Flexibles demand to pick up from 2011
Simeon Goldstein, packagingnews.co.uk, 21 August 2009
Demand for flexible packaging will stabilise next year and return to 1-2% growth levels from 2011, according to PCI Films Consulting. PCI’s ’European Flexible Packaging Market 2009’ report said the value of demand would likely contract by 4-5% this year, largely due to declining raw material prices and the reduction in consumer spending due to the recession.
But, the consultancy suggests that the recession will prove to be a blip on the general growth in demand for flexible packaging in Europe.
Report author Paul Gaster said:
"The flexible packaging industry has shown steady long-term historic growth, only recently being significantly affected by the global recession."
Gaster warned that European converters would increasingly have to deal with imports from outside the continent.
"Although small at present, these are likely to become a major threat over the next few years," he said.
PCI produces a number of annual reports into the plastic films and packaging markets and also provides specialist consulting services and custom research.
EFFECT OF THE RECESSION ON PLASTICS CONVERTERS
- More production planning to stop excess buying
- Smaller order sizes
- Increased converter debt
- Difficulty in obtaining credit insurance
- Consumers favouring own-label and discount products
