Market Trends of Vietnam Container Glass Industry
Increasing Beverage Consumption in the Country to Drive the Market
- Consumers are increasingly aware of the environmental impact of packaging materials. Glass is recyclable and perceived as a more sustainable option compared to plastics. This preference for environmentally friendly packaging can drive up the demand for container glass.
- With the increase in beverage consumption, there is a higher demand for beverage packaging solutions, including glass bottles. Glass is a preferred packaging material for many types of beverages, including soft drinks, beer, wine, and spirits, due to its ability to preserve taste and quality, According to General Statistics Office of Vietnam, It was approximated that Vietnam produced about 4.5 billion liters of beer in 2023.
- Flavored sparkling water is often marketed as a premium, health-conscious beverage. Consumers looking for unique and exotic flavors are likely to prefer premium packaging that maintains the quality and taste of the product. Glass bottles are ideal for this purpose due to their non-reactive nature, preserving the beverage's flavor and carbonation better than plastic.
- Brands can use container glass to differentiate their products in a crowded market. Glass bottles offer a clean, aesthetic appeal that can be enhanced with unique designs, colors, and labeling. This helps brands stand out on the shelves and attract more consumers, thereby increasing the demand for glass packaging.
Understand The Key Trends Shaping This Market
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Wine and Spirits Segment to Witness Major Growth
- As consumers in Vietnam shift toward more sustainable lifestyles, including reducing plastic waste, the wine and spirits market in glass bottles is poised for growth. Glass bottles are perceived as more environmentally friendly than plastic, appealing to eco-conscious consumers and conveying a higher quality product. This trend attracts consumers willing to pay a premium for sustainability. Potential government regulations to reduce plastic usage could further boost demand for glass bottles.
- Higher taxes will likely lead to increased prices for alcoholic beverages. This could reduce overall consumption as consumers might cut back on purchases due to higher costs.
- Vietnam is set to increase its alcohol consumption tax from the current 65% to a staggering 100% by 2030. This tax, which primarily targets luxury goods and non-essential items, notably impacts both beer and strong liquor.
- The premium segment, often packaged in glass bottles, might be less affected as its consumers are typically less price-sensitive. Brands in this segment may emphasize their quality and environmental credentials to maintain demand.
- The significant increase in sales demonstrates strong market potential and consumer interest, encouraging manufacturers to invest more in glass packaging due to its premium appeal and environmental benefits.
- According to Invest & Export Brasil, in 2023, the retail sales of alcoholic beverages in Vietnam were around USD 3.1 billion when compared to 2019, which was USD 2.6 billion.
- As retail sales grow, there is likely an increased demand for premium alcoholic beverages, often packaged in glass bottles. Consumers may prefer higher-quality and premium-looking products, boosting sales in this segment.
