European Flexible Packaging Market To Reach EUR 16+ Billion In 2023
July 25, 2019Europe’s flexible-packaging market is predicted to
achieve a compound annual growth rate (CAGR) of 2% over the next five years to
reach over €16 billion in 2023, according to the latest Wood Mackenzie
Chemicals “Flexible Packaging Europe Supply Demand
Report.”
Paul Gaster, Wood Mackenzie Chemicals principal analyst, says, “The European
market for converted flexible packaging showed modest growth in 2018,
increasing by just over 2% to reach €14.5 billion last year. Sales in the
European region, comprising 28 countries across Western and Eastern Europe –
including Russia and Turkey – accounted for 16% of total global sales in
2018.
“There are still a significant number of smaller markets, largely in Eastern
Europe, showing dynamism in the region. The European region as a whole exports
nearly 10% of total production to non-European destinations.
German and Polish markets struggling
“Growth in Germany, Europe’s largest market for flexible packaging, slowed from
2% to 1.6% in 2018. Slight declines in the confectionary and struggling dairy
sector were largely responsible for this deceleration in growth.
“Poland, for many years one of the strongest markets in Europe, has seen its
growth rate drop from over 5% to 3.5% – although this is still above the
regional average.”
Outlook for Eastern Europe is positive
2018 saw higher growth in Russia, as the country’s flexible packaging industry
looks to meet demand with domestic production rather than imports.
Recovery in the Italian and Ukrainian markets, growing at 3% and 4%
respectively, illustrates a resurgence in both countries after several years of
economic downturn.
Shrinking consumption of sugar and chocolate confectionery, cigarettes and
tobacco in Western Europe was offset by continued growth in Eastern Europe for
overall marginal increases in 2018.
Sustainability still a key issue
“While some major end markets – such as confectionery and dairy – have been
struggling, value growth in flexible packaging has also been constrained by
downward price pressures across the supply chain,” Gaster adds. “This
is primarily due to challenging commitments aimed at phasing out non-recyclable
packaging materials in favor of sustainable, but more expensive, alternatives
by 2025.
“Amcor’s recent acquisition of Bemis will alter leading sales on a global
level. However, Bemis’ relatively small European footprint, as well as the
recent divestment of its European healthcare packaging plants, will have little
impact on Europe’s top converter scene. Schur Flexibles has climbed regional
rankings, however, significantly strengthening its position in Europe with the
acquisition of France’s Uni Packaging and a number of Clondalkin
businesses.”