The food industry in Italy – Data 2012

Jun 02, 2013

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Structure and dynamics of the market, with a focus on the mode of packaging of food products, beverages excluded, on the basis of the analysis of twenty-two areas monitored by the Istituto Italiano Imballaggio. Plinio Iascone

According to the analysis made by Federalimentare, in 2012 the food sector managed to contain the negative effects of the economic crisis at European and national level (in Italy, in particular, the decline in production in the sector was down to -1,4%).
The overall result was enabled by good export figures (+8%), that continue to offer an important and profitable "safety valve". In 2012 indeed the value of Italian exports touched 24.8 billion euros (19% of total turnover); while in Germany, Spain and France rates are higher than the figures for the manufacturing industry, Italy can do little better, limited by the extreme fragmentation of the food sector, made up of countless small firms, as well as being affected by the overall contraction in Italian domestic consumption, which is down 3%. Another barrier to growth along these lines lies in the fact that the large Italian retailers do not have an international structure (neither a European one).

The reduced purchasing power of Italian households has heavily affected a sector that plays its own identity and image on quality, as well as holding the EU record for number of products and guaranteed denomination of origin, with more than 210 units recognised as GDO and PGI and 530 types of products in the “wine” sector.
Also according to Federalimentare, however, even in the current difficult economic situation, the Italian food industry has managed to contain prices, thus confirming its role as price dampener. Italian consumer food price trends were in fact below inflation.
In 2012 the food industry paid an ever higher price since, added to the recession in domestic consumption, the segment is experiencing increasingly difficult challenges on the foreign markets.
According to evaluations of the Federalimentare Study Centre, in 2012 Italian turnover reached 130 billion euros, an increase of 2.3% compared to 2011, exclusively accounted for by the rise in prices. In fact, production in terms of quantity has decreased by 1,4% on the previous year for the same number of working days. It should be noted, however, that with respect to the "peak" level before the crisis of 2007, the 2012 production of the food industry as a whole (food +beverages) only dropped 2.5% points, compared to 22.9 points of the entire Italian manufacturing industry.

Packaging food: the trends
In line with the diversity of products, the segment shows a significant variety of packaging solutions. In this context, packaging continues to be considered an important tool for communication to consumers, and for this reason features frequent changes and variations.
The total production throughput of the twenty-two sectors monitored by the Italian packaging in the food area has resulted in the use of approximately 2,710,000 tons of packaging in 2012.
The calculation includes both disposable as well as returnable packaging, covering primary, secondary and transport packaging. According to an assessment of the Istituto Italiano Imballaggio, this figure is equivalent to about 75% of the packaging used in the entire food sector.
In the run-up to the two recent national and international economic crises, growth in the use of packaging was seen to be at an annual averaged of +1.5 to +1.8%, while in 2011 and 2012, due to the economic crisis that has in particular impacted Italian domestic consumption, a progressive downturn is seen: -0.1% in 2011 and -4.5% in 2012.
In general the packaging consumption growth trend is better than the growth in the food area: -4.3% of the production of the 22 sectors monitored and -1% the use of packaging to pack products of the twenty-two sectors analysed.
The difference is attributable to several factors:
- increase in pre-packaged products, such as for example cheese and salami;
- increase in fresh portioned and packaged produce (chosen, cut and washed as well as lightly processed ready-to-use produce).
- increase of mono portions, connected to the greater diffusion of households comprising a single person. The reduction in capacity, in theory, leads to a greater average weight of packaging: replacing any 550 g capacity pack with two 250 g packs, the overall weight of the packaging is higher.

Packaging food: materials
Profile of the various sectors of packaging used in the food industry, in relation to the sample analysed.
It should be noted that:
- careful analysis of the evolution of packaging-mix in the different sectors monitored highlights the high dynamism of primary packaging. Their frequent changes stem from different requirements (the use of packaging as a marketing tool, the frequent introduction of new products that entails a continuous differentiation, the demands of the consumer products and packaging with high service content);
- ensuring safety in microbiological terms, as well as pleasantness from the sensory point of view, remains a priority for a packaging intended to contain food;
- secondary packaging (clusters, cases etc.) are closely related to "primary" because they constitute the sales unit and hence perform an important communicative function;
- the tertiary packaging (eg pallets, corrugated cardboard, wood and plastic crates) meet the essential logistics functions;
Cellulose packaging. With a share of 42.8% of the total weight of food packaging, they are the most used.
As transport packaging, corrugated cardboard is the main type, with a share of approximately 16%.
Folding cartons in turn account for 3.5% with a vast range of applications: bakery products, pasta, frozen foods, beverage clusters etc.
Bags, pouches and wrappers are the other types belonging to the cellulose family.
Here one also finds rigid polylaminates cellulose packaging, used in many areas, particularly in relation to vegetable preserves.

Glass packaging. A timehonored form of packaging that continues to be used widely. The market share is positioned at 23.6%. In terms of food, glass jars essentially account for the lion's share (about 80%) the remaining 20% being covered by bottle production, used essentially in the area of tomato derivatives, namely puree and pulp.

Plastic packaging. With a market share of 18%, there is much variety: transport and wrapping film, containers, accessories, trays, bags and pouches, flexible tubes, bottles, tubs and drums. Bakery products, pasta, frozen foods, cold cut meats and coffee are the leading sectors in terms of use of plastic packaging.
The large family of plastic packaging also includes packaging made with flexible polylaminates that, by their nature, play an important role in the field of food.
The positioning of plastic packaging shows growth following a market orientation, which sees the wide dissemination of prepackaged food counter products in the large modern retail outlets.

Steel packaging. Successfully used for two centuries, thanks to continuous innovations it maintain a good market position: the total area of the packaging used in food, steel packaging accounts for roughly 11.6%, consisting of tinplate containers with capacity up to 50 kg, closures and uncoated steel 200 litre capacity drums.
The canned vegetables sector is the largest user of tinplate containers (70%). An area in its own right is that of the twist-off capsules made for use with glass jars.
The 200 litre capacity steel drums are mainly used for semi-finished vegetable preserves.

Aluminium packaging. The market share in the food area reaches about 1%. If though instead of the weight the number of packaging units are considered (aluminum is very light albeit sturdy), the market share is considerably higher.
The range of aluminum packaging in the food industry includes food cans (38%), closures (13%), trays and other items made from foil (49%). These are used for packing ichthyic preserves,
canned meat, petfood, ready meals, delicatessen products ... both in the form of classic tins as well as trays or wrapping foil.

Wood packaging (pallets). In the food area, but excluding fresh produce for consumption (not taken into account in this analysis), the pallets have a market share of 3%.
A progressive and noticeable increase in returnable wood pallets is seen to be underway.
In direct competition the plastic pallet tends to erode wood pallet market spaces.