Glass Bottles Procurement Research Report Now Available from IBISWorld

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Continued increases in input costs are projected to offset rising price competition among suppliers, ultimately resulting in a gradual rise in the price of glass bottles during the next three years. To help procurement professionals make better buying decisions, business intelligence firm IBISWorld has added a report on the procurement of Glass Bottles to its growing collection of procurement research reports.

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Input cost increases have been passed on to buyers in the form of rising prices

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. 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. Additionally, says Agata Kaczanowska, 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,” Agata Kaczanowska. 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 among major players, such as Ardagh Group, Berlin Packaging LLC, Owens-Illinois Inc. and Tricor Braun Inc., they are accommodating for large orders and often offering 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 manufacturers of glass bottles may result in less negotiating power for buyers, if approved by regulators. Such a merger would reduce the competition amongst the top suppliers of glass bottles and could contribute to higher prices. For more information, visit IBISWorld’s Glass Bottles procurement research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of glass bottles. Glass bottles are defined as soda-lime glass containers with a volume ranging from 330 ml to one liter and a mouth with a diameter smaller than 38mm, which can be procured with or without closures. Bottles can come in different colors, commonly have inputs sourced from recycled glass and are manufactured using automated machinery. They can be bought from manufacturers, recycling facilities or wholesalers. Hand-crafted glass bottles, other containers or bottles made from materials other than soda-lime glass are excluded from this report. As a result, most glass bottles used for reagents or pharmaceuticals are excluded from this report. Returnable bottle services are also excluded from this report.

Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Competitive Environment
Market Share Concentration
Vendor Financial Benchmarks
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics

About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit or call 1-800-330-3772.

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Danielle Goodman
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