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Middle-East and Africa Glass Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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  • 110 Pages
  • February 2022
  • Region: Africa
  • Mordor Intelligence
  • ID: 5459116
UP TO OFF until Dec 31st 2023

The Middle-East and African glass packaging market is expected to register a CAGR of 5% over the forecast period, 2021-2026. The impact of COVID-19 on glass had an indirect link as an essential business and was allowed to function.​The Ethiopian glass container manufacturer, Addis Ababa Glass and Bottle Share Company, overlooks the capacity expansions. Amidst the COVID-19 pandemic, South Africa took stringent measures like halting all alcohol production. ​

Key Highlights

  • An increasing trend of transparency in food packaging over the past few years has been observed. This puts growing preference for glass as a material for packaging, being least opaque. Water is an emerging segment aligned with an increasing need for transparent glass containers with minimalist labeling. Multiple brands across the Middle Eastern region have depicted transitioning to glass to package water. For instance, in April 2021, Earth Water launched its natural mineral water lineup in glass bottles across the UAE. PepsiCo launched Aquafina water in Expo 2020 Dubai-cobranded as fully recyclable glass bottles to promote sustainable packaging.
  • In March 2021, a new factory in Abu Dhabi planned to manufacture a COVID-19 vaccine from Chinese pharmaceutical giant Sinopharm under a joint venture between Sinopharm and Abu Dhabi-based technology company Group 42 (G42). The plant, built in the Khalifa Industrial Zone of Abu Dhabi (KIZAD), was planned to produce 200 million doses a year with three filling lines and five automated packaging lines. Similar expansion trends and investments are expected to demand glass packaging solutions in the regional pharmaceutical industry significantly.
  • The policies against plastic for packaging are also creating new opportunities for the glass bottles and containers market. In February 2021, Kenya signed the Clean Seas Initiative and became one of the first countries in East Africa to limit single-use plastics. Also, as of June 2020, visitors to Kenya's national parks, beaches, forests, and conservation areas can no longer carry plastic water bottles, cups, disposable plates, cutlery, or straws into protected areas.
  • According to International Finance Corporation (IFC), officials are considering promoting more local production from private pharma companies that produce generic medications and companies that manufacture active pharmaceutical ingredients or APIs (the primary components in manufacturing drugs). Ethiopia's National Strategy and Plan of Action for Pharmaceutical Manufacturing Development (2015-2025) also catalyzes pharmaceutical production at the country level. ​

Key Market Trends

Beverages to Hold Major Market Share

  • The market for glass packaging in the alcoholic beverage industry faces intense competition from the metal packaging segment in the form of 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, including juices, coffee, tea, soups, non-dairy, and beverages.
  • Multiple initiatives that drove investments from local beer manufacturers are expected to drive the demand for glass bottle packaging further. For instance, in October 2021, Heineken approached Nambian Breweries to purchase a 25% stake to establish a joint venture for Heineken South Africa. The venture is expected to help NBL reduce loss-making investments (attributed to losses of NAD 339 million) attributable from the past five years. This is expected to increase beer exports and beer production volume in the region.
  • International retailers have increased options for South African wines due to poor harvest in wineries across New Zealand and challenging storage of wines. This has shifted the focus of various retailers to increase options for wines from South Africa. ​
  • For instance, in October 2021, Majestic, a UK online retailer for wine, added a new set of wine options for buyers, including Lone Creek Sauvignon Blanc 2021 and Boekenhoutskloof Vintager Sauvignon Blanc from Cape Town and Pringle Bay Sauvignon Blanc 2021 from Western Cape. Also, with the price range being low (GBP 10-11 per bottle), the retailers expect greater sales of South African wines.

The UAE Market is Expected to Grow Significantly

  • Most major research-based pharma firms have a long-standing presence in the country through contract manufacturing or local distribution channels, creating a market opportunity for container glass manufacturers. Leading multinationals, such as Pfizer, Novartis, GlaxoSmithKline (GSK), Merck, Abbvie, Eli Lily, Bayer, AstraZeneca, Sanofi, BMS, and Amgen, have a presence in the domestic market.​
  • The IQVIA projected that pharmaceutical sales in the country are likely to reach USD 51 billion by 2024. Moreover, the increased awareness of the established benefits of using glass packaging for pharmaceutical products and healthcare facilities is driving the segment of the pharmaceutical glass.​
  • In May 2021, PepsiCo launched Aquafina aluminum cans and glass bottles, the company's infinitely recyclable characteristic offering for UAE residents. The innovation is in line with the commitment of PepsiCo, Expo 2020 Dubai's Official Beverage and Snack Partner, to collect and recycle PepsiCo waste generated on Expo 2020 Dubai's site during the six-month global gathering, accelerating efforts to reduce, recycle, and reinvent better and more sustainable packaging.
  • In January 2021, the UAE-based perfumer, Salva, revealed its new fragrance, Hope, devoted to seafarers. Through this initiative, the brand aims to increase awareness about seafarers' plight worldwide and offer support. Such initiatives are anticipated to boost the country's glass bottle market.​
  • In August 2021, the UAE's leading perfumery, LOOTAH perfumes, teamed up with Ounass, the Middle East's Definitive Home of Luxury. LOOTAH and Ounass's collaboration showcases over 50 of LOOTAH's scents, transcendent fragrance oils, and the richest incenses on the website.

Competitive Landscape

The Middle-East and African glass packaging market is moderately fragmented, with a few dominant and few new firms. The companies keep innovating and entering into strategic partnerships to retain their market share.

  • April 2021- Nigerian Beer Brand Star Lager expanded its distribution capacity in the United States for a premium cold-filtered lager. This is expected to drive the demand for glass bottle packaging as the number of exports and demand for African beer increases.
  • April 2021- SOURCE Global, a Scottsdale tech and renewable water company, introduced renewable bottled water made entirely from sunlight and air. The bottle’s graphics are applied using screen printing. The back of the bottle highlights the product’s unique attributes. The glass-bottled water will eventually be available to guests at The Red Sea Development Project (TRSDP), a regenerative luxury tourism destination along Saudi Arabia’s west coast that is underway.

Additional Benefits:

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

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 High Opportunity for Middle-East and Africa Glass Bottles/Containers
4.3 Market Restraints
4.3.1 Decreased Alcohol Consumption
4.4 Industry Value Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Competitive Rivalry
4.5.2 Threat of New Entrants
4.5.3 Bargaining Power of Suppliers
4.5.4 Bargaining Power of Customers
4.5.5 Threat of Substitute Products
4.6 Industry Policies and Assessment of COVID-19 Impact
4.7 Technology Snapshot
5.1 Products
5.1.1 Bottles
5.1.2 Jars
5.1.3 Vials
5.1.4 Other Products
5.2 End-user Industry
5.2.1 Pharmaceuticals
5.2.2 Medical
5.2.3 Personal Care
5.2.4 Household Care
5.2.5 Agricultural
5.3 Country
5.3.1 Saudi Arabia
5.3.2 United Arab Emirates
5.3.3 South Africa
5.3.4 Rest of Middle-East and Africa
7.1 Company Profiles*
7.1.1 Amcor Ltd
7.1.2 WestPack
7.1.3 Sonoco Products Company
7.1.4 Honeywell International Inc.
7.1.5 MTS Medication Technologies
7.1.6 Reynolds Packaging
7.1.7 The DOW Chemical Company
7.1.8 Uhlmann Group
7.1.9 Rohrer Corporation
7.1.10 Pharma Packaging Solutions
7.1.11 Tekni-Plex Inc.

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Amcor Ltd
  • WestPack
  • Sonoco Products Company
  • Honeywell International Inc.
  • MTS Medication Technologies
  • Reynolds Packaging
  • The DOW Chemical Company
  • Uhlmann Group
  • Rohrer Corporation
  • Pharma Packaging Solutions
  • Tekni-Plex Inc.