Glass Packaging in Latin America

Delivery

This report comes in PPT.

Key Findings

Glass packaging is driven by sales of drinks

Drinks, in particular alcoholic drinks, are the top applications for glass packaging in Latin America. Beer is the largest user of glass retail packaging in the region; however, it saw a decline in the number of retail units in the latter part of the review period. Glass packaging’s dependence on the performance of drinks makes it vulnerable to competing packaging options.

Supply chain disruptions made for challenging years

A fire at Verallia’s glass bottle factory in Mendoza in 2021, along with increasing demand for wine and beer packaged in glass, disrupted supply chains and rising energy prices, have placed stress on glass production. It s expected that such issues will continue to impact the industry in the short term, with repercussions over the forecast period as a whole.

Returnable systems and sustainability can help glass

Glass has a good reputation in terms of sustainability, particularly as there is a relatively high penetration of returnable glass packaging in the region, with Colombia leading the way. Coca-Cola’s launch of its “one bottle” strategy in 2021 has helped increase the penetration and usage of returnable glass packaging in the region.

On-trade recovery in beverages helps glass packaging

Glass packaging has an important role in on-trade consumption, as a premium pack type for both beer and carbonates, as well as being the standard packaging for wine and spirits. The on-trade’s recovery after the pandemic has boosted sales of packaging for the channel, and will continue to do so in the forecast period, as consumers look to bring some of their out-of-home consumption back to the home in a challenging economic climate. Competition for glass comes mainly from metal cans, as a convenient alternative for bars and restaurants.