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Glass & metal packaging economics
What it is
Glass containers are made on continuous furnaces with 10-15 year campaigns and very high energy intensity; cullet - recycled glass - reduces both energy use and raw material cost. Metal packaging uses tinplate and aluminium priced on global benchmarks, with BIS food-grade specifications governing use
Premium spirits and beverages are the main demand driver for glass
Impact on industries
- Premium spirits and beverage growth pulls glass demand toward higher-value bottles, where design and finish matter more than cost per unit
- Cullet recycling cuts furnace energy consumption materially, so recycling rates are an operating-cost lever rather than only an environmental one
- Energy is the dominant cost and furnaces cannot be throttled, so an energy price spike or demand fall both hit margin with no volume response available
- Plastic and paperboard substitute in cost-sensitive uses, and LME-priced tinplate and aluminium make metal packaging a pass-through conversion business