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Latin America Glass Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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  • 110 Pages
  • January 2022
  • Region: Latin America
  • Mordor Intelligence
  • ID: 5459112
UP TO OFF until Mar 31st 2024

Latin America’s glass packaging market is expected to grow at a CAGR of 4.4% during the forecast period. Due to COVID-19. Some of the effects of lockdown include supply chain disruptions, lack of availability of raw materials used in the manufacturing process, labor shortages, fluctuating prices that could cause the production of the final product to inflate and go beyond budget, shipping problems etc.

Key Highlights

  • Urbanization, changing consumer preferences, and growth in demand for beverages and alcoholic drinks have led to increased demand for glass packaging solutions by manufacturers of these products. The market is expected to continue to witness moderate growth over the forecast period.
  • Glass is one of the most preferred materials for packaging food, beverages, pharmaceuticals, and personal care products. Properties like excellent barrier properties, sterility, and reusability make it a superior packaging material. The other significant advantage of glass packaging is that it can be molded into various shapes and sizes, facilitating its use across different industry verticals.
  • Even though glass remains the preferred packaging material for various products, the growing usage of plastics as a replacement for glass will hamper the market growth. Advancements in plastics for safe usage in different applications will restrict glass as a material for packaging.
  • Latin America’s glass packaging market is segmented based on product and end-user industry. Based on the product, the market is segmented into bottles, jars, vials, and others. The market is segmented into pharmaceuticals, medical, household care, personal care, agricultural, and others based on the end-user industry.

Key Market Trends

Rising Demand from the Beverage Market to Drive Market Demand

  • The market for glass packaging in the alcoholic beverage industry faces intense competition from the metal packaging segment in cans. However, it is expected to maintain its share during the forecast period due to its usage of premium products. The growth is expected across different beverage products, like juices, coffee, tea, soups, non-dairy beverages, and others.
  • Among alcoholic beverages, beer witnessed tremendous growth in the past few years. The majority of beer volume is sold in glass bottles. It is driving the need for increased production rates in the glass packaging industry. The increasing demand for premium variants in alcoholic drinks is driving the growth of glass bottles.
  • Returnable glass bottles are a cost-effective option for companies to deliver their products. This form of packaging is used mainly in the non-alcoholic beverage industry. Currently, about 70% of the bottles used for natural mineral water are made of plastic. The choice for bottled-water packaging material is increasing, taking into account environmental considerations.
  • Further, the government in Brazil is playing a significant role in boosting local beer manufacturing. For instance, the Communist Party government collaborated with AmBev, the local subsidiary, and AB InBev to launch Magnífica. This beer is both sustainable and affordable.
  • Also, in Brazil, the consumption of alcohol between inhabitants is considerably high. Growing consumption of non-alcoholic beverages, like milk and juices, is further expected to create a scope for the region's glass bottles and containers market. According to Argentina's Secretary of Integral Policy on Drugs, the region consumes the most alcohol per capita of any country.
  • The supply chain of various industries, such as the beverage packaging industry, has been hit with the COVID-19 outbreak. Beverage companies such as Coca-Cola and Nestle have temporarily suspended production at several manufacturing facilities. They are permitted to provide only essential beverages (bottled water, etc.) to consumers. All of this has significantly affected the beverage packaging industry, which is expected to restrain the market growth during the forecast period.

Personal Care Industries expected to Increase Demand Significantly

  • One of the most used personal care range of products in glass packaging in the cosmetic packaging segment. This segment includes skincare products, hair care products, and perfumes. There is s growing demand for cosmetic products in glass packaging in the cosmetic industry. The trend is most significant in high-end luxury products due to the glass packaged products looking elegant and premium.
  • Brazil has recently upsurged the demand for grooming and personalization. Brazil has become the largest consumer of cosmetic products in Latin America due to an increase in the demand for men's grooming products and woman-centric products in the country.
  • The increasing disposable income in countries like Brazil further adds to the demand for premium cosmetics products worldwide. The cosmetics industry in this country is continuously expanding. It has placed itself as one of the fastest-growing and most vibrant cosmetic industries across the world.
  • The companies operating in the cosmetic packaging industry reflect the same increasing trend; for example, Verescence (formerly SGD) has sold its Brazilian subsidiary Verescence do Brasil to Wheaton Brasil Videos, the leading producer of high-end glass packaging for the cosmetics, perfume, and pharmacy markets in Brazil. Wheaton consolidates its position in the Brazilian market and becomes one of the world's leading glass manufacturers for the luxury sector.

Competitive Landscape

The Latin America Glass Packaging Market is moderately fragmented, with few dominant firms and few new firms in the market. The companies keep on innovating and entering into strategic partnerships to retain their market share.

  • July 2020 - Coca-Cola Co. announced expanding further into the market for boozy beverages with an alcoholic version of its popular Topo Chico mineral water. The soft drink company, which aspires to be a “total beverage company,” stated it would provide Topo Chico Hard Seltzer in “select cities” in Latin America later in 2020. Coca-Cola cited Topo Chico’s popularity in cocktails and mixed drinks.
  • May 2020 - Mexican glass container vendor Glass&Glass announced that it plans to install a second furnace at its manufacturing plant in Altamira, Tamaulipas. This 200 ton a day furnace is likely to be ready by 2021 and is being constructed to meet a growth in demand for the company’s glass products.

Additional Benefits:

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

This product will be delivered within 2 business days.

Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Demand for Eco-friendly Products
4.2.2 Rising Demand from the Food and Beverage Market
4.3 Market Restraints
4.3.1 Rising Operational Costs
4.3.2 Growing Usage of Substitute Products (Plastic)
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Technology Snapshot
4.6 Impact of Covid-19 on the Market
5.1 End-User Industry
5.1.1 Food
5.1.2 Beverage
5.1.3 Personal care
5.1.4 Healthcare
5.1.5 Household care
5.1.6 Other End-Users
5.2 Country
5.2.1 Brazil
5.2.2 Mexico
5.2.3 Argentina
5.2.4 Rest of Latin America
6.1 Company Profiles*
6.1.1 Amcor Ltd.
6.1.2 Bemis Company, Inc.
6.1.3 Honeywell International, Inc.
6.1.4 MTS Medication Technologies
6.1.5 Reynolds Packaging
6.1.6 Sonoco Products Company
6.1.7 WestPack