The Brazil Glass Packaging Market is expected to register a CAGR of 8.5% during the forecast period. With the outbreak of COVID-19, The personal care product packaging market is seeing a significant slump in demand in the country due to restricting personal contacts, gathering, travel, and the closure of the hospitality industry are all influencing the personal care and hygiene market. The global pandemic triggered a supply crisis due to the widespread closure of points of sale, which led to an unprecedented, temporary decline in the market.
- The increasing consumption of food and beverages, cosmetics, pharmaceuticals, and other products is boosting the growth of the market in the country. Further, The demand for cosmetics and fragrances is witnessing rapid and robust growth in the country. In the recent past, Vitro, one of the prominent glass producers in Mexico, announced to invest USD 90 million to construct a new plant to manufacture glass containers in Brazil and serve the cosmetics, fragrances, and specialty segments.
- SEBRAE or Brazilian Support Service for Micro and Small Enterprises, stated that the men's cosmetics market has tripled in Brazil in the past five years. By 2021, the country aimed to become the prominent men's cosmetics market. This is expected to facilitate further growth of glass packaging modules designed exclusively for use by men.
- Premiumization is the significant trend influencing the Brazilian alcoholic beverage market. This trend has led to an explosion of craft producers in the major urban centers. The Brazilian consumers are willing to pay more for premium beers that provide an authentic experience. The trend is expected to drive the glass packaging market in the country.
Key Market Trends
Vials Expected to Witness Significant Growth
- The Brazilian pharmaceutical market is growing significantly due to the growing manufacturing of drugs by companies in the region, increasing accessibility of OTC drugs, and significant investments by local companies. This witness increased demand for vials in the country.
- Further, factors, such as the rise in the cost of medical care, and the growing inclination of various end-users such as hospitals and drug manufacturers, are expected to drive the use of the product during the forecast period. Like other glass packaging, vials are also easily recyclable and are considered an eco-friendly material. This has shifted the focus of end-users from conventional containers to vials and, in turn, created a lucrative demand for these products across medical and healthcare sectors in the country.
- With the outbreak of COVID-19, the Brazilian government has reduced import duty and federal excise tax of all pharmaceutical products to zero until September 30, 2020, to fight the pandemic. Moreover, manufacturers and suppliers are focusing on shifting their base to Brazil due to increasing opportunities offered by the pharmaceutical industry in countries, especially in the generics sector. The trend is expected to drive increased demand for vials in the country
- Meanwhile, Brazil falling short of the CoronaVac vaccine from China's Sinovac Biotech in February 2021 due to the delay in production. However, according to Brazil's Health Minister, the government is expected to sign a second contract with Pfizer for another shipment of 100 million doses for the COVID-19 vaccine. This further increases the opportunities for vials in the country.
Personal Care Expected to Witness Significant Growth
- The perfume segment is witnessing increased demand, as body sprays for fragrances and deodorants remain highly popular. This is leading to the growth of the glass packaging market in Brazil.
- Moreover, the market is also witnessing investment activities. For instance, in Apr 2020, the French group of fragrances and aromas, Robertet, invested BRL 48 million in constructing a unit in Sao Paulo. With the operation, the company is looking to triple its production and storage capacity in the country. The company also added more advanced processes to meet the environmental issues, such as waste treatment and rainwater reuse.
- The Brazilian market has increased by 0.6% in turnover and 2.8% in volume in terms of personal care product purchases in 2020, according to Joao Carlos Basilio, executive president of ABIHPEC. The purchase rise is due to COVID-19 care products such as hand sanitizers and liquid. The trend is expected to drive significant demand for the glass packaging market.
- Further, Brazil exports perfumery and cosmetic products to Argentina, Colombia, and Chile and imports cosmetics from France, Argentina, and the United States. The country remains dependent on imports for finished products. This has led the Brazilian government to introduce import taxes to localize production.
The Brazil Glass Packaging Market moderately competitive, with a considerable number of regional and global players. However, the properties of glass and its benefits to beverages, cosmetics, and other industries are leading to increased adoption of glass bottles, containers, vials and ampoules. Players in the market adopting strategies such as product innovation, partnerships, mergers and acquisitions to increase their market share and further recyclability driving the market.
- March 2021 - The Stoelzle Glass Group, acquired Anchor Hocking Glass Company, a wholly-owned subsidiary of The Oneida Group in Monaca, Pennsylvania, to serve customers internationally.
- February 2021 - Ardagh Group launched Absolut’s latest limited-edition vodka bottle, ‘Absolut Movement’ to inspire people in celebration of inclusivity. The frosted blue glass bottle features an upward spiral design of 16 swirls, symbolic of the never-ending cycle of change. The upward flow of the swirling spiral indicates social growth
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Table of Contents
1.2 Scope of the Study
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Impact of COVID-19 on the Brazil Glass Industry
5.1.1 Higher Disposable Income and Integration in Premium Packaging
5.1.2 Improved Technology Offering Better Solutions
5.2 Market Challenges
5.2.1 High Competition from Substitute Packaging Solutions
5.2.2 Operation and Logistical Concerns
6.2 By End-user Vertical
6.2.2 Personal Care
6.2.3 Household Care
6.2.5 Other End-user Vertical
7.1.1 Ardagh Packaging Group PLC
7.1.2 Owens-illinois Inc
7.1.3 Sonoco Products Company
7.1.4 Verallia Packaging SAS (Horizon Holdings II SAS)
7.1.5 Wheaton Brasil Group
7.1.6 Schott Br. Ltda
7.1.7 Cebrace Cristal Plano Ltda
7.1.8 Saver Glass, Inc.
7.1.9 Reynolds Packaging
7.1.10 Orora Limited
7.1.11 Frigoglass SAIC
A selection of companies mentioned in this report includes:
- Ardagh Packaging Group PLC
- Owens-illinois Inc
- Sonoco Products Company
- Verallia Packaging SAS (Horizon Holdings II SAS)
- Wheaton Brasil Group
- Schott Br. Ltda
- Cebrace Cristal Plano Ltda
- Saver Glass, Inc.
- Reynolds Packaging
- Orora Limited
- Frigoglass SAIC