High product availability and standardization, as well as an increasing number of eco-friendly substitutes, has resulted in contracting demand for glass bottles, boosting buyer power.Additionally, says Agata Kaczanowska, glass bottle buyers are increasingly centralized and consolidated across the downstream food, beverage and pharmaceutical industries, which further boosts their negotiating power.
“Recent price trends have also weakened buyer power because rising input prices have stimulated an increase in production costs,” Agata Kaczanowska. Additionally, buyers have sought out more expensive customized glass bottles to differentiate their product packaging, which has driven up the average price in the past three years. However, buyers will benefit from slowed price growth during the next three years due to higher automation and rising price competition from both substitutes and imports.
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