Market evolution: Glass beads and small glassware (CN 7018) — 2015–2025

Introduction

This report analyzes the evolution of the European Union's trade in products classified under customs code 7018, which encompasses glass beads, imitation pearls, imitation precious stones, glass microspheres, and related smallwares from 2015 to 2025. Over this decade, the EU's position in this market underwent a profound transformation. The analysis reveals a sector that has shifted from being a strong net exporter to one with a nearly balanced trade account, characterized by declining export values, surging import volumes, and significant geographic realignment in trading partners. Key dynamics include a structural decline in export competitiveness, the rise of China as a dominant supplier, and major disruptions linked to geopolitical events starting in 2022.

1. The Great Rebalancing: A Structural Shift from Export Strength to Import Dependence

The most defining trend for CN 7018 over the period is the erosion of the EU's traditional net export surplus, driven by falling export prices and values contrasted with rising import volumes.

Export value and prices have fallen significantly, while import volumes have surged.

The EU's export value for CN 7018 fell by 34.7% between the first and last observed years, from €222.8 million to €145.6 million. This decline was compounded by a 25.5% drop in average export prices. In stark contrast, import values remained relatively stable, declining by only 7.0%, but this stability masked a massive 78.3% increase in imported quantity (from 39,410 tonnes to 70,273 tonnes), indicating a fundamental shift towards higher-volume, lower-cost sourcing.

Data source: General Overview - Trade

The EU's trade surplus has collapsed, fundamentally altering the sector's risk profile.

The balance of trade in value terms plummeted by 65.4%, from a surplus of €128.2 million to just €44.3 million. This collapse is even more dramatic when viewed through the lens of net import reliance. This metric shifted from a highly negative value of -507% (indicating strong export orientation) to a nearly balanced -8.7%. This signifies the sector has moved from being a significant contributor to EU trade surplus to one with minimal net export advantage, increasing its vulnerability to import competition.

The product segment driving import growth is glass microspheres (CN 701820).

The detailed product segment breakdown shows that the surge in imports is concentrated in CN 701820 (Glass microspheres <= 1 mm). Imports of this sub-product grew from 36,034 tonnes to 64,458 tonnes (+79%), while its price fell from €692/t to €664/t. This suggests strong industrial demand for these components, increasingly met by foreign suppliers at competitive prices. Meanwhile, exports of the higher-value CN 701810 (glass beads, imitation stones, etc.) saw their value peak in 2018 before falling sharply, indicating competitive pressure.

2. Geographic Realignment: The Rise of Asian Suppliers and Diversifying Export Partners

The changing trade balance is reflected in a major reshuffling of the EU's primary trading partners, with China cementing its dominance in imports and the profile of key export destinations evolving.

China has become the overwhelmingly dominant source of EU imports, while its importance as an export market has also grown.

China's share of EU imports in value terms grew by 37.5% over the period, rising from €35.4 million to €48.7 million. More impressively, its dominance is even clearer in volume terms, where it supplied the vast majority of the growing import flow. On the export side, China transformed from a mid-tier destination to the EU's fastest-growing major market, with export values soaring by 132.8% from €11.0 million to €25.6 million. This indicates a two-way, albeit asymmetric, relationship where the EU sources mass-produced items from China while exporting higher-end or specialized goods back.

Data source: General Overview - Top Partners

EU export markets show divergent trends: decline in traditional Western partners, growth in specific economies.

The United States, historically the EU's top export market, saw a 40.5% decline in purchases, falling from €33.8 million to €20.1 million. Similarly, exports to the United Kingdom decreased by 19.3%. In contrast, exports to Türkiye and Norway showed resilience and growth (+12.5% and +50.6%, respectively). The most dramatic growth occurred in exports to Belarus (a 2,344% increase) and Tunisia (a 1,877% increase), though from small bases, suggesting new niche market opportunities or changing logistics chains.

Import concentration has increased, posing potential supply chain risks.

The Herfindahl-Hirschman Index (HHI) for import concentration by value rose sharply by 40.2%, from 1,921 to 2,693. This indicates that the EU's import base has become significantly more concentrated, with China's growing dominance being the primary driver. Such concentration increases exposure to disruptions originating from a single source. In contrast, export concentration fell, indicating a diversification of EU sales across more partners.

3. Competitive Erosion and Production Under Pressure

Beneath the trade flow data lies a story of weakening EU industrial competitiveness, marked by falling prices, declining specialisation in key member states, and a stagnant domestic production base.

EU producers have lost pricing power, with export prices falling more sharply than import prices.

The average price for EU exports fell by 25.5%, while the average import price fell by 40.0%. While both are declining—a global trend suggesting commoditization or oversupply—export prices remain significantly higher than import prices (€5,000/t vs. €1,438/t in the last period). This wide gap indicates that the EU industry has shifted towards higher-value, niche products but is losing volume in more price-sensitive, standard segments.

Production volumes have been stable, but value has eroded, squeezing margins.

According to Eurostat production data, EU production quantity in kilograms increased by 42.2% over the period. However, the corresponding production value in euros declined by 23.7%. This combination of rising output and falling revenue points to intense price competition and significant margin pressure for EU manufacturers, forcing them to produce more to maintain value.

Specialisation remains strong in traditional hubs, but the sector's overall export orientation has collapsed.

The specialisation analysis for 2025 shows that Greece, France, and Czechia maintain strong Revealed Symmetric Comparative Advantage (RSCA) scores, indicating they remain specialized exporters. However, the sector's export propensity—the share of production destined for export—has crashed from 92.0% to 33.0%. This dramatic drop confirms that the EU industry is increasingly oriented toward its internal market rather than competing globally.

Conclusion

The EU market for glass beads and smallware (CN 7018) between 2015 and 2025 has undergone a fundamental rebalancing, shifting from a position of strong net export to one of near equilibrium. This transition was driven by collapsing export prices and values, coupled with a massive increase in import volumes, predominantly of glass microspheres from China. Geopolitical shocks in 2022 introduced significant volatility, particularly affecting trade with Russia and Ukraine. Underlying these trends is a severe erosion of EU industrial competitiveness, evidenced by falling production values despite stable volumes and a plummeting export propensity. While certain member states retain specialized capabilities, the sector as a whole has become less export-oriented and more reliant on a concentrated, price-competitive import supply chain. The key challenge for the EU industry is to innovate and move further up the value chain to defend margins in a market characterized by commoditized global competition.