Market Trends of Netherlands Container Glass Industry
Pharmaceutical Industry to Create Demand During Forecast Period
- Healthcare and medical spending in the country have increased over the past few years, indicating potential for new medicine development, infrastructure expansion, and market entry opportunities. For instance, in April 2024, Ardena, a prominent Contract Development and Manufacturing Organization (CDMO) focused on advancing molecules to clinical stages, secured Good Manufacturing Practice (GMP) approval from the Dutch Healthcare Authority for its newly established analytical laboratories within its expanded nanomedicine facility. Such collaborations elevate the need for container glass in the sector.
- The growth in pharmaceutical product exports and the rise of pharmaceutical start-ups focused on drug discovery and development are expected to drive demand for container glass. As reported by the Pharmaceuticals Export Promotion Council of India, the Netherlands stands out among its Eurozone counterparts by exporting more pharmaceutical products than it imports, leading to a favorable trade balance.
- The pharmaceutical industry requires glass containers for various product types, including syrups, vaccines, and injectable drugs. Glass provides a non-permeable barrier that helps protect sensitive medicines from contamination and maintains their efficacy, which is crucial for patient safety.
- The EU and the Netherlands prioritize sustainable packaging, including using recyclable glass in the pharmaceutical industry. Increased pharmacy revenues encourage pharmaceutical companies to invest in sustainable packaging solutions, boosting demand for container glass.
- According to the Pharmaceutical Key Figures Foundation (SFK Select), pharmacies' average tariff revenues increased from USD 714,290 in 2019 to USD 779,220 in 2023. Pharmacies generating higher revenues could indicate a growing demand for pharmaceutical products. This demand might lead to increased production, including for glass containers used in packaging medicines like syrups, tablets, or other pharmaceuticals.
Understand The Key Trends Shaping This Market
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Increasing Demand from the Food and Beverage Sector
- Beverages hold a significant market share, with plastic bans imposed. Constantly shifting consumer trends are the primary factors that create demand for alcoholic and non-alcoholic drinks. In the Netherlands, more than half of the population consumes alcohol, resulting in a growth in the number of liquor shops in the country.
- The Netherlands is implementing a 'sugar tax' in stages. As an initial measure, the government increased the existing levy on non-alcoholic beverages (excluding dairy, soy drinks, and water) to EUR 0.26 (USD 0.29) per liter, effective January 1, 2024.
- With the tax excluding water, dairy, and soy drinks, demand may shift toward these beverages. These products are often packaged in glass containers due to their perceived premium quality, safety, and environmental benefits. This shift could increase demand for glass containers as producers cater to health-conscious consumers opting for beverages outside the tax's scope.
- The food market's growth also reflects a rise in online grocery and meal kit services. Due to their durability and premium feel, Glass containers will likely be used more frequently in e-commerce food packaging. This would drive additional demand for glass packaging solutions as online sales of food products continue to increase.
- Health-conscious consumers favor glass packaging for food and beverages because it does not leach harmful chemicals, a concern with some plastics. Manufacturers are increasingly opting for glass due to its superior ability to preserve product quality. According to The FoodService Institute Netherlands, the total turnover of the food market amounted to approximately USD 61 billion in 2020. By 2025, the forecast food market value will be USD 74.75 billion.
- As the food market grows, the demand for packaged food products will rise, including ready-to-eat meals, sauces, and preserved foods. Glass containers are widely used in packaging food items because of their superior safety, preservation qualities, and premium image. This growth in food product consumption will likely lead to increased demand for glass packaging in the food sector.
