PCI Films Consulting
European flexible packaging report
Europe's flexible packaging market growth has experienced its second slowdown in as many years.
According to PCI Films Consulting's latest annual European Flexible Packaging Market report on the €12.3 billion (£9.72 billion) sector, the rate of expansion on the continent slowed to 1.3 per cent both in value and volume terms in 2013, which is down from 2.1 per cent and 1.8 per cent respectively in 2012.
Declining demand in key economies such as France and Italy are being cited as the main reason behind sluggish uptake, in addition to significant inflationary pressures on those companies still reeling from the financial crises that hit the southern Euro regions in 2012.
However, PCI anticipates growth to gain momentum this year, with author Paul Gaster stating: "The growth slowdown reflects the fact that a number of economies in the eurozone are still struggling with the effects of recession, which has reduced demand for packaged foods in these countries."
Demand for flexible packaging in badly-hit countries such as Italy, Greece and Portugal continues to wane, while negative growth in France - one of the region's most powerful economies - has slowed for the first time in four years.
German growth continued, albeit modestly, as did take-up in the UK, while demand was most encouraging in some emerging markets in eastern Europe, notably Russia and Poland, which grew at more than four times the European average. Emerging market Turkey, however, experienced a drop in growth year-on-year.
When compared to industries including glass, metal can and paperboard packing, Europe's flexible packaging sector remains highly fragmented, according to the 14th annual report, with the top 20 players in the market accounting for more than two-thirds (70 per cent) of the industry. Nevertheless, ongoing consolidation continues to be steadily shifting the structure of the sector, thanks mostly to private equity financing.
