Europe Glass Packaging Market Size, Share & COVID-19 Impact Analysis, By End-use Industry (Skin/Personal Care, Fragrance, Food, Beverages (Alcoholic beverages, Non-Alcoholic beverages}, Pharmaceuticals and others), and Regional Forecast, 2020-2032

The European glass packaging market size was valued at USD 19.24 Billion in 2019 and is projected to reach USD 33.07 Billion by 2032, at a CAGR of 4.45% during the forecast period based on our analysis in the existing report. Moreover, the glass packaging market in the Germany is projected to grow significantly, reaching an estimated value of USD 4.71 billion by 2032, driven by the unique properties of glass packaging.

The food and beverage industry has predominantly used glass packaging due to its ability to remain inert to the contents and safe for consumers. Moreover, it is 100% recyclable and can be used for infinite number of times thus, making it a true sustainable packaging solution. Further, it is used in a wide range of applications in cosmetics, pharmaceuticals, fragrances, and various others. Although, the COVID-19 outbreak has halted the operations of most of the industries in Europe, the production of this packaging has not been stopped and has been considered an essential commodity in the European region. It has played a pivotal role in this time of crisis even though the demand for this has been dipped to new lows in the first half of the year 2020.

Glass Packaging Industry Has Been Hit Hard as Demand Dips New Low

The European glass packaging industry has been growing steadily in recent years as consumers are shifting to this packaging solution from other forms due to ecological benefits and a sustainable future. However, the outbreak of COVID-19 has temporarily disrupted the supply chains and there has been uncertainty in the demand. In March 2020, FEVE (The European Container Glass Federation) released its position paper to counter the impacts of COVID-19. It requested the authorities to support and recognize its pivotal role during the time of crisis as glass packaging has a wide range of applications in the pharmaceutical and food & beverage industry, which are the most basic needs of humans during this COVID-19 outbreak. There has been a shortage of recycled glass in the region due to the absence of manpower and other challenges pertaining to the lockdown norms. Also, the beverages industry, especially alcoholic, has been hit hard by the COVID-19 pandemic resulting in weak demand for the glass containers.

LATEST TRENDS

Europe is determined to achieve the circular Economy

European Countries have significantly increased the recycling of glass packaging products in the past 15 years. It has increased by over 139%. It has developed the recycling infrastructure that enables it to collect & recycle around 74% of the all post-consumer glass packaging in the European Union. The industry is adopting European Green Deal set by the European Union in its agenda for sustainable growth where it has aimed to achieve glass collection rate of over 90% by 2030. The initiative is backed with the collective efforts by the manufacturers, packaging recovery organizations, processors, brands and municipalities. Taking into considerations the ambitious goal set by the European glass packaging industry along with the lawmakers, other developed region such as North America are expected to ramp up their efforts in creating circular economy.

DRIVING FACTORS

Increasing Usage of Bottled Beverages is Bolstering Growth

The glass packaging demand is greatly determined by the performance of the beverage industry, majorly the alcoholic beverage segment. More than half of Europe’s demand for glass containers is registered to be for the beer industry. Spirits (including craft spirits), wine, and other alcoholic beverages also account for the recognizable highest shares in this market. The rising awareness about health has boosted the sales of non-alcoholic beverages in the region, especially in Western European countries. For instance, in the UK, industry experts estimated around 60% growth in sales of non-alcoholic beer. Furthermore, consumers prefer glass packaging in terms of non-alcoholic beverages such as juices, sauces, milk, and others due to its premium feel and safe packaging.

RESTRAINING FACTORS

Availability of Substitutes to Restrict the Growth

The packaging industry is fragmented as the materials required for packaging are procured as per the end-use needs. Plastic packaging segment dominate the market owing to broad applications at lower costs. Plastics have been replacing glass packaging in several applications across wide range of industries including diary, cosmetics, food and others. Even though the fight against plastics have paced in recently, the plastic packaging demand has not witnessed any slowdown owing to its high penetration.

SEGMENTATION

By End-Use Industry Analysis

Alcoholic Beverages Segment is Likely to Garner Lion’s Share Over Forecast Period.

Alcoholic beverage industry is growing rapidly globally and hence its dominance in fueling the market demand. Beer industry accounted for a key share in growth in most countries in the world, especially the western countries. Food industry accounts for second largest Europe glass packaging market share and is anticipated to be fastest growing segment in the market owing to rising adoption in the food industry as an effective alternative to plastics. The pharmaceuticals segment is poised to witness a spike in demand for this type of packaging as a result of the COVID-19 pandemic and its increased use in various medical applications. Healthcare experts have already warned about the shortage of vaccine vials and the industry & world needs to buckle its shoes to ramp up the production of vaccine vials to support the medical needs of the global population.

REGIONAL INSIGHTS

The market is expected and dominated by the western European countries like Germany, Italy, France, and the UK. Together, they are accounting for more than 55% of the regional demand in 2019. Germany is the forerunner in the market with around 19% share, followed by France and Italy. There has been an increasing inclination in glass packaging solutions amongst the consumers owing to the environmental advantages. As per a survey conducted by FEVE & Friends of Glass in 2016, around 48% of European citizens recognized glass packaging as the best packaging material for addressing climate change. In a 2018 survey, it showed that around 91% Europeans recommend glass as the best packaging material which signifies the role of government and FEVE in promoting glass packaging solution. Moreover, Europe is vanguard to the world when it comes to recycling. The region has already achieved 74% recyclability and has aimed for over 90% recycling rates by 2030. Other countries such as Norway, Sweden, and Finland have achieved over ambitious recycling figures of over 90%.

KEY INDUSTRY PLAYERS

Merger & Acquisition to Emerge as top strategy Adopted by Key Players             

The packaging industry has always been majorly adopting mergers and acquisition strategies, and the glass packaging industry is no exception. This industry has witnessed a few remarkable collaborative agreements in the past such as acquisition of Vidrimon by Berlin Packaging, which has strengthened its position in South European countries such as Spain and Portugal. Other players such as Owens-Illinois have invested in installing new furnace technologies to gain flexibility in the operations. Verallia, on the other hand is set to complete its installation of a new furnace and expansion by the end of year in Italy and Spain.  

LIST OF KEY COMPANIES PROFILED:

• Steklarna Hrastnik, d. o. o.


• Groupe Pochet


• HEINZ-GLAS GmbH & Co. KGaA


• Bormioli Luigi SpA


• Gerresheimer AG


• Stolzle-Oberglas GmbH


• Verallia


• Vidrala S.A.


• Vetropack Group


• Bruni Glass


• Ardagh Group S.A.

KEY INDUSTRY DEVELOPMENTS:

• October 2019: Gerresheimer AG, a key player in Europe glass packaging industry, completed the renovation of clear-glass furnaces. The improved technology installed will reduce the energy needs of the furnace as well as boost the company’s capacity to produce this solution for its customers in pharmaceutical and healthcare industries.


• October 2019 – Berlin Packaging, a major supplier of a variety of packaging solutions headquartered in the US, announced that it has entered into a definitive agreement to acquire Italy-based Bruni Glass. This has increased the glass supply ability of the company along with access to the warehouses and other facilities across various regions and countries.

REPORT COVERAGE

The european glass packaging market research report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, end-use industries and countries. Also, the report offers insights into market, current market trends and highlights the vital industry developments. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation