Ethiopia Container Glass Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Volume (2024) | 97.95 kilotons |
| Market Volume (2029) | 109.27 kilotons |
| CAGR (2024 - 2029) | 2.21 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Ethiopia Container Glass Market Analysis
The Ethiopia Container Glass Market size in terms of shipment volume is expected to grow from 97.95 kilotons in 2024 to 109.27 kilotons by 2029, at a CAGR of 2.21% during the forecast period (2024-2029).
Ethiopia's container glass market is developing, with demand primarily driven by the beverage sector, including bottled water, soft drinks, and alcoholic beverages.
- As Ethiopia's economy expands, the consumption of beverages and food products, often packaged in glass containers, rises. This surge in consumption fuels the demand for container glass. The country's economic growth and accelerating urbanization drive increased demand for packaged products, particularly premium beverages that prefer glass packaging for its quality and eco-friendly nature.
- According to the World Bank, as of 2023, Ethiopia, with a population of approximately 126.5 million, is Africa's second-most populous nation. The country is not only one of the fastest-growing economies in the region, recording an estimated growth rate of 7.2% in FY2022/23.
- The expanding middle class and the rise of health-conscious consumers are expected to further boost demand for bottled drinks, creating a robust market for glass containers. Government efforts to develop the manufacturing sector and attract foreign investment could facilitate the establishment of local glass production facilities, reducing import dependence and improving overall market dynamics.
- Companies such as Addis Ababa Bottle and Glass Share Company is an example of an existing manufacturer of container glass products for the Ethiopian market. The company operates two electric furnaces with a combined design capacity of 80 tons per day (tpd). It produces glass container packaging for beer, soft drinks, liquor, wine, cosmetics, mineral water, and food market
- While the industry shows significant growth potential, several challenges impede its development. The primary issue is the scarcity of local manufacturing facilities, which results in a heavy reliance on imported glass products. This dependence increases costs and affects the supply chain, as shipping delays can disrupt the availability of glass containers.
Ethiopia Container Glass Market Trends
Beverage Industry Aided to Drive the Market Growth
- Ethiopia's economy is emerging as one of the fastest-growing in Africa, resulting in heightened disposable income and increased consumer spending. Consequently, this economic surge has amplified the demand for a diverse range of beverages, encompassing both alcoholic and non-alcoholic options.
- Awareness and preference for eco-friendly packaging are on the rise. Glass, being recyclable, boasts a lower environmental impact than single-use plastics. This trend mirrors global sustainability movements and potentially boosts demand in Ethiopia. According to the Ethiopian Investment Commission, the food and beverage sector accounted for about 58% of sales. In contrast to the average African economy, which locally produces 60% of its packaging materials, Ethiopia only produces 40% of its packaging needs.
- Ethiopia's beverage industry is rising, encompassing local production of soft drinks, alcoholic beverages such as beer and spirits, and non-alcoholic drinks. As production ramps up, so does the demand for packaging materials, notably glass bottles. Government regulations on packaging waste and environmental standards play a pivotal role in shaping demand. With th Ethiopian government tightening regulations on plastic usage, it could catalyze a significant uptick in glass packaging demand.
- According to a recent study by Manufacturing Africa, a program backed by the UK's Foreign, Commonwealth & Development Office (FCDO) to bolster the manufacturing sector, Ethiopia is witnessing a rising and unmet demand for packaging products. By 2030, Ethiopia's packaging manufacturing sector is projected to be valued at USD 971 million, with over half of this potential concentrated in the food and beverage packaging segment. This indicates the demand for container glass across the beverage industry in the country.
- The beverage industry predominantly drives the food and beverage processing industry (FBPI). To bolster the FBPI sector, the government of Ethiopia is working on 17 IAIPs, four of which are already in the building and set to commence production in the coming years. According to a World Bank survey, the total consumer spending on food and non-alcoholic beverages in Ethiopia in 2020 was USD 29,578.17 million, and it is expected to reach USD 65,094.95 million in 2024.
Tourism and Economic Factors to Drive Demand for Sustainable Packaging
- Tourists frequently indulge in food and beverages during their travels. Establishments like restaurants, cafes, bars, and hotels commonly serve drinks in glass containers—ranging from wine and beer to soft drinks and local specialities—fueling the demand for these products. According to the Organization for Economic Cooperation and Development (OECD), Ethiopia's tourism sector's share of GDP in 2020 was 2.92% and is expected to reach 5.6% by 2024. This indicates the need to manufacture container glass products as it is sustainable compared to plastic.
- Government initiatives targeting reducing plastic consumption and boosting recycling efforts are positioning glass packaging as a compelling alternative. Regulations or incentives championing sustainable practices further vitalise the glass packaging market. With an intensified emphasis on product safety, the food and beverage sector increasingly views glass as a superior choice, especially given concerns over plastics potentially leaching chemicals into consumables.
- When travelling, tourists often buy local products packaged in glass. This encompasses local spirits, wines, and gourmet foods, all of which typically utilize glass bottles. The growing appetite for unique and artisanal offerings further amplifies the sales of container glass products.
- Ethiopia unveiled a tourism satellite account to boost economic contributions. For instance, in September 2024 (ECA), in a collaborative effort, the United Nations Economic Commission for Africa (ECA) and Ethiopia's Ministry of Tourism introduced the Ethiopia Tourism Satellite Account (TSA) in Addis Ababa. This initiative aims to bolster the tourism sector, ensuring it plays a pivotal role in enhancing the nation's economy.
- Moreover, the government of Ethiopia is focusing on promoting sustainable packaging initiatives. For instance, through GOODiT Sustainability Initiatives, the "Unplastic Ethiopia" campaign addresses the plastic waste crisis by promoting awareness and advocating for actionable solutions. Unplastic Ethiopia zeroes in on the youth, utilizing tailored social media messaging and content. This digital strategy seeks to enlighten and empower the younger generation in the fight against plastic pollution. Such initiatives would further encourage the country's need for a container glass market.
Ethiopia Container Glass Industry Overview
Growing consumer preference for eco-friendly packaging, alongside the continuous expansion of the glass container market, is propelling steady growth. Additionally, surging demand for beverages, organic products, and premium packaging has intensified the market's appetite for glass containers.
The Ethiopia container glass market is consolidated. Key players operating in the country include global and domestic players such as Ardagh Group, Lss Ethiopia, Xuzhou Huiou Glass Products Co., Ltd., Alcon Scientific Industries, and more. These companies are pursuing strategies such as new product development, expansion, and mergers and acquisitions to enhance product functionality and broaden their geographic presence in the country.
Ethiopia Container Glass Market Leaders
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Ardagh Group
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Lss Ethiopia
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Xuzhou Huiou Glass Products Co., Ltd.
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Alcon Scientific Industries
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Hejing Packaging
*Disclaimer: Major Players sorted in no particular order
Ethiopia Container Glass Market News
- October 2024: According to local media, Capital News, Heineken has acquired Komari Beverages, an Ethiopian manufacturer known for its Arada brand of hard seltzers. Komari Beverages produces the Arada hard seltzer brand at its facility 100km north of Addis Ababa. Such acquisitions by major beverage brands would create market for container glass in the country.
- November 2023: Ardagh Glass Packaging-Africa (AGP-Africa), which operates in several African countries, including Ethiopia, announced the activation of the N3 furnace at its Nigel production facility in Gauteng, South Africa. The announcement for the Nigel 3 (N3) expansion came shortly after the commissioning of the N2 expansion project at the same facility. The N3 expansion features a new furnace and four production lines, boosting the facility's output by 50%.
Ethiopia Container Glass Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 PESTEL ANALYSIS - Container Glass Industry in Ethiopia
4.3 Industry Standards and Regulations for Container Glass for Packaging
4.4 Raw Material Analysis & Material Considerations for Packaging
4.5 Sustainability Trends for Packaging
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 End-User Industries Such as Food and Beverage to Drive the Demand
5.1.2 Urbanization, Changing Consumer Preferences are Gravitating Towards Premium Packaging
5.2 Market Restraint
5.2.1 Importing Raw Materials Proves to be both Challenging and Expensive
5.3 Analysis of the Current Positioning of Ethiopia in the Africa Container Glass Market
5.4 Trade Scenario - Analysis of the Historical and Current Export-Import Paradigm for the Container Glass Industry in Ethiopia
6. MARKET SEGMENTATION
6.1 End-user Industry
6.1.1 Beverage
6.1.1.1 Alcoholic Beverages (Qualitative Analysis For Segment Analysis)
6.1.1.1.1 Wines and Spirits
6.1.1.1.2 Beer and Cider
6.1.1.2 Non-Alcoholic Beverages (Qualitative Analysis For Segment Analysis)
6.1.1.2.1 Carbonated Drinks
6.1.1.2.2 Water
6.1.1.2.3 Dairy-Based
6.1.1.2.4 Other Non-Alcoholic Beverages
6.1.2 Food
6.1.3 Cosmetics
6.1.4 Pharmaceuticals
6.1.5 Other End user Verticals
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Ardagh Group
7.1.2 Lss Ethiopia
7.1.3 Xuzhou Huiou Glass Products Co., Ltd.
7.1.4 Alcon Scientific Industries
7.1.5 Hejing Packaging
8. FUTURE OUTLOOK OF THE MARKET
Ethiopia Container Glass Industry Segmentation
Glass Containers refer to clean bottles and jars made from glass. The scope excludes windows and other non-container glass products. Container glass is used in the alcoholic and non-alcoholic beverage industries due to its ability to maintain chemical inertness, sterility, and non-permeability. Glass packaging is valued for its unique properties, including its transparency, inertness, and ability to preserve the quality and integrity of its contents.
Ethiopia Container Glass Market is Segmented by End-User Industry ((Beverages (Alcoholic Beverages (Wines and Spirits, Beer and Cider, and Other Alcoholic Beverages) and Non-Alcoholic Beverages (Carbonated Drinks, Water, Dairy-Based, Other Non-Alcoholic Beverages)), Food, Cosmetics, Pharmaceuticals, and Other End-User Industries). The Market Sizes and Forecasts are Provided in Terms of Volume (Tons) for all the Above Segments.
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| Other End user Verticals |
Ethiopia Container Glass Market Research FAQs
How big is the Ethiopia Container Glass Market?
The Ethiopia Container Glass Market size is expected to reach 97.95 kilotons in 2024 and grow at a CAGR of 2.21% to reach 109.27 kilotons by 2029.
What is the current Ethiopia Container Glass Market size?
In 2024, the Ethiopia Container Glass Market size is expected to reach 97.95 kilotons.
Who are the key players in Ethiopia Container Glass Market?
Ardagh Group, Lss Ethiopia, Xuzhou Huiou Glass Products Co., Ltd., Alcon Scientific Industries and Hejing Packaging are the major companies operating in the Ethiopia Container Glass Market.
What years does this Ethiopia Container Glass Market cover, and what was the market size in 2023?
In 2023, the Ethiopia Container Glass Market size was estimated at 95.79 kilotons. The report covers the Ethiopia Container Glass Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Ethiopia Container Glass Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Ethiopia Container Glass Industry Report
Statistics for the 2024 Ethiopia Container Glass market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Ethiopia Container Glass analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
