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FLEXO Magazine : January 2010
22 FLEXO JANUARY 2010 www.flexography.org Anew report from PCI Films Consulting Ltd. analyses the effects of the global recession on the flexible packag- ing industry and identifies the market trends that will drive growth in the future. It concludes that there will be a slow down in world growth but that the recession will have only a minor influence on future markets. PCI forecasts that the $58 billion world converter-supplied consumer primary flexible packaging market will grow more slowly in value terms from an average of 5.9 percent per annum over the last three years, to an average of 3.2 percent per annum in the period to 2013. The report notes that the economic slowdown caused by the world recession has had an effect on consumer flexible packaging demand in 2008 and 2009, but as food packaging is the main end use, the industry has not suffered as much as others. More important have been cost-reduction programs by major end users; the down-gauging of substrates; the reduction in the number of flexible packaging layers used; packaging waste reduction initiatives at local and govern- ment levels; and a slowdown in consumption due to 'healthy eating' campaigns in major end uses such as snacks, confec- tionery and biscuits. However, PCI highlights a number of very positive trends throughout the world which will continue to push up the vol- ume and the value of flexible packaging in use. In all regional markets, flexible packaging producers are helping to reduce the volume of packaging waste by replacing glass bottles, blown and injection-moulded containers, aluminium and tinplate cans and carton board packages with lighter weight flexible alternatives. In some cases, this also means that package buyers can reduce their carbon footprint. In addition, the ongoing development of food processing and retailing industries in countries with currently little pack- aging use is expected to result in greater flexible packaging to meet the needs of consumers with higher levels of dispos- able income. Overall, in value terms, over the next five years the down- ward pressures are expected to outweigh the positives, hence a slowdown in the average per annum growth rate. As the result of a significant slowdown in the more mature markets, the world will also see the emergence of Asia ahead of North America and Western Europe as the world's largest regional flexible packaging market by 2013. The report goes on to suggest that the Peoples Republic of China will, on its own, account for 10 percent of global demand while India will become a significant producer and consumer of flexible packaging materials as well. ABOUT THE AUTHOR: PCI Films Consulting Ltd., part of the PCI group of companies, offers an extensive range of consult- ing services to those involved in the production and use of flexible packaging materials. The company produces dedi- cated Quarterly Business Reports and Regional Supply/De- mand studies, as well as provides specialist ad-hoc research and planning to the industry and its advisors. "The World Flexible Packaging Market 2009" is the latest edition in PCI's series of studies on the world flexible packag- ing market. Now in its third edition and based on original field research carried out in 2009, this 700+ page report updates historical data and includes comprehensive market analysis and statistics for the period 2005 to 2008 and forecasts through to 2013 in 72 countries and regions across the world. The report also profiles the world's top 20 flexible packaging converters. Further information about The World Flexible Packaging Market 2009 (3rd Edition) can be found on PCI's Web site www.pcifilms.com. Global Flexible Packaging to Increase 3.2% Alternative Containers Promote Growth FLEXIBLE PACKAGING Negative • World recession • Relocating food process- ing factories • Cost-reduction programs at major food packers • Reduction in stock levels • Packaging waste reduc- tion initiatives • 'Healthy eating' cam- paigns slowing consump- tion • Down-gauging of substrates and fewer packaging layers Positive • Replacement of rigid con- tainers e.g. glass, cans, plastic bottles and carton board • Growth in the volume of packaged food to reduce supply chain waste • Increased consumption of food types that are pre- packed e.g. snacks • Further penetration of food retailing by multi- national retailers • Increases in consumer's disposable income Flexible Packaging Trends INDUSTRY INDICATORS
Sustainable EOY 2009