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India Glass Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

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  • 100 Pages
  • April 2023
  • Region: India
  • Mordor Intelligence
  • ID: 5459082
The India Glass Packaging Market is expected to register a CAGR of 6.94% during the forecast period. The manufacturing and production of packaging and relatable industries are only functional in many countries, where packaging contributes to GDP significantly. The trend has witnessed a shift of focus from glass packagers in the country to the pharmaceutical industry.

Key Highlights

  • India contributes the second-largest share of the pharmaceutical and biotech workforce worldwide. According to the Indian Economic Survey 2021, the pharmaceutical market is expected to grow by three times in the next decade. The country’s pharmaceutical market is projected at USD 41 billion in 2021 and will reach USD 65 billion by 2024 and will further expand to reach around USD 120-130 billion by 2030.​
  • The characteristics of glass bottles, such as them being non-porous, impermeable, eco-friendly, and aesthetically pleasing, are leading to ever-increasing use in the packaging industry. In India, the glass industry is well established and has remained a cottage industry for a long time. In recent years, the industry evolved from hand-working processes to adopting modern automation methods. According to the Hindusthan National Glass & Industries Ltd, Indian per capita consumption for glass packaging (1.8kg) is much lower compared to other nations.
  • The glass packaging industry is also driven by the growing environmental awareness among the consumers, with glass packaging being reusable and environmentally friendly alternative to plastic packaging. The growing disposable incomes and changing lifestyles of consumers are also factors that are expected to drive the growth of the market.
  • One of the main challenges for the market is the increased competition from alternative forms of packaging, such as aluminum cans and plastic containers. The items are lighter in weight than the bulky glass, gaining popularity among manufacturers and customers because of the lower cost involved in their carriage and transportation. Moreover, in recent years, the glass packaging industry has been concentrating on increasing traceability to restrict counterfeit activities in the country. The companies are mentioning using permanent engravings on containers, protecting consumers from harmful practices by spurious product manufacturers.
  • The recent trend of investing in vaccines for COVID-19 in the country is emerging as a significant driver for the growth of vials. For instance, according to IBEF, the Indian pharmaceutical sector supplies more than 50% of the global demand for various vaccines, around 40% of the generic market for the United States, and 25% of all medicines for the United Kingdom.

India Glass Packaging Market Trends

Glass Bottles/Containers Expected to Witness Significant Demand

  • In India, only the usage of glass packaging solutions, especially bottles, is increasing as the Indian consumers emphasize eco-friendly and healthy options and show a preference toward glass packaging over other options. Also, the country comprises many companies, including Hindustan National Glass and Asahi India Glass, offering glass packaging solutions across the industries.
  • Further, In December 2020, German pharmaceutical and healthcare products packaging supplier Gerresheimer opened a second production site in India. The new plant is expected to increase the production capacity to meet the growing demand from the country’s pharma sector. The plant is expected to also support the company’s vial production from tubular glass for pharmaceutical and diagnostic applications and ampoules. ​
  • In addition, For instance, Marriott and Taj, the prominent hospitality players in the country, announced to eliminate the use of PET bottles by replacing them with paper-sealed reusable glass bottles. Such initiatives by other players are estimated to take place in the recent coming years and will fuel the demand for glass bottles in the country.
  • The rising demand in the country has led to many glass packaging companies investing in their expansion plans in India. Such expansion plans are expected to continue in the coming years and drive the demand for glass bottles and containers over the forecast period.

Beverage Sector Expected to Witness Significant Demand

  • The beverage end-user vertical is driving the studied market's demand in the region. According to ASSOCHAM, glass and rigid plastics constitute about two-thirds of packaging in India's beverage sector. However, due to growing environmental concerns, the scope of glass packaging is expanding in the industry. Increasing usage of glass packaging for Beverages, especially for the alcoholic Ready to Drink (RTD) segment, is a current trend in the Beverage packaging industry of India. The glass packaging industry is primarily boosted by increasing alcoholic beverage consumption in the country.
  • According to the CARE Ratings, the Indian alcohol market is expected to increase to INR 1,75,400 crore in 2021, boosting the country's glass packaging segment. Moreover, a 7.5% growth rate is expected for the beer market for the next five years in India.
  • The global dairy industry witnessed a backward shift from plastic to glass bottles, driven by consumer demand for environmentally friendly milk. Many small dairy market players are selling their products in reusable bottles. The need for glass bottles in the milk industry has been increasing more in India.
  • Glass bottles and containers are majorly used in the alcoholic and non-alcoholic beverage industry due to their ability to maintain chemical inertness, sterility, and non-permeability. Drinks such as beer account for a significant share in 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 reason, most of the beer volume is transported in glass bottles, and this trend is expected to continue over the study period. Beer is packaged in dark-colored glass bottles to preserve the contents, prone to spoilage when exposed to UV light.

India Glass Packaging Market Competitor Analysis

The India Glass Packaging Market is competitive owing to multiple players in the market, which has led the market to be fragmented moderately. Players in the market adopt strategies like product innovation, partnerships, and mergers and acquisitions to increase their market share further. Some of the key developments in the market are:
  • March 2021 - AGI glaspac, a manufacturer of integrated container glass, announced a Rs 55 crore investment in a new 154 TPD AGI Speciality Glass Division furnace for the company's Bhongir factory in Telangana.
  • November 2020 - SCHOTT, one of the prominent players operating in the pharmaceutical glass manufacturing industry, inaugurated a new melting tank in its Gujarat facility with an approximate EUR 25 million investment. The company also stated the new tank would increase the plant's production capacity by around 10,000 tonnes to reach an annual capacity of 40000 metric tons. This new melting furnace was constructed within one year to enable a 25% increase in the facility's overall production capacity, primarily to support the pharmaceutical industry facing a massive demand surge for pharma packaging products.

Additional benefits of purchasing the report:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

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Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Overview
4.2 Industry Attractiveness - Porter’s Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Assessment of Impact of COVID-19 on the Industry
4.5 Trade Scenario Analysis
5.1 Market Drivers
5.1.1 Growing Environmental Awareness Among the Population
5.1.2 Increasing Beverage Consumption in the Country
5.2 Market Restraints
5.2.1 Alternative Packaging Options such as Aluminum and Plastic
6.1 By Product ( Revenue in USD Billion and Volume in Million Metric Tones)
6.1.1 Bottles/Containers
6.1.2 Vials
6.1.3 Ampoules
6.1.4 Syringe/Cartridges
6.2 By End-user Vertical ( Revenue in USD Billion and Volume in Million Metric Tones)
6.2.1 Food
6.2.2 Beverage (Soft Drinks, Milk, Alcoholic Beverages, Other Beverage Types)
6.2.3 Cosmetics, Perfumery and Personal Care
6.2.4 Pharmaceuticals
7.1 Company Profiles
7.1.1 Schott Kaisha Pvt Ltd (SCHOTT AG)
7.1.2 AGI Glaspac (HSIL Ltd)
7.1.3 Piramal Glass Limited
7.1.4 Hindustan National Glass & Industries Limited (HNGIL)
7.1.5 Schott Poonawalla Private Limited
7.1.6 Gerresheimer AG
7.1.7 Borosil Glass Works Limited (Klasspack Pvt. Ltd.)
7.1.8 Haldyn Glass Limited (HGL)
7.1.9 Sunrise Glass Industries Private Limited
7.1.10 Ajanta Bottle Pvt Ltd
7.1.11 G.M Overseas
7.1.12 Empire Industries Limited- Vitrum Glass