The artisanal glassmaking market - Italy

1.2 The global market

the global glass manufacturing market has been valued at $***.** million in **** and is expected to experience steady growth with a compound annual growth rate (***) of *.* percent from **** to ****. Increased investment from residential and commercial construction, along with increased use of recyclable materials in the packaging sector, will support market growth during the forecast period.

Market value of hand glass processing World forecast, ****-****, US$ billion Gran View Research

The end applications of the article are of different kinds: windows, doors, railings and facades in the construction industry. Growing demand is pushing manufacturers to implement production extension. Another key aspect to analyze is the constant demand for glass containers such as bottles and ampoules in the food, beverage, and medical sectors, leading to a stimulation of glass production.[***]

1.3 The local market

The glass industry sector, classified under Ateco code **.* (***) and processing.

[***]

Manufacturing

Below are data showing the trends in domestic flat and hollow glass production from **** to ****. For both divisions, there is a decline in production in the last year, related to the COVID-** emergency and the associated shutdown of production activities during the lockdown period. In summary, **** production equals that of ****.[***]

Domestic production of hollow glass and flat glass ****-**** (***)

Turnover value of hand glass processing

The processing of glass and blown glass, is often associated with artisanal and specialized production; in Italy there are numerous companies and workshops devoted to this art form, but there is no single main producer.

Based on the analysis of data provided by the National Institute of Statistics (***), it is possible to note a gradual but steady growth in the value of the turnover of hand glassmaking.[***]

Turnover value of hand glass processing Italy, ****-****, thousands of euros€ Istat

The world's first industrial zone

Certainly, the Italian market is positively stimulated by Murano's presence within the national borders; when in **** the transfer of all Italian furnaces to the Island of Murano took place, it started a process of creation - a full five hundred ...

1.4 Analysis of Imports and Exports

The graphs below go to data that include both pulled and blown glass. Consequently, the important increase in exports can be attributed to the presence of different types of processed glass in this category, which are not limited exclusively to the art and blown glass considered so far. The annual increase in the value of exports over imports generates an increase in the trade balance. In particular, demand for glass products is increasing due to several factors: growing international demand, technological innovations, trade agreements, and increasing attention to sustainability trends. The value of imports to Italy continues to remain generally lower than that of exports; this can be attributed to additional valid reasons: Domestic production: Italy enjoys a long tradition of glass production and is home to many local companies that produce a wide range of glass products Domestic demand: domestic demand for glass products can be mainly met by domestic production, due to the country's rich tradition in this sector Industrial specialization: many Italian regions specialize in glass production, to the extent that they cover much of the national need

Exports, Imports and Coverage Rate Italy, ****-****, US$ UN Comtrade

below are graphs showing the percentage distribution of exports among ...

1.5 Impact of the derivative

Il Sole ** Ore, in an article dated November ****, highlights a problem that is greatly affecting the glass industry worldwide. Increases in raw material production and extraction prices, triggered bysoaring gas costs, have led to a ** percent cost increase in the glass industry. This increase is putting a strain on industries that used to place the material as the basis of their production, such as construction companies or food container manufacturers.

in addition, Ukraine, besides being known for its strategic geopolitical position, plays a significant role in the glass industry. Equipped with production factories located in the Kharkiv and Kherson areas, it has several deposits of sand and soda ash, vital raw materials for glass production. Until ****, the main sources of glass for Ukraine were Russia and Belarus. However, due to still ongoing political tensions and changes in trade relations, these sources have been compromised. [***]

The military crisis is part of a picture already made difficult by the continuing pandemic and upward pressure on prices. The effects of the crisis globally are highly unequal across areas and sectors; proximity to the conflict, dependencies on oil, and, in general, financial production connections with the belligerent or war-involved countries-Russia, Ukraine, and Belarus-all mean that ...

2.1 The question

Considering the specificity of the market under study, obtaining detailed information on the demand for the included products can be a complex challenge. Therefore, the analysis of demand for these products is mainly based on data on the expenditure category, known as ECoicop, comprising glassware, tableware, ceramics and porcelain.[***]

Demand growth remains fairly stable over time, with no particular significant changes noted except for a slight decline in **** of about ** percent, and then experiencing growth from **** of about ** percent.

Expenditure item (***) Italy, ****-****, € Istat

2.2 A surprising rise in the ricilo

Very often, glass scrap is expected to be used in the production processes of glass crafts. In recent years, due to the energy crisis and the long wave of COVID-**, there has been volatility in energy prices and in the increase in scrap prices, which have reached levels never before touched, rising from about €** to €*** per ton. An increase that, in addition to affecting the cost of containers, may pose a risk in maintaining recycling and circularity targets in the sector. In recent years, glass recycling has been a very important aspect, which has strongly characterized the Italian territory.

"Despite the persistence of critical factors," says Roberto Cardini, president of the container section of Assovetro, the national association of glass manufacturers that is a member of Confindustria, "the glass packaging industry has continued to grow. The year **** should be a settling year to allow us to face the challenges of the packaging industry's future, such as decarbonization with the search for new energy vettroi." Energy costs, in fact, have always been at the heart of the glass industry, in the face of the fact that it consumes more than * billion cubic meters of gas each year (***). Energy conservation remains the ...

2.3 Geographical distribution of demand

Geographically, the distribution of demand seems to be greatest in the northeastern regions; next we have the northwestern, southern, central, and island regions.

3.1 Market Structure and Dynamics

The graph below shows data regarding the number of companies active in the glass processing sector. The three proposed graphs are constructed through consultation of Istat data belonging to ATECO Code **** **.*, which is why, in some respects, they assess a complexity of variables that do not only concern artisanal glass processing. Overall, we see a spike in the growth of active companies in **** in a fairly stable context over the five-year period examined. [***] Number of active companies last * years Italy, ****-**** Istat even in the case of the number of employed people, the situation remains fairly stable over the five years analyzed; the only minor exception is ****, where a slight decline is reported. Number employed last * years Italy, ****-**** Istat in creating this graph, data related to ATECO **** Code **.**.*, referring to the sector of artisanal and artistic glass processing, are examined. interestingly, the significant majority of actors in this sector are sole proprietors, freelancers and self-employed, accounting for approximately **.** percent of the total.

Legal form hand and artistic glass processing sector Italy, **** Istat

3.2 Value Chain

The artisanal glass processing market consists of:

Raw material suppliers Glass manufacturers Workshops, studios and laboratories Retailers, specialty stores, enterprises

Raw material suppliers:

Raw material suppliers are companies or entities that provide the basic materials, necessary for glass production; their role is crucial in supplying these materials to glass companies, working to ensure that adequate quantities are available and following specifications required for the production of high-quality glass. Managing relationships with raw material suppliers is an important aspect in the production chain of glass companies, as they go about ensuring a steady flow of materials and efficient production.

Glass manufacturers:

Glass manufacturers are involved, primarily, in the manufacture of different types of glass in order to meet customer needs and the requirements of different applications.

Fabrication workshops, studios and laboratories:

Fabrication workshops, studios and laboratories, represent the heart of the glass manufacturing process. Specifically, they are specialized places where glass objects of various shapes, sizes and purposes are made. The main roles they play are: glass melting, forming, cutting and finishing, decoration and quality control. The latter aspect is aimed at creating a product free of defects, such as: scratches, imperfections and air bubbles.

Retailers, specialty stores and businesses:

Retailers, specialty ...

3.3 Main Actors

Analyzing the leading companies in the artisanal processing of blown glass in Italy, the following should be mentioned:[***]

Cerve Società per azioni: Founded in **** in Parma, Cerve is one of the best-known companies in the industry. Its name is inspired by the fusion of the words "CEramica" and "VEtro." The company has placed itself with determination in the context of economic and industrial development over the years. Its specialization in the field of glass was quickly integrated with the production system of large glassworks and the surrounding industrial fabric. Lodes S.R.L.: The Venetian company Lodes has been producing interior and exterior lighting solutions since ****. Its founder, Angelo Tosetto, transformed Lodes into one of Europe's leading designers and manufacturers of decorative lighting, currently active in ** markets around the world, combining constant technological research with a passion for glassmaking. I.S.S. CO Industry for screen printing on conte: Established in **** as an artisan enterprise, it became an industrial reality in ****. Today a reference point in the Cosmetics and Perfumery sector, only eco friendly materials are used. Arti Vetro S.R.L. - liability company: Arti Vetro s.r.l. was founded in **** thanks to Luigi Garofano's passion and natural flair ...

3.4 Distribution channels

some of Italy's top retail companies for household utensils, glassware and tableware:[***]

The following graph offers a quantitative analysis of companies operating in the retail sector during the period ****-****. A clear year-by-year decline emerges, resulting in a total reduction of ** percent over these nine years of observation. [***]

Number of active enterprises in the retail trade of household utensils, glassware and tableware Italy, ****-**** Istat

4.1 Type of Offering

The National Association of Glass Industrialists(***), a nonprofit business association that is a member of Confindustria, indicates that the type of supply in the artisan glass sector in Italy mainly includes:

Goblets Favors Pendants, wall and table lamps Glassware, glasses, table sets Jewelry[***]

Today's industrial techniques involve the addition of additives such as manganese dioxide in the production of the above products, although the raw materials remain silica sand, soda ash, and limestone. In order to obtain glass from these three raw materials, they need to be heated in furnaces capable of reaching over ****°C; once this melting temperature is reached, the ingredients will melt and mix to obtain molten, liquid, burning glass. The cooling process allows the formation of a transparent and fragile mass: glass.

When glass is in its liquid, hot state, it can be used to create objects in a variety of ways, the best known of which are:

Glass blowing: glass blowing is achieved by placing a ball of liquid glass on the end of a glassmaker's stick; air is then blown into the tube to cause the glass ball to bulge. The glass bubble is then worked with the impiefo of various tools. Molding technique: the ...

4.2 Prices

Given the wide range of variables that influence the determination of a complete list of prices for handcrafted products worked in glass, it is impossible to be able to implement an analysis of average pricing. Reason why, in the following table, the costs attributed to Made in Murano Glass store products are shown.

4.3 Glass Experimental Station

The Glass Experimental Station (***), active in Murano-Venice since ****, is a research center with an international scope and a UNI CEI EN ISO/IEC ***** accredited testing laboratory, which carries out technical and scientific support activities for the entire glass supply chain: manufacturers, processors, glass users, producers of raw materials, refractories and plants intended for the glass industry. Composed of more than fifty people including graduates, engineers and technical specialists, the SSV provides technical support services and conducts quality control and certification tests in the various application sectors of the glass industry: hollow glass, flat glass for construction, household goods, technical glass, glass fibers and art glass.

Currently, the Glass Experimental Station operates under economic autonomy as a non-profit joint-stock consortium company, majority owned by the Chamber of Commerce of Venice and Rovigo, and minority owned by Assovetro, and has a presence in the territory at two sites: the historic headquarters is located on the island of Murano, and houses most of the laboratories, while the Flat Glass Sector for Construction since **** has been located in Porto Marghera, in the VEGA science-technology park. Since its construction, the location of SSV on the island of Murano has fostered close relations with companies operating in ...

5.1 Rules and regulations

Presidential Decree No. *** of May **, ****, concerns the identification of the sectors of artistic and traditional workmanship, which includes the activity being analyzed in the study.

The regulation attests that artistic work is considered to be creations, productions and works of high aesthetic value or inspired by forms, models, decorations, styles and techniques, which constitute the main elements of historical and cultural heritage. All this must take into account the techniques of innovation that, in compatible respect for artistic tradition, take their start and qualification from it. (***)

In addition, the activities in question, must be carried out mainly using manual processing techniques, at a high technical professional level; the use of equipment may be allowed, excluding, however, entirely mass production processes; single mechanized or automated processing stages are allowed, according to innovative techniques and with technologically advanced instrumentation. (***)

Also at the local level, it is useful to mention Framework Law No. *** of July *, ****, which set in Article * the basic criteria within which regions can issue measures in favor of artisans. The main objective of the law is the indivisection of those small entrepreneurs who carry out their activities within the craft sector, going on to outline the characteristics of this figure of ...

5.2 State grants

Regarding state subsidies in the sector of artisanal processing of Murano glass, there is the Murano Ceramic and Artistic Glass Fund (***). The fund, aimed at companies operating in the sector of artistic ceramics and/or Murano artistic glass - ATECO **** **.* or ATECO **** **.** codes - was established by Budget Law ***/**, with an allocation of *.* million euros for the year ****. The purpose of the fund is to curb the negative effects caused by price increases in the electricity and natural gas sectors by assisting the small sector of artistic ceramics and Murano art glass. The fund is established in the budget of the Ministry of Business and Made in Italy. Eligible expenses include:

non-subsidized, or partially subsidized, expenses related to energy bills that have already been subsidized for the measure under the Decree of the Minister of Economic Development of March **, ****. new applications for energy bill expenses in the period between the publication of the Decree of the Minister of Economic Development of March **, **** and August **, ****, which have not already been subsidized

This is a non-repayable subsidy granted pursuant to and within the limits of the European Commission Communication of March **, **** (***). Expenses related to taxes and fees are not eligible for the ...

6.1 Segmentation

Manufacturers:

Distributors:

• Cerve Società Per Azioni
• Lodes s.r.l.
• I.S.S.CO
• Arti Vetro S.r.l.
• BAROVIER & TOSO VETRERIE ARTISTICHE RIUNITE S.R.L.
• Kasanova
• Swarovski Group
• Galileo S.P.A.
• Bialetti