Germany Glass Packaging Market - Growth, Trends, COVID -19 Impact, Forecasts ((2022 - 2027)

Germany Glass Packaging Market - Growth, Trends, COVID -19 Impact, Forecasts ((2022 - 2027)

The German Glass Packaging Market is expected to register a CAGR of 8.5% during the forecast period. With the outbreak of COVID-19, the country witnessed significant demand for pharmaceutical glass packaging from the country. This has increased the need for vaccines, especially for vials, bottles, and ampoules, surging since research began into finding a vaccine against COVID-19.

Key Highlights

• The glass manufacturers have been key players in the reuse and recycling system of Germany. Gerresheimer, for instance, began producing glass with a higher proportion of recycled glass at the Tettau site in Germany. By using recycled glass, it aims to create new high-quality cosmetics packaging. Many prominent players, like Gerresheimer, are driving circularity and resource savings every day.
• The introduction of stringent laws in the country to enhance the quality and integrity of domestically manufactured drugs is driving an increase in the use of glass for pharmaceutical packaging products. Also, there is a demand for sterile medical packaging products from the pharmaceutical industries, which is anticipated to drive the growth of the market during the forecast period. Also, the growing number of drugs that are being packaged in the glass medium is driving the demand for glass-based vials and ampoules.
• Moreover, all stores in Germany that sell beverages are required to take them back and return the deposit (pfand) to the customer – whether or not that person bought that beverage from them. The deposit for plastic bottles is EUR 0.25 in recognition of the higher environmental impact. The deposit for glass bottles is far lower – between EUR 0.08 and EUR 0.15 – because they can be reused. This will allow customers to give more of a reward for returning plastic and to encourage them to buy products in glass bottles because it’s cheaper upfront.
• According to The Federal Association of the German Glass Industry, ten big glass producers in Germany generate around 20% of the whole glass industry revenue. Few big international glassmakers are dominating the market presently and are interested in producing glass bottles.
• Further, Coca-Cola, Germany shifted from PET bottles back to glass bottles, and therefore, it needs enormous amounts of glass bottles. The company has invested EUR 50 million in two new glass production lines in Mannheim and Luneburg. This pressure from the soft drinks industry further affects the supply of glass bottles in the liquor segment.

Key Market TrendsPersonal Care Packaging Expected to Witness Significant Demand

• The demand for efficient packaging increased significantly, primarily due to robust sales of various customized beauty products. Furthermore, the rising consumer awareness regarding personal grooming is driving the demand for cosmetic products, which, in turn, is driving the glass packaging market in the country.
• The face serums and oils have witnessed demand over the past five years, as they offer hydration, moisturization, anti-aging, blemish clearing benefits, and skin repair. These premium products have been witnessing demand among the aging population. Their increase in demand has increased the growth of dropper and push pump bottles in the country.
• Glassmakers in the country are also investing in new technology to quickly swap colors and molds to persuade craft brewers and small brands to break from the long production runs that have dominated the industry.
• Among the glass packaging trends in the beauty and fragrance industry is the uptick in disruptive designs, embodied by innovative shapes featured in the outer or inner molded glass. For instance, Verescence manufactured the sophisticated and complex 100 ml bottle for Illuminare by Vince Camuto (Parlux Group) using its patented SCULPT’in technology. The glassworks from Murano inspired the innovative design of the bottle.
• Further, in March 2021, following the introduction of an airless bottle system made in Germany, Awantys announced a single-walled design with the patented nozzle closure system for skincare in 15, 30, and 50ml.

Pharmaceutical Sector Expected to Witness Significant Growth

• Vendors in the market have been supplying vials for more than 100 coronavirus vaccine trials across the world. For instance, Schott AG introduced vials made of Borosilicate glass that can withstand temperatures from -80 to 500 degrees Celsius for the Pfizer/BioNTech vaccine as the temperature required to store the vaccine is -70 degrees centigrade. Furthermore, the Schott AG aims to produce two billion glass vials for COVID-19 vaccine doses by the end of 2021.
• Furthermore, Germany has been adversely hit by the spread of COVID-19. For instance, according to WHO, the number of confirmed COVID-19 cases since January 2020 in Germany is 3,473,503, with 84,126 deaths. Also, according to the Robert Koch Institute, the country was struck by a third wave of the pandemic. This increases the need for vaccines, and the demand for vials and ampoules has been surging since the research for a vaccine against COVID-19 began.
• Also, according to WHO, in May 2021, a total of 30,631,299 COVID-19 vaccine doses have been administered in Germany, and it is expected to rise further owing to the change in decisions made by 16 regional health ministers of the country to start initiating AstraZeneca's vaccine doses to age group 12 to 18 years from August 2021. Such initiatives increase the demand for glass packaging in the country.
• Further, in December 2020, Bormioli Pharma acquired German company ISO GmbH, specializing in pharmaceutical packaging production and tubular glass vials (Type I, II, III) designed for injectable drugs and vaccines and chromatography markets. Through its German subsidiary Remy & Geiser, the acquisition will allow Bormioli Pharma to broaden its range of packaging for parenteral drugs even further in the region. With Remy & Geiser, along with ISO, Bormioli plans to double its production capacity of tubular borosilicate glass vials to gain a better market share in the region.

Competitive Landscape

The German Glass Packaging Market is moderately competitive, with a considerable number of regional and global players. However, the properties of glass and its benefits to beverages, cosmetics, and other industries are leading to the increased adoption of glass bottles, containers, vials, and ampoules. Players in the market adopt strategies such as product innovation, partnerships, mergers, and acquisitions to increase their market share and further recyclability driving the market.

• March 2021 - The Stoelzle Glass Group acquired Anchor Hocking Glass Company, a wholly-owned subsidiary of The Oneida Group in Monaca, Pennsylvania, to serve customers internationally. Stoelzle Glass Group is an international producer of high-end packaging glass for spirits, perfumery, and cosmetics.
• February 2021 - Ardagh Group launched Absolut’s latest limited-edition vodka bottle Absolut Movement to inspire people to celebrate inclusivity. The frosted blue glass bottle features an upward spiral design of 16 swirls, symbolic of the never-ending cycle of change. The upward flow of the swirling spiral indicates social growth.

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• The market estimate (ME) sheet in Excel format
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Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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