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Packtick
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Level 2
Asked: 2019-12-03T01:50:03+00:00 In:

What are the key trends and developments in the glass packaging market?

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What are the key trends and developments in the glass packaging market?

In the global glass packaging industry, one thing which is common and has strongly emerged recently is the stiff competition from plastic packaging (both rigid and flexible plastics) and metal cans. Obaid Shah expects that the glass packaging has already lost a small proportion of its share in beverage and food sectors. There are some causes, though the most prominent is the high cost, particularly when returnable glass bottles are losing to disposable plastic bottles.

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    1. Obaid Shah
      Level 3
      • Glass packaging producers are trying their best to control the cost involved in glass packaging. Several initiatives have already been taken to make the glass thinner and reduce their weight. Thin glass is not just reducing the cost of glass containers by using less raw materials but also save on transportation. Some developments are also going on to increase the automation process, which will help reduce the cost at the production stage.
      • Using cullet is another way to keep the cost down because when it is used with virgin materials, it can save on energy consumption. Commodity Inside expects that some initiatives will be taken to increase the recycling of glass. Glass packaging producers are also expected to invest more in the production and processing of cullet. We have already seen some producers in various regions investing in capacity expansion of their cullet plants. Some manufacturers have joined forces with collection companies as well.
      • Commodity Inside expects further capacity expansion in various emerging and developing markets, especially in Asia, Africa and the Middle East. It is also expected that Iran will attract potential investors in the glass packaging industry in the coming years.
      • Glass will continue to lose its share to alternative packaging materials due to a number of reasons, including its high costs, heavyweight, and change in the consumer lifestyle. Most of the glass share will go towards rigid plastic, flexible plastic and metal cans.
      • Glass packaging will continue to face fierce competition from plastic in personal care, and food sectors as quality and visual appeal of plastic will improve further. However, glass packaging will remain the ideal and premium packaging type for fragrances and skincare products in the personal care sector.
      • Glass packaging will continue to be one of the key platforms to a product’s successful marketing strategy. A number of products have been launched recently, by using glass packaging, mainly to attract customers through the product look. This approach has been used across various end-use sectors including beverage, food and healthcare. Commodity Inside expects that this trend will continue while glass will maintain its premium image during the coming years.
      • In the food sector, glass packaging will struggle a lot, though its stronghold will continue to products such as sauces, condiments, dressings, prepared baby food, coffee, and oils. In the baby food sector, both glass and rigid plastic containers will continue to lose share of baby food pouches. They will face severe pressure from aluminium/plastic pouches, which has the significant advantage of being easier to use.
      • The increasing cost pressure on pharmaceutical manufacturers is forcing them to share their costs with packaging companies. This has been squeezing profit margins of the packaging companies and forcing them to provide cost-effective services and become more innovative. One of the options for pharmaceutical companies is to switch from glass to alternative packaging. Glass bottles are almost substituted with plastic bottles in the pharmaceutical industry.
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