Packaging Growth: East beats West

PCI Films Consulting forecasts that growth in flexible packaging will increase faster in central and Eastern Europe than in Western Europe over the next five years.

The results of this PCI Films Consulting study on flexible packaging is forecasting a 1% per annum growth in Western Europe and a 7% annual growth in Central and eastern Europe is forecast to be 7% per annum. Total European demand for flexible packaging is expected to be nearly €10.0bn in 2009.

The study also pointed out that rapidly rising raw material costs and high substrate prices are putting pressure on the profitability of flexible packaging and leading plastics converter groups, for example Alcan Packaging and Amcor Flexibles are setting up facilities in lower-cost countries.

The author of the report Paul Gaster said: "The highly competitive flexible packaging environment, especially in western Europe, is becoming more intense. It is clear that overcapacity remains a problem there and increased interest from end users in sourcing converted products from Turkey and some low-cost Asian sources is also creating additional pressures."