Flexible packaging market to grow at 'staggering' rates in BRIC countries, other emerging markets, while global market share will decline for U.S. as its growth slows to steady rate, according to new report
January 12, 2012
– A robust rate of growth for flexible packaging in Brazil, Russia, India and China will cut into the just under 30% market share held by the U.S. as its growth slows but remains steady, according to a recent study, reported Food Production Daily on Jan. 12.
The growth in Asian markets, particularly India and China, will be “staggering,” with India’s rate at more than 15% a year and somewhat lower growth in China, said Paul Gaster, author of the study from U.K.-based PCI Films Consulting Ltd.
The report, The North American Flexible Packaging Market to 2015, estimates that the global flexible packaging market’s value is US$65 billion, of which the North American market accounts for $18.3 billion, Food Production Daily reported.
Imports into North America are expected to increase, particularly from India and China, but still remain a relatively small part of the overall total in the mid- to long-term, said Gaster. Currently, imports account for nearly 2% of total demand in the region.
North American exports, which account for less than 1% of regional demand, are forecast to follow a similar trend, according to the study, reported Food Production Daily.
Flexible packaging growth is predicted to grow at about 3.5% per year in the U.S. and Canada and about 5% per year in Mexico, bringing the region’s market value to $22 billion by 2015. Two-thirds of the sector involves food packaging applications.
In North America, the U.S. accounts for about 90% of sales, while Canada and Mexico have 6% and 5% of the market, respectively; however, much of the region’s production occurs in Mexico due to the country’s lower wages, the report indicates, Food Production Daily reported.
The primary source of this article is Food Production Daily, Montpellier, France, on Jan. 12, 2012.