The Packaging Materials Future Outlook: Key trends in new materials, lightweighting and emerging applications
The inexorable rise of plastic packaging has been the key market narrative, a rise driven by cost, convenience and the entirely natural desire to do ever more with ever less. Plastic, however, is made from petrochemicals and raw materials are becoming increasingly costly. More significant still, plastic has relatively poor environmental credentials and is profoundly disliked by consumers, particularly in the developed West. Nevertheless, the plastics sector continues to receive the lion’s share of R&D into new technology, although bioplastics and nano-enhanced ‘super packaging’ are both some way from being commercially viable. Paper-based packaging is still the largest sector and has very strong environmental credentials; improving paper-s barrier properties is a crucial step in increasing its viability as a packaging material. Glass has an enviable reputation as a premium material and as a packaging medium out of which food and drink taste better; lightweighting is helping make glass easier to handle and more cost-effective in production and distribution. The rise of the aluminium beverage can has helped sustain the metal packaging sector – in other areas; metal is being developed through higher-quality graphics, new printing techniques and innovation in convenient closures.
This report assesses the relative weights of all these trends and sets the packaging market in its context – social, economic, environmental and cultural. It examines this complex and dynamic market organically, from the viewpoints of suppliers and end-users and looks in detail at regional drivers, as developing markets increasingly shape the future.
Key features of this report
• A broad assessment of the size and dynamics of the global consumer packaging market and its drivers – economic, social, cultural and environmental.
• Coverage of trends by material – plastics, glass, metal, paper and paperboard, by region – Europe, the Americas and Asia-Pacific and by product sector – alcoholic and non-alcoholic beverages, food.
• Assessment of consumer attitudes to packaging and the manner in which hardening attitudes amongst end-users are influencing the packaging industry.
• Comparative analysis of the strengths and weaknesses of the different types of packaging material, in easy-to-view format.
• An assessment of how emerging technologies are likely to impact on the future of the market and on individual sectors.
• Illustrated references to key product introductions and innovations
• Assessment of supply-side trends and profiling of major industry players and their strategies
• Identification of the key commercial implications of current trends and an assessment of the future outlook for the market.
Key benefits from reading this report
• Understand market dynamics and make informed assessments of the future shape of the market, particularly in terms of what materials and technologies warrant investment.
• Decisions taken now, in the light of full information and a complete picture, can determine future progress - in a rapidly-changing marketplace, the winners stay ahead of the game and anticipate, rather than simply react.
• Gain an understanding of how the market is likely to look as the current recession passes into memory.
• Understand niche as well as mainstream packaging sectors; there are many potential avenues of growth for smaller suppliers who apprehend consumer needs.
• Be in a good position to tie product to the best packaging, especially in terms of new product development.
• Take all of the above information into the core of your NPD programme and appreciate fully the payoffs this will have, not only in terms of profitability, but – and crucially - in terms of company and brand image
• Understand the packaging market, not simply in terms of data, but holistically. Markets, like consumers, do not exist in a vacuum, but are proactive. The shape of change in the packaging market is tied inextricably to broader social issues and, ultimately, to the fact that packaging is something consumers take into their homes and have a relationship with.
Key findings of this report
The consumer primary packaging market is worth around $400bn. Plastic packaging is the largest and best-performing sector. Paper-based packaging, however, remains the largest single segment, sustained by its ‘naturalness’, its recyclability, its versatility and its low cost. Metal and glass packaging are facing strong challenges from glass in their traditional strongholds.
The Asia-Pacific region is the largest consumer of packaging and its share continues to grow.
Demand for consumer packaging is tied into demand for consumer goods, itself subject to global economic trends. Food and beverages account for 70% of consumer packaging by end-use. Demand for convenience has helped drive growth in packaged foods. This is linked to changing lifestyles – greater affluence, less time.
Sustainability is becoming a market given and is relected in packaging reduction, lightweighting and in the application of new technologies to the market. Whilst plastic remains in the ascendancy, other sectors are fighting back. The future dominance of plastic is less a fact than its adherents would have the market believe.
The future of the packaging market may lie in ‘smaller, better, eco-firndlier’, rather than in ‘one size fits all’.
Key questions answered by this report
• At what rate is the packaging market likely to grow in the short-term& which materials have the brightest future?
• Which global regions will be the drivers of change?
• What are likely to be the packaging materials of choice, given current parameters and which materials are likely to suffer a downturn?
• How far is packaging likely to move towards the domains of marketing and image-building? Will sustainability become more crucial than cost?
• Will consumer tastes turn against convenience and move back towards more traditionally-presented foods, in more traditional packaging?
• Are there any indications that growth in the packaging market is becoming less resistant to global economic trend?
• Is there a role for smaller suppliers in an environment where the biggest suppliers appear to be getting ever-bigger?
• How is legislation likely to impact on growth?
Table of contentsExecutive summary
The packaging market
Chapter 1 The packaging market
The global consumer packaging market
Global packaging - The wider context
The changing consumer
Importance of cost
Manufacturer and retailer strategies
Impact of technology
Packaging materials and food & drink sectors
The supply side
Chapter 2 Plastic packaging
Plastic - positives and negatives
Technology and innovation
Consumer attitudes to plastic packaging
Rise of China & India
Major plastic packaging companies
Chapter 3 Glass packaging
Glass - positives and negatives
Technology and trends
Suitability for recycling
Consumer attitudes to glass packaging
Major glass packaging companies
Chapter 4 Metal packaging
Metal packaging - positives and negatives
Technology and trends
Consumer attitudes to metal packaging
Major metal packaging suppliers
Chapter 5 Paper-based packaging
Paper-based packaging - positives and negatives
Technology and trends
Consumer attitudes to paper-based packaging
Major paper packaging suppliers
The Smurfit Kappa Group (SKG)
Chapter 6 The future outlook
Comparison of materials
Key trends for the future
Cost and the consumer
List of Figures
Figure 1.1: The global consumer packaging market 2006-2010 ($bn)
Figure 1.2: Global consumer packaging market by material type, % value, 2006 & 2009
Figure 1.3: Annual growth rates (by sector value (%)), 2006-2014
Figure 1.4: Indices of commodities (nominal US$ prices), 1990-2010
Figure 1.5: Average number of occupants per household (absolute), 1992-2015
Figure 2.6: Consumer attitudes to plastic packaging: FEVE survey results, 2009
Figure 2.7: Plastic as % of food packaging, by volume, 2009
Figure 2.8: Heinz's plastic ketchup bottle
Figure 3.9: The range and versatility of glass packaging
Figure 3.10: Reasons for choosing glass packaging (%)
Figure 3.11: Share of products launched by packaging material, by region (%), 2007-2009
Figure 3.12: Amcor's premium RingNet PET bottle
Figure 4.13: The range and versatility of metal packaging
Figure 4.14: Reynolds soft-style aluminum can
Figure 4.15: Stockmeyer soup tureen
Figure 4.16: The Fusion BottleCan
Figure 4.17: Aluminum beer bottles
Figure 4.18: Guy Anderson CanCan
Figure 4.19: Crown metal packaging innovations
Figure 4.20: Alu SLEEK
Figure 5.21: Tetra-Pak packaging examples
Figure 5.22: Smurfit Stone RecyclaCorr wax replacement packaging
Figure 5.23: Mountaire's recyclable boxes
Figure 5.24: Consumer packaging preference by material
Figure 5.25: Consumer attitudes towards packaging, 2009
Figure 5.26: Tetra Brik Edge
Figure 6.27: Packaging materials comparison
Figure 6.28: Key trends for the future
List of Tables
Table 1.1: Annual growth rates (by sector value (%)), 2006-2014
Table 1.2: Global consumer packaging market by end use (% value), 2006 & 2009
Table 1.3: Consumer attitudes to primary consumer packaging, 2008
Table 1.4: Executives’ opinion of packaging manufacturers who are driving innovation in food and drinks packaging (% mentions), 2009
Table 2.5: Share of food and drink products launched by packaging material type (%), 2007-2009
Table 2.6: Benefits & drawbacks of plastic packaging
Table 2.7: World Crude Oil Price, Average, end-March, 2000-2010
Table 3.8: Materials share of ethical and sustainable packaging (% of products launched), 2007-2009
Table 3.9: Benefits & drawbacks of glass packaging
Table 3.10: Potential annual savings through lightweighting, per million units
Table 4.11: Benefits & drawbacks of metal packaging
Table 4.12: Consumer preference for Carbonated Soft Drinks & Beer packaging type
Table 1.13: Materials share of ethical and sustainable packaging (% of products launched), 2007-2009
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