As the leading pack type globally in alcoholic drinks, retail sales of glass reached almost 200 billion units in 2012.
The beer category largely determines the fortunes of glass packaging within this industry, accounting for a 74% unit volume share. In addition, beer’s relatively low alcohol content compared to other alcoholic beverages and low retail price make it accessible to a wide range of people and suitable for many consumption occasions.
Wine, which accounts for an 11% global share of glass unit volumes in alcoholic drinks, was another healthy category globally in 2012, with non-grape wine dominating volumes and retail sales of sparkling wine in glass increasing by 3% on the previous year.
Cider/perry is also creating some interesting growth opportunities for glass as an alternative to domestic lager, especially in the UK and South Africa.
Glass’ increase over 2012 amid tight economic conditions largely stems from a rise in alcoholic drinks volume sales in developing markets as growing incomes enabled a higher number of consumers to afford such products.
Asia Pacific holds the largest regional share of glass volumes in alcoholic drinks, with 33% of global sales in 2012. With rising production and raw material costs, returnable glass bottles continue to hold a competitive advantage in terms of cost efficiency in this region.
Latin America and Eastern Europe are also significant markets for glass in alcoholic drinks, accounting for 32 billion and 25 billion units, respectively, in 2012. In these regions, competition from metal beverage cans and PET bottles in beer triggered responses, with the Argentinian government lobbying beverage brand owners to switch to locally produced glass and the Russian authorities considering a future ban on PET in order to reduce beer consumption in the country.
In contrast, more mature regions such as Western Europe and North America, which remain key for glass packaging, posted a flatter performance in 2012, with this set to continue to 2017. Tighter economic conditions coupled with growing health concerns are leading consumers in Western Europe in particular to drink less alcohol. Glass in Eastern Europe posted a 1% decline in 2012, being affected by a high level of saturation in vodka in Russia as well as government policy to reduce alcohol consumption in the country.
