass packaging market is high. The market has numerous global players providing a variety of product options to buyers. Buyers can easily switch between brands based on price and quality.
- Bargaining power of suppliers: The bargaining power of suppliers is moderate. While raw materials like soda ash and cullet constitute a sizable portion of the total cost, suppliers still lack pricing power due to availability of substitutes.
- Threat of new substitutes: The threat of substitutes is high for the glass packaging market. Alternative packaging materials like plastics and metals offer good barrier properties at competitive prices. Advancements in material technology intensify this threat.
- Competitive rivalry: The competitive rivalry in the glass packaging market is high owing to presence of numerous global and regional players. Companies compete based on product quality, innovation, pricing and branding.
Key Takeaways
The global glass packaging market is expected to witness high growth over the forecast period. The market valuation is anticipated to reach US$ 63.8 billion by 2024 from US$ 52.7 billion in 2019, exhibiting a CAGR of around 3.7%.
Regional analysis: North America dominates the glass packaging market with a share of over 30% in 2019. This can be attributed to high consumption of FMCG products and alcoholic beverages in the region. Asia Pacific is expected to witness the fastest growth owing to rising incomes, expansion of food & beverage industries in China and India.
Key players: Key players operating in the glass packaging market are Ardagh Group, Owens-Illinois, Vidrala, BA Glass, HNGIL, Vitro, Consol Glass, Nihon Yamamura, Amcor and Verallia. Companies are investing in new production facilities and adopting digital technologies for production optimization. Collaborations with brand owners are on the rise for development of specialized glass packaging solutions.
