FEVE

Glass packaging industry trends and developments

7th September 2017

Adeline Farrelly, Secretary General

European glass packaging industry

125.000 jobs (40,000 direct)

160 plants in 20 countries

80 billion products

66% of the total EU glass

production

74% collected for recycling

€600 million invested

annually in energy

efficiency, decarbonisation

and upgrades Source: google map on www.FEVE.org

3

between 2012-2016, production has increased by more than 1.1m tonnes (5.8 per cent increase)

and 4.4 million units (6.7 per cent)

Glass Container Production increased by almost 3 per cent in 2016,

indicating a strong year for the industry

5.8% increase over 4 years

Source : FEVE - EU28 + CH + TR

Food and Drink - Excluding flaconnage, tableware and non-FEVE Member companies

MARKET AND LEGISLATIVE TRENDS IMPACTING GLASS

5

Global Overview – All Beverages

0 100,000 200,000 300,000 400,000 500,000 600,000

Others

PET

Cans

Glass - NRB

Glass - RB

M Units

Incremental Growth, 2000 – 2015 & 2015 – 2020F

2000 - 2015

2015 - 2020F

• Glass volumes have increased

globally, but share of the total pack

mix has been eroded by extremely

strong growth of PET

• Returnable bottles growth predicted

to accelerate over next five years

• PET growth forecast to slow down,

but will still be higher than any other

pack material.

31%

10%

29%

19%

11%

Pack Mix, 2000

19%

7%

22% 36%

16%

Pack Mix, 2015

18%

6%

20% 38%

18%

Pack Mix, 2020F

Glass - RB

Glass - NRB

Cans

PET

Others

Glass strong points

• Glass is a premium image packaging used across all consumer spaces, from fast-moving consumer goods to luxury beverages.

• It constitutes an excellent barrier to contamination, and it offers low transmission of oxygen and water vapour

• Glass is highly inert – doesn’t leach into nor react with the food/beverage it contains

• It is the only packaging with no plastic layer

• Glass is highly recyclable and recycled (with no loss of properties) Permanent material

• Hugely popular among consumers

Figures as of Wednesday 15th February

Friends of Glass Look Beyond the Label –

3 Yr Exponential Growth

Insites Consumer Research 2016

LEGISLATIVE TRENDS

• Growing cost burden of legislation

• Trade Uncertainities

• New industrialisation strategy to support « Made in Europe »

• New opportunities from Circular Economy and fight against littering

• Threats to competing materials as Food Contact legislation strengthened

INDUSTRY OUTLOOK

• Annual Investments of €600 million per year in decarbonisation, energy efficiency and upgrading facilities

• Innovation in production and consumer experience important

• Healthy and environmentally strong image of glass packaging to continue driving growth in products packed in glass

• LCA could drive more products to reuseable packaging

• Exports to increase glass growth

• Need to watch out for China – second biggest importer into Europe of glass packaging

THANK YOU