Glass still implies luxury

Growth in the world glass packaging industry is expected to be sustained by its strong, and well-entrenched use in packaging prestige drinks such as champagne, beer and wine, among others. Although threatened by substitution from other packaging alternatives, such as PET bottles, metal cans and paperboard containers, glass packaging is forecasted to retain some of its popularity helped largely by its premium image, and its ability to preserve and retain product quality. The well-developed recycling infrastructure and systems for glass packages also gives this packaging type an edge over plastic alternatives.

Technological innovations in production and labelling of glass containers, together with rising per capita expenditures and household incomes in developing countries will help sustain the growth of glass packaging into the future. Although plastic packaging has usurped dominance from glass in the food packaging industry, glass nevertheless has retained its popularity in the alcohol beverage industry.

The luxury foods, wine and super-premium spirits industries prefer glass to other materials, given its clarity and superior barrier properties. Among the packaging alternatives available in the packaging industry, glass scores over other materials on ecology, disposal costs and recycleability. Demand for glass packaging continues to grow strong as the most favoured packaging type in upscale natural sodas and juices. When paired with extraordinary graphic images, glass-bottled beverages find their way as elegant serving dinnerware in fine dining establishments.

In the consumer beverages end-use market glass packaging continues to be widely used in alcoholic beverages, while in the non-alcoholic beverages category, plastic packaging has, over years, replaced glass, especially in the single-serve and large bottled soft drinks segment. Within the alcoholic beverages market, beer constitutes the largest user of glass packaging, accounting for about 50% of all glass container shipments worldwide.

In the consumer beverage packaging market, glass is increasingly coming under fierce pricing pressures unleashed by low-cost plastic substitutes. The future is expected to witness a further drop in the prices of glass packaging. In the food packaging market, makers of potted vegetables and prepared foods, such as dressings, condiments, sauces, jams and baby foods, represent the key end users of glass packaging. Glass is the most preferred material for preserved vegetables in Eastern Europe.

Other end uses of glass packaging include pharmaceutical packaging, cosmetic, chemical, industrial and household products. Products such as perfumes and cosmetics continue to be packaged in glass, and, unlike the consumer beverage and food end-use markets, glass container prices in personal care products are expected to rise.

Developing nations such as Asia and Latin America are fast growing markets for glass packaging, as compared to North America where glass packaging is losing out to other packaging alternatives. China is expected to emerge as a strategic market as leading manufacturers in the developed countries increasingly shift their production bases to lower labour-cost Asian countries. Capital intensity of the glass industry, huge investment needed for plant furnaces and access to general infrastructure rank as major entry barriers. In addition, regulatory directives in the form of ADF, BTU Tax and Virgin Material Tax can also adversely affect the industry.

The report titled 'Glass Packaging Industry: A Global Outlook', published by Global Industry Analysts, Inc, provides a collection of statistical anecdotes, market briefs and concise summaries of research findings. The report provides a bird's eye view of the industry's landscape, and helps trace the undertones in the market in terms of trends, drivers and challenges. The report also recapitulates recent noteworthy mergers, acquisitions and other strategic developments. Regional markets briefly abstracted include the US, Japan, Germany, Italy, Spain, UK, China, Indonesia and Mexico, among others. Also included is an indexed, easy-to-refer, fact-finder directory listing the addresses and contact details of 167 companies worldwide.

For more details about this research report, please visit
www.strategyr.com/Glass_Packaging_Industry_Market_Report.asp