Glass Packaging Market – Increasing Global Consumption of Beer Is Expected to Drive Market Growth

Glass packaging includes bottles and jars, which contain various solid and liquid substances. These are sealed with metallic or plastic caps and lids or corks. Glass is used to package food, chemicals, pharmaceuticals, and alcoholic and non-alcoholic beverages. Glass bottles and jars are available in various shapes, sizes and colors. This suits the application wherein they are used. Key application areas for the glass packaging market include packaging of beverage, food and pharmaceuticals. Other applications include usage of glass bottles in cosmetics such as perfumes and nail polishes, and storage of chemicals.

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Increasing global consumption of beer is expected to drive the demand for glass bottles. Glass dominated the beer packaging market in 2012, wherein more than 60% of beer was packaged in glass bottles. Metal cans accounted for over 20% of glass packaging during the year. However, metal cans and plastic bottles are expected to witness substantial growth in the beer packaging market by 2020. Glass is anticipated to lose its market share to the other three segments: metal, plastic and draught/unpackaged/keg. Nonetheless, glass is likely to remain a preferred material for beer packaging. The segment is anticipated to dominate the beer packaging market in the next few years. Increasing availability of beer bottles of various sizes in the retail market and innovation in design and chemical composition (resulting in reduced weight of glass bottles) are some of the major factors anticipated to further boost the demand for beer glass packaging during the forecast period. Rising preference for glass in the healthcare industry due to its sterility is likely to be a factor contributing to the growth of the glass packaging market. However, increasing popularity of plastics, owing to their light weight and reduced space consumption, is projected to hamper market growth. Rising consumer awareness about hygienic packaging of food and beverages is likely to provide new opportunities for the growth of the glass packaging market in the near future.

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Alcoholic beverages was the largest application segment, accounting for over 40% share of the glass packaging market in terms of volume in 2013. Alcoholic beverages (excluding beer) and beer are expected to register the highest growth in terms of market share during the forecast period, due to increasing consumption of beer, wines and other liquors globally. Interchanging consumer preference between liquor and beer is estimated to affect the growth rate of alcoholic beverages (excluding beer) and beer application segments of the glass packaging market. Storage of beer in glass bottles improves its shelf life, as glass reduces the effect of UV rays. Thus, demand for glass bottles to store beer and liquor is expected to grow in the next few years. Increasing consumer preference for glass bottles and jars due to its chemical stability and sterility is also likely to contribute to the demand for glass packaging in pharmaceuticals.

Asia Pacific accounted for the largest demand for glass packaging in 2013. The region is expected to witness the fastest growth in the next few years. In terms of revenue, the glass packaging market in Asia Pacific is anticipated to expand at a CAGR of 5.3% between 2014 and 2020. Rise in disposable income of consumers coupled with influence of western values has increased the consumption of beer. This is expected to drive the demand for glass packaging in the region. Furthermore, demand for glass packaging is likely to rise significantly in developing economies such as Brazil and South Africa, due to increasing demand for alcoholic beverages.

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The glass packaging market is highly fragmented; the top six companies accounted for less than 35% share of the market in 2013. Owens-Illinois Inc., Saint-Gobain S.A., Ardagh Group, Gerresheimer AG, Vetropack Holdings AG and Vidrala SA are some of the leading manufacturers in the glass packaging market.


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