THE PACKAGING MATERIALS INDUSTRY is probably one of the most challenging for an analyst to study. Composed of many companies, it includes some of the blue chips of American industry. New developments and changes are taking place daily that can alter greatly the fortunes of the companies within the industry. Competitiveness in packaging has accelerated in recent years. Diversified corporations such as American Can, Continental Can and Owens-Illinois each have several divisions which produce varied types of packaging. In many instances, divisions vie for the same markets. Customer demand for outstanding packaging innovation has increased competition and spurred the rapid development of newer and better packaging materials. The rigid container segment of the packaging industry, an important factor in consumer goods, has held my attention for many years. The battle between the glass container and its long time foe, the metal can, has been impressive. A third adversary, the rigid plastic container, has initiated a challenge to both glass and metal containers. The next decade will probably see the industry moving at so rapid a pace, that it will be extremely difficult to keep abreast of it. Consideration of the varied developments that have taken place in recent years and the trends that are currently under way should aid us in distinguishing the areas which offer the greatest opportunity for investment. The analyst, to gain an objective appraisal of this multi-faceted industry, as with any particular company, must learn what factors are of greatest influence and to what degree these factors will affect future results. The markets served, the pace of expansion or contraction, motivation for particular trends, competitive materials, the product or company with the largest share, and the reasons for any hold on a market are paramount in any appraisal. Some of us can still remember when automotive motor oil was sold in narrow neck glass containers. The development of a convenient pouring spout for metal cans was one of the major factors influencing the switch to metal containers in the post-war era. More recently, aluminum cans have gained acceptance. In the past three years, the composite fiber foil can has made significant strides, and will be in direct and fierce competition with the most recent entry, the plastic container. Thus, in a span of thirty years, we have had five different containers for the automotive oil market alone. Over the next thirty years, changes in packaging materials will be accelerated as manufacturers demand better, lower cost containers, and apply greater emphasis on containers as advertising mediums to merchandise products.