«Dependent» Market of Glass Bottles

The growing world tendency for ecologization of packing materials, increasing income and growth of retail trade in developing countries stimulates growth of glass container market. According to market experts, the world market of glass containers will exceed 36 billion US dollars by 2015. Despite the fact that the market has faced the increasing threat on the part of plastic containers market.

The glass containers market, which has already wavered owing to margin reduction caused by increasing production cost of soda ash and natural gas in 2007-2008, suffered as a result of the global economic crisis and limitation of loan-granting. Until 2011 the market remained inert. Further on, the market is expected to grow. Europe is expected to keep its leading positions as the largest geographical market for glass containers.

In Russia glass containers are used for products of associated markets – liquor, vodka and wine-making industries, production of juice and mineral water, as well as baby food. At that, the sector of drinks is the largest segment of use of glass containers.

More than half of glass bottles are purchased by beer producers. Another largest segment of consumption is liquor and vodka ­with 20% in 2013. About 8 % was the share of wine and wine products in the structure of consumption of glass bottles. Production of glass containers for soft drinks was 11.5% of the total production of glass containers of the kind.

One should pay attention to the dependence of production of bottles on consumer markets, to be more precise, on production of associated goods. In 2013 there was a decrease in production of almost all kinds of alcoholic drinks – production of liquor and vodka products decreased, according to analysts of Intesco Research Group, by 16%, while beer production in the same period decreased by 13%.

As for production of glass containers themselves, in 2013 it sensitively responded to consumer sector – production of these products in 2013 decreased by 17% comparing to the previous year. At that, manufacture of colorless glass products decreased by 13%, while that of colored glass products – by 3%.

The largest consignments of glass bottles for drinks and food products are supplied by enterprises of Vladimir Region, Vologda Region, Moscow and Republic of Bashkortostan. Thus enterprises of centres of consumption of alcoholic products – St. Petersburg, Moscow – are supplied with required products.

You can read detailed information in the research report «Business Plan of a Plant for Production of Glass Containers (with the Financial Model)» by Intesco Research Group.

For reprint, it is mandatory to refer to Intesco Research Group.

The given values were calculated by analysts of Intesco Research Group on the basis of official statistics.