15.01.2015

Flexible packaging growing rapidly in emerging markets

A new study has shown a considerable growth in 15 emerging flexible packaging markets, which currently account for over 20% of global demand.

The PCI Films Consulting study concluded that collectively in the last five years, these markets had grown twice as fast as the world average. Many companies have successfully gained from this market growth and have identified many new opportunities for growth in the coming years. P

CI’s report, ‘Opportunities in Emerging Flexible Packaging Markets to 2019’, is an in-depth analysis of the flexible packaging markets in Poland, Russia, Turkey, Argentina, Brazil, Chile, Colombia, India, Indonesia, Kazakhstan, Myanmar, Pakistan, Thailand, Vietnam, and Nigeria. One of the key findings is that although a number of these emerging markets, especially Russia and Brazil, have recently been adversely affected by falling commodity prices and a slowing global economy, overall flexible packaging demand is still growing by nearly 10% per annum over the past five years.

Major drivers in flexible packaging demand identified include inward direct investment by multinational brand owners and converters, improving living standards, high population growth, liberalisation in a number of markets, changing consumer lifestyles and the development of mass retailing. Study author Paul Gaster said over 60% of total current demand in the markets reviewed is concentrated in seven South East Asian countries and this is where nearly 90% of the forecast growth will be generated over the next five years.

“These markets in particular will present investment and penetration opportunities for all those involved across the flexible packaging supply chain.” However, average growth over the period in the South American and European countries reviewed is expected to be 5% or less. Demand in Russia is forecast to fall to less than 2% per annum, where a faltering economy, collapsing oil revenues and western sanctions are heavily impacting demand.”


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