by clicking the arrows at the side of the page, or by using the toolbar.
by clicking anywhere on the page.
by dragging the page around when zoomed in.
by clicking anywhere on the page when zoomed in.
web sites or send emails by clicking on hyperlinks.
Email this page to a friend
Search this issue
Index - jump to page or section
Archive - view past issues
FLEXO Magazine : April 2010
24 FLEXO april 2010 www.flexography.org • India, China and Brazil to be the fastest growing markets in next 12 months among emerging economies due to favorable economic conditions, dynamic growth of the food processing market and increased presence of a higher number of multinational processors. • Sixty percent of packaged goods manufacturers and converters rated responding to price pressure as the most important business concern during 2010-2011 . • Companies that are unable to sustain price pres- sures and those expecting to improve their competi- tiveness are expecting an increase in M&A activity. predictions of the fastest and slowest growing industry sectors (% responses) in 2010. Source: iCD research. The packaging industry is generally optimistic about the revenue growth of their companies, claims a new study, “ What the Global Packaging Industry is Planning in 2010- 2011: Procurement, Spend And Industry Outlook.” An estimat- ed 66 percent of packaged goods manufacturer companies and 62 percent of converter companies have positive expecta- tions for growth, according to ICD Research’s Q4 2009 annual industry survey. Revenue growth optimism has grown from 20 percent in Q2 2009 to 58 percent in Q4 2009 among packaging suppliers. Meanwhile, packaging buyers noted an increase of 25 percent in revenue optimism since Q2 2009. Developing regions (mainly India, China and Brazil) are more optimistic over the sales growth of their companies than developed regions, due to growth of the food processing market and growth of industries other related industries, such as pharmaceuticals and automobiles. IndIa, ChIna & BrazIl The report states that the majority of packaging industry respondents identified India, China and Brazil to be the fastest growing markets in next 12 months among emerging economies due to favorable eco- nomic conditions, dynamic growth of the food processing market and increased presence of a higher number of multinational processors. The U.S., Singapore, Taiwan and Hong Kong are predicted to be the fastest growing developed regions for converters and packaging suppliers. Furthermore, recyclable, biodegradable and smart packag- ing sectors are predicted to offer the greatest growth potential for the packaging industry in the next 12 months. InCreasIng ProCurement sPendIng The majority of packaging companies will be increasing procurement spend over the next 12 months, according to the study. The average size of global annual procurement budgets in 2009-2010 among packaged goods manufactur- ers and converter companies was $62 million. Procurement budgets in the packaging industry are expected to increase at an average rate of 6.3 percent to an average procurement budget of around $66 million in 2010-2011. On average, packaged goods manufacturing companies operat- ing in the industry have a procure- ment savings target of 8.1 percent for the current financial year, whereas for converter companies it is identified at 6.9 percent. For- ward looking expectations show that considerable investment by buyers is anticipated in package design/branding and environmen- tal/sustainable packaging for 2010. In addition to these, smaller companies (turnover up to $100 million) expect to experience an in- crease in spending for inspection/ quality control solutions, whereas mid-sized companies (turnover $100 million to $1 billion) expect an increase in supply chain man- agement/logistic solutions. Large companies (turnover more than $1 billion) also expect an increase in spending on plastics. PrICIng Pressures, Cost ContaInment According to the study, pack- aging industry executives face significant challenges over the coming months and years. Responding to pricing pressure, cost containment and rising competition have been identified as the most pressing business concerns for the global indus- try. Some 60 percent of packaged goods manufacturers and converters rated responding to price pressure as the most important business concern during 2010-2011 and a further 47 percent and 39 percent rated cost containment and rising competition as the next most important concerns. Packaging suppliers have expressed similar concerns for 2010. The majority of packaging companies are adopting waste management/reduction, budget control policies and automa- tion/ technology advancements to overcome present business InduStry IndiCatorS Positive Procurement New Study Shows optimism for packaging purchases FLXApril10_mech.indd 24 4/10/10 1:22 AM
Sustainable Winter 2010