Industry working at maximum capacity to meet record high demand
According to data gathered by FEVE – the European Container Glass Federation – in the first half of 2022, production and total sales reached new record levels confirming the pace already registered for the Year 2021. Production increased by 3% in both tonnes and units between the first half of 2021 and that of 2022. In fact, in the same period, total sales reached a growth of 8.0% in tonnes and 8.5% in units compared to the first half of 2021. This was the highest growth rate recorded since the first semester of 2016. From the first half of 2016 to the first half of 2022, total sales in container glass increased by 14.2% in tonnes (1.5 million tonnes) and 13.0% in units (5.3 billion units).
The industry is facing an unprecedented market demand growth in all segments in Europe and is working at full speed and capacity to meet what we see as exceptionally high levels of customers’ demand. This shows continued trust in glass packaging material and our members are strongly committed to meet market demand. They are also investing in increasing production and capacity despite very high pressure on energy and costs, which however requires time.
These latest data come on top of the record Year of 2021 when production increased by 5.0% to 23.5 Million Tons for the food and beverage markets. The highest production levels historically ever reached. Likewise, production of glass flacons for the perfumery, cosmetics and pharmaceutical segments delivered a strong growth of 2.2% to reach 13.6 billion units by the end of 2021.
These results have been achieved despite the situation created by the aftermath of COVID, the subsequent rapid rebound in the economy (spiralling inflation and energy costs, some basic raw materials shortages, and disruptions to European logistics (shortage of drivers, shipping containers, pallets) and the war in Ukraine dramatically impacting energy costs. Glass furnaces operate continuously 24/7, 365 days a year for 10-15 years and cannot be closed until they are rebuilt. Our first industry commitment is to satisfy our customers’ demand as best we can from all perspectives.
