Flexible converter packaging - Data 2012

Trends In terms of lifecycle, the flexible segment is one of the few areas of the market in the packaging sector showing progressive and interesting growth, for the most drawn on by exports. Focus on materials.

Between 2000 and 2007 the flexible packaging market showed an average annual growthrate of 5.3%, compared with an increase of 1.5% of the packaging industry as a whole. Good too the performance during the critical period 2011-2012, when it was able to contain the effects of the economic downturn, to the point of achieving a growth of 6.5% in 2011 and in 2012 reconfirming the figures of the preceding year. The main growth driver in recent years has been the foreign component of demand.
 
The market

Italy has about 80 manufacturers.

Turnover in 2012 was approximately 1,866 million euros, of which approximately 27% attributable to companies with a turnover in excess of 150 million euros, 35% to companies in the 50 to 150 million euros bracket and the approximately 38% remaining in the below 50 million euros turnover bracket.

In the same year domestic demand stood at 175,000 tons, thus marking a decline of 5.4%: the deep crisis that hit domestic consumption, including food, hence has not spared this market area either. The negative consequences were however mitigated by the further growth in exports, up 7%, which has led to the reconfirmation of the quantities for 2011.

At present exports account for an important share of production (47%), and also reaffirm Italian converters’ historic vocation for export, their being appreciated for their quality and customer service (some companies export over 70% of their output).
Imports are as ever limited, comprising a meagre 1-2% of national consumption, but foreign competition, especially from Turkish producers, is felt not so much n Italy, but when the Italian producers operate abroad.

The structures

If up to 2004/2005 the growth of flexibles basically depended on the erosion of the shares at the expense of other types of packaging, currently, growth is to be traced back to their use in new areas: frozen or chilled ready meals, convenience fruit and vegetable products, and due to the placing on the market of fresh pre-packaged and pre-weighed food.
This packaging family, as is known, has a complex multimaterial structure: cellulose, plastic, aluminum foil or metallization.

The combinations of the different materials are designed according to the characteristics of the product to be contained as well as according to the shelf life to be ensured.
It is important to note that converter polylaminates continue to undergo a gradual downgauging with unaffected performance.

The production expressed in square meters, also considering the lightening in weight, shows a slightly better growthrate seen against calculations with reference to figures expressed in weight.
This process results from a fruitful research to find new materials and manufacturing techniques. Over the last few years for example, the use of the cellulose and the aluminum foil component has been reduced, in turn the latter has in many cases been replaced by the process of metallization. These changes have been made possible thanks to the devising of multilayer plastic, able to perform the functions of the two materials mentioned above.

It is estimated that currently about 80% of flexible laminate is “all plastic", 15% also comprising aluminum foil and 5% made including paper sheets.

The sectors of use

Food: With regard to the areas of use, the food area accounts for by far the largest amount, with a share of 92.3%. This widespread use stems from several factors: increase in pre-weighed and pre-packaged foods (usually in protective atmosphere) and ready meals in protected atmosphere plus widespread use of fresh-cut convenience produce etc..

With reference to sales in Italy, flexible packaging is mostly used in bakery products and pasta, in particular fresh, (34.9%) and dairy products such as pre packaged and portioned cheese as well as yogurt and butter (14.8 %).

Still in the food industry, flexible packaging is also used for processed and cold cut meats (6.8%), frozen foods (5.9%), coffee (3.6%), petfood (3%), other food (23.3%). Though a significant presence with good growth potential in the following areas is registered: canned beans, tomato derivatives for horeca, creams and sauces etc.
 
Non-food Used in household detergents (4.2%), flexible polylaminate packaging shows a good growth potential due to the orientation of the market towards replacing the cardboard box with the polylaminate bag and due to the progressive spread in the use of washing additives in doughy form.

The pharmaceutical and cosmetics-perfumery segment is the second largest user segment in the non-food sector.
 
Raw materials for production

In recent years there has been a progressive lightening of flexible converter packaging (less weight per square meter) and the trend is still underway.

This trend is confirmed by examining the combination of raw materials: the use of heavier materials, such as aluminum (replaced by metallization) and paper has decreased in favor of completely plastic structures through the lamination of different types of polymers.
Plastic films too have also experienced a lightening in weight, there has been a reduction in grams per square meter: In fact, the increasing use of barrier films (eg Nylon, EVOH, etc..), has in many cases enabled a reduction in the layers or in the thickness of the film.

Plinio Iascone
Istituto Italiano Imballaggio