Dr. Ulrich Reiners International Trends in Plastic Packaging and Processing
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1 Dr. Ulrich Reiners International Trends in Plastic Packaging and Processing GPCA PlastiCon April 2017, Abu Dhabi, UAE
2 How We Work Executive Packaging manages the entire business process 3
3 International Trends in Plastic Packaging and Processing CPCA PlastiCon 2017, April 9-10, 2017, Abu Dhabi, UAE Points to cover Global volume developments Key drivers, trends, and applications Packaging polymers and their status Fragmented use of polymer types Supply security 4
4 Global Plastic Demand by Application Use 2015 global plastics demand: 322 million tons Global plastics production is growing steadily year by year Plastics for packaging is by far the largest application Followed by building and construction Sources: Executive Packaging, PlasticsEurope 2015 (PEMRG) / Consultic / ECEBD
5 Annual Growth of Plastic Consumption by Region Annual Projected 2015 to 2017 Europe 2.9 % North America 2.7 % Asia 4.5 % Greater China 7.8 % GCC 7.9 % Indian Sub Continent 10.2 % Latin America 5.3 % Continuous and sustainable growth of plastic products in emerging markets Main driver is plastic packaging Sources: AMI, Executive Packaging 6
6 Plastic Packaging Markets Flexible Packaging by Region Global market size for flexible packaging $83 billion Biggest regional consumption is in Asia Annual growth rate estimated at 4.8% Sources: Executive Packaging, AMI, PCI Films Consulting 7
7 Top Trends in Plastic Packaging Sustainability Highly regarded Provides reassurance Functionality Easy-opening Protection and Preservation Presentation Creative packaging Fun functions 8
8 Sustainability In general, plastics have a high eco efficiency but public discussions are ongoing Consumers feel better if they see evident eco data Weight reduction is a must Recycling is a key focus across the world 9
9 Sustainability - LCA Life cycle analyses are helpful, but they are very detailed and do not always garner consumer interest. In Europe, more than 50% of all goods are packaged in plastics, but plastics only account for 17% of the weight. Plastics contributes to resource-savings. The problem: How to show to the user/end-consumer Source: LCA LDPE PlasticsEurope
10 Sustainability Weight Reduction Rule of thumb: Lightweight is better than heavy. Reduction of weight for packaging as well as for construction parts is of high importance for all plastic converters. It means high tech in plastic conversion is required. It is quite demanding for plastic converters! Example: Foamed plastics can reduce packaging weight by 15 to 30% depending on the application and the polymer required. Photo: Dr. Ulrich Reiners 11
11 Sustainability - Recycling Recycling is most important for the environment Recycling has a high economic value and creates business The global recycled plastic market is steadily growing Anticipated growth is 4.3 % per year to 5.5 m tons in 2020 Asia Pacific has overtaken North America and Europe Stable investments in recycling units are expected Recycled Plastics have an economic value Recycling Business Recycling creates business for converters Sources Executive Packaging TECHNAVO, UK
12 Functionality is a continuous trend Convenience: easy-opening Barriers: protection and preservation 13
13 Functionality: Easy Opening For many years now, easy-opening plastic packs have been in the focus of plastic packaging manufacturers Limitations are very much the convenience and the costs However, easy-opening will remain the focus of food producers Re-closable candy pouch Huthamaki/DVI 14
14 Functionality: Barriers for Protection Are Key for Foodstuffs! Gas barriers are essential for perishable food Aroma protection is of particular interest: It keeps the aroma inside the package and leaves undesirable flavors outside Increasing importance: Protection against residues of Food Contact Materials in Food Thanks to polyolefins, most of the plastic packaging structures can deliver a moisture barrier but lacking gas barriers Barrier packs represent a huge opportunity for GCC converters However: The majority of packaging plastics have no or only limited barriers Dates Packaging VF Verpackungen 15
15 Catchword: Nano-Particle Based Coatings Coatings of thin layers can: Strengthen polymer surfaces Deliver protection against UV light Improve COF Build up gas barriers Can be applied: In a vacuum chamber With gravure rollers in a wet solution Disadvantages: Critical for food contact Consumer perception Nano-particle coating can make plastic antibacterial, magnetic, etc. Popular Science 16
16 Presentation: Creativity Plastics play a key role due to its variety Creative packs are an eye-catcher Individualization of packs Pack sizes Digital printing will increasingly support these developments Plastic labels Constantina flexibles Digital printing of plastic surfaces 17
17 Function with Fun Bottle package includes blinking LED s 18
18 Packaging Polymers: Dilemma and Opportunities High variety of different polymers type usage for packaging Polypropylene Polyethylene PET Polyamide 6 Polystyrene PVC/PVDC To combine the right polymers for the application in an innovative way results in products with higher margins! 19
19 Packaging Polymers: Polyester Main applications are bottles and biaxial-oriented PET films Prices and availability are quite stable Supply shortages in past years PET bottles 20
20 Packaging Polymers: Polyamide 6 But: Polyamide 6 is widely used for PA/PE films: meat, fish, poultry, cheese packaging. PA/PE films are steadily growing Opportunities for plastic converters are huge especially in the GCC area with export options to Africa A wide market and application knowledge is required Vacum packs PA/PE 21
21 Packaging Polymers: PVC and Polystyrene Meanwhile, PVC and PS play a decreasing role in packaging polymers but are not disappearing. Prices are not necessarily following general trends, but more availability of production capacities poses risks Polystyrene Trays & Cups 22
22 The global situation for plastic conversion is still bright International financial advisors consider the plastic conversion industry as highly attractive Retail-ready demand to rise by 40% through Share in plastics expected to see a significant upturn Plastic packaging is growing globally by 3-5% Plastic packaging growth outpaces paper packaging 23
23 Thank You for Listening! An der Stadtmauer Kempten (Allgäu) Germany Dubai Airport Free Trade Zone P.O. Box 54620, Dubai United Arab Emirates ur@executive-packaging.de 24
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