Industry Analysis & Industry Trends
Australia's Glass and Glass Product Manufacturing industry comprises two key segments: the glass container segment and the flat-glass segment. The glass container segment is dominated by two local firms - Owens-Illinois Australia and Orora Limited (formerly Amcor Glass) - which manufacture bottles and jars for packaging beverages and food products. The flat-glass segment, which includes a range of fabricated glass products, includes many small to medium firms along with Viridian (CSR Limited), which is the only local manufacturer of float glass products.
The total domestic market for glass and glass products is estimated at $3.3 billion in 2013-14, of which imports capture an estimated 19.1%, while export earnings contribute approximately 2.6% of industry revenue... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry to the main segments of the industry are extremely high due to the dominance of the two vertically and horizontally integrated producers: Viridian (the only local producer of float glass) and Owens-Illinois Australia (I-O), which is the dominant producer of glass containers. Each firm's dominance in their respective markets has been held due to the high cost of establishing viable competition.
O-I has long-term supply contracts with its key customers (e.g. Foster's Group, Lion, Schweppes and Nestle). A new entrant would need to aggressively challenge O-I in its existing market to obtain a viable foothold... purchase to read more