Abstract
Pricing Pressures Lower Profit Margins
Price competition in some of the more commodity type packaging markets, such as metal cans and
plastics to some extent have intensified during the last two years. Though, the prices have not
decreased so much as there has been an increase in the cost of manufacturing. The energy costs and
raw material costs that form an important part of the cost equation have increased constantly over
the last few years. Most of the packaging market participants have contracts With their customers
and are able to pass on the increase in raw material costs to their customers, while the energy
costs have to be borne by the suppliers and this squeezes their their profit margins. For example,
the weighted average price of the metal containers have reduced constant from approximately 5.40
cents per unit in 2001 to 5.20 cents per unit in 2004. This is because these markets have been
moving towards the commodity approach There by slowing the growth rates.
The price competition also increases with low differentiation in the products offered by the
competitors. For example, in the aluminum can market, the product differentiation between various
suppliers are low. The customers in such markets have higher bargaining powers and thus, the
suppliers are forced to lower their prices. Moreover, the pricing pressure is worsened by the
customer inclination to reduce the number of vendors, in order to have improved relationship over
the long term. These factors challenge beverage packaging suppliers to find ways of improving
profitability without losing significant profit margins.
Saturation in the End User Markets Forces New Product and New Application Development
The beverage packaging market has become mature, with growth rates less than the United States
gross domestic product rates. The industry growth rate seems to be driven by the modestly growing
plastic containers segment. With the increased risk of high capital investment going bad due to the
rapidly changing end consumer tastes, the suppliers of packaging products face a dilemma. The
customers want continuous innovation and improved products from their suppliers and at the same time
they are unwilling to pay appropriately. This forces market participants to further develop new or
enhanced products for new applications in order to bolster market growth and at the same time to
ensure their existence in the marketplace.
Thus, one of the most daunting challenges faced by the packaging suppliers is to identify new
segments that have high growth potential. This task becomes all the more difficult because the
pressure to differentiate their products is great. Though, there have been many new product
introductions in the recent past, the end consumers tastes and needs are to be kept in mind while
developing new products.
Multinational Customers Force Global Expansion
The major customer groups of beverage containers are huge multinationals manufacturers and
marketers of beverages such PepsiCo, Coca - Colas, Anheuser Busch etc. These companies are regularly
expanding their global operations. The increase in global operations is spurred by the fact that in
recent years, the domestic markets have become quite flat and the consumers have become more
demanding and health conscious. The look out for new avenues of growth opportunities has been
improved through Asian countries such as China and India and to some extent Brazil, showing strong
growth potential with gross domestic product (GDP) greater than 6.0 percent in 2003. This has turned
many of the major markets such as automotive and industrial to start their manufacturing in Asia to
serve the domestic market. These large customers are inclined to reducing their vendor base for all
their global requirements. This forces the packaging suppliers in the United States market to expand
to other parts of the globe as well. This is also due to the fact that as the United States market
gets increasingly commoditized, and the suppliers margins get squeezed, the competition becomes more
cut throat.
Table of Contents
1. Executive Summary
- 1. Market Overview
- 1. Introduction
- 2. Competitive Analysis
- 3. Market and Technology Trends
- 2. Major Research Findings
- 1. Opportunities and Forecasts
- 2. Market Segment Analysis
- 3. Conclusion
- 4. Glossary of Terms
2. Industry Dynamics
- 1. Industry Challenges
- 1. Introduction
- 2. Major Challenges Facing the Beverage Containers Market
- 2. Market Dynamics
- 1. Mergers and Acquisitions
- 2. Joint Ventures and Agreements
3. Total U.S. Beverage Containers Market
- 1. Overview and Definitions
- 1. Introduction
- 2. Market Engineering Measurements
- 3. Market Drivers
- 4. Market Restraints
- 2. Forecasts and Trends
- 1. Unit Shipments and Revenue Forecasts
- 2. Market Trends
- 3. Pricing Trends
- 3. Competitive Analysis
- 1. Competitive Structure
- 2. Market Share Analysis
- 4. Recommendations and Evaluation
- 1. Introduction and Overview
- 2. Strategic Recommendations to Counter the Pricing Pressures
- 3. Strategies to Cope with Global Expansion
- 4. Strategies for New Product and New Application Development
- 5. Strategies to Counter Industry Consolidation
- 6. Strategies to Counter Environmental Concerns
- 5. Frost & Sullivan Awards
- 1. Product Differentiation Innovation Award
- 2. Product Line Strategy Leadership Award
- 3. Customer Service Leadership Award
- 4. Business Development Strategy Leadership Award
4. Plastic Beverage Containers Market
- 1. Overall Market
- 1. Market Overview
- 2. Market Engineering Measurements
- 2. Market Engineering Unit Shipment and Revenue Forecast
- 1. Market Drivers
- 2. Market Restraints
- 3. Unit Shipment and Revenue Forecast
- 3. Trend Analysis
- 1. Market and Technology Trends
- 2. Pricing Trend
- 4. Competitive Analysis
- 1. Competitive Structure
- 2. Market Share Analysis
- 5. Strategic Analysis and Forecast of the U.S. PET Beverage Containers Market
- 1. Market Overview
- 2. Market Engineering Measurements of PET Market
- 3. Market Drivers
- 4. Market Restraints
- 5. Unit Shipments and Revenue Forecasts
- 6. Other Market and Technology Trends
- 7. Pricing Trends
- 8. Competitive Structure
- 9. Market Share Analysis
- 10. Strategic Analysis and Forecast by End-user Market
- 6. Strategic Analysis and Forecast of the U.S. HDPE Beverage Containers Market
- 1. Market Overview
- 2. Market Engineering Measurements
- 3. Market Drivers
- 4. Market Restraints
- 5. Unit Shipments and Revenue Forecasts
- 6. Other Market and Technology Trends
- 7. Pricing Trends
- 8. Competitive Structure
- 9. Strategic Analysis and Forecasts by End User Market
5. Metal Beverage Containers Market
- 1. Overall Market
- 1. Market Overview
- 2. Market Engineering Measurements
- 2. Market Engineering Unit Shipment and Revenue Forecast
- 1. Market Drivers
- 2. Market Restraints
- 3. Unit Shipment and Revenue Forecast
- 3. Trend Analysis
- 1. Market and Technology Trends
- 2. Pricing Trend
- 4. Competitive Analysis
- 1. Competitive Structure
- 2. Market Share Analysis
- 5. Strategic Analysis and Forecast by End User Market
- 1. Unit Shipment Trend by End-user Market
- 2. Soft Drinks
- 3. Functional Drinks
- 4. Energy Drinks
- 5. Beer
6. Glass Beverage Containers Market
- 1. Overall Market
- 1. Market Overview
- 2. Market Engineering Measurements
- 2. Market Engineering Unit Shipment and Revenue Forecast
- 1. Market Drivers
- 2. Market Restraints
- 3. Unit Shipment and Revenue Forecast
- 3. Trend Analysis
- 1. Market and Technology Trends
- 2. Pricing Trend
- 4. Competitive Analysis
- 1. Competitive Structure
- 2. Market Share Analysis
- 5. Strategic Analysis and Forecast by End User Market
- 1. Unit Shipment Share Trend by Application Type
- 2. Soft Drinks
- 3. Fruit Juices
- 4. Dairy
- 5. Functional Drinks
- 6. Others
- 7. Beer
- 8. Wine
- 9. Distilled Spirits
7. Paperboard Beverage Containers Market
- 1. Overall Market
- 1. Market Overview
- 2. Market Engineering Measurements
- 2. Market Engineering Unit Shipment and Revenue Forecast
- 1. Market Drivers
- 2. Market Restraints
- 3. Unit Shipment and Revenue Forecast
- 3. Trend Analysis
- 1. Market and Technology Trends
- 2. Pricing Trend
- 4. Competitive Analysis
- 1. Competitive Structure
- 2. Market Share Analysis
- 5. Strategic Analysis and Forecast by End User Market
- 1. Unit Shipment Share Trend by Application Type
- 2. Fruit Juices
- 3. Dairy
- 4. Others
- 5. Wine
8. Appendix
- 1. Decision Support Database Tables
- 1. Alcoholic Beverage Production
- 2. Nonalcoholic Beverage Production
- 3. Per Capita Beverage Consumption
- 4. Personal Disposable Income
- 5. Population by Age Group
List Of Figures
- * Beverage Containers Market: Unit Shipment and Revenue Forecast (U.S.), 2001-2011
- * Beverage Containers Market: Impact of Top Industry Challenges (U.S.), 2005-2011
- * Beverage Containers Market: Some of the Major Merger and Acquisitions (U.S.), 2004
- * Beverage Containers Market: Market Drivers Ranked in Order of Impact (U.S.), 2005-2011
- * Beverage Containers Market: Market Restraints Ranked in Order of Impact (U.S.), 2005-2011
- * Beverage Containers Market: Unit Shipment and Revenue Forecast (U.S.), 2001-2011
- * Beverage Containers Market: Revenue Share Trends by Material Type (U.S.), 2001-2011
- * Beverage Containers Market: Unit Shipment Share Trends by Material Type (U.S.), 2001-2011
- * Beverage Containers Market: Weighted Average Price of Beverage Containers by Material Type
(U.S.), 2004
- * Beverage Containers Market: Competitive Structure (U.S.), 2004
- * Beverage Containers Market: Major Participants by Product Type (U.S.), 2004
- * Beverage Containers Market: Top Industry Participants by Material Type (U.S.), 2004
- * Plastic Beverage Containers Market: Market Drivers Ranked in Order of Impact (U.S.), 2005-2011
- * Plastic Beverage Containers Market: Market Restraints Ranked in Order of Impact (U.S.),
2005-2011
- * Plastic Beverage Containers Market: Unit Shipment and Revenue Forecast (U.S.), 2001-2011
- * Plastic Beverage Containers Market: Revenue Share Trend by Resin Type (U.S.), 2001-2011
- * Plastic Beverage Containers Market: Unit Shipments Share Trend by Resin Type (U.S.), 2001-2011
- * Plastic Beverage Containers Market: Weighted Average Price by Resin Type (U.S.), 2004
- * Plastic Beverage Containers Market: Competitive Structure (U.S.), 2004
- * Plastic Beverage Containers Market: Products Offered By Major Participants by Resin Type
(U.S.), 2004
- * Plastic Beverage Containers Market: Market Share of Major Participants Based on Unit Shipments
(U.S.), 2004
- * Plastic Beverage Containers Market: Market Drivers of PET Containers Ranked in Order of Impact
(U.S.), 2005-2011
- * Plastic Beverage Containers Market: Market Restraints of PET Containers Ranked in Order of
Impact (U.S.), 2005-2011
- * Plastic Beverage Containers Market: PET Containers Unit Shipment and Revenue Forecast (U.S.),
2001-2011
- * Plastic Beverage Containers Market: Competitive Structure of PET Containers Market (U.S.),
2004
- * Plastic Beverage Containers Market: Market Share of Major Participants in PET Containers
Market Based on Unit Shipments (U.S.), 2004
- * Plastic Beverage Containers Market: PET Containers Unit shipment Share Trend by End-User Type
(U.S.), 2001-2011
- * PET Beverage Containers: Soft Drinks End-Use Market Unit Shipments Forecast (U.S.), 2001-2011
- * PET Beverage Containers: Bottled Water End-Use Market Unit Shipments Forecast (U.S.),
2001-2011
- * PET Beverage Containers: Fruit Juices End-Use Market Unit Shipments Forecast (U.S.), 2001-2011
- * PET Beverage Containers: Dairy End-Use Market Unit Shipments Forecast (U.S.), 2001-2011
- * PET Beverage Containers: Functional Drinks End-Use Market Unit Shipments Forecast (U.S.),
2001-2011
- * PET Beverage Containers: Energy Drinks End-Use Market Unit Shipments Forecast (U.S.),
2001-2011
- * PET Beverage Containers: Others End-Use Market Unit Shipments Forecast (U.S.), 2001-2011
- * PET Beverage Containers: Beer End-Use Market Unit Shipments Forecast (U.S.), 2001-2011
- * Plastic Beverage Containers Market: Market Drivers of HDPE Containers Ranked in Order of
Impact (U.S.), 2005-2011
- * Plastic Beverage Containers Market: Market Restraints of HDPE Containers Ranked in Order of
Impact (U.S.), 2005-2011
- * Plastic Beverage Containers Market: HDPE Containers Unit Shipment and Revenue Forecast (U.S.),
2001-2011
- * Plastic Beverage Containers Market: Competitive Structure of HDPE Containers Market (U.S.),
2004
- * Plastic Beverage Containers Market: HDPE Containers Unit Shipments Share Trend by End-User
Type (U.S.), 2001-2011
- * HDPE Beverage Containers: Bottled Water End-Use Market Unit Shipments Forecast (U.S.),
2001-2011
- * HDPE Beverage Containers: Fruit Juices End-Use Market Unit Shipments Forecast (U.S.),
2001-2011
- * HDPE Beverage Containers: Dairy End-Use Market Unit Shipments Forecast (U.S.), 2001-2011
- * HDPE Beverage Containers: Functional Drinks End-Use Market Unit Shipments Forecast (U.S.),
2001-2011
- * HDPE Beverage Containers: Others Drinks End-Use Market Unit Shipments Forecast (U.S.),
2001-2011
- * Metal Beverage Containers Market: Market Drivers Ranked in Order of Impact (U.S.), 2005-2011
- * Metal Beverage Containers Market: Market Restraints Ranked in Order of Impact (U.S.),
2005-2011
- * Metal Beverage Containers Market: Unit Shipment and Revenue Forecast (U.S.), 2001-2011
- * Metal Beverage Containers: Revenue and Unit Shipment Share Trend of Total Beverage Containers
Market (U.S.), 2001-2011
- * Metal Beverage Containers Market: Weighted Average Price of Metal Containers during Forecast
Period (U.S.), 2001-2011
- * Metal Beverage Containers Market: Competitive Structure (U.S.), 2004
- * Metal Beverage Containers Market: Market Share of Major Participants Based on Unit Shipments
(U.S.), 2004
- * Metal Beverage Containers Market: Unit Shipments Trend by Application Type (U.S.), 2001-2011
- * Metal Beverage Containers: Soft Drinks End-Use Market Unit Shipments Forecast (U.S.),
2001-2011
- * Metal Beverage Containers: Functional Drinks End-Use Market Unit Shipments Forecast (U.S.),
2001-2011
- * Metal Beverage Containers: Energy Drinks End-Use Market Unit Shipments Forecast (U.S.),
2001-2011
- * Metal Beverage Containers: Beer End-Use Market Unit Shipments Forecast (U.S.), 2001-2011
- * Glass Beverage Containers Market: Market Drivers Ranked in Order of Impact (U.S.), 2005-2011
- * Glass Beverage Containers Market: Market Restraints Ranked in Order of Impact (U.S.),
2005-2011
- * Glass Beverage Containers Market: Unit Shipment and Revenue Forecasts (U.S.), 2001-2011
- * Glass Beverage Containers: Unit Shipment and Revenue Share Trend of Total Beverage Containers
Market (U.S.), 2001-2011
- * Glass Beverage Containers Market: Weighted Average Price of Glass Containers during Forecast
Period (U.S.), 2001-2011
- * Glass Beverage Containers Market: Competitive Structure (U.S.), 2004
- * Glass Beverage Containers Market: Market Share of Major Participants Based on Unit Shipments
(U.S.), 2004
- * Glass Beverage Containers Market: Unit Shipments Share Trend by Application Type (U.S.),
2001-2011
- * Glass Beverage Containers: Soft Drinks End-Use Market Unit Shipments Forecast (U.S.),
2001-2011
- * Glass Beverage Containers: Fruit Juices End-Use Market Unit Shipments Forecast (U.S.),
2001-2011
- * Glass Beverage Containers: Dairy End-Use Market Unit Shipments Forecast (U.S.), 2001-2011
- * Glass Beverage Containers: Functional Drinks End-Use Market Unit Shipments Forecast (U.S.),
2001-2011
- * Glass Beverage Containers: Others End-Use Market Unit Shipments Forecast (U.S.), 2001-2011
- * Glass Beverage Containers: Beer End-Use Market Unit Shipments Forecast (U.S.), 2001-2011
- * Glass Beverage Containers: Wine End-Use Market Unit Shipments Forecast (U.S.), 2001-2011
- * Glass Beverage Containers: Distilled Spirits End-Use Market Unit Shipments Forecast (U.S.),
2001-2011
- * Paperboard Beverage Containers Market: Market Drivers Ranked in Order of Impact (U.S.),
2005-2011
- * Paperboard Beverage Containers Market: Market Restraints Ranked in Order of Impact (U.S.),
2005-2011
- * Paperboard Beverage Containers Market: Unit Shipment and Revenue Forecasts (U.S.), 2001-2011
- * Paperboard Beverage Containers: Unit Shipment and Revenue Share Trend of Total Beverage
Containers Market (U.S.), 2001-2011
- * Paperboard Beverage Containers Market: Weighted Average Price of Paperboard Containers during
Forecast Period (U.S.), 2001-2011
- * Paperboard Beverage Containers Market: Competitive Structure (U.S.), 2004
- * Paperboard Beverage Containers Market: Market Share of Major Participants Based on Unit
Shipments (U.S.), 2004
- * Paperboard Beverage Containers Market: Unit Shipments Trend by Application Type (U.S.),
2001-2011
- * Paperboard Beverage Containers: Fruit Juices End-Use Market Unit Shipments Forecast (U.S.),
2001-2011
- * Paperboard Beverage Containers: Dairy End-Use Market Unit Shipments Forecast (U.S.), 2001-2011
- * Paperboard Beverage Containers: Others End-Use Market Unit Shipments Forecast (U.S.),
2001-2011
- * Paperboard Beverage Containers: Wine End-Use Market Unit Shipments Forecast (U.S.), 2001-2011
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