July 21, 2024

Glass Packaging Market on Rise due to Growing Foodservice Industry

The global Glass Packaging Market is estimated to be valued at US$ 63.8 Billion in 2023 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 Overview:

Glass packaging refers to containers and jars made from borosilicate or soda-lime glass. Glass is a sustainable, non-corrosive and 100% recyclable packaging material. It maintains its stability and integrity over multiple recycling cycles. Glass packaging provides superior shelf-life for food and beverage products mainly due to its impermeable quality. It protects food from ultraviolet light, oxygen, water vapor and microbial contamination, thus retaining product quality, taste and nutrients for a longer duration. The premium image and transparency associated with glass makes it an attractive choice for premium food, beverage and alcohol products.

Market Key Trends:

One of the key trends in the glass packaging market is growing popularity in the foodservice industry. Fast food chains, bakeries, restaurants and catering companies are increasingly opting for glass containers for takeaway and delivery orders. Glass packaging enhances the visual appeal of food products and provides luxury appeal. Another key trend is increasing preference for sustainable and eco-friendly packaging materials. Glass being 100% recyclable is gaining traction from consumers and companies driven by sustainability goals. Launch of innovative and customized product shapes along with digital printing is also fueling adoption of glass packaging worldwide.

Porter’s Analysis

  • Threat of new entrants: The glass packaging market requires huge capital investments for setting up manufacturing units and machinery. This creates high entry barriers for new players.
  • Bargaining power of buyers: The global glass packaging market has the presence of many large buyers in industries such as food and beverages, pharmaceuticals, and cosmetics. This gives buyers higher bargaining power over suppliers.
  • Bargaining power of suppliers: As the glass packaging market requires specific raw materials like sand, soda ash and cullet, suppliers of these materials enjoy a certain bargaining power over buyers.
  • Threat of new substitutes: Alternatives such as flexible plastics and paper can replace glass to a certain extent, but glass has its own advantages and remains dominant for premium products.
  • Competitive rivalry: The glass packaging market has numerous regional and global players. Market players compete on the basis of product quality, innovation, price, and supply-chain efficiency.

Key Takeaways

The global glass packaging market is expected to witness high growth, exhibiting CAGR of 3.7% over the forecast period, due to increasing demand from end-use industries like food and beverages. The food and beverages industry is the largest consumer of glass packaging worldwide.

North America dominates the glass packaging market due to high preference of glass packaging for beverages and food products. Asia Pacific is expected to be the fastest growing market attributed to growth in demand from countries like India and China. Increasing disposable incomes have positively impacted the use of premium food and beverage products in these countries which is driving glass packaging demand.

Key players operating in the glass packaging market are Amcor Ltd, Ardagh Group, Gerresheimer, Hindustan National Glass & Industries Ltd, Koa Glass Co. Ltd., Owens Illinois Inc, Piramal Glass Limited, Saint-Gobain, Heinz-Glas, Wiegand-Glas, Vidrala SA, Vitro Packaging. Major companies are investing in innovations and capacity expansions to strengthen their market position.