category intelligence on glass containers
TRANSCRIPT
© Copyright 2017Beroe Inc. All rights reserved.
Pharma segment to boost glass container procurement
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Table of Contents (1/3)
01
Executive Summary
• Global Market Outlook• Global Market Demand• Regional Demand Overview• Countries of Focus
02
Manufacturing Process and Value Chain Outlook
• Category Definition - Glass Containers• Manufacturing Process - Glass Containers• Value Chain Analysis - Molded Glass
03
Market Analysis
• Global Glass Container Market Overview:– Current Market Size – Supply–Demand Trend and Forecast– Regional Market Outlook– Key End-use Industries– Trade Dynamics– Key Drivers and Constraints
• Regional Market Outlook: (Europe, North America, APAC, and LATAM)– Current market size – Demand trend and forecast– Key end use industries– Trade dynamics
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Table of Contents (2/3)
04
Industry Analysis
• Porters Five Forces Analysis – Developed Markets– Developing Markets
• Key Trends and Innovations
05
Supplier Analysis
• Market Activity – Capacity Expansions/Supply Base
Development– Mergers and Acquisitions
• Global Capacity Share by Suppliers• Key Global Suppliers• Key Regional Suppliers (North America,
Europe, APAC, LATAM, Middle East, and Africa)
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Supplier Profiles
• Key Global Supplier Profiles (Ardagh, Owens-Illinois, Verallia, Anadolu Cam, Vidrala)– Key Financial Performance Indicators– SWOT Analysis
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Table of Contents (3/3)
07
Cost Analysis and Industry Practices
• Cost Drivers & Forecast• Industry Sourcing Practices
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Appendix
• Expert Profiles
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Preview
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Executive Summary (1/4)Global Market Outlook
MARKET OVERVIEWGlobal glass market size –
50.6 MMT (2015)Expected to grow at a CAGR of 3–4 percent
to 60.8 MMT by 2020
KEY REGIONAPAC (34 percent share)17.2 MMT (2015),expected to grow at a CAGR of 4–5 percent to reach 21.7 MMT by 2020.
Supply Base of Container Glass
Concentration High Medium Low
Key TrendsRecycling: Suppliers are gradually increasing cullet usage to reduce landfill and production costLight weighting: Glass container weight has reduced by 30 percent over the past decade
Key DevelopmentsEurope: Apollo Group buys Verallia for €2.95 billion bid HNG Global acquired by BA VidroVidrul – Vidreira invest $60 million to install two furnaces in Angola
COST BREAK UP - GLASS CONTAINERS
TOP GLOBAL SUPPLIERS (No. of Plants)
Owens-Illinois
80
Ardagh
35
Verallia
33
Anadolu Cam
10
Vidrala
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Global supply base is fragmented, with the top three suppliers having around 35 percent market shareOwens-Illinois is the largest glass manufacturer globally with around 19 percent production share, followed by Ardagh (7 percent) and Verallia (6 percent), respectivelyEurope and North America are the consolidated markets, with the top 2–3 suppliers holding over 50–60 percent share, conversely, developing markets are fairly fragmentedChina is the largest producer and exporter of glass containers, with 900 convertors present in the market
2015
2018 (F)
0 20 40 60 80 100 120
Raw Material Labour Energy
O/H Charges Gross Margin
Container glass price is expected to remain stable for the next 2–3 years.
2- 3%
Sources: Primary Expert 1, Primary Expert 2, Beroe Analysis
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Executive Summary (2/4)Global Market Demand
High Medium LowMarket Maturity
• The global glass container market is expected to grow at a CAGR of 3–4 percent during 2015–20 and reach 60.8 billion MMT by 2020, driven by increasing consumption of alcoholic beverages in the developing markets, like India and China. Maturing consumption of alcoholic beverages in the West will be offset by the developing markets
• Pharmaceutical segment is expected to witness the fastest CAGR of 5–6 percent from 2015 to 2020 across end-use segments, driven by increasing consumption of OTC drugs globally. Cosmetics segment will contribute to the value growth, owing to the increasing demand for high aesthetics
• Suppliers in the West are primarily investing to upgrade plant equipment, in order to achieve higher energy saving and reduce carbon emission. Emerging markets will experience increasing investments in new furnace installation and refurbishment over the next 3–5 years
01 North America
9.6 MMT, growing at 3–4 percent
03 APAC
17.2 MMT, growing at 5–6 percent
04 Middle East and Africa
4.0 MMT, growing at 3–3.5 percent percent
02 Europe
14.6 MMT, growing at 3–4 percent
Sources: Primary Expert 1, Primary Expert 2, Beroe Analysis
05 LATAM
5.0 MMT, growing at ~5 percent
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Executive Summary (3/4)Regional Demand Overview
Sources: Primary Expert 1, Primary Expert 2, Beroe Analysis
Regions Regional Supply
Capacity Additions Buyer Power Demand Trends
(2015–2020)Top Regional
Suppliers Key Supply Base Trend
North America
Alcoholic Beverages: CAGR: 2–3 percentFood: CAGR: ~3 percentPharma: CAGR 4–5 percent
• Anchor Glass• Gallo Glass• Kelman Brothers
Local convertors are focusing on boosting the recycling rates to reduce the production cost.
EU
Alcoholic Beverages:CAGR: ~1 percentFood: 2–3 percentPharma: CAGR 3–4 percent
• BA Glass• Vetropack• Vidrala• Warta
Supply base is gradually consolidating with a number of brown field investments.
APAC
Alcoholic Beverages:CAGR: 6–7 percentFood: 6–7 percentPharma: CAGR 12–13 percent
• HNGIL• Bangkok Glass• Nihon Glass• Yantai NBC Glass
Supplier are investing to enhance production capacity to boost international trade.
LATAM
Alcoholic Beverages:CAGR: 3–4 percentFood: NAPharma: CAGR 11–12 percent
• Vitro SAB• Fevisa• Rigolleau SA• Cattorini Hnos SA
Suppliers will be scaling up production to cater to the increasing global demand for local beer, wine, oil, etc.
Growing consolidation of supply base and maturing consumption of alcoholic beverages, especially in the West, might drive the buyers to expand their presence in the developing markets, like India, China, Vietnam, Thailand, Mexico, etc.
High
High
High
Medium–High
Low
High
Medium
Medium
Low
Medium
Medium–High
Medium
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Executive Summary (4/4)Countries of Focus
Sources: Primary Expert 1, Primary Expert 2, Beroe Analysis
- Developed
- Emerging
The highlighted countries are the most prominent production location for glass containers in each region. Developed markets have matured supply base and technological advancements and emerging markets have high growth potential, driven by increasing consumption and trade attractiveness.
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