Glass bottles and containers are mainly used in the alcoholic and non-alcoholic beverage industries to remain chemically inert, sterile and impermeable. The glass bottles and containers market was valued at US $60.91 billion in 2019 and is expected to reach US $77.25 billion in 2025, with a CAGR of 4.13% between 2020 and 2025.
Glass bottle packaging is recyclable to a high standard, which makes it an ideal packaging material from an environmental point of view. Recycling 6 tons of glass can directly save 6 tons of resources and reduce 1 ton of CO2 emissions.
One of the main factors driving the growth of the glass bottle market is the increase in beer consumption in most countries. Beer is one of the alcoholic beverages packed in glass bottles. It comes in dark glass bottles to preserve the contents. These substances deteriorate easily if they are exposed to ultraviolet light. Additionally, U.S. consumers 21 and older consume more than 26.5 gallons of beer and cider per year, according to 2019 NBWA Industry Affairs.
In addition, PET consumption is expected to take a hit as authorities and regulatory bodies increasingly ban the use of PET bottles and containers for drug packaging and transportation. This will drive demand for glass bottles and containers during the forecast period. In August 2019, for example, San Francisco airport banned the sale of single-use plastic bottles of water. The policy will apply to restaurants, cafes and vending machines near the farms. This will enable travellers to bring their own refillable bottles or purchase refillable aluminium or glass bottles at the airport. This situation is expected to reflect the demand for glass bottles.
Key Market Trends
Alcoholic beverages are expected to occupy a significant market share
Glass bottles are one of the better packaging materials for alcoholic beverages such as spirits. Glass bottles’ ability to retain aroma and flavor is driving demand. Various suppliers in the market are also observing growing demand in the spirits industry. Piramal Glass, for example, whose customers include Diageo, Bacardi and Pernod, has seen a short-term increase in demand for specialty bottles of spirits.
Glass bottles are a popular packaging material for wine, especially stained glass. The reason is that the wine should not be exposed to the sun, otherwise, the reception will be spoiled. Increased wine consumption is expected to drive demand for glass packaging during the forecast period. For example, most countries produced 292.3 million hectolitres of wine in fiscal year 2018, according to the OIV.
Vegetarianism is one of the fastest growing trends in wine and is expected to be reflected in wine production, according to the United Nations Institute of Wine Excellence, which will lead to more vegetarian-friendly wines, requiring lots of glass bottles.
The Asia-Pacific region is expected to have a good large market share
The Asia-Pacific region is expected to achieve significant growth rates compared to other countries due to increased demand for the pharmaceutical and chemical industries. They prefer to pack in glass bottles because of their inertia. Major countries such as China, India, Japan and Australia have contributed significantly to the growth of the glass bottle packaging market in the Asia-Pacific region.
In China, foreign pharmaceutical companies face difficulties in doing business, especially in terms of market access and price controls, due to recent regulatory changes in the country. Therefore, there are potential growth opportunities for domestic players as they are likely to experience increased demand for glass bottles and containers from these companies. In addition, the consumption of alcoholic beverages in China is expected to reach 54.12 billion liters by 2021, according to Banco do Nordeste
Post time: Sep-26-2021