ihs soda ash conference in lisboncdn.ihs.com/www/pdf/ihs-wsa-rivet-sept16.pdf · ihs soda ash...

JOIN ME AT FRIENDS OF GLASS.COM

IHS soda ash conference in Lisbon

21-22nd September

Fabrice Rivet

Technical Director

FEVE – The European Container Glass Industry


Outline

• About FEVE and the container glass industry

• The present: How is our industry doing?

• The future: what are the trends?

– Market trends

– Legislative trends

• How can these trends impact the soda ash industry?

• Conclusions


About FEVE and the container glass industry


The European Container Glass Federation (FEVE)

Represents the European glass container manufacturing industry (food and drinks, pharmaceuticals, perfumery, cosmetics and glass tableware) Maintains a dialogue with the European institutions, and any stakeholders at European level. Promotes glass packaging and glass recycling, complementing the activities of the glass industry at national level. www.friendsofglass.com

http://www.friendsofglass.com/


O-I Europe Pochet Group

Bormioli Luigi

Santo Barosa

Pasabahce

Zignago Vetro

Heinz Glas

Verallia Group

Saverglass Group

Stölzle Glass Group

Vetropack Group

Beatson Clark

Vidrala Group

Libbey Europe

Vetreria Etrusca

Yioula Group

Neue Glaswerke Grossbreitenbach GmbH & Co. KG

Allied Glass Anadolu Cam Sanayii A.Ş.

SGD Group Durobor

Gerresheimer Group

Bormioli Rocco Group

Ardagh Group

BA - Vidro

Zwiesel Kristallglas

Members

Encirc

http://www.restaurantvandetoekomst.wur.nl/NR/rdonlyres/D8F145AF-1E4A-4892-A788-025FDA84B967/70967/LibbeyTRADEMARK.gif

http://www.vetreriaetrusca.it/fr/index.asp


[1] Glass Alliance Europe statistical report 2014/2015 (May 2015)

Share of container glass in the total EU glass production


The European glass packaging plants

40,000 workers

More than 160 local

manufacturing

plants (incl. glass

tableware) in 20

countries

Nearly 70% of the

total EU glass

production

Over 70% glass

collected for

recycling


Glass Recycling

• Glass can be indefinitely recycled without loss of properties

• Recycling ≠ downcycling. Glass forms a real closed loop (from bottle to bottle)

• 1 kg of cullet saves 1.2 kg of raw materials

– Today, soda ash represents about 13% of the batch in terms of weight

• Every 10% cullet increase in the batch saves ~ 2.5 to 3% of energy and ~ 4 to 5% CO2 in the furnace


The present: How is our industry doing?


More than 22 Million Tons produced in Europe (EU28, CH, TR) +2,2% growth Source: FEVE – Year 2014

Container Glass Production (Food and Drink, Flaconnage)


Glass strong points • Glass remains a premium packaging material across

all consumer spaces, from fast-moving consumer goods to luxury beverages.

• It constitutes an excellent barrier to contamination, and it offers low transmission of oxygen and water vapour

• Glass is highly inert – doesn’t leach into nor react with the food/beverage it contains

• It is the only packaging with no plastic layer

• Glass is highly recyclable and recycled (with no loss of properties)


Social footprint

About 125 000 local jobs generated

More than € 9.4 billion of Gross Value Added (GVA) generated

Economic footprint Environmental footprint

Sustainability: the triple bottom line – EU27 (Ernst & Young study)

of the container glass produced is made with raw materials that travel less than 300km before their delivery to the glass manufacturing plant of the container glass is delivered to customers that are located less than 300 kms from the glass manufacturing plant

About 74%

About 56%

Induced jobs Indirect jobs Direct jobs

Induced GVA Indirect GVA Direct GVA

€ 0.75 – 1 billion / year of contribution to public finances

500 - 610 M€ / year of industrial investments on average

More than 12.5 Mt of cullet incorporated in the glass furnaces

52% Cullet incorporation rate in 2012


A big regional contribution to EU trade

• Container glass industry contributes indirectly to a positive EU trade balance of more than 21€ billion per year due to the export of products which rely primarily on glass for their

packaging.

13


Innovation: crucial to compete

Fluo glass. "Clear by day, fluorescent

blue by night. Under black light,

transparent bottles light up to add a

touch of magic and originality to jet-set

nights out.

VersaFlow carafe, an innovative packaging

concept for the food industry. The VersaFlow

carafe has a unique pouring spout that allows

consumers to pour liquids in a cleaner, more

precise and aesthetic way.


The future: what are the trends? Market trends

Legislative trends


Market Trends

• Brands in beer and wine continue to use glass as a brand differentiator – Top sectors: Beer, wine, spirits doing well

– Craft beers/micro breweries – 694 in 2009 to 1414 in 2014!

– Sparkling wine ‘the hottest category in the world’

– Renaissance in gin and whiskey

• Glass inertness still strongly valued for pharma and perfumes

• Consumers trends: – Personalisation and consumer experience

– Health and well-being


Absolut Unique Campaign

Personalised

Mattias Elg, a Quality Management Professor from the Linköping University in Sweden, figured out that ABSOLUT could create 94 quintillion bottles before two similar ones would appear.

http://www.facebook.com/photo.php?fbid=497146440315425&set=a.491674427529293.121466.217397088290363&type=1&relevant_count=8


New food &

non alcoholic

sectors

Millennials

opting for

healthy,

sustainable,

local & unique

products

Health and well-being


The future: what are the trends? Market trends

Legislative trends


Legislative Trends: the circular economy package

• Officially published by the Commission on the 2nd of December

• Co-decision between Council and Parliament started

• The package comprises (available here: http://europa.eu/rapid/press-release_IP-15-6203_en.htm): – A review of some EU waste directives:

• the Waste Framework Directive

• the Packaging and Packaging Waste Directive

• the Landfill Directive

• the batteries directives

• An action plan which needs to be developed in the coming years

http://europa.eu/rapid/press-release_IP-15-6203_en.htm








The circular

economy

package is

a real

opportunity

for glass, for

which a real

closed

economy

exists since

decades


Legislative Trends: Low carbon economy roadmap

0%

20%

40%

60%

80%

100%

1990 2000 2010 2020 2030 2040 2050

0%

20%

40%

60%

80%

100%

Current policy

Power Sector

Residential & Tertiary

Non CO2 Other Sectors

Industry

Transport

Non CO2 Agriculture


Energy for glass production: there is a thermodynamic limit…


How can these trends impact the soda ash

industry?


Factors influencing soda ash demand by container glass

• Glass recycling

• Returnable (reusable) glass bottles

• Competition with other packaging materials

• Lightweighting


Soda ash use in the container glass industry: 2009 vs 2012


Impact on the soda ash producers?

• Today – External cullet (=recycled glass) content is 52%

– Our members have difficulties to find cullet on the market (quality and quantity)

– Natural soda ash use tends to increase

– The ratio between the two types is:

• Synthetic soda ash: 75%

• Natural soda ash: 25%

• Tomorrow: – Increase cullet consumption thanks to « Circular economy »

– Returnable bottles pushed by some stakeholders

– Natural soda ash is gaining momentum (less CO2 intensive than synthetic soda ash)


Conclusions


Conclusions

• The industry is doing well despite the economic context and remains a solid industry with good customer prospects

• Competition from alternative materials is real (e.g. bag-in-box for wine)…

• …but new circular economy, focus on health and safety of food contact materials are opportunities

• Decarbonisation will be a challenge for all industries and could mean big changes in the way glass is produced

• Soda ash use in the container glass industry is decreasing due to higher recycling but remains a key raw material for our production


www.feve.org

@feveeu

For information: FEVE – The European Container Glass Federation Avenue Louise 89, Box 4 B – 1050 Brussels [email protected] +32 2 536 00 80

http://www.feve.org/

mailto:[email protected]

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