By Cameron Chai
According to a report published by IBISWorld, the revenue of the glass product manufacturing industry is projected to decrease an average of 1.6% annually over the five years to 2012.
The steady decline is due to two reasons: imports capturing a higher share in the local market and replacement of glass container products with packaging materials such as extruded plastic bottles and aluminum cans.
The glass products are used in a wide range of applications in the household, hospitality, telecommunications, automotive, agriculture, manufacturing and construction sectors. Major products of the industry include glass products produced from purchased glass such as kitchenware, lighting and mirrors; glass containers like jars and bottles; blown or pressed glass; and flat glass. Asahi Glass, Corning, Owens-Illinois and Saint-Gobain are the four companies that together hold approximately one third of the market share.
The revenue is expected to rise in 2012, as the industry gains from an increase in consumer spending and the upturn in the downstream building markets. A recovery in the residential construction market will increase demand for glass products utilized in furniture windows and doors. However, import penetration, constant product substitution and continuous weak demand for automobile glass products will restrict the speed of the industry’s expansion. Glass product manufacturers will focus on minimizing costs and becoming more efficient.