Netherlands Container Glass Market - Growth, Trends, COVID -19 Impact, and Forecasts (2022 - 2027)

Netherlands Container Glass Market - Growth, Trends, COVID -19 Impact, and Forecasts (2022 - 2027)

The Netherlands Container Glass market is expected to register a CAGR of 3.2% during the forecast period of 2021-2026. It is ideal for producing windowpanes, glass containers, and commodity items in foods & beverages, pharmaceuticals, décor, and other end-use sectors because it possesses excellent significant properties like chemical stability, extreme workability, high melting temperature, and thermal shock resistance.

Key Highlights

• Alcoholic drinks are predominantly deployed in glass containers, as glass does not react with the chemicals present in drinks. Therefore, it preserves the aroma, strength, and flavor of these beverages, making them a good option for packaging. Due to this, most of the beer volume is transported in glass bottles. This trend is expected to continue over the forecasted period.
• For instance, according to Netherlands Times, the sales of beer increased significantly after the pandemic lockdown. The brewers sold more than 13% of beers in the first half of 2022 than during the same period of six months in 2021. Also, the Netherlands Brewers Association reported that sales of beer increased by 1.5% compared to the period before the pandemic. Thus, increased sales of beer created a demand for container glasses in the country.
• The container glass witnessed strong demand for different applications in the pharmaceutical industry as the demand for medical applications increased due to the covid-19 pandemic. Also, the growth in medicines requirement during the pandemic has ramped up the need for glass containers.
• The availability of substitutes for container glass is restricting the growth of the market. Such as plastics and metals have been replacing container glass in several applications across different industry verticals. Even though the fight against plastics has risen, the plastic packaging demand has not slowed down due to high penetration.
• The COVID-19 pandemic affected both the demand and production from various end-user industries such as beverage, food, cosmetics, and others due to the lockdown as the sales of different products from these industries declined. According to CBS, the Dutch economy shrank by 8.4% in the second quarter of 2020 compared to the first.

Key Market TrendsPharmaceutical Industry to Create Demand During Forecast Period

• The Netherlands ranks among the top countries in the world for a number of patent applications in biotechnology. Numerous universities and medical centers coexist with 420 biopharmaceutical companies and more than 2,500 other life sciences companies throughout the country. Also, the ongoing clinical development programs and a growing number of public-private partnerships strengthen the pharmaceutical sector in the country.
• Pharmaceutical companies are investing on an unprecedented scale in the Netherlands. Three major American corporations are investing billions of euros in new factories and expanding existing ones. For instance, in July 2021, Ardena, a specialist pharmaceutical Contract Development and Manufacturing Organisation (CDMO) announced an investment of EUR 35 million in partnership with GHO Capital for expansion across its European operations.
• Healthcare and medical spending in the country have increased over the past few years, reflecting strong potential for new medicine development, infrastructure building, and new entry/expansion opportunities.
• Moreover, the growth in the export of pharmaceutical products and the number of pharmaceutical start-ups dedicated to the discovery and development of medicines for the treatment of various diseases are expected to create demand for container glass.

Increasing demand from the food and beverage sector

• Beverages hold a significant market share, with the imposing bans on plastic. Constantly shifting trends among the consumer are the primary factors that create demand for alcoholic and non-alcoholic beverages. 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 players in the market are going under strategic partnerships and acquisitions. For instance, Berlin Packaging acquired a glass packaging supplier, New pack, to expand its offering to the wine market. The company’s distribution network extends across Europe regions. The acquisition of New pack allows Berlin Packaging to increase its offering in the wine sector, an important market in the country and Europe.
• The Netherland is among the key countries in Europe that exports food and beverage on a large scale. According to UN Comtrade, the value of the beverages, spirits, and vinegar exported from the Netherlands is increased from EUR 6.01 billion in 2020 to EUR 6.86 billion in 2021.
• Moreover, in November 2021, GEA Group AG announced that it is opening a new carbon-neutral factory in the Netherlands to produce up to 300 million liters of chilled juice drinks and smoothies each year at the Rotterdam Food Hub and is scheduled to open officially in spring 2022.

Competitive Landscape

The Netherlands container glass market is consolidated and consists of several major players. In terms of market share, a few of the major players are currently dominating the market. The players with a noticeable share in the market are concentrating on expanding their reach with strategic actions such as mergers & acquisitions, partnerships, and product innovation.

• March 2021 - Heineken N.V. a multinational brewing company partnered with a not-for-profit research technology organization (RTO), Glass Futures, and its supplier Encirc and taking part in a scientific study to better understand methods to decarbonize glass production where they have replaced conventional natural gas with biofuel and increased recycled content for its bottles up to 100% to produce low carbon bottles. With this study for every 10% increase in recycled glass, the company is able to reduce emissions by 5%.

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• The market estimate (ME) sheet in Excel format
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