Cellulosic packaging – Data 2011

DATA AND FACTS Approximately 2,450 concerns with 7 billion euro in turnover and a production of 4,938 t/000: these in summary are the data that emerge from a snapshot of the Italian paper and board packaging industry in 2011.

Globally, cellulosic packaging represents the most widespread packaging type, with a market share of approximately 40%.
The Italian paper production and converting industry holds an important place on the European front, positioning itself at third place, for a market share of approximately 13%, after Germany and Great Britain.
As far as concerns the area of paper and board packaging, the Italians faced a 0.7% drop in production in 2011; in terms of turnover, on the other hand, the industry saw 6% growth, which caan basically be attributed to increases in sales prices following the sharp rise in raw materials prices (between 7% and 16%) recorded during the first part of the year, not to mention that of energy costs.

The Italian market
Cellulosic packaging continues to play a fundamental role in the packaging of goods and products, both in the form of primary packaging and in that of display packaging. As transport packaging, this type is used by virtually every manufacturing sector.
32.4% of Italian packaging production is made up of cellulosic packaging, of which 24% is represented by corrugated cardboard boxes and sheets, used primarily by the manufacturing sectors to transport goods. Overall, production of cellulosic packaging ended 2011 with a 1.4% drop, caused by a 2% decrease in domestic demand. The commercial balance, on the contrary, recorded a 3% increase in exports and a 3.6% increase in imports.
However, the weight of foreign trade remains modest, considering the fact that exports accounts for 10.55% of national demand, while imports cover 2.5%.
For cellulosic packaging, the first symptoms of the crisis in 2011 appeared during the third quarter, ahead of the general collapse of manufacturing during the fourth quarter.
And unfortunately this crisis is also affecting 2012, for which a further decline may be on the horizon.

2011 balance for the various cellulosic packaging supply chains
The paper and board packaging sector includes a wide range of packaging types including corrugated cardboard boxes, folding paperboard boxes, large size paper bags, shopper bags, small bags, cellulose drums, medium/high thickness paperboard boxes, laminated paperboard containers, wrapping paper, cardboard tubes etc.
The leading sector, in terms of scale of production, is that of corrugated cardboard, used in many industries due to its functionality in terms of transport; next come folding boxes.
In terms of production by weight, cellulosic packaging breaks down in the following way:
-73% corrugated cardboard;
-15% folding boxes and card boxes;
-4% large size paper bags
-8% other
Corrugated cardboard boxes. In 2011, production of corrugated cardboard reached 3,613 t/000, -1.4% down from 2010.
Foreign trade remained modest, but increased over 2010. Apparent use, 3,390 t/000, marked a 2.2% drop.
According to findings in the database of Istituto Italiano Imballaggio, the uses of corrugated cardboard packaging can be divided among 41.2% for food and beverages, fresh produce with 14.4%, 15.1% for handling in the furniture sector and the remaining 29.4%, which includes a multitude of different areas.
These include chemical products (including household detergents) with a share of about 4%; the mechanical engineering and transport industry with about 5%; electronics, householda appliances and audio/visual sector with about 4.5%; the are of products destined for use in construction (ceramics and tiles) with about 2.5% and toys with about 3.5%.

Card and cardboard boxes. This area can be divided between two main sectors: folding boxes and card boxes. In 2011, total production was 747,000 t, +1.6% up compared to 2010. This growth was driven by the folding boxes sector, while card boxes lost ground. Foreign trade, historically distinguished by low figures, saw a slight decline due to exports and an increase in imports.
Domestic demand saw slight growth, which can be attributed to folding boxes.
The folding box maintains a dominant position in the pharmaceutical and cosmetics/perfume sectors, in which we find high end and luxury products, while in other areas of application it must compete with alternative packaging types.

The production of folding boxes is made up approximately 52% by 100% paperboard products, while the remaining 48% goes to PE or (increasingly) aluminium film laminated containers.
Of folding boxes and card boxes, 42.4% are used by the food sector, 17.6% by beverage (primarily as clusters), 9.5% for cosmetics and pharmaceuticals and 30.5% for other non-food sectors.
As for card boxes, their main users are the sectors of shoes, leather and apparel, with a total share of approximately 55%.

Large size paper bags. The crisis that affected most manufacturing sectors worsened in particular the recession of the construction industry, the main outlet area of bags (approximately 65% of sales), causing a halt to production growth in the sector. Exports, on the other hand, confirmed the production numbers of 2010.
The main areas of use for large size bags are construction materials (65,4%), food products (14.3%) and animal feeds (9.1%).

Other cellulosic packaging types. These mainly consist in shopper bags, packaging and cardboard tube accessories, wrapping paper (parchment, plastificated or simple), support sheets for clothing, protective micro-corrugated sheets, small bags and cellulose drums.
In 2011, total production in this area was estimated at 355 t/000, meaning +1.4% growth compared to 2010, thanks to growth in exports by 1.7%. Domestic demand, on the other hand, is estimated to have fallen by about 3%.
In quantitative terms, the main cellulosic product of this market area is the cardboard tube, destined primarily for handling plastic film reels and paper sheet reels. Production is estimated at around 200,000 t.                       

Plinio Iascone
Istituto Italiano Imballaggio