LA Glass Bottles And Containers Market Trends

Market Trends of LA Glass Bottles And Containers Industry

Dairy-based Products to Hold a Significant Share

• Latin America's dairy market is one of the fastest-growing markets in the world. While broader prosperity has helped shift demand from glass to rigid plastic and metal, demand for value-added packaging like reusable glass is still high. Refillable glass bottles have long made beverages, like milk, more affordable for consumers in this region.
• Glass bottles are mainly used for packaging milk. They preserve the flavour of dairy products, such as milk, much longer than other types of packaging. This is because glass is less likely to allow contents to mix with air or other possible chemicals.
• Research from credible entities, including National Geographic, Time, Business Insider, and the US Food and Drug Administration, underscores the disadvantages of plastic bottles and especially highlights the benefits of glass bottles. 
• As the US Department of Agriculture reported, Brazil and Mexico are the top two milk-producing nations in Latin America. 2023 Brazil's milk production reached approximately 25.2 million metric tons, while Mexico's output was 13.5 million metric tons. This marks an uptick from their respective 2022 figures of 24.7 million metric tons and 13.25 million metric tons.
• The market is also witnessing challenges in the production of milk. As the Agriculture and Horticulture Development Board reported in November 2024, milk production saw a tough start to the year marked by low economic confidence and adverse weather conditions. At the same time, many regions reported decreased volumes in September. Notably, milk production in Argentina saw a drop of only 1.9% in September. Argentina's milk production lagged significantly behind last year's figures. This setback was attributed to harsh weather conditions and the erosion of milk prices due to rampant inflation. 

Cosmetics Sector to Drive the Market Growth

• In Latin America, the cosmetic packaging segment, encompassing skincare, hair care, and perfumes, increasingly favours glass packaging for high-end luxury products. This trend is gaining momentum as glass enhances the product's elegance and elevates its premium status.
• Rising disposable incomes in countries like Brazil fuel a global demand for premium cosmetic products. Brazil's cosmetics industry is expanding and has established itself as one of the fastest-growing and most dynamic in the world.
• Brazilians are increasingly prioritizing grooming and personalization. Over the past decade, cosmetic product sales have surged from 8% to 10%, positioning Brazil as Latin America's top cosmetics consumer. The youth's keen interest in grooming, especially men, underscores the rising demand for glass packaging in cosmetics.
• Brazil is Latin America's premier beauty and personal care hub and one of the prominent players in the world's leading cosmetics markets. Data from the Brazilian Association of Personal Hygiene, Perfumery and Cosmetics (ABIHPEC) highlights a historic milestone for the sector, with exports surging by 17.2% in the year's initial four months and a remarkable 25.5% jump in April 2023.
• Further, According to the National Institute of Statistics and Geography, the annual production value of cosmetics, perfumes, and toiletries in Mexico in 2020 was MXN 124.75 billion (USD 7.03 billion), which has increased to MXN 146.51 billion (USD 8.26 billion). Therefore, a rise in sales of cosmetics and other related products would advance the need for container glass across the industry.
• One of the significant factors driving the market's growth is the rise in the acquisition of cosmetic companies with international brands. For instance, in July 2023, Evonik acquired Novachem, an Argentinian innovator of sustainable cosmetic activities. Novachem will allow us to bring even more innovative and sustainable solutions to customers in the personal care market.