Metal Cans and Glass Jars Market Key Development Opportunities Hidden In Emerging Economies
The competitive landscapes of metal cans and glass jars market in India and Iran feature stark contrasts in terms of bargaining power of suppliers and consumers. The markets, however, feature essentially similar growth opportunities and threat from alternatives such as PET and paper packaging, finds a recent report by Transparency Market Research.
The market for metal cans and glass jars in India is highly consolidated, granting high bargaining power to suppliers of both finished products as well as raw materials, and presenting intense entry barriers for new ventures. The glass jars market witnessed small- and medium-sized companies account only for a 23% share in the overall market in 2015. The top four vendors in the market, including HNGIL, Haldyn Glass, Piramal Glass, and HSIL collectively accounted for the lion’s share with 75%, of the overall market in the same year. In the metal cans market too, the top companies Hindustan Tin Works Ltd., Rexam PLC, and Kaira Can Company Ltd., collectively held a dominant 50% share in the overall market in 2015.
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On the other hand, both the metal cans and glass jars markets in Iran are characterized by moderate to high levels of fragmentation. The moderately fragmented market for metal cans in the country saw the top three companies, Iran Ghouti, Farr Co. Ltd., and Tabriz Can Industries, collectively account for a more than 40% share in the overall market 2015. Other manufacturers accounted for a dominant 60% share in the market in the same year.
The glass jars market demonstrated stark fragmentation in the same year with small- and medium-sized companies accounting for around 90% shares in the overall market. The Iran market for metal cans and glass jars thus features strong competition, low margins, low bargaining power for suppliers, and the threat of international competitor ventures. The market features low entry barriers and consolidations through mergers and acquisitions may fare well for companies aspiring to create economies of scale.