The Europe Glass Packaging Market was valued at US$ 19.7 billion in 2022 and is anticipated to increase to US$ 26.4 billion by 2028, registering a CAGR of 6.62% during 2023-2028.
Market Overview:
Glass packaging is regarded as one of the most reliable in terms of health, flavor, and environmental protection. Glass packaging is regarded as a luxury since it keeps the goods fresh and safe. This can ensure its continued use in a variety of end-user sectors around the world, despite stiff competition from plastic packaging. Consumption patterns have changed as a result of modern lifestyles, and the beverage business is capitalizing on this tendency. The modern brewing sector offers advantageous traits such as compactness and mobility in terms of product packaging to create new revenue potential. Beer consumption in 2017 across the globe was predicted to reach 186.72 million kiloliters, according to Kirin Beer University. PepsiCo reported $63.5 billion in revenue from non-alcoholic beverages in the same year. Demand for effective packaging trends with allowances for longer shelf life, scent preservation, heat insulation, sealing, and moisture barrier has risen as a result of rising beverage consumption.
As a result of these demands, the glass packaging industry grew to $51 billion in 2018. Beverages are an application section of the glass packaging industry, which has eco-friendly, recyclable, and sustainable products in industries such as food, pharmaceuticals, and cosmetics. Plastic bans across the European regions are driving up demand for Europe glass packaging, which is expected to expand at a CAGR of 3.21 percent from 2022 - 2027. Glass packaging is gaining popularity in various areas due to rising consumer demand for safe and healthy packaging. Glass packaging is also becoming more desired among end-users because of the breakthrough technologies for embossing, molding, and adding artistic finishes to glass. Furthermore, the primary factors include rising demand for environmentally friendly products and growing demand from the food and beverage market also fuel the Europe glass packaging market growth in the next six years. Glass is also the most environmentally preferred packing type due to its recyclable nature. In recent years, lightweight glass has emerged as a key breakthrough, providing the same resistance as previous glass materials while improving stability and reducing the number of raw materials consumed and CO2 released.
Market Drivers and Restraints:
The Europe market for glass packaging has been growing steadily as people are adopting this form of packaging over plastic because of the ecological benefits. This has led to advancements in technology and improvements in the industry. Beverage packaging is mostly done with the help of glass. This has resulted in the growth of the packaging sector. The glass container industry represents close to 70% of the total glass production in Europe, and it is safe to assume that glass packaging is widely implied all across Europe.
The government norms of the various countries in the European Union (EU) have resulted in manufacturing companies adopting eco-friendly packaging alternatives over plastic and glass has emerged out to be one of the most widely used forms.
Glass packaging as compared to other packaging alternatives is expensive and thus companies are reluctant to use glass as their preferred material for packaging. The recent emergence of bioplastics has enhanced the usage of those materials and provides a cheap and environment-friendly alternative to plastic. These factors hinder the growth of the regional market.
Market Segmentation:
Glass packaging is widely used in the beverage industry, most of the packaging activity is carried out for alcoholic and non-alcoholic beverages. Along with the beverage industry, the food packaging sector uses glass packaging for storing jams, oils, and other food products. The beer industry in Germany is a significant sector where the demand for glass packaging takes place. Not only packaging but glass materials are used over plastics in various regions across Europe. The Healthcare industry also has wide-scale implications of glass packaging and contributes a lot towards the growth of the industry. The protective glass packaging market is expected to grow at a CAGR between 3 to 4% in the forecasted period. This segment has a vast application; and medical, industrial packaging, etc., are dependent on the protective glass packaging industry for their functioning.
Market Graphical Analysis:
The population in the United Kingdom is aware of the health and environmental advantages of glass bottles. Therefore, they are most willing to give the premium costs for them. Manufacturers are becoming more aware of these changes and are progressively addressing them in their packaging choices.
The glass sector in the United Kingdom has the knowledge and expertise to compete globally. The United Kingdom is also the European economy's mainstay when it comes to exports. Food and drink exports exceeded GBP 22 billion in 2017, up from GBP 20.2 billion the previous year, according to the Department for Environment, Food, and Rural Affairs.
In recent years, lightweight glass has emerged as the most significant breakthrough, providing the same resistance and stability as previous glass materials while reducing the volume of raw materials utilized. In addition, alcoholic beverages are predicted to lead the glass packaging industry, due to strong sales of beer and whiskey in the United Kingdom and rising demand for premium variations.
Strategic collaborations and acquisitions are taking place among the market's competitors. Berlin Packaging, for example, announced the acquisition of New pack, a glass packaging supplier, in December 2020 to expand its wine market offering. The company's distribution network includes the areas of Liguria, Piedmont, and Veneto in Northern Italy. In addition, Berlin Packaging will be able to expand its product range in Europe as a result of the acquisition of New Pack.
COVID-19 has exposed severe challenges for the glass packaging market by impacting end-user industries. Major economies of Europe like Italy, the UK, etc., are affected due to the coronavirus pandemic as it was the early hotspot for the pandemic, which resulted in the slowdown of manufacturing industries. The glass packaging industry in the European region has gone up and is doing very well. The demand for packaging, unlike many other industries, has increased during the pandemic; bioplastics and glass have been very high in demand. In the medical sector, glass is extensively used for various purposes, and thus highest demand has been witnessed in the medical sector. Healthcare experts have suggested that amidst the absence of vaccines, trials are expected to ramp up, and thus the demand for glass packaging will be very high. The growth in demand is attributed to the growth of pharmaceutical industries during this period.
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