NEWS ANALYSIS | PACKAGING
analysis serves to highlight opportunities and threats by end-use application and provides insight into winning supplier strategies. A clear business definition and portfolio strategy are fundamental in exploiting the forward opportunities, based on assessing the scale of demand, understanding the growth potential, exploiting internal compe- tences, and appreciating the competitive dynamics and degree of threat. The search for higher
margins and market posi- tioning causes the industry to focus on improvements in material and process engineering. Advances in process technology synergis- tic with polymer science have enabled changes which have facilitated the emer- gence of new applications. Technology is a key driver of change, growth and recon- figuration of the global thin wall packaging industry. Thermoformed packag- ing accounted for 85% of thin wall packaging in 2019 and injection moulding 15%. Driven by new product development, injection moulded packaging growth is faster than thermoformed packaging growth, and hence this technology has been increasing its market penetration in the past decade. The share held by
thermoforming is sustained by growth in fresh produce and pre-packaged conveni- ence food applications, where pack selection is fit-for-purpose and cost driven. Thermoforming has highest penetration in meat/ fish/poultry, fruit/vegetables and disposables, where it is
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close to 100%. Thermofor- med chilled dairy packag- ing volumes are high thanks to a well-established form-fill-seal model (in Europe in particular). The FFS technology is well developed in Europe, accounting for a quarter of the total market (but over three-quarters of chilled dairy). In North America FFS is an area of growth, coinciding with the organic growth of chilled dairy. In other regions the FFS technology remains underdeveloped.
Injection moulding Albeit from a lower base, injection moulding is putting the market position of thermo- forming under pressure as produc- tion economics can be comparable. In-mould label technology, allowing for superior label quality, has been one of the main drivers of injection moulding development. This has been particularly important for such applications as yellow fats, chilled dairy, and frozen food (ice cream). An important breakthrough in IML technology is integrat- ing a functional gas barrier through the application of EVOH multilayer film. This technology presents an alternative solution for barrier packaging without significant investment in new technology. IML technology has now been commercialised for thermoforming as well in Europe and America. Utilisation of the IML process goes beyond product presentation and
INJECTION WORLD | July/August 2020
preservation. Verstraete IML leads on developments in interactive IML labels, which can be used to engage consumers with the brand even more or contain coded information for packaging sorting and recycling. High barrier rigid thin wall containers is an attractive segment for all value chain participants. It is attractive for investors wanting exposure to technologically driven manufacturing with stable but growing demand and blue-chip customers. Highest commercial returns
barrier co-injection projects and barrier IML. The application is more forgiv- ing for novel barrier technologies, as the filled product is in dry form and does not require retorting. Oxygen management is not encumbered by retort shock in this case and any poten- tial barrier failures will not compromise consumers’ health and safety.
Sustainability needs The European Commis- sion’s sustainability agenda is spearheading the global approach to plastics in a circular economy. It is only a matter of time before other regions adopt similar legislation. As part of the European Commis- sion’s Plastics Strat- egy, the Single-use Plastic Directive has been produced to reduce accumulation
of plastic products in the natural environment,
can be achieved with systematic development of specialism in the segment, encompassing know-how of oxygen transmission parameters and shelf-life management. Vertical integration of extrusion and thermoforming, preferably in-line, offers higher margin capture. Specialism and high barriers-to-entry in this segment results in relative market consolidation. Single serve capsules have become the key contributor to growth of high barrier thin wall solutions, fuelling not only demand for barrier thermo- forming, but also enabling
particularly marine. Many of the leading players in the plastic packaging industry operate on a pan-European as well as a global scale. The changing market conditions in Europe will place the global players in a strong position to quickly respond to changes in other regions of the world wanting to transition towards more sustainable packaging. There is considerable push and pull at play within thin wall packaging; retailers and brand owners move away from estab- lished practices when there appears to be no available solution for them to meet recycling and recyclability targets outlined in the
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