Europe Glass Bottles and Containers Market -Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Europeon Glass Bottle and Containers Market is expected to grow at a CAGR of 4.18% during the forcasted period of 2021 to 2026. Glass packaging was considered an essential industry by most countries during the COVID-19 pandemic. There has been increased demand for glass packaging from the F&B industry and the pharmaceutical sector as the COVID-19 pandemic has led to greater demand for medicine bottles, food jars, and beverage bottles.

Key Highlights

• Alcoholic drinks, like beer, accounted for the largest segment of the market, as glass does not react with the chemicals present in drinks and, therefore, preserves the aroma, strength, and flavor of these beverages, making it a favorable option for packaging. Due to this, most of the beer volume is transported in glass bottles. This trend is expected to continue over the forecasted period. Glass packaging is 100% recyclable, making it a desirable packaging option from an environmental point of view.
• The introduction of stringent laws to enhance the quality and integrity of domestically manufactured drugs leads to an increase in the use of glass for pharmaceutical packaging products. Additionally, the increasing demand for sterile medical packaging products from the pharmaceutical industries further drives the market growth over the forecast period.
• Trend of customization is also growing in the region, with demand for bespoke glass bottles increasing. The UK's best-selling kombucha tea is being sold in new bespoke glass bottles manufactured by Rotherham glass manufacturer Beatson Clark.
• The glass production market declined in Europe during 2020, especially in Germany. However, the positive consumer sentiment towards sustainable production is expected to increase the demand.

Key Market Trends

Beverage Industry to hold a Significant Market Share

• Beverages hold the maximum market share in the market, with the imposing bands on plastic. Beverage companies, such as Coke and PepsiCo, are trying to avoid plastic packaging. For instance, PepsiCo is looking to prevent the use of 67 billion plastic bottles through 2025, and the alternate for that is expected to be glass bottles.
• Moreover, Wine is another alcoholic beverage that holds a significant share in the market studied. According to IdealPack, global wine packaging is expected to reach USD 22.8 billion by 2020. Owing to the growing demand.
• The players in the market are going under strategic partnerships and acquisitions. For instance, In December 2020, Berlin Packaging announced the acquisition with a glass packaging supplier, New pack, for expanding its offering to the wine market. The company’s distribution network extends across Northern Italy, including the Liguria, Piedmont, and Veneto regions. The acquisition of New pack allows Berlin Packaging to increase its offering in the wine sector, an important market in Europe.
• Furthermore, many governments are taking actions against counterfeit products that are sold at very low prices as compared to the original product. This is impacting the domestic market in various regions.

Germany to hold a Significant Market Share

• The Glass Bottles and Containers Industry is well-regulated in Germany. It has established systems of recycling that have been existing for more than four decades now and have been producing very encouraging results for the country.
• The glass manufacturers have been key players in the re-use and recycling system of Germany. Gerresheimer, for instance, began producing glass with a higher proportion of recycled glass at the Tettau site in Germany. By using recycled glass, it aims to produce new high-quality cosmetics packaging. Many leading players, like Gerresheimer, are driving circularity and resource savings every day.
• Furthermore. The German beer, wine industry and counterparts in the United Kingdom facing shortage of beer bottles. Also, with a heightened focus on disinfection and COVID-19 prevention measures, customers have been shifting towards sustainable, non-toxic ingredients and are observed prioritizing efficiency. Amcor’s European consumer research, an online survey conducted in February 2020 of 2,500 consumers across the UK, France, Italy, Germany, and Sweden, reported that people want to make a difference in more sustainable living.
• According to Container xChange, the online platform for the leasing and selling of shipping containers predicts that European container exporters will deteriorate significantly with the existing shortage in the market.
• In addition, In February 2021, Ardagh Group produced Absolut’s latest limited-edition vodka bottle, intending to enable people to interact in celebration of inclusivity. The upward spiral design of 16 swirls on the frosted blue glass bottle represents the never-ending cycle of change. The upward flow of the swirling spiral symbolizes communal growth and embraces positivity.

Competitive Landscape

The Europe Glass Bottle and Containers Market is moderately fragmented with a considerable number of regional players. Major players include Owens Illinois, Ardagh Group, Verallia (Horizon Holdings II SAS), Vidrala and Vetropack Holding Ltd.

• March 2021 - The Stoelzle Glass Group, based in Europe, has acquired Anchor Hocking Glass Company, a wholly-owned subsidiary of The Oneida Group in Monaca, Pennsylvania, to serve customers internationally.
• October 2020- Owens-Illinois Inc. and Krones AG, a German company, registered a strategic collaboration to increase innovations in its glass packaging segment. The partnership aims to improve glass filling, packaging speed, and efficiency with enhanced agility and flexibility by introducing sustainable glass systems and digital solutions such as direct to glass printing technology.

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