Glass packaging is widely used in the food and beverage industry due to its inert nature and consumer safety. Furthermore, it is completely recyclable and can be reused indefinitely, making it a sustainable packaging solution. It is used in a variety of industries such as food & beverages, pharmaceuticals, cosmetics, perfume, and many more. Glass packaging is regarded as a premium packaging solution due to its high quality and elegant appearance. Fortune Business Insights states that the glass packaging market size was estimated at USD 60.32 billion in 2019 and will rise to USD 81.00 billion by 2027 at a CAGR of 3.95% during the projected period.
COVID-19 Impact: Glass Packaging to be an Essential Commodity
Glass packaging has been classified as an essential commodity and granted permission to continue production after the COVID-19 outbreak in most parts of the world. However, the disruption caused by this pandemic has reduced demand as consumers have been trapped inside their homes while hotels and other industries have been completely or partially closed.
Glass Will be in High Demand due to its Environmental Benefits
Glass is a completely recyclable material, attracting adequate market attention as an effective and environment-friendly packaging solution, which is likely to increase the product demand over the forecast period. Glass recycling directly saves raw material resources while also lowering carbon emissions footprint.
For example, one tonne of glass directly saves over one tonne of virgin raw materials used to manufacture glass and approximately 580 kg of CO2 from entering the environment throughout the supply chain. It also reduces air pollution by 20% and water pollution by 50%.
Attributed to these advantages, it is a popular choice in the packaging industry. Furthermore, consumers’ packaging preferences are shifting toward eco-friendly and sustainable packaging solutions, thereby positively impacting the market growth.
The Industry is Experiencing Sustainable Growth due to the Growing Rate of Recycling
Glass recycling is becoming increasingly popular worldwide, particularly in developed countries. Europe is the recycling leader due to high recycling rates. This is establishing new standards for consumers and stakeholders across the world. According to FEVE statistical data, Europe already achieved a glass collection rate of 76% and aims to reach 90% by 2030. A typical batch of glass manufactured in the European Union (EU) contains 52% recycled content. This helps the industry create a circular economy while meeting the UN Sustainable Development Goals.
Market Growth Slowed by Substitutes’ Presence in the Industry
The market of glass packaging is highly fragmented, and packaging materials are used based on customer needs and applications. Due to their wide range of applications and low cost, plastic packaging materials dominate the global packaging market. Plastics have largely replaced packaging in various industries, including dairy, food, cosmetics, and many others.
Plastics have largely replaced glass packaging in various industries, including dairy, food, cosmetics, and others. Although a plastics war has emerged in recent years, the demand for plastic packaging shows no signs of slowing due to its high penetration and low cost. Other alternate materials, such as board and paper, and metal packaging, are more environment-friendly alternatives to glass solutions, thereby impeding the market growth and expansion.
Bottled Beverages Consumption will Increase Globally to Boost Market Growth
The beverage industry, particularly the alcoholic beverage segment, is the sole driver of the market. The beer industry accounts for more than half of the world’s market for glass containers. Wine, spirits, and other alcoholic beverages also have a significant market share. Consumers prefer glass material for packaging non-alcoholic beverages such as sauces, juices, milk, and others due to its inertness and premium appearance. Intake of these crucial non-alcoholic beverages is expected to rise healthily as the world’s population grows. As a result, rising beverage consumption is propelling the market.
Glass Packaging is Changing the Face of the Packaging Industry
The global alcoholic beverage industry is rapidly expanding, which, in turn, is surging the demand for glass packaging. Additionally, the industry accounts for more than three-fifths of global demand. Furthermore, the beer industry accounts for a significant portion of the growth in most countries worldwide, particularly in western countries. However, in India, the liquor industry surges the region’s demand for the product. The food sector accounts for the second-largest market share and is expected to be the fastest-growing segment in this market due to its rising adoption as an efficient option for plastics in the food industry. As a result of the COVID-19 pandemic and increased use in various medical applications, the pharmaceuticals segment expects a surge in demand for this product. Altogether, glass packaging is a sustainable choice in place of traditional plastic packaging.