Topic of the month March

Packaging (Glass) Market Report 2003

In 2002, the apparent UK market for glass packaging accounted for around 7% of the total sales of the UK packaging industry, increasing by 1% between 2001 and 2002.

By far the most important end-user of glass packaging is the food industry representing 40% of the value of the market in 2002. Around 66% of the drinks glass packaging market is accounted for by alcoholic drinks, particularly beer, cider and spirits, with the remainder represented by soft drinks.

In the food sector, just 6% of food is packed in glass, although food continues to account for 40% of the glass packaging market in value terms. Again, the market has faced increasing pressure from plastic and board alternatives, although a number of premium brands continue to specify glass packaging due to the perceived quality image among consumers. In 2002, the glass container industry was estimated to account for around £715m of the total packaging sales in the UK.

The perfumery, cosmetics and toiletries industry continues to be a major market for glass and it is here at the top end of the market that the most innovative glass bottles and containers can be found. Coloured, sculpted and engraved glass is used to create an exotic form of packaging, which is expected to convey an image for the contents. This market accounts for 10% of the total value of glass packaging sales and there is every indication that this market will remain buoyant.

The main external suppliers of glass containers to the UK are Germany, France, Italy, Spain and Sweden. They supply a range of food, beverage, pharmaceutical, perfume, cosmetics, jars, ampoules and other speciality bottles to the UK market. Imports from producers outside the EU are comparatively low, with the US and the Czech Republic as the main sources of supply.

Compared with the early 1980s when the industry was heavily fragmented and employed around 30,000 people, there are now relatively few companies in the UK manufacturing glass containers for the packaging industry. The most fundamental changes in the structure of UK glass container manufacture took place in the late 1980s, when it became evident that the need for consolidation was essential.

The UK market for glass packaging was forecast to increase (expected to be about 11.8% in real terms between 2002 and 2003). However, plastic gained market share from glass packaging in major end-use sectors such as the food and drinks sector and pharmaceutical production.

As with all other sectors in the packaging industry, glass packagers are an integral part of the packaging industry supply chain and, as such, they are increasingly engaged in e-commerce and the use of the Internet. Supply chain issues remain an important focus of the UK glass packaging industry.

Source: OGIS GmbH, http://www.glassglobal.com (The foregoing information was compiled from publicly available information in annual reports and news releases)