Glass Packaging Market to Grow 7-8 Percent Annually

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glassThe Indian beverage sector is the key driver behind the growth of Container glass market in the country. In spite the growth being at a steady pace, the market is expected to grow desirably in future.

Container glass being, hygienic, healthy and eco-friendly, is preferred over several packaging alternatives. However other packaging materials score over glass, due to its fragility and bulkiness, but when it comes to broader and long-term concerns like health and the environment, glass overrules all the other options.

The growth of organized retail has spurred a growth in the packaging industry. The packaging industry has introduced new forms of packaging materials. Still the glass packaging sector is expected to grow 7-8% annually. All this is because of the lifestyle changes, awareness about health, hygiene and the environment. Besides these, rapid Indian economic growth, growing export potential and improved technology have also added to the growth of this industry.

Also India has a relative cost advantage in production of glass Container glass industry is estimated at 6% (Rs 4,500 crore) of the roughly Rs 67,500-crore packaging industry. The beer and spirits segment account for nearly 55% of the total demand for glass containers followed by the food & beverage industry and the Pharma industry which account for 15% each. The cosmetics and perfumery account for 10%.

A number of sectors are compromising on quality of products and consumer’s health by using alternative packaging options; this has happened due to non-enforcement of BIS standards. Studies indicate every 10% increase in quality component results in a 17% reduction in carbon dioxide and 2.5% reduction in electricity and natural gas. Market research Cullet usage is low due to unhygienic and illegal reuse of bottles. Though the glass packaging industry is facing problems such as non-enforcement of BIS standards, availability of cullet (broken glass) which constitute about 25-30% of the total batch composition and price volatility of inputs, the leading players in the said industry are able to convert the acquired manufacturing units into strategic and successful businesses. It was possible by undertaking initiatives such as relining of furnaces, optimization of the workforce, implementation of latest booster production systems at the manufacturing units. Huge investments have been made to improve process efficiency and reduce wastage elimination.

To cope up with the new packaging solutions that appear to be challenging, the industry has come up with various technologies such as NNPB (narrow-neck-press and blow) and hot-end and cold-end coating technology.

The industry is also planning to achieve sustainable development through operational efficiencies and introducing revolutionary concepts. Glass has a green potential that deals with its eco-friendly nature and its energy saving potential since it can be manufactured by the use of non-conventional energy.