E ropean and Global MarketsEuropean and Global Markets for Flexible Packagingg g
Jan HomanFPE Chairman
Annual Conference 2011, Florida
ContentContent
• FPEFPE
• Flexible Packaging Markets
• Issues: Food Contact & Sustainability
• Invitation
FPE in figuresFPE in figures
Revenue: $11 billion (= 75% of total European flexible packagingEuropean flexible packaging
= $ 15 billion)
Members: 50+ companies
7 national associations
Extract of FPE membership:
Countries with EAFA/FPE members
… and many more in Western, Central and Eastern Europe(see more at www.flexpack-europe.org)
FPE MembershipFPE Membership• AB TEFCO• Alfa Beta• AL INVEST Bridlicna
• ISPAK• Leeb Flexibles• Leipa
Associated Members:
Companies:• Amcor Flexibles• Ampac Flexibles • Aluberg• Aluflexpack• Alu-Vertriebsstelle
A ifl
p• Maria Soell• Mondi Packaging• Multifoil • Nordenia International • Novelis
li l i ti
p• Elopak• SIG Combibloc• Tetra Pak
National Flexible Packaging Asscociations:EFE (S i )• Ariflex
• ASAS• BAK Ambalaj• Beucke & Söhne• Carcano Antonio• Cellografica Gerosa
• online laminating• PAWAG Verpackungen• Perlen Converting • Pliant• ppg Noltemeyer • Printpack
• EFE (Spain)• ELIPSO (France)• FASD Turkish Flexible Packaging• GDA FV Flexible Verbundstoffe (Germany)• GIFLEX - Grupo Imballaggio Flessibile (Italy)• IGVF (Switzlerland)Cellografica Gerosa
• Cellpack Packaging• Clondalkin• Constantia Flexibles• Danapak• Enteco Pharma
Printpack• Reuther Verpackung• SAFTA• Schmid Folien• SEDA• Südpack Verpackungen
IGVF (Switzlerland)• PAFA (United Kingdom)
• Frith’s Flexible Packaging• Gascogne Laminates• Goglio• Hatzopoulos• Huhtamaki
H d Al i i
• Symetal• TEKO• UC Rusal• Uniprint Knaur• Wipak Walsrode
Wi f• Hydro Aluminium • Wipf
FPE ObjectivesFPE Objectives
Compliance
Market Analysis Sustainability
Food Contact&
Environmental Issues
International Relations yIssues
Management RatioManagement Ratio
Year 2009 % of SALESMaterial costs 56 83Material costs 56,83
Direct labour costs 12,35
Production overheads 9,31
Marketing & Distribution 5,30g ,
Research & Development 0,98
Administration costs 5,00
Interest 2,69
Depreciation 4,28
Pre-tax profit 3,26
% of ASSETSPre-tax profit 1,90
Sales 183,80
TURNOVER per EMPLOYEE (in €) 224.200
Participants of 2009 survey represent 3.0 billion € turnover
Cylinder and Printing Plate Costsy g
(in %) 2009
Cylinder / printing plate costs in % of sales turnover 3.3
Reinvoicing of customers (weighed average)
cylinder 84
printing plates 76
FPE Flash (Jan 2011)FPE Flash (Jan 2011)
Capacity utilisation + 1.15
Current situation (last 3 months compared to same period last year)
Sales volume + 1.24
Order intake + 1.22
Raw material prices + 1.25
Profit + 0.54
Short term prospects (next 3 months)
Sales volume + 0.71
Raw material prices + 1.06
Profit - 0.23
Medium term prospects (next 6 to 12 months)
C i ili i 0 48Capacity utilisation + 0.48
Interpretation of results [-0.1 ; 0.1] ---> satisfactory / stable[-1.1 ; -2] ---> weak / strong decrease [1 ; 0.1] ---> good / increase[-0.1 ; -1] ---> fair / decrease [2 ; 1.1] ---> very good / strong increase
FPE NetworkFPE Network
FPA(USA)
CFPGDA FV
Flex (Germany)PFFCA
(India)
CFP(China)
new contact
Elipso(France)
EFEFASD(Turkey)
contact
IGFV(Switzerland)
GIFLEX(Italy)
PAFA(UK)
EFE(Spain)
(Turkey)
membership cooperation
India: PackTech 2010India: PackTech 2010
• FPE Presentation at Bombay conference / exhibtion Nov 2010 on ‚Flexible Packaging in the Sustainability Debate‘
• Invitation and financed by exhibition company ‚Messe Duesseldorf‘• Opportunity used to establish contacts with PFFCA Paper, Film &
Foil Converters‘ Association, India• About 600 flex pack companies of which approx 75% are members• About 600 flex pack companies of which approx. 75% are members
of PFFCA
• Production about 600,000 t (without mono layer films)
• Turnover total flexible packaging industry incl. small businesses: about 2.7 bln US$
ContentContent
• FPEFPE
• Flexible Packaging Markets
• Issues: Food Contact & Sustainability
• Invitation
World Flexible Packaging Marketo d e b e ac ag g a et
Middle East / Africa
The Americas 1)
Europe 3)
%
5%
38%26%
Asia 2)31%
World Flexible Packaging Market = US$ 65.0 billion1) thereof 7% Central & South America1) thereof 7% Central & South America 2) thereof 9% South East Asia & Oceania 3) thereof 3% Eastern Europe
Top 10 Flexible Packaging Converters U S & Europe 2009 / 2010U.S. & Europe 2009 / 2010
U.S.• Bemis
Europe• Amcor (incl Alcan)Bemis
• Sealed Air • Berry Plastics (incl. Pliant)• Printpack
Amcor (incl. Alcan)• Constantia • Sealed Air Cryovac• Clondalkin Group• Printpack
• Sigma Plastics Group• Exopack
Hilex
• Clondalkin Group• WIPAK• Mondi Packaging
H htamaki• Hilex• Packaging Dynamics• Pregis (incl. Pactiv)
S
• Huhtamaki• Bemis• Südpack
• Sonoco
Accounts for 50% of Industry
• Nordenia
Accounts for 55% of IndustryTotal Industry * = $26.4 Billion Total Industry * = $14.0 Billion
* different definitions, US incl. retail & trash bags, shrink & stretch films, …
Acquisitions & Concentration in Europe *in Europe
Amcor Flexibles Alcan PackagingOne Equity Partners Constantia Packaging
Ampac Flexibles Floeter (Germany)Ampac Flexibles Floeter (Germany)
Berry Plastics Pliant (Germany)
Brodart Breger Emballage (France)
Constantia Flexibles Tobepal (Spain)
Emsur Saymopack (Spain)
Flextrus Flexmed & Flexopac (Sweden)Flextrus Flexmed & Flexopac (Sweden)
Korozo Saf Plastik (Turkey)
Plastienvase (Spain) Arras (France)
* extract of recent activities
Exopack Reuther (Germany)
European Flexible Packaging M k t 2009Market 2009
Region 2008 € Millions 2009 € Millions% Change
2008 to 2009
Western Europe €9,157 €8,799 -4.0%
Central & Eastern Europe €1,576 €1,616 +2.5%
TOTAL EUROPE €10,733 €10,405 -3.1%
Source: PCI Films Consulting Ltd / Industry estimates
European Converted Flexible Packaging Market 2009 by End useMarket 2009 by End-use
Total = 44.2 billion M²
Source: PCI Films Consulting Ltd / Industry Sources
European Converted Flexible Packaging Market 2009
P d ti d T dProduction and Trade
€ million 2008 2009 % Change
Production € 11 442 € 11 116 -2 8%€ 11,442 € 11,116 2.8%
Exports to non-European destinations € 909 € 887 -2.4%
Imports from outside theImports from outside the European region € 200 € 176 -12.0%
EUROPEAN CONSUMPTION € 10,733 € 10,405 -3.1%EUROPEAN CONSUMPTION € 10,733 € 10,405 3.1%
Source: PCI Films Consulting Ltd / Industry Sources
European Flexible Packaging Regional Consumption Forecasts 2009 - 2014Consumption Forecasts 2009 2014
Region / Country 2009 € Millions 2014 € Millions
Average Annual % Change 2009-2014
Western Europe 8,789 9,740 1.6%
C t l dCentral andEastern Europe 1,616 2,164 6.1%
TOTAL EUROPE 10,405 11,904 2.4%, ,
Source: PCI Films Consulting Ltd / Industry Sources
European Flexible Packaging Market ProspectsMarket Prospects
• European flexible packaging demand recovered p p g gstrongly in 2010, increasing by 4 – 5% in value
• value growth through to 2015: 2-3% p a for Europe• value growth through to 2015: 2-3% p.a. for Europe
• Growth expected in Eastern Europe + Turkey > W t EWestern Europe
• Demand in Russia to grow by 8% p a +Demand in Russia to grow by 8% p.a.+
Source: PCI Films Consulting Ltd / Industry estimates
ContentContent
• FPEFPE
• Flexible Packaging Markets
• Issues: Food Contact & Sustainability
• Invitation
Food Contact Issues “blowing up”
• Recasting of Plastics Directives (PIM)– Consolidation of existing European food contact legislation in one document
g p
• Swiss and German Ordinance on printing inks– Risk that certain printing inks will be forbidden in these countries due to faulty positive lists
• Requirements of customers going beyond legislation– Despite existing European legislation on certain substances customers ask packaging suppliers
for adherence to stricter limits or even complete phase outfor adherence to stricter limits or even complete phase out• IFS (International Food Standard) guideline revision
– Major improvements could be reached for more realistic requirements of retailers towards fillers/packaging producers
• Revision of the Council of Europe Guideline on Metals– Several uncoated and coated aluminium applications threatened by strict specific release limit
• Functional barrier project – Good tool to advise customers on appropriate barrier to be used for a certain packaging
application• FACETFACET
– EU financed project to create a tool to calculate consumers’ real exposure to substances
Requirements of EU, national legislators d t il ti l i iand retailers continuously increasing
FPE Newslettert i f d t t d t ilcontains food contact details
Available atwww.flexpack-europe.org
Sustainability IssuesSustainability Issues
P iti fl ibl k i ffi i t• Position flexible packaging as resource efficientin the sustainability debate
• Monitor activities around food and packaging, in particular on LCA and sustainability indicatorsparticular on LCA and sustainability indicators
• Improve knowledge on recovery and recyclingImprove knowledge on recovery and recycling of flexible packaging (pre- and post consumer)
Responsible Sourcing of R M t i l N T dRaw Materials as New Trend
FSC = Forest Stewardship Council: S S pPaper from certified forestry
The ‘More is Less’ VisionThe More is Less Vision• More preservation (through the absolute barrier effect) means a long shelf-life at room
temperature and less use of energy for transportation and storagetemperature and less use of energy for transportation and storage
• More barrier effect means less loss of the nutritional
and health benefits of food
• More barrier efficiency and capability means less use
of packaging material
• More convenience (through portability and portioning)
means less food wastage
• More recycling means less use of virgin resources
Flexible packaging version of thought p g g gleadership paper to follow (summer 2011)
ContentContent
• FPEFPE
• Flexible Packaging Markets
• Issues: Food Contact & Sustainability
• Invitation
Open InvitationOpen Invitation
forUS FPA memberstoto interpackEAFA/FPE boothDuesseldorf, Germany, yMay 12-18, 2011 Hall 11, A 37
Open InvitationOpen Invitation
forBill Burke, Chairman
Marla Donohue PresidentMarla Donohue, Presidentto join
FPE Autumn ConferenceNice, France,
November 17/18, 2011
www.flexpack-europe.org