Glass Packaging's Global Market Is Raising Its Glass To The Future
By Sam Lewis
By 2019, the glass packaging market is forecast to be valued at nearly $60 billion
Transparency Market Research has published a new report titled Glass Packaging Market for Food and Beverage, Pharmaceuticals, Beer and Other Alcoholic Beverages - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 – 2019. According to the report, glass packaging’s global market held a value of nearly $47.5 billion in 2012 and is forecast to reach $59.94 billion by 2019. This marks a compound annual growth rate (CAGR) of nearly 3.5 percent over the next six years. When speaking about volume, global demand for glass packaging in 2012 was 45.71 million tons, with CAGR forecast to be just over 3 percent from now until 2019.
Growing preferences toward glass packaging in food and beverages will be creating opportunities for the expanding market in the next few years. The rise in beer consumption across the globe is expected to be a key factor driving the glass packaging market. Dark colored glass bottles are the most common type used, as this type of glass deflects UV rays. When beer is exposed to UV rays, the molecules of hops — the ingredient ultimately making beer — deteriorate, causing the beer to become “skunky.”
Excluding beer, other alcoholic beverages accounted for more than half of the demand for glass packaging in 2012. Despite that figure, glass packaging for beer is forecasted to be the fastest growing market. Increased consumption in the Asia Pacific region — India, Thailand, China, Australia, and Indonesia — and Eastern Europe, partnered with those two regions’ existing preferences for glass as a packaging material, will lead to the growth.
The Asia Pacific region accounted for more than $16.1 billion of the overall glass packaging market’s revenue in 2012, making it the largest market for the industry. Falling not far behind, was Europe, the industry’s second largest market, which accounted for 13.34 million tons of overall demand for glass packaging in 2012. The pharmaceutical industry will also play a key role in the growth of glass packaging due glass’ ability to maintain sterility.
With the increases in both demand and volume for glass packaging, it will be interesting to see what kind of effects it will have on the glass industry’s sustainability efforts, along with the sustainability efforts of companies using glass packaging.
The entire report is available here.