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Flexo Magazine : January 2013
Industry Indicators Package Print: The Market & Its Metrics stable conditions & sustainable Performance Patterns compiled by robert Moran Stat-addicted flexographers will certainly appreciate the reams of data developed by market watchers that depicts the printing, packaging and converting trade as flourishing, innovative and poised for significant growth in the near-term future, meaning two-four year ’s out. Analysts hailing from The Freedonia Group, Smithers Pira, FINAT, the Flexible Packaging Association, RISI, Alex- ander Watson & Associates, PCI Films, InfoTrends, Mesirow Financial, as well as a host of independent consultants and a cadre of FTA members are telling similar stories. In fact, they ’re standing confident and optimistic in forecasting stable business conditions and sustainable performance patterns. Translation: higher sales and better bottom lines. Predictions hold across all major business segments: cor- rugated boxes, flexible packaging, folding cartons, foodservice accoutrements—printed cups, plates and napkins/tablecloths, labels, paperboard, shrink sleeves, stand-up pouches, etc. In FTA circles, printers are reporting increases in busi- ness. Latest survey results indicate that 73 percent of member converters report revenues were up for the last 12 months and they say the trend looks to be continuing. Also significant, better than 60 percent of consumer packaging is printed flexographically. Smithers Pira’s assessment of the global packaging in- dustry indicates that it will swell to almost $820 billion by 2016. Currently, the United States is the largest consumer for pack- aging with a demand of close to $140 billion. China stands close behind at better than $80 billion. China is anticipated to surpass the U.S. by 2017. India will enter the top 10 packaging countries with its demand set to almost double in the next four years to $24 billion. • Board products account for the biggest sector of the packaging market, totaling some $210 billion. They will be maintaining the leading position into 2016, when the sector will be worth some $40 billion more—nearly $250 billion • Rigid plastic is second largest, at 21 percent, or $144 bil- lion. It will be expanding to more than $200 billion by 2016 • Flexible packaging will increase from $130 billion to more than $163 billion • Food and drink packaging will continue to be the biggest end uses in global packaging, growing by almost $43 billion combined to 2016 • Health care packs will grow 4.5 percent each year to reach a total of $34 billion • Cosmetics packaging should grow 4.2 percent per year to reach $24 billion Corrugated Boxes Market intelligence from Smithers Pira indicates that the corrugated board packaging industry is a $50 billion enter- prise. It is set to see its value swell by an additional $15 billion by close of 2017. Rapid expansion of the sector— a growth of 29 percent—is linked to increasing demand for certain end-use products which correlate with the hectic lifestyle of the modern consumer. Environmental concerns are acting as a catalyst to drive research, such as new developments in downgauging and resource-effectiveness. • Actual consumption of corrugated board stands at 102 million tons, and is expected to undergo an average annual growth of 4.4 percent through 2017, achieving an end-value of 130 million tons • Processed food currently forms the single largest segment for end-use corrugated board packaging, encompassing 25 percent of all consumption • Fresh food and produce represents 9 percent and beverages 7 percent • Non-food products are responsible for the majority of business. Electrical goods and personal and household care products represent the richest sectors for growth Global CorruGaTed PaCkaGInG ConsuMPTIon PaTTerns, 2011 10 FLEXO january 2013 www.flexography.org