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