Published on : Dec 08, 2016
The global glass packaging market is highly fragmented due to the presence of a large number of companies and raw material suppliers. Owing to this, the bargaining power of the market is also relatively high. As the equipment, technology used, and the manufacturing process of glass packaging is expensive, the global glass packaging market is highly capital intensive. The exit and entry barriers in the market for new players is also expected to intensify over the forthcoming years. The competition level among the leading companies is expected to rise in the near future as manufacturers strive to gain a reputable position in the market.
High Consumption of Alcoholic Beverages to Bode Well for Market Growth
Based on application, the global glass packaging market has been segmented into alcoholic beverages, beer, food & beverages, and pharmaceuticals. Among these, alcoholic beverages (excluding beer) dominated the market in 2013 and is likely to maintain its dominance in the market until 2020 with a share of 45.4% in the same year. Glass packaging is required in alcohol packaging due to the fact that chemicals are produced during the fermentation process. Moreover, glass is considered to be chemically stable, thus lowering the chances of leaching of alcohol. The market for glass packaging in the alcoholic beverages segment is expected to be driven by the growing demand for wine due to the numerous health benefits associated with it.
Rising Demand from End-use Industries to Lift Production
The growing consumption of beer, easy availability of alcohol, and mounting spending capacity of people across the globe is likely to boost the demand for glass packaging. Manufacturers of glass packaging are enhancing their production capacity to meet the unmet needs of beer and other alcohol manufacturers. However, the global market for glass packaging is likely to be adversely impacted by the increasing popularity of plastic packaging as plastic is cheaper as compared to glass.
The global glass packaging market is expected to exhibit a promising CAGR over the forecast period. The market stood at US$43,904.7 mn in 2015 and is likely to rise to a valuation of US$55,238.5 mn by the end of 2020.