Europe’s Flexible Packaging Market contracts by 3% in value terms, despite an increase in volume

Oct. 29, 2010 - PRLog -- Europe’s converted flexible packaging market declined by 3% in value terms to around €10.4 billion in 2009, equivalent to 44.2 billion m² of materials, according to a report from leading consultancy PCI Films Consulting Ltd.  The decline in sales value was primarily associated with the fall in raw material costs, especially in the first half of the year, which was reflected in lower prices to customers.  Contrary to some expectations, however, demand in area terms actually increased, albeit by a marginal 1%, as a result of real growth in a number of end use markets in both Western and Eastern Europe.

Commenting on the publication, study author Paul Gaster says: “The robustness of flexible packaging demand is to a great extent underpinned by the strong recession-resistant nature of its end use markets, especially food, pharmaceuticals and pet food, which between them account for around 90% of total European flexible packaging demand.  However, raw material costs have risen very strongly this year, reversing the declines in 2009, and this is again putting greater pressure on converter margins.”

One of the major events of the last year has been Amcor completing its acquisition of certain parts of Alcan Packaging, which sees Amcor emerging as by far the largest flexible packaging converter in Europe with approaching 25% overall market share.  At the same time a number of other European top ten converters have not yet achieved the critical mass at which they can most effectively challenge the newly enlarged Amcor.  

The report notes that the conjunction of these trends is expected to result in still further consolidation of the European flexible packaging industry as more medium sized converters are likely to be acquired by the leading players.  The report also details the emergence of a number fast growing medium sized converters that are taking share from the leading players in some national markets.

The report forecasts that Europe’s flexible packaging market will grow by 4 – 5% in value terms in 2010 as converters see some stock building, higher selling prices and some real volume growth.  Longer term value growth is expected to be around 2.5% per annum up to 2014.

Europe’s flexible packaging market industry is analysed afresh in this latest study from PCI Films Consulting Ltd.  Now in it’s 10th edition and based on original field research carried out in 2010, this 400+ page report updates historical data and provides comprehensive market analysis and statistics for 2009 and forecasts through to 2014 and includes more than 150 charts and tables.  

Further information about ‘The European Flexible Packaging Market 2010 (10th Edition)’ can be found on PCI’s website www.pcifilms.com

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PCI Films Consulting Limited specialises in providing market information and analysis to manufacturers and purchasers of speciality and oriented plastic films, such as PET, OPP, OPA, other polymer substrates, special papers and aluminium foil.