PACKAGING | NEWS ANALYSIS


Drivers of change in global thin wall packaging sector


The reasons behind the continuing growth of the global thin wall packaging market are examined by Martyna Fong in a new AMI Consulting report


Fuelled by consumer demand for convenient and attractive packaging solutions, thin wall packag- ing is increasing its penetra- tion versus traditional media and flexible plastics. The growth is facilitated by the expansion of centralised retail distribution, on-the-go convenience formats, and technological advancement in plastics engineering, food processing and packing. Thin wall packaging accounts for 12% of global packaging production, equivalent to 18 million tonnes. It is a market with a clear definition in Europe, but not globally. AMI Consulting has been instrumental in aiding the process of industry segmen- tation, quantification and strategy development. Each region shows


different levels of market maturity, influenced by socio-economic factors. Asia is the biggest thin wall packaging region globally, equivalent to 37% of demand for all polymers. Local culture-driven applica-


Unit: 000 T


Global Thin Wall Packaging Injection Moulding


Extrusion - thermoforming www.injectionworld.com


changes have been changes in the supply chain. The industry is actively consoli- dating and the leaders have attempted to redefine and restructure their businesses to maximise technical competence and to create a stronger negotiation platform.


tions and market idiosyncra- sies have shaped formats in different regions, for example water cups in Indonesia, labneh (thick yoghurt) in Turkey or dates in Saudi Arabia. Neverthe- less, there is a high level of standardisation as far as process technology and materials are concerned. Consumer convenience has been one of the main drivers for thin wall packag- ing developments. Both retailers and brand owners have driven innovation to of- fer convenience solutions, both with regards to new product launches and their packaging functionality. Functional packaging solutions include these offering longer shelf-life, ease of use, re-sealability and microwaveability. Consequently, functional- ity to deliver convenience and superior product image


2011


13,216 1,947


11,269


have dictated the choice of material, and hence in- creased demand for individual polymers used for thin wall packaging produc- tion. Packaging design is being adjusted to optimise the logistics (transport, storage, stackability, waste, etc.), which brings financial benefits to both the manu- facturer/brand owner and the customer/retailer. Technology is a key driver


of change, growth and reconfiguration of the global thin wall packaging industry. A drive towards sustainable formats, technologies and materials, triggered by changing regulations in Europe as well as environmental consumer initiatives in developed markets, has been a defining factor in shaping the global plastics processing landscape. Concomitant with these


2015


15,421 2,353


13,068 2019


17,906 2,767


15,139


Global thin wall packag- ing supply is very fragment- ed, with the top 25 produc- ers globally accounting for just 25% of supply. Market fragmentation varies by region. North America (including Mexico) is the most consolidated region with the top 10 players accounting for 56%, while in Asia the top 10 players account for just 3%. The industry is actively consoli- dating, and the leaders have been restructuring their businesses to maximise technical competence and to create a stronger negotiation platform. Global giants like Berry Global (now incorpo- rating RPC Group), Paccor and Klöckner Pentaplast have changed industry dynamics. Only by probing into the activity of both larger and smaller producers can the size and structure of demand be properly demonstrated, and the variations by end-use application high- lighted. This depth of


2011/2015 3.9%


4.9% 3.8%


2015/2019 3.8%


4.1% 3.7%


July/August 2020 | INJECTION WORLD 13


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