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Key words: Glass Bottle Makers in USA; Glass Jar Manufacturers USA
In the USA, The undisputed leader in the glass container industry at the end of the first decade of the 2000s was Owens-Illinois Inc., with 24,000 employees and 2008 revenues of $7.88 billion that fell to $6.63 billion in 2010. Owens-Illinois Inc. (0-I) acquired the VDL Co., a glass container plant in Vergeze, France, in August 2011. VDL’s plant is located near the Nestle Waters Perrier bottling facility, which will enable O-I to become the primary supplier of glass bottles for the Perrier brand as well as the top global bottled water company, Nestle Waters. In addition, Jose Lorente, president of O-I, indicated that “O-I has the opportunity to support some of the preeminent brands in the water segment and reinforce glass position in this important category.”
Second in the U.S. Glass packaging industry was Saint-Gobain Containers Inc., with 4,000 employees and estimated sales up to $869.3 million for fiscal year of 2007. Tampa, Florida-based Anchor Glass Container Corp., formerly a subsidiary of the now-bankrupt Canada Consumers Packaging, was another industry leader, with estimated 2007 sales of $290.5 million. The company operated eight glassmaking plants serving the food and beverage markets with Anheuser-Busch as its largest consumer. Anchor Glass revenues grew to an estimated $800 million in 2010 with about 2,900 employees. Others glass container making factory’s scale not up to their basic standards.
For centuries, glass goods were made by artisans using hand-blowing methods. Many products created by these highly trained craftsmen are found in art museum collections. Mechanization came to the glass-making industry with the Industrial Revolution and the subsequent introduction of pressing machines. This and other refinements promoted a range of new designs and uses of glass containers. Wide-mouth Mason jars became popular in the United States in the early 1900s, while the popularity of narrow-neck jars developed more slowly.
M. J. Owens and E. D. Libbey implemented a new process of glass bottle making by filling and dipping the first, or blank, mold into hot glass and evacuating the air from the mold. Several years of experimentation led to the development of an automated bottle machine. By 1920, 200 of these automatic machines accounted for approximately 45 percent of the total U.S.A Glass bottle making production.
In 1975, the Environmental Protection Agency (EPA) issued standards and guidelines covering waste water discharges from glass container manufacturing plants. The regulations targeted oil and grease pollution that originated from soluble oils used in glass shearing, machine lubrication, and condensation from compressed air systems. Oil and grease pollution stems from the biodegradable nature of the emulsified oil that subjects cullet-quench systems (broken or refuse glass added to new material to facilitate the glass-making procedure) to severe biological growth problems. According toGlass Magazine, biological growth within cullet-quench systems degrades oil and grease removal efficiency, often resulting in discharge values exceeding regulatory standards. In addition, the biologically fouled cullet-quench system precipitates a potential health hazard in the form of Legionnaire’s Disease and contributes to unpleasant working conditions.
A Packaging magazine survey in 1986 found that the promotion of glass containers had been successful. For several years, advertisers in the glass manufacturing industry had focused on the positive aspects of glass container use. At one point, glass container manufacturers sponsored advertising campaigns touting their product as a naturally pure, recyclable taste protector. The Nickel Solution Trust, which was formed in 1983 by a coalition of labor organizations and glass container manufacturers, was particularly innovative for the industry. Employees of glass container companies pledged a nickel of each hourly pay, and employers contributed matching funds, to pay for glass promotions. Since its inception, the trust has expended more than $21 million for recycling program development and management.
In 1997, production of glass containers totaled 247.4 million gross, which was outpaced by shipments of 254.5 million gross. The next year, glass container output was 256.4 million gross, but shipments were only 253.7 million gross. The production and shipment of narrow-neck containers consistently outrank those of wide-mouth containers. Shipments of narrow-neck containers in 1997 were 200.5 million gross, while shipments of wide-mouth containers were 54 million gross. In 1998, shipments of narrow-neck glass containers had risen to 200.9 million gross, and shipments of wide-mouth glass containers had dropped to 52.8 million gross. Wide-mouth containers are most popular for food, including dairy products, and sales and production remained steady. The lowest shipment and production levels were for narrow-neck and wide-mouth chemical, household, and industrial containers. At best, the glass container industry can be described as flat, with bottle shipments projected to remain flat, according to analysts. Continued overcapacity and the threat of conversion to alternative packaging are expected to keep price increases in the 3 to 3.5 percent range.
Several factors have contributed to the stagnant condition of the glass container industry. Since the 1980s, the glass container market has suffered a steady loss of market share to alternate plastic and can packaging. Analysts blamed the beer industry as a major factor in the decline of the glass container industry. More than 85 percent of the decline was due to brewers switching to aluminum cans, and industry leaders considered the lingering residual of this change would continue to pose an imminently significant threat. Although the shipment and production of beer bottles remained high, at about 88 million, analysts feared a decline as higher price tags forced consumers to switch to lower-priced canned beer.
The Glass Packaging Institute (GPI) considered one drawback to recycling was the forced deposit laws that require food packaging consumers to pay a deposit and then return the containers to the store for a refund. Such legislation is deemed devastating to the market share of environmentally friendly glass containers, and industry leaders argue that deposit laws influence consumers to opt for plastic containers. The GPI believes the most effective way to reduce solid waste is not by forced deposit laws but through comprehensive curbside recycling. The practice of bottle refilling as an alternative to recycling may undergo a comeback.
At the beginning of the 1990s five major glass bottling companies switched from plastic to glass containers because of consumer preference, environmental climate, and packaging costs, according to the GPI. According to investment analysts, however, falling resin prices had the potential of signaling a return to plastic. In 1989 a price differential of 20 percent between plastic and glass caused plastic to lose its market share to glass, primarily in the 16-ounce container segment. When the differential was closer to 5 percent or less, plastic regained some of its share. Until the glass container industry develops a more cost-competitive, lighter weight, or break-resistant package, analysts foresee fewer gains derived from anticipated growth in the soft drink market.
Raw materials left over from the manufacturing process created another challenge for the glass container industry. According to an industry spokesperson, only 85 to 90 percent of the melted raw materials are converted to a marketable product. The remaining 10 to 15 percent of raw material becomes cullet or discarded waste, mostly broken glass. Industry leaders were seeking satisfactory uses for this cullet.
During the 1990s the glass container industry continued to lose market share to plastic, although at a slower pace from the previous decade. For example, plastic containers used for beverages jumped from 14.3 million units in 1990 to 46.6 million units in 2000, while glass containers used for beverages fell from 30.7 million units in 1990 to 28.9 million units in 2000. Of the 244.3 million gross shipped in 2001, 51 percent of all glass containers were used for beer, which was the industry’s largest market category. Food glass containers accounted for 23 percent of shipments; carbonated and noncarbonated beverages, 9 percent; and wine, 5 percent.
Playing on glass’s image as being more trendy and prestigious than plastic packaging, the glass container industry hoped to overcome its drawbacks, including heavy weight that also increased shipping costs and breakability. As a mature industry, it struggled to identify new markets, but has reported significant growth in the ready-to-drink alcoholic beverages category. The increase in demand prompted longtime industry leader Owens-Illinois to open a cutting-edge facility in Windsor, Colorado, in 2005, the first new glass manufacturing facility built in the United States in two decades.
USA is the glass container manufacturer’s main market, which is trend of the industry. The American glass container industry manufactures two basic types of glass containers: narrow-neck and wide-mouth containers. The glass industry also further classifies containers by their end use, creating categories of glass designated for food, beverages, beer, liquor, and wine; chemical, household, and industrial uses; toiletries and cosmetics; and other uses, including medicinal and health supplies. In the middle years of the first decade of the 2000s, the U.S. industry was producing about 35 billion glass containers annually, or 238.4 million gross. More than 80 percent of the glass containers produced were narrow-neck bottles. Clear glass containers are the most common types, accounting for 50 percent of the total manufactured bottle, with brown containers being the second most common color and green being a distant third type.
America Department of Commerce reported that shipments of glass containers fell 1.4 percent in 2006, with production up 1.6 percent. According to industry watchers, the glass food container market continue to lag behind plastic material containers. Susan Sutton reported in the December 1, 2007, edition of Ceramic Industry that Glass prospects could benefit from a premium and high-purity image, which are key advantages with increasingly popular organic and/or natural foods. Shipment values for glass containers totaled up to $8.4 billion in 2008, with the vast majority of glass making plants located in Ohio. As the economy faltered, industry revenues fell to $6.8 billion in 2010.
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Transparency Market Research has published new glass bottle Market Report “Glass Packaging Market for Food and Beverage, Pharmaceuticals, Beer and Other Alcoholic Beverages–Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 – 2019. The global market for glass packaging was valued at USD 47.43 billion in 2012 and is expected to reach USD 59.94 billion by 2019, growing at a CAGR of 3.4 percent from 2013 to 2019. In terms of volume, global demand was 45.71 million tons in 2012 and is expected to grow at a CAGR of 3.1 percent from 2013 to 2019.
Dark color glass bottle are often used in packaging of beer as glass helps in deflecting UV rays, thereby reducing the occurrence of “skunky” beer. Rise in global consumption of beer is expected to be one of the primary factors driving the glass packaging market. In addition, the growth of the healthcare industry and rising use of glass bottles for storage of medicines due to its sterility and reusability is expected to augment the demand for glass packaging over the next few years. However, growing popularity of plastics and its increasing application scope for packaging is expected to hamper the growth of the market. Growing consumer preference towards glass for packaging of food, beverages and chemicals is expected to open new opportunities for the growth of the market over the next few years.
Alcoholic beverages (excluding beer) were the largest application segment of the glass packaging market and accounted for over 50 percent of the total demand in 2012. However, the consumption of glass in the packaging of beer is expected to witness the fastest growth on account of increasing consumption in Asia Pacific and Eastern Europe coupled with the preference towards glass as packaging material.
Alcoholic beverages and pharmaceuticals are expected to show robust demand for glass Transparency Market Research packaging over the next few years due to its sterility.
Asia Pacific was the largest market for glass packaging and accounted for over 16.1 billion of the overall revenue in 2012. Growing consumption of beer and alcoholic beverages in countries such as India, China, Thailand, Australia and Indonesia are expected to boost the demand for glass as packaging medium in these countries. Esp the China market, which is not only the main glass bottle production plant base, they are also the higher increase market for the glass packaging, Europe was the second largest market for glass packaging accounting for over 13.34 million tons of overall demand in 2012.
Packaging of food, beverages, perfume and chemicals in glass bottles and jars is classified as glass packaging. Glasses provide excellent barrier properties, do not react with other chemicals, have high sterility and are reusable. This report gives an in-depth analysis and forecast of the glass packaging market on a global as well as regional level. On a global level, the market has been analyzed and forecast for a time period ranging from 2013 to 2019, on the basis of volume (kilo tons) and revenue (USD million). For a detailed understanding of the market on the regional level, the demand has been foretasted based on volume (kilo tons) and revenue (USD million).
The glass study includes drivers and restraints and their impact on the growth of the glass packaging market over the forecast period. In addition, the report includes opportunities available for the growth of the market within the forecast period, on a global as well as regional level.
The China Government has been encouraging the community to participate in source separation of waste to minimize waste disposal and promote resources recovery. To promote local glass bottle recycling, the Environmental Protection Department (EPD) has liaised with the sectors concerned (e.g. hotels, catering and property management sectors, etc.) and non-profit making organizations and provided support to them in implementing various voluntary glass bottle recycling program in specific trade and at local districts.
In December 2014, the EPD joined hand with the Hong Kong Housing Authority (HKHA) to first launch a Pilot Program on Source Separation of Glass Bottles at public rental housing (PRH) estates in East Kowloon to try out the logistics arrangement for glass bottle collection and recycling in residential housing settings. To further promote glass bottle recycling, the EPD has been liaising with the property management companies to solicit their support for setting up glass bottle collection points in private housing estates and rolled out recycling program to provide support for collection of glass bottles.
The Program on Source Separation of Glass Bottles is co-organized by the EPD and HKHA to provide glass bottle recycling services to residents in PRH estates.
To facilitate residents to separate their glass bottles for recycling as part of their daily waste disposal practice, the HKHA has installed light green glass bottle recycling bins alongside the existing 3-coloured waste separation bins in the lobbies or near the entrances of each residential block in the participating housing estates for collection of glass bottles.
The glass bottles collected from the participating estates will be recycled into glass sand, replacing natural river sand for production of paving blocks or other suitable construction materials for use in Public Works Projects.
The program was first launched in December 2010 at 6 selected PRH estates in East Kowloon. Since then, the program had been expanded progressively to cover all 29 estates in East Kowloon by phases in 2012. As at the end of 2014, the program had further been expanded to all 18 districts in Hong Kong (except for a few on the outlying islands) covering a total of 164 PRH estates.
To enable a wider public participation in glass bottle recycling paving way for implementation of the Mandatory Producer Responsibility Scheme on Glass Beverage Bottles, the EPD has been actively seeking expansion of the glass bottle collection network in the community. With the support of property management sector, the EPD has set up more glass bottle collection points in various housing estates, in particular the private housing estates, and started rolling out glass bottle collection services since mid-December 2013. So far, over 700 housing estates over the territories have joined this program.
In addition to the above, there are a number of voluntary glass bottle recycling program operated by non-governmental organizations (e.g. Hong Chi Association) with funding support from the Environment and Conservation Fund (ECF) or charities which would also provide glass bottle collection services to general housing estates. More details of those housing estates with glass recycling services are given in the list below. Residents may approach their property management offices for more details of the recycling services.
Government also encourage all the China glass bottle manufacturers can support the glass recycling program, government can consider to lower glass bottle factory’s tax if they can support the program in some way.
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Australia – Growth in the cider category in the Australian market is a development that glass packaging manufacturer Owens-Illinois (O-I) is hoping to take advantage of with the release of its new 375ml antique green glass sparkling bottle, targeted at both the cider and sparkling wine segments of the alcoholic beverage market.
Manufactured at O-I Adelaide, South Australia plant, the new bottle joins O-I existing 500 ml and 750 ml sparkling bottles, enabling brand owners to create consistent presentation across multiple size offerings. Maria Armstrong, segment marketing manager of wine for O-I Australia, said the new size will appeal to consumers in the lead-up to end-of-year celebrations and the warmer summer months.
Our new 375 ml sparkling bottle has been introduced to allow winemakers to gain access to different price-points and drinking occasions with a consistent look across sizes, said Armstrong. “As well as sparkling wines, the new bottle provides a unique glass packaging option for ciders as this segment continues to grow in popularity.” The 375 ml sparkling bottle is available in a cork mouth finish and is standard 7 gas volume rated.
Editor Note Total retail sales of beverages in Australia in 2010 showed a decline for the first time since 2006, but the cider category is bucking this trend according to a recent Neilsen report (2011 Nielsen Wider Beverage Report), which noted cider as the fastest growing alcohol category in Australia. In the mainstream cider sector, Foster’s owned CUB (Carlton United Brewers) brands Strongbow and Bulmers experienced a 10 per cent growth in sales in the year to June 2011. The craft cider category is also on the up and, following the trend set by craft beers, novelty variants are being launched with quirky branding and unusual names like Dirty Granny from the brewer Matilda Bay.