The market for glass packaging stood at US$ 43 billion in 2015 and is likely to rise to a valuation of US$ 55 billion by the end of 2020.
The growing consumption of glass packaging in pharmaceuticals along with the food and beverage industry due to its non-corrosive nature is driving the demand. Additionally, various properties including non-permeability, recyclability, and zero rates of chemical interaction make it suitable for use as a packaging material for various applications including soft drinks, alcoholic beverages, and medicines. Furthermore, with the ongoing R&D to develop packaging materials that are 50% lighter when compared to traditional forms, is expected to witness immense potential over the coming years.
However, Infiniti’s analysis of the global packaging industry shows that glass packaging companies are facing predicaments in terms of:
- The popularity of plastics: The global glass packaging market is expected to be hampered by the growing popularity of plastics as a packing material. Some limitations of the product such as brittleness, high cost, and transport related difficulties have led to the adoption of plastics as the preferred packing material in many industries.[spacer height=”20px”]
- Sustainability: Currently, packaging contributes towards the sustainability of a packaged product and must be premeditated holistically with a product to enhance overall environmental performance and minimize wastage, product damage, and spoilage. However, no packaging solution is completely sustainable, and packaging materials cannot be classified as good or bad. All the materials have their pros and cons depending on the trade-offs.[spacer height=”20px”]
Therefore, to understand the nature, trends, and overcome the challenges of the glass packaging market, it is best recommended for firms to adopt market intelligence solutions. Market intelligence solutions help firms in the global packaging industry space to gain an in-depth understanding of the consumer base and answer the why of consumer behavior and preferences. Additionally, these solutions entail keeping an eye on the competitor’s activities and gaining a comprehensive view of the competitive landscape in the target region.
The Business Challenge[spacer height=”20px”]
- The client: A glass packaging company
The client – a world-leading packaging industry firm that develops, manufactures, and sells glass packaging materials – approached Infiniti to engage in a market intelligence study that would offer them insights into the global packaging industry for regions including the Americas, EMEA, and the APAC regions.
The primary objective of the client was to analyze the trends, challenges, competitive landscape, and market drivers for the glass packaging market across various regions. The client also wanted to gain a detailed overview of the latest technology standards and the distribution structure across the industry.
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Our Journey[spacer height=”20px”]
To gain a clear understanding of the glass packaging industry’s growth prospects, Infiniti’s market intelligence experts engaged with various key stakeholders, manufacturers, and suppliers to analyze the factors affecting the growth prospects. The experts also compiled information from reliable sources such as trade shows, paid industry databases, and company presentations to help the client assess the overall market landscape of the glass packaging industry.
The Solution Benefits and the Business Impact[spacer height=”20px”]
With the aid of Infiniti’s market intelligence solution, the glass packaging client obtained a clear understanding of the current market trends in the industry across the target regions. The client also gained insights into the competitor’s market share and key distributors in the glass packaging industry. Furthermore, with the help of this market intelligence engagement, the client gained a holistic overview of the current distribution structure, regional product portfolio and pricing trends, and the global standards for the target regions.
The Future[spacer height=”20px”]
Globally, the market for glass packaging is booming due to increased demand for green sustainable packaging solutions. Unlike plastic, glass is substantially recyclable and does not need a petroleum-based plastic layer or other chemical additives to preserve the taste of foods and beverages, prevent corrosion, or decrease gas permeability. As a result, various international governments are garnering further support for the glass packaging industry. However, it is imperative that the packaging industry considers the entire lifecycle of a container and the environmental consequences of its manufacture, instead of just focusing on just one area of the entire process.
A must-read case study for strategy specialists and decision makers looking to develop an understanding of the global packaging industry