Glass Packaging To Sustain Growth
Despite the emergence of packaging alternatives
Growth in the world glass packaging industry is expected to continue despite the emergence of packaging alternatives, according to a report by Global Industry Analysts.
The report found that 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 in the future.
Global Industry Analysts found that beer constitutes the largest user of glass packaging, accounting for about 50 percent of all glass container shipments worldwide.
It found that in the consumer beverage packaging market, glass is increasingly coming under fierce pricing pressures unleashed by low cost plastic substitutes. Prices of glass in the sector are expected to continue to fall, it predicted.
However, the report found that glass container prices in personal care products are expected to rise.
The research revealed that developing nations such as Asia and Latin America are fast growing markets for glass packaging, compared with North America, where glass packaging is losing out to other packaging alternatives.
It found that China is expected to emerge as a strategic market as leading manufacturers in 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, it said.
In addition, regulatory directives in the form of ADF, BTU Tax and Virgin Material Tax can also adversely affect the industry.
