Coating - Aimcal

Flexible Packaging
Between 2005 and 2011, the global converted flexiblepackaging
market has grown by over one-third — from
US$49 billion to US$68 billion — during which time the
balance of production and demand has been inexorably
shifting away from Europe and north America in favor of
the Asia-Pacific region. In 2005, the north American and
European markets together accounted for approaching
60 percent of the global total, but by 2011 this share was
barely 50 percent while Asia’s share has grown to over 40
percent. As Asia’s position has grown, it has become both
a threat and an opportunity to traditional supply chains.
Over the next five years, PCI forecasts that the global
market will grow by at least a further 25 percent to over
US$85 billion by 2016, as it responds positively to global
packaged-food trends and the inevitable drive toward
sustainability in food packaging.
While growth has been most dramatic in the Asia-Pacific
region, flexible-packaging markets in other regions also
have seen significant gains, especially in the Middle
East, Africa and Central and South America. A number
of leading flexible-packaging converters, including
Amcor, Bemis and Sealed Air have recognized these
opportunities and have expanded their manufacturing
presence, helping to transform these markets.
Consolidation in the converting industry — at both the
regional and global level — has been evident in recent
years, and more is expected over the next five years.
Much of it will involve the large global players and privateequity
firms such as Sun Capital. Running counter to
this consolidation activity is the emergence of a growing
number of smaller regional producers that have been able
to carve out important positions as lower-cost and shortrun
suppliers to both the major brand owners and smaller
food packers.
As with all industries, flexible-packaging producers have
been keen to address environmental issues. They have
helped reduce packaging-waste volumes by replacing
glass bottles, blown and injection-molded containers,
aluminium and tinplate cans and paperboard packages
with lighter-weight flexible alternatives. In some cases,
this has also meant that packaged-goods companies are
able to reduce their carbon footprint. As a result of these
changes, one of the fastest growing flexible-packaging
formats is the stand-up pouch, which is being used in
many applications as a highly cost-effective and attractive
alternative to rigid formats.
The growth in barrier packaging to reduce food waste in
distribution is another trend that is expected to continue
to drive added-value flexible packaging. Demand for high
oxygen- and moisture-barrier metallized laminates and
complex oxygen barrier coextrusions is already strong,
but new cost-effective technologies are being developed
and are likely to extend this sector further.
Finally, the emergence of biodegradable and compostable
materials as potential alternatives to petroleum-based
polymer substrates has been vigorously promoted
as an environmentally-acceptable route to handle all
the problems of packaging-waste disposal; however,
higher raw-material costs and the lack of suitable barrier
properties of biodegradable and compostable materials
means that so far they have made little impact. Most in
the market believe, however, that environmental and
legislative pressures will ultimately see the development
of competitively priced non-oil-based alternatives, for the
benefit of all. n
By Paul Gaster, Pci Films consulting, Ltd., +44-1604-
749001, email: p.gaster@pcifilms.com, www.pcifilms.com
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Executive Summaries • A Look Ahead