United Arab Emirates (UAE) Container Glass Market - Growth, Trends, and Forecast (2019- 2024)

The United Arab Emirates (UAE) Container Glass Market is Segmented by End-user Vertical (Beverage, Food, Pharmaceutical).

Market Snapshot

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Study Period:

2018-2024

Base Year:

2018

CAGR:

2.19%

Key Players:

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Market Overview

The United Arab Emirates (UAE) container glass market was valued at USD 215.50 million in 2018 and is expected to reach a value of USD 247.06 million by 2024, at a CAGR of 2.19%, over the forecast period (2019-2024). With high and increasing disposable incomes, the spending of the UAE population on different goods is also growing. According to the World Bank, the share of the urban population in the United Arab Emirates increased from 84.42%, in 2011, to 86.25% in 2017. The expat population in the United Arab Emirates is also growing, which is expected to positively impact market growth.

  • The United Arab Emirates has the highest consumption rates of bottled water in the world. Consumers in the country use glass to hold food and beverages for hygienic reasons, as well as to protect the environment against plastic bottles. Moreover, customers in the country prefer to drink juices, flavored drinks, and other beverages from glass bottles. Glass containers can be reused for many purposes, compared to other materials.
  • Additionally, the consumers in the United Arab Emirates spent more than USD 200 per capita on beauty products, in 2017. Many international beauty hubs, such as Brazil, Spain, and Italy, are launching their stores in the United Arab Emirates, to leverage the opportunity. The increase in cosmetic products usage is expected to drive the growth of the container glass market in the region. 
  • For instance, in September 2018, a Brazilian cosmetic brand, O Boticario, partnered with Dubai-based investment management company, Millennial Capital, to expand in the Gulf region.
  • Glass is one of the most suitable materials for packaging. Despite this, it faces tough competition from other packaging materials. Considering issues, like health and environment, no other packaging material can offer better advantages than glass. However, for commercial reasons, the usage of other packaging materials is on the rise. Some of the reasons that compel the pharmaceutical industry to switch to other packaging mediums are load ability, breakages, and the cost of glass packaging.

Scope of the Report

Glass, being a versatile material in container manufacturing, preserves the original taste of the drink without altering its taste or quality. Glass containers are available in the market in a variety of colors, shapes, and sizes, according to the prevailing demand.

By End-user Vertical
Beverage
Food
Pharmaceutical
Other End-user Verticals

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Key Market Trends

Beverage has the Largest Share in the Market Presently

  • Glass, being a versatile material for packaging, preserves the original taste of the drink, without altering its quality. However, the availability of alcoholic beverages is very limited, if not non-existent, owing to the Islamic Sharia Law, followed in the region, which prohibits the use or consumption of alcohol for spiritual reasoning.
  • The non-alcoholic beverage segment includes packaging solutions for juice, soda, milk, ready-to-drink coffee and tea, carbonated drinks, and sports and energy drinks. Flavored beverages are gaining popularity in the region, as health and wellness consumers are more interested in a variety of different taste options.
  • Moreover, consumers are trading down to smaller size bottles. With this trend set to continue over the forecast period, consumer demand for price-sensitive container glass packaging products also increases.
  • The glass containers market is facing fierce competition from plastic in the non-alcoholic beverage industry. However, returnable glass bottles remain an essential form of product delivery for all major companies in the non-alcoholic beverage industry, as they provide a cost-effective packaging method.
  • This has helped glass packaging solutions to maintain its market share and has been driving the adoption due to its sustainability features. Additionally, technological advancements have also reduced the weight of glass packaging by 30% in the last five years, while providing equivalent strength. This has dramatically boosted the glass bottle and container market, especially in the non-alcoholic beverage sector.
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Pharmaceutical has Significant Share in the Market

  • The Middle Eastern region significantly depends on pharmaceuticals and medical drugs. The United Arab Emirates shares similar climatic and geographic features and follows a similar trend. In September 2018, the UAE Cabinet approved a Federal Budget of AED 60.3 billion for 2019, of which the healthcare sector is expected to receive AED 4.40 billion.
  • Light and UV penetration concerns have led to the high use of amber bottles in the pharmaceutical industry. For instance, amber-colored bottles provide maximum protection from all different wavelengths of light and are mandated in case of many drugs.
  • Besides, government initiatives in the field have further propelled the market. With the collaboration of supply chain members and government, a proper chain for recycling is created, which may assist the vendors in the market and is expected to cut the cost.
  • For instance, in June 2017, the MoH signed a memorandum of understanding with Jebel Ali Free Zone Authority (Jafza) for the development of the pharmaceutical and healthcare sector, with focus on reducing the regulatory barriers. As part of the agreement, the United Arab Emirates is aiming to attract 75 innovative drug makers to the Jebel Ali free zone by 2021. Thus, it indicates that the MoH intends to work with local companies, to improve the licensing policy for existing drug manufacturers, owing to which the market is expected to gain momentum, during the forecast period.
  • Further, generic drugs adoption is on rising in the region and it has the highest adoption of glass packing in the region. Dr. Ameen Hussain Al Amiri, the Ministry’s Assistant Under-Secretary for Public Health and Licensing, said in comments published by news agency WAM that the country is also planning to increase the number of manufacturing facilities to 30 by 2020.
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Competitive Landscape

The level of market concentration is low, while the advertising expense is moderate. The power of competitive strategy is also supportive, while firm concentration is moderate. Competition to capture the best geographic position and lowest costs is high in the market studied. Exiting the market is also difficult, as the investment made by the companies active in the market is high and can result in sunk cost if they wish to exit. Overall, the intensity of competitive rivalry is high. Some of the key players in the market include Frigoglass SAIC, Middle East Glass Manufacturing Company SAE, Saverglass SAS among others. Some key recent developments in the market are: 
 
  • March 2019 - SAVERGLASS released new glass packaging, the Heritage Collection, to celebrate the essence of the Grands Crus, the Heritage Collection presents top-of-the-range glassware, whose silhouettes hail back to the values of authenticity seen in the historical archives.
  • October 2018 - Piramal Glass established its base in the European city of Eu in the glass valley, to make a place for itself in the region. The Indian specialist in glass packaging design, production, and decoration earned 40% of its USD 320 million (EUR 276.3 million) in sales with its cosmetics and perfumes division, the rest being distributed between flasks for spirits and food, and those for pharmaceutical. Also, the company wants to increase the market share in the region

Major Players

  1. Gerresheimer AG
  2. Frigoglass Commercial Company
  3. Saverglass SAS
  4. Middle East Glass Manufacturing Company
  5. Unitrade FZE

* Complete list of players covered available in the table of contents below

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Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Introduction to Market Drivers and Restraints

    3. 4.3 Market Drivers

      1. 4.3.1 Downstream Demand from End-user Industries

    4. 4.4 Market Restraints

      1. 4.4.1 High Competition from Other Packaging Materials

    5. 4.5 Value Chain / Supply Chain Analysis

    6. 4.6 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.6.1 Threat of New Entrants

      2. 4.6.2 Bargaining Power of Buyers/Consumers

      3. 4.6.3 Bargaining Power of Suppliers

      4. 4.6.4 Threat of Substitute Products

      5. 4.6.5 Intensity of Competitive Rivalry

    7. 4.7 Import/Export Analysis

  5. 5. MARKET SEGMENTATION

    1. 5.1 By End-user Vertical

      1. 5.1.1 Beverage

      2. 5.1.2 Food

      3. 5.1.3 Pharmaceutical

      4. 5.1.4 Other End-user Verticals

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 Frigoglass SAIC

      2. 6.1.2 Saverglass SAS

      3. 6.1.3 Middle East Glass Manufacturing Company SAE

      4. 6.1.4 RAK Ghani Glass LLC

      5. 6.1.5 Majan Glass Company SAOG

      6. 6.1.6 Gerresheimar AG

      7. 6.1.7 Piramal Glass Private Limited

      8. 6.1.8 Unitrade FZE

    2. *List Not Exhaustive
  7. 7. INVESTMENT ANALYSIS

  8. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

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