A new report published by Netherlands’ Rabobank has revealed that the European Union’s (EU) food and beverage glass container packaging industry has become a stable business compared to other packaging materials.
The glass container packaging sector is showing no growth prospect despite witnessing a relatively high margin.
As per the report, the sector is facing a number of increasing challenges, which include the changing scenario in the beer sector and a growing risk from substitute materials.
Entitled ‘Flexible Glass Packaging? The Glass is (still) half full for the European Glass Container Industry’, the report stated that the competitive environment is forcing glass container packaging industry players to adapt in order to survive in the long-term.
Rabobank Global F&A supply chains strategist Susan Hansen said: “All in all, we believe that the outlook for the glass container industry will remain stable, yet challenging going forward.
“Focusing efforts on increasing flexibility and considering innovation as an ongoing process are key. Despite glass bottles / containers being a traditional or preferred packaging material for specific products like beer, spirits, wine or olive oil, there is no guarantee that this will not change in the future.”
The report noted that further consolidation is expected to occur in the EU industry, and that innovation and an adapted product mix are required to handle the challenges faced by the sector.