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Mexico: alcohol strengthens the container glass market

Alcoholic beverages are the backbone of the glass container market in Mexico, according to a study by the drinks industry. The arrival of PET and cans hit the glass industry in 1998, the last year tha…

Alcoholic beverages are the backbone of the glass container market in Mexico, according to a study by the drinks industry. The arrival of PET and cans hit the glass industry in 1998, the last year that the country“s glass industry considered soft drinks as a specific area. The repercussions began in 1999 when Vitro closed a soft drink packaging plant and registered a 8.6% fall in sales because of the entry of PET. In 2000 the company recognized that soft drinks were no longer profitable and turned its efforts to containers for alcoholic beverages. The latest market research by the Wine and Liquor Industry Commission (CIVYL) notes that beer makes up 81% of the market, followed by tequila with 10.5% and that glass represents 20% of the cost of both products. “We are the mainstay of the wine industry. Without a doubt, since the departure of soft drinks, beer and alcoholic beverages are the glass manufacturers“ most important clients”, confirmed Rosario Guerra, president of CIVYL. According to Vitro“s last report, in 2006 sales of its glass container business increased 16.1% thanks to the growth of the beer and returnable bottles markets. Wines and Liquors sustained export sales at the division. Between 2000 and 2006, beer production in Mexico grew steadily from 4.252 billion liters to 5.149 billion liters.

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