Market Trends of MEA Glass Packaging Industry
This section covers the major market trends shaping the MEA Glass Packaging Market according to our research experts:
Beverages to Hold Major Market Share
- The market for glass packaging in the alcoholic beverage industry faces intense competition from the metal packaging segment in the form of cans. However, it is expected to maintain its share during the forecast period due to its usage of premium products. The growth is expected across different beverage products, including juices, coffee, tea, soups, non-dairy, and beverages.
- Multiple initiatives that drove investments from local beer manufacturers are expected to drive the demand for glass bottle packaging further. For instance, in October 2021, Heineken approached Nambian Breweries to purchase a 25% stake to establish a joint venture for Heineken South Africa. The venture is expected to help NBL reduce loss-making investments (attributed to losses of NAD 339 million) attributable from the past five years. This is expected to increase beer exports and beer production volume in the region.
- International retailers have increased options for South African wines due to poor harvest in wineries across New Zealand and challenging storage of wines. This has shifted the focus of various retailers to increase options for wines from South Africa.
- For instance, in October 2021, Majestic, a UK online retailer for wine, added a new set of wine options for buyers, including Lone Creek Sauvignon Blanc 2021 and Boekenhoutskloof Vintager Sauvignon Blanc from Cape Town and Pringle Bay Sauvignon Blanc 2021 from Western Cape. Also, with the price range being low (GBP 10-11 per bottle), the retailers expect greater sales of South African wines.
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The UAE Market is Expected to Grow Significantly
- Most major research-based pharma firms have a long-standing presence in the country through contract manufacturing or local distribution channels, creating a market opportunity for container glass manufacturers. Leading multinationals, such as Pfizer, Novartis, GlaxoSmithKline (GSK), Merck, Abbvie, Eli Lily, Bayer, AstraZeneca, Sanofi, BMS, and Amgen, have a presence in the domestic market.
- The IQVIA projected that pharmaceutical sales in the country are likely to reach USD 51 billion by 2024. Moreover, the increased awareness of the established benefits of using glass packaging for pharmaceutical products and healthcare facilities is driving the segment of the pharmaceutical glass.
- In May 2021, PepsiCo launched Aquafina aluminum cans and glass bottles, the company's infinitely recyclable characteristic offering for UAE residents. The innovation is in line with the commitment of PepsiCo, Expo 2020 Dubai's Official Beverage and Snack Partner, to collect and recycle PepsiCo waste generated on Expo 2020 Dubai's site during the six-month global gathering, accelerating efforts to reduce, recycle, and reinvent better and more sustainable packaging.
- In January 2021, the UAE-based perfumer, Salva, revealed its new fragrance, Hope, devoted to seafarers. Through this initiative, the brand aims to increase awareness about seafarers' plight worldwide and offer support. Such initiatives are anticipated to boost the country's glass bottle market.
- In August 2021, the UAE's leading perfumery, LOOTAH perfumes, teamed up with Ounass, the Middle East's Definitive Home of Luxury. LOOTAH and Ounass's collaboration showcases over 50 of LOOTAH's scents, transcendent fragrance oils, and the richest incenses on the website.
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