Plastic Bottles Procurement Category Market Research Report from IBISWorld has Been Updated

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The price of plastic bottles has been increasing during the past three years due to rising demand from key buyers and rising input costs, which suppliers have passed on to buyers in the form of higher plastic bottle prices. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has updated a report on the procurement of Plastic Bottles in its growing collection of procurement category market research reports.

IBISWorld industry market research
During the three years to 2017, the price of plastic bottles is forecast to increase as the economy continues to recover and demand among key buyers increases.

Plastic bottles have a buyer power score of 3.6 out of 5, which indicates that buyers have a distinct advantage in negotiations. The primary factors that positively impacted buyer power during the past three years are a high availability of substitutes and a low level of product specialization. Although market share concentration in this market is medium, it also worked in favor of buyer power due to the above factors. “A high availability of substitute products benefits buyer power because it provides buyers with a wider range of alternative products they can purchase,” says IBISWorld procurement analyst Jeffrey Cohen. “Furthermore, a high availability of substitutes provides more competition for plastic bottle suppliers, which places pressure on them to price plastic bottles more affordably to compete with suppliers of other bottle types such as glass and aluminum.”

The low level of product specialization also positively impacts buyer power because several suppliers are capable of providing buyers with plastic bottles that are of a similar quality. Therefore, when purchasing standard plastic bottles, buyers have a larger pool of suppliers from which to choose from. This factor increases price-based competition among plastic bottle suppliers as an effort to capture a greater share of the market. “On its own, a medium level of market share concentration does not positively impact buyer power,” adds Cohen. “However, because there is a high availability of substitutes and low level of product specialization in this market, the medium level of market share concentration still reflects a high level of price-based competition among small and medium-sized suppliers in this market.” The top four suppliers in the market by revenue are Graham Packaging Company, Plastipak Holdings Inc., Consolidated Container Company and Silgan Holdings Inc.

Although the above trends positively impact buyer power, there has been a high level of price volatility during the past three years, which hampers buyer power. The high level of price volatility has been heavily influenced by high price driver volatility, and it negatively impacts buyer power because it makes it more difficult for buyers to budget for future purchases. For more information, visit IBISWorld’s Plastic Bottles procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of plastic bottles. Plastic bottles are used to store a variety of liquids such as water, soft drinks, dairy, personal care products, motor oil, cooking oil and medicines. Suppliers of plastic bottles include manufacturers and wholesalers. The key buyers of plastic bottles are bottled water producers, soft drink producers, motor oil manufacturers, cooking oil processors and personal care producers. All bottles made from a nonplastic material are 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
-- Regulation
-- Quality Control

  • Supply Chain & Vendors

-- Supply Chain Dynamics
-- Supply Chain Risk
-- Imports
-- Competitive Environment
-- Market Share Concentration
-- Market Profitability
-- 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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Gavin Smith
IBISWorld Inc.
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