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Flexible Packaging Industry Status By Lanbo Jiang

  in Marketing | Published 2010-05-15 13:09:46 | 343 Reads | Unrated


In the packaging printing industry, flexible packaging remains a strong growth opportunities in the field, even in the current economic recovery phase 2002 Freedonia Group, conducted a seminar entitled "World Paper Products Processing Flexible Packaging (World Converted Flexible Packaging)" The inve stigation determined that the growth potential of several market driven forces

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In the packaging printing industry, flexible packaging remains a strong growth opportunities in the field, even in the current economic recovery phase. 2002 Freedonia Group, conducted a seminar entitled "World Paper Products Processing Flexible Packaging (World Converted Flexible Packaging)" The investigation determined that the growth potential of several market driven forces. The push factors include: fast food, pet food, cooked food and medicines end user market continues to expand; from rigid packaging to new flexible equivalent of the continuous conversion; reduce the packaging cost and p
ackaging size requirements; shaped bags and transparent flexible universal application.

U.S. Flexible Packaging Association (Flexible Packaging Association, referred to as FPA) of the "2002 Industry Status Report" that the flexible packaging market is worth 20 billion U.S. dollars of industries. This accounts for the packaging market total 114 billion U.S. dollars of 17%, as packaging market's second largest department. U.S. paper products processing flexible packaging industry market so far is still the greatest. According to Freedonia Group predicts that by 2005, China will replace Japan as the second largest market.

Economic Pressure

American Printing Entrepreneurs Association (National Association of Printing Leadership, referred to as NAPL) Printing Economic Research Center (Printing Economics Research Center, referred to as PERC) annual publication of an industry status report, "NAPL 2002 2003 Industry Status Report" provides a printing industry as a whole state of extensive analysis, including commercial printing and packaging printing. The first chapter begins: "there are very many ways to describe our industry's business environment. 'Volatility' is the best kind of argument."

In the NAPL investigation of the various markets, the packaging and printing business is the most growth potential. Nearly 53% of respondents think that the packaging industry's growth potential is higher than average, 25% thought that the below average, the former is the latter half. According to respondents to reflect, "currently on the market continuously for more complex operations, faster production and shorter version of the operation, they have to be ready" Therefore, they are very confident.

Packaging and trademarks Gravure Association (Packaging and Label Gravure Association, referred to as PLGA) Executive Chairman Bill Klein President that in 2002 the business income decreased more printing companies the number of drop more. He believed this in part by anti ranked sell prices, anti ranked offer prices also affect the packaging and printing industry sectors.Although 2002 was a recession year, Klein President still says he contacted the paper products processing enterprises in nearly one third of the annual income is very good, there is a considerable portion of income over last year's record. Klein, "These successful paper products processing enterprises are often more highly motivated, more creative."

For 2003, Klein President think there will be a gradual improvement in overall business volume will increase 3 5 percent. "A lot of paper products processing companies and suppliers circular sales increase, few companies do not see signs of improvement." He said.New York Fairport industry consultant Terry Clark, Ms. also see the positive industry trends. She believed that flexible packaging industry in 2002 than many other market conditions are good. "I did not collect extensive data, industry news and company annual income makes me believe that the flexible packaging market conditions to beat the market, the national average."

According to Freedonia Group research shows that plastic films are flexible packaging of the major components, accounting for the global flexible packaging material needs of 70%. In addition, the group also predicted that, due to performance and price of the continuous improvement of plastic film use will grow steadily.

But these opportunities do not mean film makers business very well done. Crescent Associates President Robert Poirier President explained that many film makers in 2002 have been a very difficult time, "by the difficult economic environment and industry in the flow of the impact of the Consolidation is still the major factor. There are two reasons: investors found that the purchase of the company's good opportunity, obviously the price of future earnings is attractive. In addition, some companies are vision and ideas, identify new market direction, invest in new equipment, and expanding size of the company . "Clark and Ms. Poirier President have pointed out that overseas manufacturing is still very competitive threat. It is in the near future will be the flexible packaging market, a major problem.

Room for Growth

Klein, pointed out the flexible packaging industry in many areas of growth: a squeeze tube packaging, sterilization pouch, vertical bags and food packaging. Flexible packaging has many advantages, to meet a lot of market demand.High grade decorative shrink tube packaging for the market traders offer a way to provide attractive buy some information on the method, and even can be applied to different shapes of containers. According to Klein, introduced as the containers to maintain accurate image appearance requires a higher technical level, several with mature technology, paper products processing enterprises has been in the field dominated.

In the food industry, flexible packaging materials, there are many opportunities for sterilization of soft bags and vertical bags account for the growth potential of the first. For sterilization applications designed packaging to withstand continuous high temperatures. To kill food processing produce bacteria. Bags, in particular, vertical bag, designed to meet the small convenient packaging applications, can improve the shelf stability, extended service life.

Klein President pointed out that currently used for packaging tuna flexible packaging testing, this package will eventually be an alternative to traditional metal cans. For future development, he noted that Japan and Europe will be in the vertical food packaging applications, leading the United States.Freedonia Group last November to publish such a study entitled "Pouches (bag)", forecast until 2006, the U.S. bag demand will be the nearly seven percent rate, representing about 4.6 billion U.S. dollars business. Overall, the 2006 food and beverage market will total bags market, about 36 million.

Although ordinary bags will still be dominant, vertical bags will also be high growth and development, by 2006 the average annual increase of 16.6%. As with visual appeal, product uniqueness, enhanced convenience, opened to re seal and products fresh preservation, vertical bags gradually increased in the mainstream packaging market position.

Key Strategies

In these difficult economic times, soft packaging products factory how to remain successful, access to some of the growth industries in the field of business?Klein President pointed out that these paper products processing enterprises in the last year was very successful. "These enterprises innovative, proactive, in particular, to take their own internal process. Also should reach high level technical understanding of their customers and their business processes, know how to make customers more satisfied."

Clark, held that the "use of a very wise reverse way. Do not do those other people are doing. To ensure that everyone can accept or reduce costs, and challenges the usual way of thinking. If your direct competitors are no longer spend funds to purchase new equipment, perhaps you should invest in new equipment, or upgrading existing equipment the best time. As the product demand is low, you may be from the supplier get the cheapest price and more attention. Therefore, the economy started to recover, you will in terms of quality and operational cost advantages. "Poirier President's view is simple: reform and innovation! "Found new businesses or new products, improve product quality and lower costs. Put your ideas into money."



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