North America Glass Packaging Market - Growth, Trends, Covid-19 Impact, Forecasts (2021 - 2026)

The North America Glass Packaging Market is expected to grow at a CAGR of 3.5% during the forcasted period of 2021 to 2026. With the outbreak of COVID-19, The non-alcoholic drinks and other glass food packaging on the retail end and in the region were affected significantly. Further stockpiling of essentials affected the glass recycling process and removed unnecessary packaging, particularly fresh produce where plastic has been removed, and fruit and veg are sold unwrapped.

Key Highlights

• The Introduction of stringent laws to enhance the quality and integrity of domestically manufactured drugs leads to an increase in the use of glass for pharmaceutical packaging products. Additionally, the increasing demand for sterile medical packaging products from the pharmaceutical industries would further drive the market's growth over the forecast period.
• Further, In February 2020, Ardagh Group Glass – North America announced a long-term supply agreement with Copper Cane Wines and Provisions to manufacture all its 750ml wine bottles in the United States., beginning with its 2019 Vintage Series. This partnership connects Napa Valley’s Copper Cane Wines and Provisions with Ardagh’s Madera, California, glass manufacturing facility, helping to keep the winery’s promise to stay local and sustainable by reducing its environmental footprint.
• The United States region dominates the North American market for vials and ampoules due to global players such as Schott, Stevanato, Corning, and Gerresheimer. The demand for vials and ampoules has constantly been advancing with the growing complexity of drugs and increasing health problems, such as diabetes. Vaccines and medications further increased the demand for vials in the region.
• However, Canada's domestic vaccine manufacturing capability has been hollowed out, leaving the country entirely dependent on foreign sources for the COVID-19 vaccine doses. In May 2021, Canada received 300,000 vials of J&J's COVID-19 vaccine from the Baltimore plant, where the United States FDA halted production.

Key Market Trends

Alcoholic Beverages Expected to Witness Significant Market Share

• The United States is one of the largest packaging markets and consists of many key players producing glass bottles and containers for food and beverage, personal care, and pharmaceutical products, among others.
• Companies are also making strategic partnerships to roll out their reuse process. For instance, Owens-Illinois (O-I) partnered with Oregon Beverage Recycling Cooperative (OBRC) to give the charge for refillable bottles in the United States. OBRC is the entity that operates for picking up and processing approximately all the containers redeemed in the country.
• According to United Nations of Fine Wines, Veganism is one of the fastest-growing wine trends and is anticipated to be reflected in wine production, leading to more vegan-friendly wines which would require the glass bottles because of zero rates of chemical reactions ensuring that the wine inside the glass bottle has its aroma, and flavor intact.
• However, the ongoing trade war between the United States and China may impact the glass packaging market in the country. Ardagh Group stated that over 70% of the US wine industry glass bottles are imported from China; and due to increase in the tariff rate imposed on China imports, the need for improving glass manufacturing infrastructure is expected to rise, leading to increase in the overall cost of the product in coming years.

Vials Expected to Witness Significant Market Share

• The US Drug Regulator gave clearance to various companies to speed up COVID-19 vaccine output with bigger vials. The US Food and Drug Administration (FDA) also authorized vaccinators to extract a maximum of 11 doses from the current vials. Further, In April 2021, the US drug regulator gave Moderna Inc. the clearance to speed up the output of its COVID-19 vaccine by letting it fill a single vial with up to 15 doses.
• In addition, In June 2020, the US government's Biomedical Advanced Research and Development Authority (BARDA) awarded USD 204 million to Corning to expand its domestic manufacturing capacity for glass vials for COVID-19 vaccines.
• Similarly, In June 2020. SiO2 received a contract worth USD 143 million from the US government to scale up its manufacturing capacity to 400 million doses. The company is expected to provide 120 million vials for domestic priorities and 1 billion vials by April 2021. The company also recently announced a USD 163 million expansion of its manufacturing plant in Auburn, Alabama.
• The Government of Canada invested around USD 126 million to design, construct, commission, and qualify a new biomanufacturing facility adjacent to its Royalmount site in Montreal. The new biomanufacturing facility, called the Biologics Manufacturing Centre, will support the manufacturing of vaccines and other biologics. This is expected to boost the demand for vials in the region.

Competitive Landscape

The North America Glass Packaging is moderately competitive, with a considerable number of regional and global players. The innovation drives the market in the product offerings, and increasing investments in beverages.

• February 2021 - Ardagh Group launched Absolut’s latest limited-edition vodka bottle, ‘Absolut Movement’ to inspire people in celebration of 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.
• October 2020 - O-I Glass, Inc. and Krones AG announced a strategic collaboration agreement to innovate and provide solutions for the rising glass market. The partnership aims to improve glass filling, packaging speed, and efficiency with enhanced agility and flexibility by introducing sustainable glass systems and digital solutions such as direct to glass printing technology.

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