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

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

The Vietnam Container Market is expected to register a CAGR of 2.5% during the forecast period. The trend has witnessed a shift of focus from glass packagers in the country to the pharmaceutical industry.

Key Highlights

• The increasing trend of transparency in food packaging in the recent past few years. Consumers want to see the physical product before purchasing, in addition to the listed ingredients on the label. To capitalize on this trend, many companies, particularly dairy product manufacturers and alcohol manufacturers are offering their products in transparent glass containers.
• Additionally, the growing food and beverage industry is anticipated to support the growth of glass containers in the studied timeframe. For instance, according to the General Statistics Office of Vietnam, food and beverage consumption is forecast to reach VND 902 trillion in 2022 from VND 517 trillion in 2017. The growing consumption year on year will promote growth for glass containers in the food and beverage industry.
• Growing environmental awareness among the population is another factor propelling the demand for container glass in numerous end-user industries. Despite the huge demand for container glass in the domestic market from the ever-increasing food, beverage, and pharmaceutical sectors, the local glass container industry has failed to capitalize on the opportunities it was provided. For instance, according to export genius, the country imports glass containers from its neighboring countries such as China, Thailand, and Indonesia to fulfill the demand for glass containers in the end-user industries such as food, Cosmeticsand Pharmaceuticals.
• However, increasing taxes on alcohol products would bring numerous benefits to public health and society. These advantages include lesser alcohol-related deaths and illnesses, decreased consumption, increased work efficiency, lower medical costs, fewer social consequences of alcohol abuse, and increased government revenue. This is expected o hinder market growth for the container glass market.
• The COVID-19 outbreak in the second quarter has hit beer producers in the country, especially large ones. This affected the demand for the market, as the beer industry is the largest consumer of glass containers in Vietnam.

Key Market TrendsBeverage Segment to Bolster Growth

• According to Observatory of Economic Complexity (OEC), the country is experiencing negative net trade for glass bottle, amounting to USD (194.4) million in 2020. This is evident from the fact that the country has only a few major players and some small producers serving domestic demand. A lot of glass is imported from neighboring countries such as Thailand, China, and Indonesia. The increase in export of glass containers from the neighboring will support the growth of the container glass market.
• Also, the beer industry is Vietnam's largest consumer of glass container bottles, Other alcoholics, along with non-alcoholic beverages, are also becoming significant users of glass containers. Additionally, according to the IZA institute of labor economics, the average adult in Vietnam consumed 6.7 liters of alcohol in 2021. Consumption has increased by 74% since 2005, according to o the Ministry of Health.
• Additionally, according to a Non-communicable Disease Risk Factor Survey, the percentage of Vietnamese men who consume alcohol is very high. In 2021 the statistics showed that 64% of men and 10% of women had consumed alcohol in the past 30 days. On the contrary, drinking has surged in the past years, especially among men, with one in three drinks at dangerous levels in Vietnam.
• However, according to USDA foreign agricultural service, beer production volume in Vietnam has declined from 5.1 billion liters in 2019 to 4.05 billion liters in 2021, owing to a rise in consumption of home alcohol over branded.

Pharmaceuticals Segment is Expected to Boost Market Growth

• The Pharmaceutical industry in Vietnam is among the highest growing markets, with over 98 million citizens making it an attractive market for investors and FDI. For instance, the Pharmaceutical industry in Vietnam is among the highest growing markets, with over 98 million citizens making it an attractive market for investors and FDI. For instance, Northern Vietnam’s Nam Dinh province is among the emerging destinations for investment in Vietnam. It is a locality with the foundation for the development of the pharmaceutical industry.
• Additionally, the increasing number of deaths in the country has promoted imported pharmaceutical and medicinal products. According to the Ministry of Health, Vietnam reports approximately 548,000 deaths yearly from cardiovascular disease, cancer, digestive, infectious, and several other diseases. However, the country imports pharmaceutical and medicinal products to counter those mentioned above. For instance, according to the General Statistics Office of Vietnam, the import value of pharmaceutical and medicinal products reached almost USD 3.98 billion in 2021 from USD 2.32 billion in 2015. This is anticipated to propel the country to invest in R&D for imported medicines to reduce the dependency on other countries.
• The surge in non-communicable diseases, aging population, and increase in per capita income are believed to be the major market drivers. According to Vietnam’s Ministry of Health, the number of NCD cases recorded in Vietnam is surging. All these factors are anticipated to promote growth for the container glass market in the studied time frame.

Competitive Landscape

The Vietnam container glass market is consolidated, with very less players operating in the market. The healthcare company are investing in the country to develop its healthcare facilities which will enhance the country's.

October 2021- The International Finance Corporation (IFC) signed an agreement to provide USD 14.5 million loans to San Miguel Haiphong Glass Company, a private sector-led joint venture for a USD 32 million greenfield glass container manufacturing plant at Haiphong in northern Vietnam.

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• The market estimate (ME) sheet in Excel format
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