North America Glass Packaging Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Application (Soft Drinks, Fruit Drinks, Pharmaceuticals, Personal Care, Alcoholic Drinks, Others), And By Geography - Forecasts From 2022 To 2027

The North American glass packaging market is anticipated to grow at a compound annual growth rate (CAGR) of XX% over the forecast period to reach US$XX billion by 2029, increasing from US$XX billion in 2022

The North American glass packaging market is underpinned by a myriad of factors that render glass an appealing choice across various applications. With an escalating concern among consumers regarding environmental issues, there is a mounting demand for sustainable packaging solutions. Glass emerges as a highly recyclable material, complemented by a well-established recycling infrastructure in North America, resonating effectively with environmentally conscious consumers.

Beyond its eco-friendly attributes, glass boasts exceptional barrier properties against gases, liquids, and light. This quality is paramount for preserving the freshness, taste, and overall quality of a diverse array of products, spanning beverages, food items, and pharmaceuticals.

Moreover, the burgeoning demand for bottled beverages, encompassing soft drinks, alcoholic beverages, and premium water, further propels the necessity for top-tier glass packaging solutions. This is evidenced by the increase in exports of U.S. Non-Alcoholic Beverages (excluding juices), which rose from 2.64 billion USD in 2022 to 2.84 billion USD in 2023. 

Similarly, U.S. Distilled Spirits Exports surged from 2.07 billion USD in 2022 to 2.23 billion USD in 2023, indicative of the escalating demand for quality packaging solutions within the alcoholic beverages sector. 

Furthermore, the surge in e-commerce activities has spurred a heightened demand for durable and breakage-resistant packaging solutions. In this context, glass packaging stands out due to its inherent strength and resilience.

Considering these factors, the North American glass packaging market is poised for growth in the forthcoming years. As t The mentioned drivers are anticipated to persist, further fueling the market expansion. of the market.

Growing pharmaceutical sector

Glass packaging solutions are one of the most popular packaging materials in the pharmaceutical industry and are primarily provided as the main packaging for pharmaceutical products. This is mostly because they have advantages that make them reusable, sustainable, inert, impermeable, and recyclable without sacrificing quality.

The need for bottles, ampules, and other glass packaging solutions is directly resulting from the growing demand for pharmaceutical drugs and medicines linked to technological advancements in the pharmaceutical industry. As chronic illnesses become more prevalent and a large quantity of COVID-19 vaccine doses are produced, there will likely be an increase in the need for primary packaging, particularly glass containers.

Additionally, glass's notable qualities—such as its resistance to chemicals and ability to withstand a variety of chemical compositions—are some of the reasons why packaging suppliers use glass instead of other materials for pharmaceutical packaging. Glass ampoules and vials also provide better transparency, making it easier to see and monitor the contents.

Moreover, the growing prevalence of chronic illnesses has been playing a vital role in driving the demand for vaccines, drugs, and other medicine types. According to the Centers for Disease Control and Prevention, in 2021, 38.4 million Americans (11.6% of the total population) have diabetes, and 97.6 million adults (18 years of age or older) have prediabetes (38.0% of the adult US population ). Such diseases have a huge burden on the economy. It is estimated about US$415 billion was spent on diabetes in the same year. Furthermore, the organization predicts that the number of diabetic patients will increase to reach 63 million by 2024, which is about a 24% increase in the region. With such an increase, the demand for diabetes medicine will increase, and so will the demand for glass packaging.

RUSSIA-UKRAINE WAR IMPACT

The ongoing conflict in Ukraine has impacted throughout various global industries, including the North American glass packaging market. One pressing concern is the surge in natural gas prices, as it serves as a crucial fuel source for glass manufacturing furnaces. This, in turn, escalates production costs for glass packaging companies across North America. Additionally, there is apprehension regarding potential price fluctuations in raw materials, such as sand and soda ash, attributed to disruptions in the global supply chain.

The conflict has significantly disrupted global supply chains, affecting the import and export of both glass packaging materials and finished products. Consequently, North American companies reliant on overseas suppliers may encounter shortages or delays. Furthermore, sanctions imposed on Russia may contribute to a contraction in the North American glass packaging market.

Nevertheless, the imposition of sanctions on Russia might disrupt European glass supplies, prompting some companies to turn to North America for sourcing. Moreover, the increasing emphasis on sustainability could prove advantageous for the glass packaging industry. As consumers become more cognizant of potential plastic packaging shortages arising from the conflict, there may be a shift towards glass packaging solutions.

In summary, the Russia-Ukraine conflict poses challenges for the North American glass packaging market, characterized by potential cost escalations and disruptions in the supply chain.

The North American glass packaging application in alcoholic drinks is expected to grow

The Rising e-commerce alcohol sales and consumption, coupled with the major investments in glass packaging for alcoholic drinks in the North American region, are projected to boost the market sales significantly during the forecast period. Also, the new packaging product launches that are sustainable and use low-carbon glass for the alcohol industry are further anticipated to drive the market growth during the forecast period.

The surge in revenue of market players is complementing this market trend. For instance, The Wolf Spirit Distillery, located in the USA, clocked in a revenue of US$700,000 during the first 3 months of the launch of its 100% pure Kentucky Bourbon. The increased consumption of alcohol in the North American region is the primary driver in propelling the market growth.

Moreover, the burgeoning alcoholic beverage market in the region is expected to be driven primarily by the growing population of young adults. The growing demand for premium and ultra-premium products is also anticipated to drive growth in the market for alcoholic beverages, including wine, beer, and spirits. American consumers' desire for alcoholic beverages is expanding as a result of shifting demographics and rising disposable income. For instance, the average person drank 26.5 gallons of beer by 2021. The average American has increased their annual wine consumption from 3.2 gallons to 3.8 gallons over the last forty years as per the report by NIAAA.

The online sales of alcoholic drinks are another major contributor to pushing the overall market growth for the North American region. For instance, alcohol e-commerce sales exceeded US$6 billion in 2021, with a massive increase of more than 130% as compared to 2019, outpacing the overall food and beverage segment in the region. Also, t The market is also expected to grow as the Direct-to-Consumer (DTC) wine online market grows strongly in the US. The increased e-commerce presence is anticipated to boost the alcoholic drinks in the region, thereby enhancing the market growth of the glass packaging market growth.

Moreover, in June 2022, Constellation Brands Inc. and The Coca-Cola Company have inked a brand authorization agreement for the introduction of FRESCATM Mixed, a range of fully-flavored, spirit-based ready-to-drink (RTD) cocktails, in the US market.

Currently the fastest-growing trademark in The Coca-Cola Company's U.S. soft drink portfolio, FRESCA® is a beloved zero-calorie soft drink with a grapefruit citrus flavor that elevates any spirit it is paired with. It is also a popular cocktail mixer. Later this year, Constellation Brands will introduce FRESCATM Mixed, a product made with premium spirit bases, and handle its production, marketing, and distribution. The upscale manufacturer and distributor of wine, beer, and spirits brands, including SVEDKA, Modelo, and Corona, possesses distilled manufacturing and operational skills and a nationwide distilled distribution network that connects them to retailers selling distilled alcoholic beverages.

The market is projected to grow in the North American region.

A major factor responsible for the growth of this segment is the rising customer preference for safe and healthier packaging. The growing demand for Glass packaging growing demand is being accelerated by the development of newer technologies for forming, embossing, and incorporating artistic finishes to glass., as well as It is also propelled by the huge trend of glass packaging among end-users as one of the most reliable forms of packaging for health, taste, and environmental standards. For instance, in March 2022, the Coca-Cola Company stated that it will would set an industry-leading objective to increase its usage of reusable packaging. By 2030, the corporation wants at least 25% of all drinks sold to be refillable/returnable glass or plastic bottles. As per the company, returnable glass bottles and refillable PET bottles account for more than half of the company's sales revenue in more than 20 markets, with another 20 regions accounting for more than a quarter of sales.

The high intake of alcoholic beverages in the United States is a primary driving force for the market expansion. For instance, a total of 215.6 million adults who are 18 years of age or older (84.1% of this age group) reported drinking alcohol at some point in their lives, according to the 2022 NSDUH. This comprises 108.1 million women and 107.5 million men who are 18 years of age or older (86.2% and 81.9%, respectively).

The growing inclination towards eco-friendly solutions, expanding demand from the food and beverage industry, and a preference for lightweight glass, since it provides more stability by reducing the number of raw materials required and CO2 generated, are some of the key factors driving the market growth.

Key Market Developments:

• March 2021, Ardagh Group, Glass – North America, a division of Ardagh Group, teamed up with Bragg Live Food Products to launch a new 16-ounce glass bottle for their line of apple cider vinegar drinks. Ardagh created the 16-ounce glass non-alcoholic beverage bottle for Bragg, which has a lug finish and is made in the United States. Brands seek sustainable packaging that reflects the quality of their products. According to the firm, every Bragg product represents its dedication to fostering healthy thinking, decisions, perspectives, and lives. With this in consideration, the new 16-ounce beverage bottle, which was just introduced in glass packaging, is an excellent sustainable packaging option. Glass bottles are 100% recyclable and can be reused indefinitely without losing their quality. Additionally, glass packaging was preferred by consumers in a 2021 survey commissioned by Two Sides North America for four practical and aesthetic characteristics, including being recyclable, having a favoured look and feel, offering a better brand image, and delivering better protection.
• July 2022, Tenjaku Gin was launched nationwide, by Tenjaku Whisky USA. The gin, which is currently offered in forty states, is created by macerating more than ten Japanese botanicals, such as Yuzu, Peach, Green Tea, and Japanese Pepper, and then distilling them in the London Dry method using some of the purest waters from the Mount Fuji basin. After being extracted from 250 meters below the surface, the water is filtered through porous volcanic rock. This craft gin perfectly embodies the scents of Japan.

Key Players:

• Gerresheimer provides the full range of standardized and customized glass moulded packaging for the food and beverage sector. Their products come in a range of shapes and are available in clear, coloured, opal, or amber glass. They provide packaging solutions for spirits, beverages, and food with a large selection of speciality miniatures, bottles, jars, and glasses.
• Amcor is a world leader in the development and manufacture of ethical packaging for a variety ofvarious products, including food, drink, pharmaceutical, medical, and personal care items.
• Kaufman Container offers a wide variety of container packaging options, spanning from large spray bottles to tiny glass vials. Glass and plastic bottles and jars, plastic buckets, plastic pails, dispensing closures, and much more are available in their stock product selection. Kaufman Container can provide a range of smaller container options, such as airless units, squeeze tubes, or spice jars, for people in the food, personal care, or cosmetics industry. They want to design packaging options that are eye-catching, stylish, and distinctive.

Segmentation:

• By Application
  • Soft Drinks
  • Fruit Drinks
  • Pharmaceuticals
  • Personal Care
  • Alcoholic Drinks
  • Others
• By Geography
  • USA
  • Canada              
  • Mexico