Global packaging industry expected to reach $820 billion by 2016

25 January 2012

Press release
Global packaging industry expected to reach $820 billion by 2016, according to Smithers Pira Leatherhead UK, 25 January 2012. The global packaging industry will swell to almost $820 billion by 2016 predicts Smithers Pira in a new market forecast. Driven mainly by increasing demand for packaging in emerging and transitional economies, a 3% per annum growth rate will focus on board products and rigid plastics, with $40 billion and $33 billion in cumulative predicted growth respectively to 2016. The Future of Global Packaging Market and Technology Forecasts to 2016 provides market sizes and forecasts broken down by packaging product, end-use sector and geographic market, in a comprehensive overview of the status of the packaging industry in 50 countries globally. The study is based on an in-depth combination of primary and secondary data gathered during Smithers Pira's extensive research program for the global packaging industry. This growth is being driven by a number of broad trends such as growing urbanisation, investment in housing and construction, a burgeoning healthcare sector and the rapid development still evident in the emerging economies, including China, India, Brazil and some eastern European countries. An increase in personal disposable income in the developing regions fuels consumption across a broad range of products, with consequential growth in demand for the packaging of these goods. For instance, increased demand for white goods, like washing machines and dishwashers, driven also by growing time pressure on consumer lifestyles, leads not just to a growing demand for packaging for the machines themselves, but also for associated products such as the household care products needed to operate these machines, thus stimulating demand across a range of packaging media. Global packaging sales by type 2010 vs 2016

Source: Smithers Pira More specifically, robust growth in demand for rigid plastic packaging, especially in sectors like drinks, cosmetics, toiletries, and household and personal care products, is stimulating packaging consumption. Similarly, flexible plastic packaging materials are receiving a boost from sectors like perishable foods, healthcare, convenience foods and various industrial markets. Corrugated board consumption is being egged on by the processed food sector and a number of non-food applications including personal and household care, chemicals, electrical goods and others. At the same time, folding carton consumption is benefiting from the growth found in healthcare products, electrical goods, and frozen and chilled foods, among others. According to the Smithers Pira, the US was the largest consumer for packaging in 2010 with a demand of $137 billion; China was close behind at $80 billion. China is anticipated to surpass the US by 2017, and India will enter the top ten packaging countries with its demand set to almost double in the next five years to $24 billion. Technological developments in packaging are seeing an upswing in the consumption of bio-polymers in both rigid and flexible applications, improved value adding in products with functional and barrier coatings, as well as enhanced graphics, resource reduction by way of continuous lightweighting across all materials, and other developments. Board products account for the biggest sector of the packaging market, totaling some $210 billion in 2010 and maintaining their leading position into 2016 when the sector will be worth $40 billion more at nearly $250 billion. Rigid plastic is the second largest slice of the whole, at over 21% or $144 billion in 2010, expanding to over $200 billion by 2016, while the flexible packaging market will increase from $130 billion in 2010 to over $163 billion by 2016.

The consumption of metal packaging represented over 15% of the 2010 market but will be losing market share to competing products, especially rigid plastic, to enjoy only 14% of the 2016 market, while demand for glass containers is also anticipated to slow down over the medium term, increasing from some $45 billion in 2010 to around $53 billion by 2016. Smithers Pira research shows that food and healthcare packaging will continue to be the biggest end uses in global packaging, with the food and drinks industry growing by almost $43 billion combined to 2016. The study shows that health care packs will grow 4.5% each year to reach a total of $34 billion. Cosmetics packaging should grow 4.2% per year to reach $24 billion. The Future of Global Packaging is available now. For more information, please contact Bill Allen at +44 (0) 1372 802086, or via e-mail, or visit www.smitherspira.com Press contact: For editorial queries, details of the study or an expanded article please contact: Chandra Guyot at +1 207 781 9602, or via email.

Smithers Pira - the worldwide authority on packaging, paper and print industry supply chains Established in 1930, Smithers Pira provides strategic and technical consulting, testing, intelligence and events to help clients gain market insights, identify opportunities, evaluate product performance and manage compliance

Growth Opportunities in Active and Modified Atmosphere Packaging

20 August 2009 Leatherhead, UK, 20 August, 2009. The active and modified atmosphere packaging market is forecast to have a compound annual growth rate (CAGR) for 2009-14 of 7.5% and is forecast to reach close to $3.5 billion in 2014, according to a new study by Smithers Pira. Based on primary research and expert analysis, The Future of Active and Modified Atmosphere Packaging, breaks down the global market by technology, end-use sector, region and country, with five-year forecasts to 2014. The study also provides an up-to-date overview of the latest technology developments, analysis of the competitive landscape and identifies specific market opportunities for raw material and technology suppliers, converters and brand owners. Active packaging is packaging that performs an active function after the contents are packaged by interacting with the contents to deliver improvements in quality, shelf life, safety and usability. Modified atmosphere packaging (MAP) is used to prolong the shelf life of processed or fresh food by changing the composition of the atmosphere surrounding the food in the package. MAP is used for different products, so the atmosphere in the package depends on the product type, the temperature and the packaging materials. The study covers protective atmosphere packaging (PAP) and active packaging. PAP is divided into vacuum packaging and MAP. Active packaging is breaks down into oxygen scavengers, carbon dioxide scavengers

and emitters, ethylene scavengers, antibacterial films, ethanol emitters, moisture scavengers, flavour or odour absorbers, antioxidants, selfventing, susceptor laminates, and temperature control. End-use sectors examined in the study include: beer, fruit drinks, hot beverages, ready-to-drink (RTD) beverages, fresh and processed meat, fresh fish and fish products, fresh fruit and vegetables, ready meals and dishes, dairy products, bakery products, snack foods, dried foods and frozen foods. According to the study, active packaging technologies were initially considered to offer huge market potential and benefits for producers and consumers. Undoubtedly, there has been good growth in active packaging technologies over the past five years, but several factors have restrained market growth: its relatively high cost, consumer resistance and restrictions imposed by food safety legislation, particularly in the EU. However, Smithers Pira has identified a number of specific opportunities for active and modified atmosphere packaging. PET beer bottles will be a major driver for oxygen scavengers, particularly in Japan and central and eastern Europe. The growing dominance of major supermarket chains in developed countries and the development of a more advanced retail infrastructure in developing markets will be a key driver for MAP and vacuum packaging. The trend for consumers to demand more convenient packaged foods will drive sales of MAP and active packaging, including use of moisture scavengers, self-venting films and microwave susceptors. The growing demand for organic food has encouraged development of MAP solutions that suit an extended distribution chain. Finally, consumer demand for environment-friendly packaging is driving the introduction of MAP packaging using renewable resources. The Future of Active and Modified Atmosphere Packaging is available now for 3,500. For more information, please contact Stephen Hill on +44 (0) 1372 802025 or contact us online Press contact: For editorial queries, details of the report or an expanded article please contact: Rebecca Leigh +44(0)1372 802207 rebecca.leigh@smitherspira.com Smithers Pira Smithers Pira - the worldwide authority on packaging, paper and print industry supply chains. Established in 1930, Smithers Pira provides market research, strategic and technical consulting, testing, publications and events to help clients understand market trends, identify opportunities, evaluate product performance, meet compliance requirements, network and develop strategies to grow their business