In a report published by Cognitive Market Research, the global glass containers market is expected to grow at a CAGR of 4-5 percent between 2022 and 2026, reaching more than 800 billion units, owing to increased alcoholic and non-alcoholic beverage consumption in every market during the next one to two years. Beer, alcoholic beverages, and food are three significant industry segments that will see increased demand. Increased demand from the non-alcoholic market and the pharmaceutical industry is expected to raise the value of the overall glass containers category.
The Increasing Demand for Glass Containers Market
The pharmaceutical sector is expected to grow at the fastest rate of any end-use segment from 2022 to 2026, owing to rising global medicine demand and increasing consumer knowledge of the advantages of vaccination and nutraceutical usage.
Western suppliers have started applying plant-based equipment to boost energy savings and reduce carbon emissions. Emerging markets will experience a rise in spending on installing and refurbishing new furnaces during the next two years.
To meet market demand, most manufacturing facilities are running at full capacity. The product's expenses are increasing due to escalating energy and raw material expenses.
Glass container demand has surged considerably as its popularity has again increased throughout all end-use categories, particularly in the beverage market with beer, wine, and spirits.
Restraints of the Market
Glass bottle prices have risen dramatically due to increased demand from the food and beverage industries. Pricing is affected by logistics issues, energy prices, and capacity constraints. The market for pharmaceutical glass containers has grown dramatically as a result of the development of COVID vaccines.
Trends in the Glass Container Market
The utilization of hydrogen and biofuel in glass production has taken the industry by storm. Brand owners such as Carlsberg and Diageo participated in these projects to evaluate the operations of scale for their product portfolio's CO2 reduction and low carbon emission trends, which were driven by brand owners and suppliers.
Until 2023, supply increase will be driven by new furnace building, renovation, and capacity expansion. COVID-19's influence is decreasing as production returns to normal in most countries. Several small and medium-sized businesses that were seriously harmed by production cuts and lockdowns have been able to recover as a result of rising demand.
International players are also developing a business continuity strategy to ensure continuous supply and are looking into alternative sourcing areas. The molded glass section manufactures every glass container used as the primary packaging for beverages, food, cosmetics, and pharmaceutical applications.
Glass containers for non-injection purposes are often made from soda ash, limestone, and silica sand. Containers of high quality are used for the cosmetics industry, such as jars and falcons for skin care, health, and deodorant products. Glass is also a popular material in the food and beverage sector due to its ability to be recycled and its chemical inertness.
The preference for sustainable packaging materials and rising demand from the pharmaceutical, non-alcoholic beverage, and cosmetic industries are expected to drive the worldwide glass containers market forward. Glass containers are in high demand in the post-COVID market. The restoration of supplier manufacturing activities and capacity expansion plans imply that supply will be expanded to match the surge in demand among end users.
The key market trends in the glass bottle sector will be light weighting, sustainability, and premiumization. But, material substitution, breakage, and a decrease in alcoholic beverage consumption in the US and the EU could be some of the major challenges.
Due to the shift in customer demand for premium and sustainable package formats, Western glass converters focus on producing low-carbon glass bottles, increasing the usage of cullet, and appropriately disposing of glass bottles. Increasing manufacturing capabilities is the primary focus of suppliers in expanding markets such as India and China to meet domestic glass demand while capitalizing on export opportunities to neighboring nations.
The pharmaceutical industry, food and drinks, product packaging, and recycling are the key contributors to market growth, and nearly all have been affected by the epidemic. While the world economy has suffered, the glass bottle sector has expanded significantly.
Vinayak Bali / LinkedIn
Senior Research Analyst at Cognitive Market Research
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