Ceramic Industry News / Decorating Ceramics / Glass / Market Trends

Glass Bottle Pricing to Rise Gradually

February 11, 2014
/ Print / Reprints /
ShareMore
/ Text Size+

Glass bottles have a buyer power score of 3.8 out of 5; thus, glass bottle  buyers are considered to have a moderate ability to negotiate with suppliers, according to IBISWorld. High product availability and standardization, as well as an increasing number of eco-friendly substitutes, has resulted in contracting demand for glass bottles, boosting buyer power. In addition, glass bottle buyers are increasingly centralized and consolidated across the downstream food, beverage, and pharmaceutical industries, which further boosts their negotiating power.

“Recent price trends have also weakened buyer power because rising input prices have stimulated an increase in production costs,” said Agata Kaczanowska of IBISWorld. “Additionally, buyers have sought out more expensive customized glass bottles to differentiate their product packaging, which has driven up the average price in the past three years. However, buyers will benefit from slowed price growth during the next three years due to higher automation and rising price competition from both substitutes and imports.”

Due to a high level of competition, major players are reportedly preparing for large orders and often offer long-term discounts under contract. Decreasing production costs as the volume of bottles produced rises also gives buyers of large quantities an advantage when negotiating prices. A potential merger in 2013 of two of the three major glass bottle manufacturers could also result in less negotiating power for buyers. Such a merger would reduce the competition among the top suppliers of glass bottles and could contribute to higher prices.

For more information, visit www.ibisworld.com.

Did you enjoy this article? Click here to subscribe to Ceramic Industry Magazine.

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

April 2014 Issue Highlights

Our April 2014 issue is now available!

Podcasts

Sapphire: An Extreme Performer

Ian Doggett of Goodfellow and CI Editor Susan Sutton discuss the benefits and opportunities provided by industrial sapphire.

More Podcasts

Ceramic Industry Magazine

CI July 2014

2014 July

Our annual Data Book & Buyers' Guide is your best resource for suppliers of materials and equipment for the ceramic, glass, brick and related industries. Check it out!

Table Of Contents Subscribe

THE CERAMIC INDUSTRY STORE

M:\General Shared\__AEC Store Katie Z\AEC Store\Images\Ceramics Industry\handbook of advanced ceramics.gif
Handbook of Advanced Ceramics Machining

Ceramics, with their unique properties and diverse applications, hold the potential to revolutionize many industries, including automotive and semiconductors.

More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

Directories

CI Data Book July 2012

Ceramic Industry's Directories including Components, Equipment Digest, Services, Data Book & Buyers Guide, Materials Handbook and much more!

STAY CONNECTED

facebook_40px twitter_40px  youtube_40pxlinkedin_40google+ icon 40px