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FLEXO Magazine : August 2014
Packaging Sales to Top $288 Billion in 2017 RESTON, VA—Packaging ranks No. 1 on the list of print’s fastest growing business segments. Forecasted global sales growth is cited at 4 percent annually through 2017, when sales are projected to hit $288 billion worldwide. In the five year, 2012-2017 period, collective growth is projected at 7.8 percent with U.S . sales of package print rising from $8.7 billion to $12.7 billion. By 2017, packaging will account for an estimated 43 percent of print product sales. Developing markets will drive the highest percentage of growth, yet mature markets will also experience improvements to the bottom line. These key and critical findings were reported by NPES, the Association for Suppliers of Printing, Publishing and Converting Technologies. They come from its recently released study, Worldwide Market for Print. NPES also reported that corrugated packaging will lead the field with 4.8 percent collective growth. It will be followed by labels and tags at 4.3 percent, flexible packaging at 4.0 percent and folding carton/pa- perboard at 3.1 percent. In 2017, corrugated will enjoy a 45 percent share of the print packag- ing product market. Flexible packaging will follow at 24 percent. Mar- ket share for folding carton and paperboard will be 18 percent. Labels and tags will account for the remaining 13 percent of business volume. Respective sales will equate to $129.6 billion for corrugated, $69.1 billion for flexible packaging, $51.8 billion for folding carton/pa- perboard and $37.5 billion for labels and tags. OEC Graphics Acquires MGM Graphics, Inc. OSHKOSH, WI—OEC Graphics, a vertically integrated premedia company and globally recognized expert in flexography, has recently acquired MGM Graphics. MGM Graphics has been a recognized leader in prepress to the corrugated/packaging industries in the West- ern U.S. and Canada for 25 years. OEC’s decision to acquire MGM Graphics was based on the opportuni- ty for continued expansion in the region following the success of OEC Graphics – West Coast (Union City, CA). Brad Vette, OEC Graphics’ corporate director of business development, explains, “With locations near Seattle, Portland and Salt Lake City, the acquisition of MGM Graphics establishes OEC as the preeminent prepress supplier in the region. OEC and MGM Graphics’ services are so similarly aligned that it will be a seamless transition for their current customer base.” OEC will bring a broader spectrum of products and services to the region, including Fusion Workflow Management, Brand Strategy and Design and Seamex ITR. These additional products and services will be offered while maintaining the existing prepress, proofing and color management services, along with liquid and HD sheet platemaking and mounting capabilities. European Flexible Packaging Market Still Growing NORTHAMPTONSHIRE, U.K .—Europe’s flexible packaging market is still growing, albeit at a slower rate, with gains of 1.3 percent in both value and volume terms in 2013. That’s down slightly from 2.1 percent and 1.8 percent, respectively, in 2012. Declining demand in some national markets and the continuing lack of significant inflationary pressures are to blame. Growth is projected to pick up in 2014. This is one of the main conclusions from PCI Films Consulting LTD’s latest annual report on the €12.3 billion European converted flexible packaging market, The European Flexible Packaging Market. As in previous years, there were some significant regional and nation- al differences in value and volume demand trends: • Demand was most buoyant in some emerging markets in East- ern Europe, notably Russia and Poland, which grew at more than four times the European average • Sales in Germany, Europe’s largest flexible packaging market, continued to see some modest growth, as to a lesser extent did the U.K. • Italy’s, Greece’s and Portugal’s demand continued to contract, with negative growth seen in France for the first time since 2009 • Sales growth in Turkey, a major emerging market, while still strong relative to the European average, fell back compared with the previous year Compared with the metal can, glass and paperboard packaging industries, Europe’s flexible packaging industry continues to be highly fragmented with the top 20 players accounting for around 70 percent of the market. However, ongo- ing consolidation continues to be steadily changing the structure of the industry, mostly with the backing of private equity finance. Major developments include the emergence of Sun Capital portfolio business COVERIS as a top 10 player, and the rapid growth via acquisition of Schur Flexibles. Nearly 20 percent of the industry’s sales in Europe are currently generated by private equity portfolio companies. To learn more about The European Flexible Packaging Market and to obtain a copy, visit www.pcifilms.com . 16 FLEXO | AUGUST 2014 NPES