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US corrugated and paperboard box demand to exceed $39 billion in 2018

The Freedonia Group is reporting that the corrugated and paperbox demand in the United States is projected to increase in 2015. The demand is expected to rise to 2.6% per year up to around $39.4 billion in 2018. This is an improvement from the performance of the recession impacted 2008-2013 period. Furthermore, the report suggests that the box production volume will recover from the past decade. What is to come is lighter weight containerboard, this comes from pressure to reduce excess packaging. According to Freedonia, this recovery is driven by a rebound in manufacturing and continued expansion with a growing emphasis on sustainability.

For further reading, please visit http://www.mmh.com/article/us_corrugated_and_paperboard_box_demand_to_exceed_39_billion_in_2018

Source: Modern Materials Handling

Top five packaging trends for 2015

The five trends that will impact packaging and associated industries in 2015 are: the growing importance of sustainability; the demand for supply chain transparency; the rise of new barrier/coating packaging technologies; the continued emphasis on lightweight packaging; and the importance of delivering frustration-free packaging.

The growing importance of sustainability

Because sustainable packaging is now prompting consumers purchasing preferences, sustainable packaging has significant environmental and business implications for companies. Businesses should be proactive in implementing procedures that advance a product’s packaging sustainability; if not, they risk the possibility of losing customers to competitor brands that are prioritizing sustainability in their packaging.

The demand for supply chain transparency
Supply chain transparency is an important area companies must focus on to avoid potentially costly environmental and legal infractions that could damage a company’s reputation and overall relationships with consumers. Businesses should address how they are implementing supply chain traceability in terms of sourcing, manufacturing, transport and end of life cycle.

The rise of new barrier/coating technologies
According to a Smithers Pira report, paper and corrugate are going to see tremendous growth in the next several years. The focus will be on developing new barrier technologies that are renewably sourced, readily recyclable and/or biodegradable.

Source: Greener Packaging

To read the entire article, click here: http://www.greenerpackage.com/source_reduction/top_five_packaging_trends_2015

North America flexible packaging market estimated to outgrow Europe

The North American and European flexible packaging markets at US $20.7 billion and US $16.4 billion, together account for approaching half of the global consumer flexible packaging market of around $76 billion in 2013. However, recent research by PCI shows that growth in North America at around 4% p.a. by value is currently twice as fast as that experienced in the last year in Europe.

Experts at PCI Films Consulting believe that this situation is likely to endure even while the annual spend per capita is much higher in North America, than in Europe. While demand in Eastern Europe continues to grow by over 5% p.a. in value terms, underpinned by strong growth in Russia and Poland, growth in the more mature Western Europe is currently running at less than 1.5% p.a.

There are a number of reasons for the divergent growth prospects for North America and Europe:

  • While some West European countries are seeing some economic growth, especially Germany and the UK, many other economies, especially in the Eurozone are still suffering low or negative growth which is adversely impacting on employment and consumer spending.
  • In Eastern Europe, which currently accounts for less than 20% of Europe’s overall flexible packaging demand, a number of smaller national markets are either static or actually declining as they continue to face difficult economic problems. Per capita spend on flexible packaging in Eastern Europe is currently less than one-third of Western Europe’s.
  • Europe’s population growth rate of only 0.2% p.a. compares with approaching 1% p.a. in North America, which provides the latter with a continuing inbuilt boost to food consumption which is again reflected in demand for flexible packaging. Populations in a number of large European countries, especially Germany and Russia are declining.
  • Lifestyle variations and differing consumer buying habits across Europe mean that some countries, such as Italy, spend less per capita on pre-packaged foods than Germany and the UK for example. In North America, especially in the US and Canada, incomes are generally higher than in Europe and consumer buying habits are more uniform.
  • More rapid growth in flexible packaging in North America also reflects the fact that flexible packaging formats, including the stand-up-pouch, are growing rapidly in new applications which have been previously the preserve of rigid formats. In the past North American consumers have been more conservative with regard to the adoption of new flexible packaging formats than their European counterparts and packers have often been reluctant to replace existing rigid filling capacity with new flexible packaging alternatives. However, this is now changing, as consumers recognize the lightweight portability and convenience particularly of single serve flexible formats with easy-open reclose features and also the environmental advantages of flexibles.
  • Evolving technical advances especially in the development of sophisticated barrier materials have seen flexible packaging becoming an increasingly attractive and viable alternative to rigid formats, which are now being adopted much more widely by North American packers.

http://www.plasticstoday.com/articles/North-America-flexible-packaging-market-estimated-to-outgrow-Europe-05082014

Source: Plastics Today

Food Manufacturers Rethink Flexible Packaging

Processors are rethinking and improving existing products and make new ones possible thanks to advances in pouch packaging. Flexible packaging suppliers focus on the sustainable end of life scenarios for pouch packaging, bags and film wrappers due to the plethora of green benefits. Unfortunately one area where most flexible packaging is not green is recyclability.  The flexible packaging industry is working on a solution for this problem. One solution is the recyclable 100% polyethylene stand up pouch developed by Dow Chemical. Recyclable pouches can be recycled through bag and film recycling programs. These recycle programs require the end user to bring the clean, empty packaging back to a retail store.

To read more click on the link below.

http://www.foodprocessing.com/articles/2014/food-manufacturers-rethink-flexible-packaging/?show=all

Source: Food Processing

Top 25 impacts on flexible packaging supply chain

Smithers Pira has released a report listing the trends that will influence flexible packaging over the next ten years. The report ‘Ten Year Forecast of Disruptive Technologies in Flexible Packaging to 2023’ explores technological, economic, consumer, sociological, environmental and regulatory changes. The report also lists the top 25 developments. The focus of the report is food and beverage packaging, but pharmaceutical and household chemical applications are also included

According to Chandra Leister, Marketing and Production Manager at Smithers Pira, the top five disruptive technologies in flexible packaging are forecast to be intelligent packaging, recyclability, packaging openability, biobased polymers and digital printing. The report claims there will be continuous development of new flexible packaging products for new markets and applications encroaching on traditional rigid packaging. High growth is expected in Europe and North America, as well as in the emerging markets of Asia and Central and South America.

The report states that smart packaging will be the key disruptive factor affecting the flexible packaging industry due to high cost, consumer resistance to items such as sachets in packaging and concerns about excessive packaging. Though, intelligent packaging is expected to decrease cost, increase emphasis on food safety, anti-counterfeiting, new regulations and brand owner/consumer demand. This will lead to radically new views on the function of packaging to include monitoring, tracking, warning, remediation, authentication, communication and brand protection.

The report states the second most disruptive technology is recyclability. Because of the small amount of material used in a flexible package, it produces much less waste than other formats. However, it is not currently feasible to mechanically recycle postconsumer flexible packaging because of its thin film structure, multi-layered composition and often contamination by food waste. This situation could create problems with the sustainability and recyclability goals of many major corporations or with the reduced or zero landfill policies of many governments. More easily recyclable materials and barrier structures, including monolayers, are expected to be introduced over the next 10 years, but this will not resolve the problem unless improved collection, sorting and recycling infrastructure is implemented.

Source: Smithers Pira

https://www.smitherspira.com/market-reports/news/disruptive-technologies-in-flexible-packaging.aspx

A Holistic Approach to Packaging

As flexible packaging is becoming more popular suppliers must know the right credentials when it comes to the sustainable disposal or recycling of materials. Ensuring waste is correctly disposed of reduces a supplier’s carbon footprint and improves warehouse efficiencies. The importance of sustainable waste disposal cannot be underestimated – closed loop recycling processes are just one way of addressing this.

Closed loop recycling processes work by ensuring all disposed packaging in the warehouse is recycled in-house and then cultivated back into the business for use. Closed loop recycling processes significantly reduce the amount of waste going into the landfill. The demand on businesses to incorporate processes that drive real reductions in energy and waste is greater than ever before. Closed-loop systems can therefore go a long way towards meeting this requirement. One of the packaging methods that is coming to the forefront is the bag and tote system, where products are packed and placed in a tote bag then returned by the customer for re-use.

In regards to the carbon footprint of a supplier, good organization and customer convenience should be at the core of initiatives that cut down the amount of packaging used per customer – especially where the customer has numerous individual orders. Warehouse layout should allow these orders to be combined to cut down wastage and reinforce a one-stop-shop status in the process. Sustainable measures such as these can also help drive more efficient ways of working.

Source: Packaging Europe

http://www.packagingeurope.com/Packaging-Europe-News/57954/A-Holistic-Approach-to-Packaging-.html

Plastic is the sustainable packaging choice according to new study

According to a new study titled Impact of Plastics Packaging on Life Cycle Energy Consumption and Greenhouse Gas Emissions in the United States and Canada by Franklin Associates for the American Chemistry Council and the Canadian Plastics Industry Association, six major categories of plastic packaging significantly reduce energy use and greenhouse gas emissions compared to packaging made with alternative materials. Using 2010 as a baseline year, the data shows replacing plastic packaging with alternative materials would result in 4.5 times more packaging weight, an 80% increase in energy use and 130% more global warming potential.

The study examines the six major packaging resins (low density polyethylene, high density PE, polypropylene, PVC, polystyrene, expanded PS, PET) against paper, glass, steel, aluminum, textiles, rubber and cork. The study considers the implications of the materials used in caps and closures, beverage containers, other rigid containers, shopping bags, shrink wrap, and other flexible packaging in a detailed life cycle assessment.

“The benefits hold up across a range of different kinds of applications and materials,” said Keith Christman, managing director of plastics markets for ACC. “Because plastics use so much less material in the first place it results in dramatic greenhouse gas reduction, and that’s just the start. It really adds up across the different types of packaging, to the equivalent of taking more than15 million cars off the road.”

Source: Plastics News

Flexible packaging to be worth $25 billion in North America

In the next five years flexible packaging will grow into a $25 billion business in North America.

In 2013 the market totaled $20.7 billion. 88 percent of those sales were from the United States, 7 percent were from Canada and 5 percent were from Mexico, according to a report by PCI Films Consulting Ltd.

North America represents about 30 percent of the global consumption of flexible packaging.

Annual growth is expected to grow at a rate of 4 percent during the next five years in North America.

“While the economic slowdown adversely impacted the flexible packaging industry’s profitability, volume growth has continued to be sustained by servicing primarily defensive markets such as food, pharmaceuticals and pet food,” PCI consultant Paul Gaster said in a statement.

Source: Plastics News

http://www.plasticsnews.com/article/20140110/NEWS/140119998/flexible-packaging-to-be-worth-25-billion-in-north-america#

Packaging expectations for 2014

There are six developments expected to take place in 2014.

Flexibles rule– Data suggests that this is the year flexible packaging will become the primary packaging choice for food, personal care and pharmaceutical products. It’s estimated that Americans will be using (32.85 billion) more rigid plastic and flexible packs in 2017 than in 2012. Flexible packaging is the fastest growing segment in the United States packaging industry.

Retail ready packaging advancement– The move out of peg-displayed pillow pouches by cheese shredders will transform supermarket dairy cases into a more European (i.e., “pegless”) model.

Fewer one trick ponies– There will be a development in more interactive packages. Some of the developments include time/temperature indicators, regimen-compliance indicators, near field communications (NFC) and freshness/efficacy monitors.

Biopolymer packaging– Expect economics and performance shortfalls vs. petrochemical polymers to slow the advance of bio-derived polymers for packaging. Don’t expect packaging for bio-derived polymers until around 2020.

Leveraging technology– Five years ago a group of scientists and US regulators met to discuss nanotechnology and the packaging health and safety implications of engineered nanomaterials (ENMs) that are minuscule enough to migrate through barrier membranes that couldn’t be penetrated by larger materials. Nanomaterial applications have quietly expanded since then. This year we could see nanomaterials replacing foil in the classic paper/poly/foil structure to improve recycling and sustainability.

Beefing up for e-commerce and m-commerce- The explosive growth of consumer online and mobile transactions is going to trigger a surge of protective packaging to meet the more demanding, higher package-to-product ratio needs of single items traveling by USPS or carrier vs. conventional pallet load transport packaging of goods to brick and mortar retailers.

Source: Packaging World

http://www.packworld.com/trends-and-issues/unit-doseunit-use/packaging-expectations-2014


Growth slows in Europe’s flexible packaging industry

Growth in flexible packaging slowed to 2.1% in 2012, compared to over 5% in 2011. Low demand from food packaging buyers and lower raw material inflationary pressures were the two main contributors slowing Europe’s flexible packaging growth according to PCI’s annual report. PCI predicts a modest increase for 2013. Report author Paul Gaster notes, “While value growth has slowed, European consumption of flexible packaging in volume terms approached 2% in 2012, confirming that flexible packaging continues to perform better than many other industries in the current economic climate”.

The report states that there was modest growth in Europe’s largest market, Germany, with little or no growth in England and France. There were major declines across Southern Europe in Italy, Spain, Greece and Portugal. The markets with the most growth were Turkey, Russia and Poland, which increased in value at more than twice the European average.

PCI’s ‘The European Packaging Market’ has become a valuable tool for business planning. The data is based on original research; there are market analyses and statistics for 2012, estimates for 2013 and forecasts to 2017.

For more information go to www.pcifilms.com

Source: Packaging Europe