Cellulose packaging – Data 2012

FACTS AND FIGURES The Italian paper & cardboard industry continues to be among the most important in Europe, although featuring a contraction in sales and production. Preliminary balances for 2012 and some forecasts.

Globally the paper & cardboard industry, on the basis of a preliminary final balance for 2012, shows a drop in sales of 3.6%. For the second time in five years hence there has been a downturn: in 2009 the decline was 12% but the effects of the drop in sales were offset by the drop in raw material costs.
Cellulose packaging has three main functions of use, as primary, secondary and tertiary packaging, with a decisive role in goods packaging.

But it is in the role of transport packaging that it actually covers almost all manufacturing sectors: 32% of the total Italian production of packaging is made from cellulose, of which corrugated cardboard boxes and sheets used in goods handling accounts for a full 25%.
The 2012 balance of cellulose packaging (preliminary, as the final figure will be contained in the official document of the Italian Packaging "Packaging in figures", released in late July, An.) sees production totalling around 4,736 t/000 (-4% down on 2011, due to a drop in Italian domestic demand standing at around 4.3%). Exports put in a modest growth of 0.5%; imports, however, increased by 8.7%.
The increase in the influx from abroad also affected the years 2010 and 2011.
The crisis of the "cellulosic" industry, like the other packaging families, commenced in 2011 and is obviously derived from the recession that has hit the Italian manufacturing industry, and by the bad economic situation in the EU area which, on the one hand has limited the possibility of significantly increasing exports and on the other has led to an increase in imports, given the need of foreign papermills to find new market outlets.
Unfortunately the crisis seems to extend to the first half of 2013, making any form of recovery later this year uncertain.
 
Balance for 2012 of the various sectors
The paper & board packaging field includes various packaging types including corrugated boxes, folding cardboard cartons, largescale paper bags, shoppers, paper bags, cellulose drums, cardboard boxes of medium/high thickness, laminated cardboard containers, wrapping paper, cardboard tubes etc. The leading sector in terms of scale of production is corrugated cardboard, followed by the folding cartons. With reference to the data in terms of weight, the production of cellulose packaging is structured as follows: corrugated cardboard 73.6%, folding cartons and boxes in flat cardboard 14.9%, big bags 3.9%, other 7.6%.
 
Corrugated cardboard boxes. In 2012 production amounted to 3,487 t./000, -3.5% compared to 2011. A drop of 4% is seen on the Italian domestic market, while exports managed to put in a +4.4%. Imports are reconfirmed as limited, although slightly on the increase. According to the information presented by the Istituto Italiano Imballaggio database, the use of corrugated packaging is attributable 42% to food and beverages, excluding fresh fruit and vegetables, that account for 14.5%; 14% is used in handling furnishing and the remaining 29.5% accounted for by a host of areas (chemical products, electronics, household appliances, products for the building industry etc.).
 
Cases and boxes in flat cardboard. This area is divided into two main segments: flat board folding cartons and cardboard boxes.
The production of folding cartons is accounted for 52% by items made of 100% card stock and the remaining 48% by containers combined with PE film or aluminum foil (with a share increasing progressively). The combination of plastic film or aluminum foil is generally necessary to give the case the special characteristics of high-end look, or for special requirements relating to use of the same. Overall in 2012 production was 707 t/000, down 5.4% on the previous year. The downturn has affected both folding cartons as well as other categories of boxes.

The contraction in this area is only attributable to collapse in domestic demand, as exports have registered an increase, but not enough to compensate for the drop in domestic sales.
As for folding cardboard cartons and boxes, they are used 44% for food, 17% for beverages (essentially as clusters), 10% for cosmetics and pharmaceuticals and 29% for the non-food area.
With regard to flat cardboard boxes, the main areas of use are the shoe, leather goods and apparel industry, with a global share of around 55%.
 
Largescale paper bags. The crisis that has affected most of the manufacturing sectors, with recession hitting harder in the main outlet area or that is the construction industry (about 65% of sales), resulted in a decrease of 8% in 2012, after growth in production drew to a halt in 2011.
Exports too, after several years of steady growth, are seen to have stalled.
In addition to construction materials (64%) big bags are used to hold various food products and animal feed.
 
Other types. Shopper bags, packaging and cardboard tube accessories, wrapping paper (parchment, plastic coated and simple), supporting sheets for clothing, protective corrugated micro sheets, small bags and cellulose drums: in 2012 the global production of this area is estimated at 360 t/000, -5% compared to 2011. The drop is due both to a contraction in domestic demand as well as in exports. 
 
Plinio Iascone
Istituto Italiano Imballaggio