Michael Cronin FPE Chairman

Size: px

Start display at page:

Download "Michael Cronin FPE Chairman"

Angela McKinney
6 years ago
Views:

1 European and Global Markets for Flexible Packaging Michael Cronin FPE Chairman Annual Conference 2007, Florida

2 Content The new FPE ( Flexible Packaging Markets (with kind support of Paul Gaster, PCI Films Consulting) REACH (with kind support of Paul Verspoor, SITMAE Consultancy) European Consumer Trends

3 EAFA / FPE Network EAFA FPA (US) EAA RO CT RW Plastics Europe FEDES GDA Germany UNITES France GIFLEX Italy FPA UK IGFV Switzerland Effective + flexible alliances possible membership cooperation

4 New FPE Members 06 / 07 Companies Safta S.p.A. (Italy) Perlen Converting (Switzerland) SIG Combibloc (Germany) Südpack Verpackungen (Germany) Tetra Pak (Sweden) National Associations GIFLEX (Italy) IGFV (Switzerland) UNITES (France) GDA FV Flexible Verbundstoffe (Germany) Total: More than 70 members covering about 75 % of European FP market

5 Participating Companies afm aluminiumfolie merseburg Alcan Packaging Amcor Flexibles Ballerstaedt Haendler & Natermann Hueck Folien Huhtamaki Ronsberg Nordenia International Novelis Nyco Flexible Packaging Printpack SIG Combibloc SOPAL PKL Teich Tetra Pak Wipf FPE Technical Committee (Oct. 06) Participating Nat. Associations: GDA GIFLEX UNITES In total 30 delegates from Integration well accepted by politicians, Brussels authorities and industry

6 Content The new FPE ( Flexible Packaging Markets converted and unconverted materials if not marked different (with kind support of Paul Gaster, PCI Films Consulting, REACH (with kind support of Paul Verspoor, SITMAE Consultancy) European Consumer Trends

7 World Flexible Packaging Market 2005 Asia Pacific 29% Middle East & Africa 3% Europe 30% Central & South America 6% North Ame rica 32% World Flexible Packaging Market = $44.5 billion (2004: $42.9bn.)

8 World Flexible Packaging Market 2005 COUNTRY / REGION Flexible Packaging Consumption US$m % Share Average % Change 2000 to 2005 Average % forecast 2005 to 2010 Europe 13, N America 14, C & S America 2, Asia Pacific 12, Africa / Middle East 1, TOTAL 44,

9 Global Flexible Packaging Market: The Leading Players Alcan 7% Bemis 7% Amcor 5% Sealed Air 4% Printpack 2% Constantia 2% Exopack 2% Winpak/Wipak Others 65% Sonoco 1% Pliant 1% 2% Huhtamaki 1% Clondalkin 1% Total Market = $44.5 billion

10 European Flexible Packaging Market Overview 2005 Exports ($1,000m) Imports ($110m) European Production ($14,090m) European Consumption ($13,200m)

11 Indian Flexible Packaging Market Overview 2005 Exports ($40m) Imports ($10m) Indian Production ($830m) Indian Consumption ($800m)

12 US Flexible Packaging Market Overview 2005 Exports ($350m) Imports ($250m) US Production ($13,100m) US Consumption ($13,000m)

13 Global Flexible Packaging per capita Consumption by Region North America Western Europe Central & South America Eastern Europe Asia Pacific Middle East & Africa $0 $5 $10 $15 $20 $25 $30 $35 Average Per Capita Consumption (US$) in 2005

14 European Flexible Packaging Market 2005 COUNTRY / REGION Flexible Packaging Consumption US$m % Share Average % forecast 2005 to 2010 Western Europe 11, < 1 C & E Europe (CEE) 1, TOTAL 13,

15 Sub-regional Trends in European Flexible Packaging Markets 2005 West European demand mature at around +1%pa Poland, Hungary, Czech and Slovak Republics +4-5%pa growth Turkey +5-6% growth Romania / Bulgaria / Balkans 7-8%pa growth Russia and Ukraine 10%pa+

16 Germany 21% European Flexible Packaging Market by Country 2005 Others 11% Poland 3% Turkey 3% Russia 4% Nordic Countries 5% France 16% UK 16% Benelux 6% Spain 6% Italy 9% Total Market = $13.2 billion (2004: $13.0bn.)

17 European Flexible Packaging Market*: The Leading Players Alcan Packaging 16% Amcor Flexibles 14% Constantia 6% Sealed Air Cryovac 4% Clondalkin 4% Others 41% Mondi Packaging 3% Bemis 3% United Flexibles 3% Total Converted Flexible Packaging Market = US$11.5 billion Wipak 3% Huhtamaki 3% *unconverted materials not included

18 Flexible Packaging Market in CEE 2005 Poland 25% Czech Rep. 9% Hungary 7% Ukraine 6% Romania 5% Russia 31% Slovak Rep. 5% Belarus & Moldova 3% Bulgaria 2% Balkan States 3% Baltic States 4% Total Market = US$1,530m (2004: US$1,430m)

19 European Demand for Flexible Packaging Materials 2005 Alufoil 11% Papers 14% PE 34% Other films incl. Cello 2% BOPA 1% EVOH Coex 2% PA 2% PET 3% PVC 3% CPP 4% BOPP 24% Total Market (Converted and Unconverted) = 3.5m tonnes (2004: 3.4m tonnes)

20 Western Converters Plants in CEE Russia Poland Czech Rep. Ukraine Hungary Alcan Packaging Amcor Cryovac Emsur / Coexpan Mondi Packaging Nordenia International Reuther Schur Flexible Suominen Constantia Packaging

21 Drivers for Change in Eastern Europe Growing national economies, rising affluence and changing lifestyles Inward investment by Western food and non-food manufacturers and flexible packaging converters Major investments in food processing and associated transport, distribution, agricultural and other supply chain infrastructural developments Rapid expansion of West European multiple retailers in Central European markets and now starting in Russia Enlargement of the EU to include Poland, Hungary, Czech & Slovak Republics, Baltic States and from 2007 also including Romania and Bulgaria Increasing integration of West and Central European economies

22 The Future for Flexible Packaging in CEE Flexible packaging growth in CEE will be maintained by internal demand and W European food producers increasingly supplying all European markets from their East European plants for some products Huge long term potential in Russia and Ukraine will see double digit flexible packaging growth for some time to come Longer term threat from non-european producers in supplying converted flexible packaging to CEE markets More Western converters will set up or acquire plants in Russia Growing import substitution with new BOPP film lines in Russia coming on stream

23 The Future (cont d.) Multinational Food producers are building capacity in CEE to participate in the growth in demand from these rapidly developing economies Eastward shift of manufacturing, including food processing from Western to Eastern Europe to reduce costs The creation of a more integrated European flexible packaging industry Intensified competition within Europe Sales value growth will continue to lag volume growth Further flexible packaging rationalisation and consolidation A continuing shift in GROWTH OPPORTUNITIES from the more mature West European market to CEE

24 European Flexible Packaging Market the next five years 1.5% average annual growth overall to reach US$14.2 bn. in 2010 (converted and unconverted materials) Sub-regional average annual growth! Western Europe no more than 1%pa! Central & Eastern Europe 7%pa! Turkey 4%pa Continued overcapacity, especially in Western Europe, despite consolidation and rationalisation Competition will intensify

25 The Future for Flexible Packaging Converters in W Europe More plant closures Further consolidation Focus on near to market packaging plants for perishable and seasonal foods e.g. produce, bread, yoghurt. Also higher added value products e.g. medical, pharmaceutical, industrial solutions. Accent on sophisticated technologies and innovation. Sustainable packaging solutions e.g. PLA films biodegradability, compostability.

26 Content The new FPE ( Flexible Packaging Markets (with kind support of Paul Gaster, PCI Films Consulting) REACH (with kind support of Paul Verspoor, SITMAE Consultancy) European Consumer Trends

27 REACH One system for existing and new substances R = registration > 1t/a, 30,000, self assessment E = evaluation > 100 t/a, 5,000, Member States A = authorisation very high concern, 1,350 (today) CH = chemicals

28 Chemical Safety Report Every substance. A few elements Chemical Safety Assessment Human health, environmental Classification & labelling PNEC (predicted no-effect level) Exposure assessment Intended uses, exposure scenario s Risk characterisation Risk management measures

29 Preparations (adhesives, inks etc).. some highlights.. Every substance must. be registered have a chemicals safety assessment for that use Extensive Material Safety Data Sheet with.. Intended uses, exposure scenario s Risk characterisation & risk management measures think of the liability issues..

30 Substances in articles No problem if.. all substances registered for that use Any substance not registered Registration of the substance if > 1 t/a per producer or importer and Release intended Notification of authorised substance if > 1 t/a per producer or importer and > 0,1% weight

31 Content The new FPE ( Flexible Packaging Markets (with kind support of Paul Gaster, PCI Films Consulting) REACH (with kind support of Paul Verspoor, SITMAE Consultancy) European Consumer Trends

32 European Consumer Trends in the package value chain 60% use a motor vehicle to go shopping, but still 30% walk and carry 65% shop twice a week, 3% daily, 41% spending less than 30 minutes, 21% less than 1 hour to shop Current trends: Freshness (expressed for instance through transparent packaging) Wholesomeness, authenticity: appearence of traditional or old-fashioned designs or graphics Golden-age specialised shops: magnifiying glasses to read small-print Broader alleys for carts, sitting carts Adjusted shelve height, less crowded shelves Unit-dose, smaller portions, bundled unit doses, family packs within the same brand and product family

33 At the time, one needed a lot of courage... New forms of delivering products and services are constantly appearing... Cyber-markets are springing up everywhere

34 Example: Nespresso Experience Society, habits and needs for change experience a meaningful new consumption A blend of brick & mortar with Internet convenience

35 Shopping: new product information BrandX BrandX 2D-Mtrx Feasible today, low or no cost... Tomorrow, maybe item level intelligent packaging, or... Regulatory Information Tracability (serialization - unique) Product information Genuine / Counterfeit? Product Information Recipe, wine... recommendation Related products Promotions Price Point comparison...

36 Home Use / Nomadic Use

37 Throwing away: Minimise space collapsible, foldable, rollable Rigid vs. Flexibles Waste taxes (green dot) and country specific systems: Pay per trash-bag Trash inspector Collect, recycle, re-use Social aspect of waste: Shameful amount of waste School education: kids highly aware and trained on waste, recycling

38 Disposing Minimise environmental impact: Holistic approach, life-cycle from craddle to grave, from craddle to craddle (i.e. bring back into use-cycle) still incomplete Product Stewardship approach Source reduction, emission elimination remain key focus Immense focus on renewable resources, still lacking robust assessement of overall impact Increase the possibilities to recycle the packaging Waste streams are still highly local, at times not even national: incineration, landfill, glass-, metal-, plastic-collection schemes vary, industrial composting availability render packaging policy for large brands highly atomized, thus hard to put in place

39 Some conclusions on trends Increasing diversity to deliver product and services More intense use of new technologies to deliver products, services Fragmentation, brand extension, experience based consumption atomize packaging types for a given product, brand Successful new products are only the ones providing meaningful experiences, significant performance improvement for a given outcome Over-served features don t get recognised as valuable and disappear Lasting success requires adequation with better resource management, consumer will learn quickly to differentiate Local environmental initiatives will impact brand positioning

40 In Conclusion Europe is a complex market: Many cultures, currencies, competitors RDE's of CEE present both an opportunity and a threat to WE converters Regulations add a thick layer of complexity and cost Consumer habits vary and lead to fragmentation

Stefan Glimm FPE Executive Director

European and Global Markets for Flexible Packaging g Stefan Glimm FPE Executive Director Annual Conference 2010, Florida Content FPE Flexible Packaging Markets Food Contact regulation Sustainability Global