Glass Packaging Market

Market Overview

The global glass packaging market size was valued at USD 78.99 billion in 2022. It is estimated to reach USD 114.28 billion by 2031, growing at a CAGR of 4.19% during the forecast period (2023–2031). Glass packaging is widely employed in several end-user industries, especially the food and beverage industry, thus boosting market expansion. The emphasis on reducing plastic waste and the preference for materials with lesser carbon footprints have led to a shift toward glass packaging, creating market growth opportunities.

Glass packaging refers to using glass containers or bottles to store and protect various products, including food items, beverages, cosmetics, and pharmaceuticals. Glass is a transparent, inert substance primarily composed of silica, soda ash, and limestone. These raw materials are heated to high temperatures and then rapidly cooled to create them. This procedure produces a rigid, impermeable material that is resistant to chemical reactions, ensuring the integrity of the contents.

The ability of glass packaging to preserve the integrity and quality of its products is one of its primary advantages. Glass is air and moisture-impermeable, preventing contamination and spoilage. It does not react with the contents, ensuring that the product's flavor, aroma, and freshness are preserved for an extended period. In recent years, glass packaging has gained popularity because it is an excellent barrier against ultraviolet (UV) light, preventing the degradation of light-sensitive substances.

Market Dynamics

Global Glass Packaging Market Drivers:

Increasing Demand from the Food and Beverage Market 

Glass is vastly preferred as a packaging material in the food and beverage sector because of its properties like neutral reacting and recycling reuse. It also preserves food and beverages for the long term and avoids contamination. The interest in glass packaging from retailers to meet sustainability targets also emphasizes the reduction of plastic packaging and the adoption of glass packaging.

Lidl, a German-based grocery store company boasting a global presence of 11,000 sites, has set out an objective to curtail the quantity of plastic wrapping within its stores by 20% by 2025. The company also launched the "We Get into Glass" campaign in May 2020 to promote products packaged in glass jars or bottles instead of other materials. The move also aligns with the latest EU directive to reduce single-use plastic. Such trends are expected to drive the demand for glass packaging across the food and beverage sector during the forecast period.

Rising Innovation by Key Players

Market players are emphasizing more on creating lightweight, portable, shatter-proof glasses that can be used to serve beer. Shatter-proof glass containers have a water-based coating that helps keep the glass in place after it breaks. Shatter-Safe Reusable Glass Bottle has an impact-resistant plastic resin coating that is secure, long-lasting, and safe, making the bottle durable and reusable. These characteristics aid in preventing a hazardous mess brought on by plastic bottles. If the interior glass breaks, it can be recycled; the coating will evaporate during the glass recycling process. All such innovations are anticipated to spur the market's growth during the forecast period.

Global Glass Packaging Market Restraints:

Growing Usage of Substitute Products 

The growing adoption of alternative forms of packaging, such as paper, plastic, metal, and wood, in different parts of the world is among the prominent factors affecting the market's growth over the forecast period. According to the Federal Statistics Office of Germany, the revenue share from glass packaging was third in ranking after paper (46.60%) and plastic (34.60%) in 2020.

In addition, the growth in recycled plastic (rPET) bottles encouraged by the government also leads to challenging conditions for the adoption of glass packaging. According to EU Directive 2019/904, PET beverage bottles must contain a minimum of 20% rPET by 2025, increasing to 30% by 2030. The advancement in plastic manufacturing technologies and the emergence of highly recyclable plastics, such as bio-plastics, are further expected to drive the growth of plastic packaging as plastic packaging offers a significant cost advantage compared to glass packaging. Thus, all these factors hamper the market growth.

Global Glass Packaging Market Opportunities:

Rising Demand for Eco-friendly Products 

Sustainable packaging is increasingly becoming a major aspect when purchasing for many consumers. This level of influence is expected to increase further as more people become aware of the environmental impacts of materials such as single-use plastic and synthetic fibers. According to a recent 2021 Global Buying Green Report by Trivium Packaging, 67% of consumers say it's important that products they purchase be packaged in recyclable material, and 67% consider themselves environmentally aware.

Soft drinks hold a prominent share of single-use plastic bottles globally; nevertheless, various soft drink vendors are switching back to glass bottles due to increasing government regulation. This shift in trend is highly supported by government regulations as the environmental impact of non-sustainable packaging, especially plastic-based packaging, is becoming more and more evident. For instance, France has set the goal to recycle 100% plastics by 2025 and phase out single-use plastics by 2040. Thus, the growing awareness among consumers and supportive regulations are expected to create opportunities for market growth.

Regional Analysis

Based on region, the global glass packaging market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. 

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant global glass packaging market shareholder and is projected to exhibit a CAGR of 5.27% during the forecast period. In this region, the surging consumption of alcoholic beverages is driving market expansion. The beer packaging sector in the Asia-Pacific region is primarily boosted by shifting cultural trends, expanding populations, urbanization, and the increasing popularity of beer among the younger generation. Due to various investments and the expanding distribution of beer in various regions, it is anticipated that changing trends will continue in this region, thereby stimulating the market for glass bottles and containers. In addition, China's alcohol consumption has grown significantly over the years. In the coming years, the consumption of alcoholic beverages in China is anticipated to increase the demand for glass packaging, according to the Brazilian bank Banco do Nordeste.

Additionally, many alcoholic beverage companies seek expansion opportunities in the country. Japan has constructed multiple glass recycling plants to reduce its carbon footprint by emphasizing the recycling of glass containers and bottles. Over 18 glass recycling facilities currently accept glass bottles and containers to create glass culets and powder. All these factors drive regional market growth.

Europe is estimated to exhibit a CAGR of 3.23% over the forecast period. Due to its capability to remain inert to its contents and safe for consumers, this packaging has been widely used by Europe's food and beverage industry. Europe is expected to be the fastest-growing region for glass container demand, with the beer industry accounting for more than half of the region's demand. Germany is the largest pharmaceutical glass bottle and container packaging exporter to countries such as India, UAE, and Saudi Arabia. The country holds some of the world's prominent pharmaceutical glass packaging companies, like Schott AG and Gerresheimer AG. These companies continuously extend their footprints in the country by product launches and capacity expansion, thereby driving the glass packaging market.

Additionally, the market players operating in the market focus on developing innovative packaging designs and are looking to expand their presence to new markets. For instance, in January 2021, Croxsons, a UK-based glass packaging firm, launched a home and beauty division to complement its core business of providing glass bottle containers, closures, and decorations to international food and beverage companies.

The North American glass packaging market is anticipated to experience significant expansion in the coming years. Glass packaging remains one of the most popular packaging types due to heritage, returnability, and premiumization. The increased urbanization and a higher level of disposable income have spurred market growth in the region. With the growing demand for glass packaging in the U.S., overseas companies seek an expansion opportunity. For example, in 2021, Precept Wine, the largest privately held wine producer in the Pacific Northwest, announced the acquisition of the Sheffield Cellars and Fairbanks dessert wine portfolio from E. & J. Gallo Winery (Gallo). The increase enabled the company to diversify its product line to the dessert wine category.

Similarly, the pharmaceutical industry is one of the most innovative industries in Canada, with a robust development and manufacturing facility for generic drugs. The introduction of stringent laws to improve the integrity and quality of domestically manufactured drugs in the country is also leading to a surge in the use of glass for pharmaceutical packaging products.

Brazil and Mexico are the prominent regions contributing to the market's revenue in Latin America. Glass has emerged among the prominent constituents in the packaging industry across Brazil. It made noteworthy inroads over the past few years and influenced the expansion of the glass bottles and containers market in Brazil. The rising disposable income in nations like Brazil fuels the demand for high-end cosmetics worldwide. The cosmetics sector in this country is constantly increasing, and it has established itself as one of the world's fastest-growing and most vibrant industries. Glass packaging is in high demand in the cosmetics industry.

In the long term, the prospects for the glass packaging industry in Mexico look promising. Key to the growth prospects in Mexico are its geographic location, its inclusion in a free trade agreement, and the participation of several international businesses. Sustainability will likely assist in the industry's long-term growth in the region.

Segmental Analysis

The global glass packaging market is segmented by end-user industry.

Based on the end-user industry, the global glass packaging market is bifurcated into food, beverage, personal care, healthcare, household care, and other end-users. 

The beverage segment dominates the global market and is expected to exhibit a CAGR of 3.98% over the forecast period. Glass has been an excellent beverage packaging material since ancient times, which remains true today. Glass bottles serve the food and beverage industry exceptionally well by preserving the quality of their contents and shielding the product from the elements. Premiumization trends have played an essential in selecting glass packaging for several beverage categories, including soft drinks. In the coming years, beverage manufacturers will strive to meet consumer demands for more eco-friendly packaging, healthier product options, and functional and convenient beverage formats. As beverage consumers have become more discerning in their purchasing decisions, manufacturers have had to adjust, ranging from formulating their products to providing more sustainable or secure packaging.

An extensive range of foods is packed in glass containers. Some include instant coffee, processed baby foods, dry mixes, spices, dairy products, sugar preserves (jams and marmalades), syrups, spreads, processed fruit, vegetables, fish and meat products, mustards, condiments, etc. Food packaged in glass containers can have a very long shelf life provided that the food has been appropriately processed before packaging, with no contamination occurring at the filling stage, and that the container is correctly closed with a lid or seal. Within these categories of food and drinks, the products range from dry powders and granules to liquids, some carbonated and packed under pressure, and heat sterilized products. In addition, packaged foods include Ready-To-Eat (RTE) convenience foods, RTE meals, frozen meals, snacks, cake mixes, and desserts. The surging demand for these products is anticipated to force manufacturers to increase production capacities, which, in turn, will promote the demand for glass containers and bottles over the forecast period.

In recent years, there have been significant advancements in plastic packaging technologies. However, it is worth noting that glass packaging maintains its dominant position in premium fragrance, skincare, and personal care packaging. Most glass used for cosmetic and fragrance applications is made from natural and sustainable materials, including sand, limestone, and soda ash. Cosmetic containers comprise bottles, palettes, jars, vials, and ampoules, among others, which are used for the packaging of skincare, haircare, nail care, and make-up products. In addition, cosmetic containers are available in glass containers for luxury cosmetic packaging. Glass containers containing jars and bottles are widely used worldwide due to the numerous dispensing options, including jet and drop inserts, frothing caps, spray nozzles, and pump heads.

Additionally, it is essential for cosmetic containers to not absorb substances from the products stored in them, for instance, the absorption of water from creams into the cardboard. The cosmetic containers market is expected to witness moderate to high growth globally due to the growth of the global cosmetic packaging market.

Increasing health awareness, improved living standards, and a surge in per capita income, particularly in developing nations such as India and Thailand, are some of the factors driving the expansion of the home care industry. This increase in GDP per capita has increased the purchasing power of consumers, which ultimately drives the demand for home care products. Common household cleaning product manufacturers seek packaging that meets a variety of criteria, including child resistance, environmental friendliness, cost-effectiveness, portability, and aesthetic appeal. Glass bottles and containers, which come in a variety of sizes and shapes, have been and continue to be the most popular option for meeting all of these requirements.

Recent Developments

• July 2023- SPLENDOR® Water, the only mineral water with colloidal gold and silver, natural electrolytes, and nothing added or removed, announced the launch of its sleek new look in the United States in collaboration with Ardagh Glass Packaging- North America (AGP-North America). The new glass bottles will allow consumers to experience SPLENDOR Water's natural purity as never before.
• July 2023- Croxsons, a glass packaging company based in the UK, introduced new primary glassware packaging for refillable skincare essentials brand Necessary Good.