Glass increasingly popular as a packaging material

After the German glass container industry had been marked by falling demand and excess capacities in the first half of the decade, the sector is now enjoying a very positive trend.
Photos/Graphics: Aktionsforum Glasverpackung

As a container and packaging material for beverages and foodstuffs as well as cosmetic articles, perfumes and medicines, the material glass offers decisive advantages compared to alternative materials. In this connection, in the December 2007 issue of “glasklar”, the journal published by the Glass Packaging Action Forum (Aktionsforums Glasverpackung), marketing and trade expert, Prof. Dr. Claudius A. Schmitz from the Gelsenkirchen University of Applied Sciences (Fachhochschule Gelsenkirchen), is quoted as follows: “The special feature about the packaging material glass is that it ideally combines “sensible” characteristics such as flavour and odour-neutrality, purity and environmental friendliness with lifestyle-orientated aesthetics”.

According to Schmitz, the most recent research confirms that German citizens are experiencing their current zeitgeist through glass. At the same time the natural packaging material is, however, also of special significance for the growing number of older people, as it corresponds to their tradition-orientated change of lifestyle. “For these reasons, there are also first-class opportunities on the market in the long-term for those manufacturers using glass packaging”, Schmitz predicts.

Change in values leads to increasing demand

A change in values is apparently currently taking place among consumers towards high-quality, sustainable products. “The reason for this is the increasing number of consumers attaching great significance to health and sustainability”, says Schmitz explaining this trend. Gerd Gerken, Head of the Institute for Future Studies (Institut für Zukunftsberatung), is also similarly positive in his assessment of the glass packaging trend: “Particularly with the decisive “Integrity” and “New Vitality” design trends, it has the opportunity of positively positioning itself for the coming decades”, Gerken is quoted in “Getränkeindustrie” trade magazine, 6/2006 issue.

This forecast is also supported by a study conducted by the Stuttgart G.R.P. Institut für Rationelle Psychologie (Institute for Rational Psychology) under the direction of Prof. H.J.H. Ertel. On the basis of tests using 1,024 test persons, it confirms that beers and fruit juices consumed from glass containers increase enjoyment. The survey also confirmed that nine out of ten consumers prefer to buy beer in glass bottles and that mothers prefer glass packaging when purchasing baby food. These results also underline the value of the material glass for consumers. A further important aspect is the environmental compatibility of the material. 95 percent of German citizens normally separate bottles and glass from other rubbish, as was revealed by a survey conducted by the Valid Research Institute of 1,000 households. This confirms that glass achieves the highest value among all packaging materials.

Successful 2007

In view of the undisputed advantages offered by glass and the current market trends, the glass container industry with its 32 locations and around 9,000 employees in Germany is currently looking ahead to the future with much optimism. As far back as April 2007, Paul Neeteson, President of the Federal Association of the German Glass Industry (Bundesverband der Glasindustrie e.V), said referring to full production capacity utilization: “The trend is upwards.” And he was to be right. According to a press release from the Glass Packaging Action Forum (www.glasaktuell.de) in March 2008, the production volume of the glass container industry increased in 2007 by 4.1 percent to 4.08 million tons. At the same time, turnover increased by 6.8 percent to 1.73 billion Euro. “Consumers and manufacturers really appreciate the unique advantages offered by the natural material glass. In this connection we are benefiting from the consumers’ increasing quality requirements”, says Dr. Johann Overath, Executive Director of the Federal Association of the German Glass Industry, commenting on the positive trend.

The industry was able to achieve increases in all sectors: the production volumes for beverage bottles rose in 2007 by 4.6 percent to 2.7 million tons. In the areas of foodstuff glass containers the association registered an increase of 2.0 percent to 1.0 million tons, while the area of pharmaceuticals and cosmetics rose by 7.2 percent to 326,000 tons. The share of production volume accounted for by beverage bottles was around 67 percent, while foodstuffs accounted for approximately 25 percent and the pharmaceuticals/cosmetics sector 8.0 percent.

Capacities fully utilized

According to a statement from the Association Head Office, the companies in the glass container industry last year seized all opportunities to increase production and utilized all capacities. Due to the great domestic demand, it was reported that exports were clearly reduced. While domestic turnover increased by 5.4 percent, exports declined by 6.4 percent. For the current year the industry expects a stable market trend. The trend towards glass is also producing an investment boost. “Many companies are extending their locations at great expense in order to cope with the increasing demand”, Overath explains.

Latest production technology at glasstec

The technical equipment used by the glass container industry in future to meet the new challenges of the market will be shown from 21 to 25 October 2008 at glasstec in Düsseldorf. At the leading trade fair for the international glass industry, around 150 exhibitors will present their innovations for efficient glass container manufacturing and finishing.