Glass Returns to Growth: The Outlook in Food and Beverages

Introduction

Scope

Key findings

Glass Industry Performance 2010

Continuing recovery in demand for glass seen in 2010 and 2011

Ups and downs for bottles in key categories: Spirits top performer

Growing array of sauces spurs on demand for glass jars

The powers of Asia and Latin America fuel glass sales in 2010…

…as core countries like the US and Germany struggle for growth

China and India head up gains in glass; Russia returning to growth

Beer Focus

Beer: Mainstay for glass but spirits and wine show strong dynamism

Glass retained as favoured format for beer but is losing out to cans

Asia Pacific to lead global prospects, India important to target

As India’s taste for beer grows, glass moves onwards and upwards

Healthy dynamics also for bottled beer in Middle East and Africa

Australians continue to prefer their beer to be in a glass bottle

The female demographic offers further potential for glass in beer…

…as do launches of light and craft beer

Spirits Focus

Spirits, a traditional but strongly performing end-use for glass

Pack mix by spirits type illustrates the overriding preference for glass

Glass use in spirits is weakest in Asia Pacific and North America

Asia Pacific will still lead global volume growth to 2014

Western trend in Asia Pacific sees move away from “other spirits”

Ukraine and Poland show buoyancy for Eastern Europe

NPD: Eastern Europe’s new bottle designs add value to category

White spirits’ versatility is good news for glass in Western Europe

India to be the primary driver of bottle growth in spirits to 2014

Wine Focus

Glass the wine drinker’s pack of choice; other materials gain ground

Western Europe remains the stronghold for glass in wine; Asia next

Prospects for glass-bottled wine will be led by the emerging regions

Asia’s wine preference lies in non-grape varietals but this is changing

Shift for some to light grape for health and Western lifestyle habits

China to surpass traditional wine nations and become No 1 by 2014

High-end wines in Argentina and more wine in Colombia add volume

Other opportunities in wine: C ould legislation be an ally to glass?

Soft Drinks Focus

PET exerts pressure on all formats in soft drinks, including glass

Opportunities in wellness and heritage to counter fall-out elsewhere

RTD tea boosted by China’s thirst, but US consumers prefer plastic

Affordable juice drinks and nectars hold promise as 100% juice falls

Economic climate enables concentrates to show a revival

Carbonates to lead via emerging markets; add value for more gains

Foods Focus

Sauces and canned food procure best growth for glass in food

Widely positive for sauces, mayonnaise in plastic main weakness

Healthier eating creates growth for fish and vegetables in glass

Glass’ quality assures healthy dynamics in baby food

A threat from plastic is present that could thwart glass in baby food

Affordability and wellness as drivers for improving glass sales

Absolute importance of emerging markets to glass in foods is clear

Prospects

Alcoholic drinks will account for 66% of glass gains to 2014

Look to emerging markets for strongest gains

China and India to underpin global glass volume expansion

Key categories to target within these world-leading growth countries

Report Definitions

Definitions