Glass packaging solutions offer durable, high quality products for storing a variety of items ranging from food and beverages to pharmaceuticals, cosmetics, and other household goods. Glass is inert, non-porous, and hygienic which makes it suitable for direct contact with consumables. As concerns over plastics waste and groundwater contamination rise globally, glass is emerging as a more eco-friendly substitute.
The global glass packaging market is estimated to be valued at US$ 63.8 billion in 2024 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 Opportunity:
The growing awareness over plastic pollution and push for sustainable packaging represents a major opportunity for glass packaging products to replace single-use plastics. Several governments worldwide have drafted policies to curb plastic waste generation and boost recyclable materials like glass. This shift toward plastic-alternative packaging coupled with consumers actively looking to reduce their plastic footprint is expected to drive significant demand for glass containers and bottles for industrial and household applications. Innovation in light-weighting glass through technological advancements will further support the growth of the glass packaging market by improving cost-efficiency.
Porter's Analysis
Threat of new entrants: The threat of new entrants is moderate in the glass packaging market as huge capital investments are required to set up manufacturing units. However, merger and acquisition activities poses a threat.
Bargaining power of buyers: The bargaining power of buyers is high in the glass packaging market. Buyers have a wide range of suppliers to choose from which gives them better bargaining power.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. Major suppliers are concentrated thus giving them moderate power over buyers. However, dependence on raw materials keeps their power in check.
Threat of new substitutes: The threat of substitutes like flexible plastic packaging is moderate. While plastic packaging is gaining popularity, glass remains indispensable for certain products and is more sustainable.
Competitive rivalry: The competitive rivalry is high due to the presence of several global players competing on pricing, quality, and innovation.
SWOT Analysis
Strength: Glass packaging offers barrier protection, is 100% recyclable and reusable which appeal to environmentally conscious consumers. It maintains product quality and freshness.
Weakness: Glass is heavier than plastic which increases transportation costs. Breakage during manufacturing and transportation is also a concern.
Opportunity: Increasing demand for sustainable packaging from FMCG and pharmaceutical industries present an opportunity. Growth in craft beer and premium spirits market also benefits glass packaging.
Threats: Rising plastic packaging substitutes and economic slowdowns can negatively impact glass packaging demand. Strict environmental regulations around recycling targets challenges packaging producers.
Key Takeaways
The global glass packaging market is expected to witness high growth over the forecast period supported by increasing demand from food and beverage industries. The global glass packaging market is estimated to be valued at US$ 63.8 billion in 2024 and is expected to exhibit a CAGR of 3.7% over the forecast period 2023 to 2030.
Regional analysis: Asia Pacific dominates the global glass packaging market and is expected to maintain its leading position over the forecast period. Increasing population, rising disposable incomes, and growing consumption in countries like China, India make Asia Pacific the fastest growing regional market. North America and Europe follow Asia Pacific in terms of market share attributed to mature markets in these regions. However, Latin America is anticipated to register highest CAGR over the forecast years led by increasing beer and spirits consumption in Brazil and Mexico.
Key players: Key players operating in the glass packaging market are Owens Illinois Inc., Ardagh Group, Vidrala S.A., BA Vidro, S.A., Gerresheimer, Verallia, Orora Packaging Australia Pty Ltd, Bormioli Rocco S.p.A., Heinz-Glas GmbH. Major players are focusing on capacity expansion, acquisitions, and new product launches to strengthen their market position. Owens Illinois, Ardagh Group, and Gerresheimer command leading shares of the global market.
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