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

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

Key Highlights

• The Portugal container glass market is projected to grow at a CAGR of 3.2% in the estimated timeframe (2022- 2027). Due to the growing demand for sustainable packaging and the ban on single-use plastic, players are shifting to more sustainable, eco-friendly, and reusable solutions such as glass. This is one of the major factors driving the growth of container glass in Portugal.
• The growing demand for sustainable packaging in the country has propelled the use of container glass by numerous end users. Also, many, owing to the bolstering impact of plastic on the environment, are looking into other sustainable solutions for packaging.
• Additionally, increasing use of containers glass and bottle glass in the pharmaceutical industry are widely used for medicinal drug packaging. Pharmaceutical glass containers are manufactured to meet tight tolerance limits because they are filled in high-speed lines. Glass containers are considered a viable option as their impacts on the environment and humans are much less than polyethylene terephthalate (PET); it is the most environment-friendly packaging alternative.
• The Increasing alcohol consumption is anticipated to boost the sales of the glass container market. Tinted Amber glass containers are preferred in alcoholic beverages because they offer protection against UV radiation. Also, the demand for clear glass containers is expected to rise at a higher rate in the coming years. For instance, according to Organization for Economic Cooperation and Development (OECD), Portuguese citizens consume an average of 12 liters of pure alcohol annually, which is one of the highest records in the countries, as per the analysis carried out in 52 countries.
• However, the growing use of substitute products such as metal and reusable plastic is expected to hinder the growth of the glass container market. For instance, in April 2021, Gatão Portuguese wine brand started selling its Vinho Branco cans using Ardagh’s wine can. The can is designed to protect the taste of wine while offering convenience, portability, and sustainability.
• COVID-19 impacted numerous industries, but the glass container market was negatively affected and witnessed enhanced demand from the food, beverage, and pharmaceutical sectors during the period.

Key Market TrendsBeverage End User Segment are Expected to Witness Significant Growth

• The increasing production of wine compared to the previous year will promote growth for the container glass market. Due to the increase in export of spirits and liqueurs volume, the country has increased production to 7.3 million hectoliters (hl), from 6.4 million hectoliters (hl), representing an increase of 14% compared to the 2020/2021 campaign, which compared to the average of five previous campaigns is 15%, according to Instituto da Vinha e do Vinho.
• Also, the country also exports beverages, spirits, and vinegar to Brazil, which amounted to USD 87.8 Million in 2021, according to the United Nations COMTRADE database on international trade. The export has grown in the past years and will continue to grow in the coming years, which will stimulate the demand for container glass packaging in beverages and spirits.
• Additionally, Health eating and drinking trends across European countries such as Germany, Spain, France, and Portugal have propelled the demand for flavored sparkling natural mineral water, fruit juices, and alkaline water are some of the products which will create growth for the market.
• Furthermore, Recycling levels remain low in Portugal. The municipal corporation of Portugal is implementing an iREC project that will promote recycling and the value of waste. This will bring an innovative approach to the management of single-use containers, which might influence the use of glass containers in the long run.

Pharmaceutical Segment are Expected to Support Growth

• Glass container in pharmaceutical is among the primary packaging material that has found their use in the pharmaceutical industries. Pharmaceutical glass containers are either borosilicate (neutral) glass or soda-lime-silica glass, as these glasses have good resistance to thermal shocks and hydrolytic resistance. These properties make them suitable to use in the pharmaceutical industry.
• The sales value of pharmaceuticals in Portugal increased by EUR 113.8 million in 2021 and amounted to EUR 2.9 billion from EUR 2.8 billion in 2020. The increase in sales value was due to prescription and over-the-counter drugs. The Covid-19 pandemic took a toll on numerous industries, but the pharmaceutical industry remained stable.
• In May 2022, Portugal's pharmaceutical products exports accounted for EUR 472 million, and imports amounted to EUR 331 million, resulting in a positive trade balance of EUR 141 million. The exports of Portugal's Pharmaceutical products reached EUR 472 million in May 2022 from EUR 114 in May 2021. The increasing export of pharmaceutical products is expected to support the market's growth.

Competitive Landscape

The Portugal container glass market is fragmented, with many regional and local players. Municipalities authorities are leveraging the opportunity and recycle glass packaging in the HORECA sector to increase the recycling rate of this material in Portugal.

• March 2022 - Four municipalities of ACR, along with the member LIPOR, are participating in the More Glass, More Recycling project promoted by the Association of Glass Packaging Industries and Sociedade Ponto Verde. The project will provide establishments in the HORECA sector with tools to separate glass packaging with the aim of contributing to increasing the recycling rate of this material in Portugal.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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