Study Examines Future of Flexible Packaging in Europe
The imminent closure of a significant amount of UK production capacity announced by two of Europe’s leading suppliers of flexible packaging is in direct response to extreme competitive pressures shaping the UK flexible packaging industry, noted a new study from market intelligence firm PCI Film Consulting Ltd.
“The European Flexible Packaging Market 2006” concludes that in spite of continuing plant rationalization, the €9.3 billion Western European converted flexible packaging market continues to be oversupplied. Much of it is deemed uncompetitive, due to its high cost base.
In addition, a trend by leading brand owners to switch food production and packing out of the UK, often to plants in the new member countries of the EU, is forcing suppliers of flexible packaging to follow suit. While the leading multi-plant converters in Western Europe are in a position to rationalize and relocate their capacity to meet these changes, many small and medium sized West European converters cannot and are expected to suffer.
“While these changes are impacting on most Western European countries, especially in northern Europe, of most concern is the future for flexible packaging in the UK where both market demand and production are forecast to decline significantly over the next five years,” said study author Paul Gaster.
Overall, the study forecasts European demand for converted flexible packaging growing at 1.4 percent per annum from €9.3 billion in 2005to approaching €10 billion by 2010 but expects growth in Western Europe to remain at less than 1 percent per annum over this period. In contrast, demand growth in Central and Eastern Europe is forecast at approaching 7 percent per annum as packaging applications continue to evolve.
In terms of the supplier base, Alcan Packaging and Amcor continue to retain their market leadership in 2005, accounting for approximately 30 percent of the European market, but PCI noted increased interest in industry rationalization and additional plant closures are expected to balance supply and demand.
“The European Flexible Packaging Market 2006” is the sixth edition in PCI’s series of annual studies on the European flexible packaging market. The report updates historical data and provides market analysis and statistics for 2005 and forecasts to 2010. This 340-page study is based on original field research conducted across Europe in early 2006.
For more information on this study, contact PCI Films Consulting Ltd.+44 1604 749001; e-mail: firstname.lastname@example.org; or through their website atwww.pcifilms.com.