|
|
 |
|
Viewing report
|
|
|
|
U.S. Markets for Plastics in Packaging
Frost & Sullivan, Sep 2003
Greater Clout of Customers Curtails Profit Margins
Large end users of plastic packaging in the U.S., who enjoy superior bargaining power, are forcing packaging suppliers to lower their price. For instance, the food and beverages (F&B) market, being one of the bulk users of plastic packaging, exerts great influence in deciding packaging prices. Many industries are consolidating to improve their economies of scale, which is reducing the number of end users and in turn, the need for packaging suppliers. This competitive business environment is affecting the profit margins of many packaging companies.
This research examines the market potential for plastics packaging in end-user industries such as F&B, medical devices and pharmaceuticals, cosmetics and personal care, and household products. The study also discusses the demand for resin-based plastic packaging using polyethylene, polyester, polypropylene, polystyrene, polyvinyl chloride, and other resins including nylon, EVOH, and polycarbonate.
Growing Preference for Plastic Packaging Drives Growth
The present day lifestyle demands easy, flexible, and 'light-to-carry' packaging. Consumers increasingly prefer plastic packaging because they are convenient, safe, resaleable, and easily moldable into various shapes and sizes. Many end users are discarding traditional packaging materials such as glass, metal, and paper in favor of plastics. The pet food shipment in metal cans fell by about three percent in 2001, as plastic pouches gradually replaced metal and paper materials, note the analysts. The demand is likely to increase as more end users opt for plastic packaging to reduce costs at every stage of their supply chain.
Technological advancement such as hot-fill packaging, aseptic filling, customized containers, and biodegradable plastics are driving market growth. This is likely to continue with the increasing use of sterile plastic packaging for medical devices and pharmaceutical products, and polyethylene lining in bulk containers for packaging non-hazardous, semi-liquid, and frozen materials. However, market participants have to contend with environmental concerns regarding disposal and recycling as well as the trend toward 'light weighting' and 'down gauging,' which are likely to create a negative influence on consumption of plastics.
Maintaining Close Customer Relationship - Essential for Market Success
Major end-user industries such as F&B, cosmetics and personal care, and medical and pharmaceuticals are concentrating on global markets. Therefore, it is important for them to have a consistent and reliable packaging supplier that can respond quickly to their changing requirements. Many end users, especially consumer product companies, demand attractive packaging designs, as it can influence consumers' perception to a great extent. This is compelling packaging suppliers to increase their focus on R&D and work directly with their customers to come out with innovative packaging.
Packaging companies need to maintain and develop a close working relationship with their key customers, say the analysts. A two-way information exchange on a regular basis is likely to benefit both the end users and the suppliers. Market participants are driven toward developing integrated packaging systems capable of performing multiple tasks such as filling, sealing, and labeling, which is likely to enable faster packing and also result in cost savings.
Customers who bought this item also bought
Strategic Analysis of the European Plastic Packaging Additives Market
Plastic Packaging Industry - Global Outlook
Southeast Asia Plastic Flexible Packaging Market for Food
Packaging Industry in US
U.S. Medical and Pharmaceutical Packaging Markets
U.S. Pharmaceutical Packaging Markets
Beverage Packaging - US
Plastic Packaging Industry - Global Outlook 2006
U.S. Personal Care Packaging Markets
U.S. Retort Packaging Markets
North American Rigid Food Packaging Markets
Packaging - India
|
|
|
|
