Continuing moderate but steady growth in Germany and the UK and a return to growth in Italy, France and Spain, are the main factors behind Europe’s flexible-packaging market growing by nearly 1.9% in 2015, up from 1.4% in 2014. In volume (area) terms, growth, at just over 2%, exceeded value due to the increasing substitution of cheaper materials and also some further downgauging.
These are two of the main conclusions from PCI Wood Mackenzie’s latest annual report on the €13.5 billion European converted flexible packaging market, with growth expected to be broadly maintained at this level in 2016. Report author Paul Gaster also notes, “The small uptake in demand also reflects tentative recovery in the Eurozone economy following the introduction of the policy of quantitative easing."
As in previous years, there were some significant regional and national variations in value and volume demand trends. Growth in Western Europe picked up last year as demand in Germany, the UK and Benelux continued to grow, albeit modestly. Sales growth in Turkey was maintained at around 3%, while the French, Italian and Spanish markets returned to growth, following static or declining demand in earlier years. The Italian market in particular had a successful year, with demand increasing by 3%, its best performance for many years.
The Russian flex-pack market did relatively better that might have been expected. While the country’s economy contracted by nearly 4% in 2015, flexible packaging demand continued to grow, albeit at less than 2% during the year. Of all the major European markets, Poland continued, yet again, to grow most strongly, while demand stabilized in Ukraine following previous large declines. A significant trend is the growing importance of East European exports of flexible packaging to Western Europe.
Now in its 16th edition, PCI Wood Mackenzie’s “The European Flexible Packaging Market to 2020” has become an invaluable tool in driving business planning, investment and future product developments. Based on original field research, it is the most recent and comprehensive report available on the European market, providing over 300 pages of historical data and highly detailed market analysis and statistics for 2015, estimates for 2016 and forecasts through to 2020.
More info: www.pcifilms.com