Germany Packaging Machinery Market Research Report - PMMI

The HPV (Hauptverband der Papier, Pappe and Kunststoffe verarbeitenden Industrie e. V. [www.hpvev.org])
is the main federal organization of the paper, board, and plastics processing industry in
Germany.
The great majority of the approximately 830 mainly small and medium-sized companies in the paper,
board, and plastics processing industry in Germany are organized in 10 regional associations and 16
specialist associations. A list of all the associations organized in the HPV can be found on the Internet
at www.kartonagen.de/verbaende/hpv.html.
Globalization has also affected the producers of paper and board packaging. Branded goods
manufacturers who are operating globally are enforcing further cooperation and mergers and will
change the structures of the medium-sized sector even more. Further cooperation and mergers will
emerge. Furthermore, packaging producers are under pressure because of the concentration in retailing.
On the raw material side, they are also faced with globally operating companies.
As raw material costs absorb around 50% of the total production costs of flexible packaging, raw
material prices are the decisive cost factor, even when all potential for reorganization is exhausted. To
what extent these costs can be passed on to consumers depends on the development of the market and
the economic situation of the packaging companies.
According to a survey by the IPV, the turnover of the approximately 100 German manufacturers of
flexible packaging/service packaging rose in 2000 by almost 5% from 1.08 billion € to 1.13 billion €.
The volume of production increased in the period 1999/2000 by about 2%.
The association of the corrugated board industry VDW (Verband der Wellpappen-Industrie e.V.
[www.wellpappen-industrie.de]) represents 37 companies in the corrugated board industry with 99
production sites in Germany, i.e. it represents more than 90% of local corrugated board production.
16,786 employees (only VDW members) produced a turnover of 3.1 billion € in 2000. Exports were
important as the export share was 40%.
Future prospects include e-commerce where corrugated board is becoming increasingly important for
the dispatch of goods. New areas of application are in the cosmetics sector, in direct competition to
folded boxes.
According to the association of the folded boxes industry, FFI (Fachverband Faltschachtel-Industrie),
the industry achieved a turnover of 0.97 billion € in 1999.
5.6.1 Packaging as a marketing tool
The marketing function of packaging is becoming increasingly important due to the growing demand
for brand identity and individuality. The potential for packaging is regarded as far from exhausted. The
IPV shows the high effectiveness of service packaging in advertising. Service packaging is an effective
and efficient advertising medium, offering almost unrivaled value for the money.
The creative potential offered by bags is utilized differently in various sectors. For example, one sector
uses the bag as an additional platform for job offers; another sector has used the striking effect of the
bag to introduce the Euro as the future European currency with its coins and bank notes.