Packaging Unwrapped 2011

consumer packaging report 2011/12
packaging unwrapped
2O O 1 2O 1 1 2O 2 1 2O 3 1 2O 4 1
in this report
01 02
introduction global overview
market trends and movements 06 beverages 16 healthcare 20 personal care 26 household care 32 ambient food 42 45 thirst principles Rexam at a glance
Contributors: Pira International, Canadean, Plato Logic, Euromonitor, The Freedonia Group, Datamonitor, Rexam Radar.
01
introduction
Since our last report, we have seen a global economic downturn and the world has gone through much change. Parts of the global economy are showing early signs of recovery and the value of packaging in dollar terms is back at 2008 levels. As you will see from the data in this report, the long term prospects for the industry remain promising. But we are seeing a shift of emphasis from the larger, traditional and mature markets towards emerging markets. This is not to say that the mature markets are unimportant. On the contrary, but the total packaging market value of Asia, for example, is now equal tothat of Europe, and the fastest growth rates are to be found in developing countries. Much has been made of the BRIC countries (Brazil, Russia, India, and China) and their return to centre stage in2010, and few deny that their growth potential is promising. Butnew acronyms are appearing, such as MAVINS (Mexico, Australia, Vietnam, Indonesia, Nigeria and South Africa), not to mention countries such as Poland and Turkey, as the new frontiers ingrowth potential. Why this shift of emphasis? Because consumer packaging is an essential component of modern living. Italso makes a positive contribution to a sustainable society, making sure that goods reach the consumer inthe state intended, preventing waste and spoilage. As a leading global consumer packaging company, our job at Rexam is to ensure that we provide our customers with the latest and best packaging solutions. Part of this is a better understanding of what makes the consumer tick. Part of it is forging closer partnerships along the whole supply chain making sure that all constituents appreciate fully the demands and dynamics of end markets so that we are prepared to help develop solutions that are suited to tomorrows consumers today. I hope that this latest edition of our consumer packaging report willhelp broaden your understanding ofthemarket and help us alltowards our ultimate goal of developing better and more sustainable packaging solutions.
global overview Rexam at a glance thirst principles ambient food household care personal care healthcare beverages
Graham Chipchase chief executive, Rexam
02
Rexam consumer packaging report 2011/12
global overview
global overview
end use
The global market for consumer packaging in2010 was valued at just over US$395bn. Thepackaging market grew by 6% between 2009/10 reverting back to packaging values seen in 2008. Thenear term outlook is still clouded by economic challenges andfragile consumer confidence. However, long term growth is expected to be on average around 3% a year, with the market reaching US$456bn in 2015, although some segments will display higher growth rates.
US$395bn
Food Beverages Healthcare Cosmetics Other consumer 51% 18% 6% 5% 20%
annual average growth 2.9% 201015
Healthcare Cosmetics Food Beverage Other consumer
4.5% 4.3% 2.8% 2.7% 2.6%
source: Pira
Food packaging is the largest segment, accounting for 51% of the total market value at US$202bn. Beverage packaging accounts for18%, followed by 6% for healthcare and 5% for cosmetics. Packaging for healthcare and cosmetics is experiencing good growth, with healthcare predicted to be the fastest growing end usecategory, at 4.5% per year until 2015. Food and beverage packaging are also growing but are more in line with overall packaging growth of c.3%.
03
geography
pack material
US$395bn
Europe Asia, Oceania, Africa & ME North America South & Central America 34% 34% 27% 5%
US$395bn
Paper & board Rigid plastic Glass Flexible plastic Beverage cans Other metal Other 34% 27% 10% 6% 9% 3% 11%
South & Central America 5.5% Asia, Oceania, Africa & ME 5.0% Europe North America 1.7% 1.2%
Rigid plastic Flexible plastic Glass Paper & board Other metal Beverage cans Other
4.1% 3.8% 2.7% 2.4% 1.9% 1.6%
source: Pira
source: Pira
Long term growth strongly underlines a shift in balance towards theemerging markets. The Asia, Oceania, Africa & Middle East region has now increased its packaging market value share to 34% matching that of Europe which dropped by 2% between 2009/10. Both North America and Europe show moderate year on year increases with Europe faring a little bit better than North America.
Plastic (rigid plastic and flexible) accounted for 37% of all globalpackaging sales in 2010, the largest share of the market. Within plastics, rigid plastics is expected to be the fastest growing packaging material during the period 2010 to 2015 with a predicted average annual growth rate of just over 4%. Growth will be driven by consumer preference for lightness, safety, transparency, convenience and the microwaveability of rigid plastic packaging. Metal, which includes food and beverage cans, accounted for 15%of the consumer packaging market value in 2010 with metal beverage cans accounting for 6% of this share. Metal packaging overall is forecast to grow at around 2% a year to 2015.
Rexam at a glance
thirst principles
ambient food
household care
personal care
0.4%
healthcare
beverages
global overview
04
global overview
global overview
megatrends affecting consumer habit and behaviour
Key megatrends, such as convenience, health and wellbeing and sustainability, are creating long term shifts and influences on consumers lives across many different markets, regions and demographics. While most of these megatrends are not new, they manifest themselves in many different forms and appear to have no definite end. Although these megatrends are global they tend to have different impacts regionally, depending on the maturity or stage of development of the market in question. Greater ethnic diversity and greater availability of multicultural foods also provide increased opportunities for packaging. Thedesire is for product authenticity and differentiation. Packagingthat incorporates clear signs of provenance and stands out on the shelf will become more sought after in the future. health and wellbeing, safety and sustainability The health and wellbeing trend is now moving towards preventive healthcare which is fuelling growth in food and beverage products that target healthy lifestyles. Demand for low and light, fresh and safe, natural and organic as well as functional and fortified options are expected to continue to grow in 2011 and beyond. Wellbeing extends to product safety and security. More packaging innovations that prevent contamination or degradation, counterfeiting and tampering will become increasingly important inreassuring consumers about the safety and authenticity of the products they are buying. Concerns about the use of excessive packaging and the sustainability of our society remain prevalent. Consumers continue to challenge green claims on products and packaging. Theywantmore help understanding the complex, confusing worldof environmentally friendly products and packaging. Small, subtle changes to packaging, such as lightweight and recycling information on packs, will make it easier for consumers to make
developed markets
changing demographics, ageing society and growing ethnicdiversity The average age of the population in developed markets is increasing. According to the UN, one in three people in the developed world will qualify for pensions or social security by 2050. Older consumers are looking for products that are easy to use, healthy, value for money, and nostalgic with packaging tailored to their needs. The rise in the number of single person households is also influencing new product development. Preference is growing for longer shelf life, smaller portion sizes and products that offer convenience and time saving.
megatrends affecting packaging

demographic trends/ ageing society
Less family packs Simple solutions Vitality, energy and longevity key to grey appeal Easy to open packs Anti ageing products Growing middle classes increase in packaging required Rising number of women working Kid/tween power Male grooming
sustainability/ ethical consumerism

Small moves in eco Eco Easy Excessive packaging concerns Lightweight Waste/recycling Ethically sourced Recyclable packs Reusable packs Cheaper pack forms Alternative packs/energy shortages Biodegradable packs Waste management
health and wellbeing/ health conscious

Calorie control packs Product labelling Dosing/portion control Self medication Customised products Natural/organic Comfort/ cocooning Preventive vaccines/ medicines Tamper resistant packs Anti counterfeiting Medical tourism Rising awareness of fitness/diet
value/hi lo consumerism/ premiumisation

Balancing added value/ affordability Quality and moderation Multi functional Trading down/ private label Mass customisation Indulgence/treats Conspicuous consumption Rising demand for luxury and imported goods/ brands Personalised goods Transparent packs
convenience/ on the go lifestyles

Single unit dosing Easy open/close Longer shelf life Simplified formats Temp control packs DIY beauty/spa Emergence of impulse shopping Shift towards eating out culture Ready to eat/ cook Alternative distribution channels/vending
concerns about product safety and security

Anti counterfeiting Child resistant packs Compliance RFID (security packs) Blister packaging Intelligent packaging Time strips (expiry) Concerns about food security Increased demand for pharma packs Transparent packs Clear labelling and instructions
growing ethnic diversity/ rapid urbanisation

Greater choice of products/ variants More ethnic foods Product saturation/ category blurring Packs standout Authenticity/ provenance More efficient use of packaging Greater use of returnable packs Burden on resources Better logistics New products
Impact on developed markets Impact on emerging markets
05
value, hi lo consumerism and convenience Following the global economic downturn, many consumers curbed their spending on some basic items so that they could trade up tomore premium goods, a term known as hi lo consumerism. Thisled to consumers seeking out at one end of the spectrum less sophisticated, simple forms of packaging that convey value and, at the top end of the scale, more premium packaging. There was also evidence of a slight shift in the positioning of premium products towards discretion and added value. Convenience continues to have a big impact on peoples lives. Packaging features such as single unit dosing, which originated in food, is now gaining momentum and moving into other categories such as laundry care, soap, cosmetics, skincare and over the counter (OTC) drugs. There is also an increase in demand for products that serve several needs, or can be used in a variety of ways, and these require unique forms of packaging and delivery systems. Added features such as dual chamber packs, foam formats for liquids, resealable aluminium bottles, specialty closures and purse ready packaging solutions for beauty products, will all help consumers manage their daily lives better.
health and wellbeing, safety and sustainability Health and wellbeing are now distinct consumer trends in emerging markets. Higher disposable incomes, government programmes for healthier diets, western influences and changing lifestyles have seen a shift in public perception. This has fuelled demand not just for healthy food and drinks, in particular fat free or low calorie foods, and nutrient enriched products, but also anti ageing products and beauty foods such as collagen boosting beauty products and spa treatments. Due to the sheer size of populations in emerging markets, they arebecoming major consumers of pharmaceutical and healthcare products, and many of these consumers are elderly. The market for OTC medication is growing, largely fuelled by higher education levels, the expansion of government health programmes as well as increasing health awareness. There is more self medication which provides opportunities for packaging to include value added features like dosage information and compliance features. There appears to be a correlation between health and wellbeing and concern for the environment. Consumers who shop for healthier products are also more likely to prefer packaging that isenvironmentally friendly and easy to recycle. In the emerging markets we are seeing an increasing appetite for environmental friendliness and the need for more efficient use of packaging. Itappears that sustainable packaging now goes beyond reducing packaging volumes and encompasses sustainability in the supply chain, the use of local products and materials, return programmes and curbs on the use of materials that cannot easily be recycled. convenience and conspicuous consumption While developed markets have largely been more focused on value, emerging markets, influenced by big spending in western cultures, are trending towards more conspicuous consumption. Theyare rapidly becoming sophisticated consumers demanding more premium products and personalised luxury goods. Packaging plays a key role in presenting brand values and this is particularly true of luxury goods, where it creates an image of superior quality, sophistication and style. In terms of convenience, emerging markets are following developed markets with an increase in the number of one person households, dual income families and more working women. This has led to a shift in lifestyle towards eating out and a demand for convenience in pre prepared foods, single serve portions and multipacks. Thiswill in turn increase consumption of packaging materials as smaller portions tend to use more packaging relative to their size. Portability is also seen as important in single serve packaging tomeet the rise of the on the go market. Retail structures have undergone significant change, with convenience stores fast becoming the most important points of sale for consumers of all ages and backgrounds. Many convenience items are also available from vending machines allowing consumers to save time.
emerging markets
changing demographics, growing middle incomes and rapidurbanisation In emerging markets the proportion of the ageing population isalsogrowing, and although less pronounced than in the developedmarkets, this will have an impact due to the large absolute population sizes. In Asia, for example, by 2050 the number of people aged 60 and over will be around two billion. The demands for packaging that is portable, single serve, easy toopen, easy togrip, lightweight and clearly labelled features wehave seen forsome time in developed markets are expected to intensify. Thiswill result in a greater demand for a more diverse range of packaging formats and suppliers. Rapid urbanisation has led to a rise in the number of prosperous middle income groups. Greater spending power is resulting in rapid growth in household consumption and a shift of expenditure from basic needs to lifestyle products and cosmetics. Demand isexpanding for a wide range of both high and low value goodsacross all markets, including convenience foods and indulgence products. The rise in male grooming is another significant trend. Men are becoming more conscious of the way they look and the emergence of specific products to cater for this need is having an impact in the personal care market. Packaging designed for men generally is in more sober colours and needs to take into account features such as portability, compactness and clear instructions. Over half the worlds tweens (children aged seven12) live in Asia and the brands they buy have a big influence on them. They are attracted by packaging that is colourful, fun and even features
Rexam at a glance
thirst principles
ambient food
household care
personal care
healthcare
beverages
global overview
informed lifestyle choices and they are more likely to purchase products that are packaged in eco friendly packaging.
non essential functionality. They are also more inclined to buy through automated systems such as vending machines and online shopping which puts new demands on packaging.
06
market trends and movements
beverages
07
Itisinteresting to note that Asias strong growth over recent years means that it now accounts for one in every four litres of soft drinks sold globally.
global trends in beverages
Similarly, South America has experienced solid growth in recent years taking consumption level to 324 litres per capita in 2010. Consumption levels in the Middle East and Africa are at similar levels to Asia, 173 litres per capita.
global average litres per capita 2010: 231 litres

soft drinks
CSD Packaged water Juice, nectars & still drinks RTD iced tea & coffee Squash & fruit powders Sports & energy drinks
litres per capita

31 25 12 6 6 2 28 5 3 38 75
m litres
RTD iced tea Energy drinks Still drinks Packaged water Sports drinks Spirits Juice & nectars Beer Wine CSD RTD iced coffee
annual average growth 3% 201014
11% 10% 6% 6% 6% 3% 3% 2% 1% 2%
alcoholic beverages
Beer Spirits Wine
other drinks
Dairy drinks Hot drinks source: Canadean
Rexam at a glance
thirst principles
8%
ambient food
household care
personal care
healthcare
The declines experienced in the more mature markets, however, arebeing offset by volume migration to the developing markets ofAsia, South America and the Middle East and Africa. In Asia theaverage consumption rate is 167 litres per capita. This low percapita consumption highlights how much potential remains unexploited, especially when compared with thehigh consumption levels experienced in the US and Europe. Itisinteresting to note that Asias strong growth over recent years means that it now accounts for one in every four litres of soft drinks sold globally.
beverages
The global commercial beverage market was c.1.6trn litres in 2010, an increase of 3% on 2009. This figure equates to the average consumer drinking 231 litres a year. Consumption levels and growth rates, however, differ widely by beverage type andregion.
The US remains the largest market for beverages, with annual consumption at 564 litres per capita, followed closely by Western Europe, consuming 558 litres per capita. These markets have witnessed some decline over recent years, especially in categories such ascarbonated soft drinks (CSD), where they face increasing competition from other beverages. Consumption in Eastern Europe stands at 455 litres percapita, catching up with drinking consumption levels of WesternEurope.
global overview
08
beverages
beverage consumption trends
CSD is the largest single packaged soft drink in the world, at 31litres per capita in 2010. Globally, the CSD market is expected to grow at around 2% a year. Overall growth in Europe is in line with average global growth with Eastern Europe expected to perform better than Western Europe. In the US, however, CSD consumption levels are declining as consumers are more concerned about their overall health and wellbeing. They are now adopting amore holistic approach to health which is fuelling the growth inRTD iced tea, energy drinks, still drinks, packaged water and sportsdrinks. In South America, Asia and the Middle East and Africa, the CSD market is growing at around 5% a year, aided by rising consumer incomes, enabling more regular purchases of such products. InIndia, the CSD market is growing even faster at around 10% ayear. Ready to drink (RTD) iced tea and energy drinks are the top performers among all beverage categories, with double digit growth forecast to 2014. Energy drinks have experienced strong annual growth rates of 12% since 2005 while RTD iced tea has been growing at around 11% a year. The availability of low calorie and reduced sugar options, with their claimed health benefits, aswell as 100% natural variants, are all serving to drive growth inthese categories which appeal to a more sophisticated palate. That said, as sales of energy drinks are soaring in the more developed markets such as the US, some medical concerns have been raised about the popularity of such high caffeine drinks among young people. Energy drinks are no different in caffeine levels than coffee, and, therefore, if consumed in similar quantities have no additional effects. Some people, however, dont drink energy drinks as they do coffee, which can lead to people accumulating higher concentrations of caffeine more quickly than would otherwise be the case. These concerns are now also spreading to the emerging markets, with a 25% tax increase mooted in Mexico for 2011 and India also reviewing caffeine content levels. Still drinks, juice and nectars are gaining ground as they are capable of satisfying a variety of criteria important to health focused consumers fresh, indulgent, authentic and refreshing. Packaged water continues to catch up with carbonates (38% of global soft drinks volume) and has now reached 31% of worldwide soft drinks volume. The beer market remains a mature but growing market. Globally, the market is growing at around 3% a year. North America is expected to grow at just 2%, with consumers exhibiting a greater interest in premium beers, as well as light, low ABV (alcohol byvolume), low calorie beer. A growing consumer interest in microbreweries and craft beerwill also be an important driver forgrowth. In Western Europe, the market is experiencing a reduction in total beer consumption as the region remains under pressure due to the economic climate, especially in Greece, Portugal, Ireland, Italy andSpain. Eastern Europe is expected to experience growth of2%, slightly below the global average. The strongest performance for beer consumption will come from South America and Asia, particularly in Brazil, China and India. InIndia, beer has a low per capita consumption rate of just over one litre, but growth is accelerating due to the recent trend of Indians increasingly consuming alcoholic beverages. Spirits are experiencing good growth, especially in China, primarily on the back of the rapid increase in Horeca (hotel, restaurant and catering channels) consumption. Wine is growing at around 2% globally butin Western Europe, the biggest region for wine consumption, the market is flat. The UK and Germany, however, areexpected toshow some growth.
OCO in FusionTM OCO is a light and fruity drink packaged in Rexams FusionTM bottles. The striking imagery and innovative packaging reinforce theproducers claim of the beauty enhancing qualities of the drink. Threetimes winner at the Beverage Innovation Functional Drinks Awards in 2011.
09
global beverage packaging

Convenience, health and wellbeing and sustainability are the key trends affecting beverage packaging. New packaging features areemerging to address these trends and to make life easier for theconsumer. We are seeing contoured bottles and cans to give abetter grip; packaging becoming available in a variety of sizes tosuit different needs and occasions; resealable closures and wideropenings for convenience and life on the go; and packdownsizing, lightweighting and making packs more easy torecycle. Consumers preference for convenience and the low prices oflargefamily packs are driving strong growth of plastic bottles. Plastic bottles are stealing share from all packaging formats but inparticular glass. Glass is becoming increasingly associated withpremium products. This is mainly due to consumers perception of glass as a natural, quality material. Alcoholic drinks form the mainstay of glass bottle demand, where the dominance of glass stems from the long established use of this format across a number of products. In the more developed markets of Europe and North America, growing consumer interest in craft, low ABV and premium beer is presenting opportunities for glass packaging, as well as for specialty cans. Cans are also expanding into the wine market and creating new drinking occasions. Recent research carried out by Rexam found that 55% of consumers surveyed agreed that wine ina can was a great idea for picnics and out of home drinking. Demand for healthy drinks is increasing the need for more single serve pack sizes, which help with portion control and calorie counting. Beverage cans are now being offered in smaller sizes and multipacks in categories like beer, wine, FABs (flavoured alcoholic beverage) and CSDs. New product development is also being devoted to improving labelling and decoration. New specially designed inks and finishes are being used to enhance the look of the can making them stand out more clearly on the shelf, thereby making it easier for consumers in their choice of beverage. Another trend driving beverage packaging, and in particular the can, is the growing preference for socialising at home, supported by more stringent drink and drive legislation. We are also seeing the growing popularity of aluminium bottles,much appreciated by consumers for the convenience of resealability along with their unique look. Like cans, they are also easily chilled, 100% recyclable and come in a variety of sizes.
Rexam at a glance
Rexam creates a new family ofcans The family of cans demonstrate the impact that using specially designed inks can have, particularly in differentiating a brand from others at point of sale. Some inks make the cans aesthetically pleasing, such as sparkle varnishes, whereas others make the drinking experience more tactile, such as spot matt varnish. The family of cans also includes thermochromic inks, that indicate when the beverage inside is at the perfect drinking temperature.
thirst principles
ambient food
household care
personal care
healthcare
beverages
global overview
10
beverages
beer packaging
Glass bottles and metal cans are the main pack types for beer globally. In 2010 glass bottles represented 62% of the global beer pack mix, while metal cans accounted for 23%. The remainder issplit between plastic bottles at 5% and draught beer at 10%. However, beer packaging differs from region to region with glass bottles showing a much higher share in the more developing regions, supported by well established returnable bottle distributionsystems. In North America, where the beer market is mature, the pack mix for beer is more or less evenly split between cans at 47% and glass at 45% with the remainder being draught beer. Cans have the advantage over glass as they are able to eliminate light damage and oxidation and this keeps the beer fresher for longer.
north america*
14F 13F 12F 11F 10 09 08 07 06 05 0 5,000
consumed beer volume (m litres)
10,000
15,000
35,000
source: Rexam Beverage Radar
south america**
Tuborg 1 litre can The new can size has been released by Carlsberg in Germany as a response to growing consumer demand for an alternative to the existing three piece, non aluminium onelitre can. These cans have a distinctive, on shelf presence that help them to tower over the competition and appeal toanew range of consumers.
14F 13F 12F 11F 10 09 08 07 06 05 0 10,000 20,000 30,000
asia
14F 13F 12F 11F 10 09 08 07 06 05 0
20,000
40,000
60,000
80,000
Cans Glass Plastics Draught *North America includes: Canada, Mexico, US. **South America includes: Argentina, Brazil, Chile, Colombia, Guatemala, Venezuela.
11
In Eastern Europe, beer is packaged in cans, plastic bottles and glass. Glass has the biggest share of the market as the traditional pack type but glass is losing share to cans and plastics due to consumers interest in new pack types. In the emerging markets of South America, Asia and the Middle East and Africa, the predominant pack mix for beer is in glass bottles with most of the remainder in cans. Beverage cans are growing well in all these markets, but are growing particularly strongly inSouth America, especially Brazil.
10,000
20,000
30,000
eastern europe
14F 13F 12F 11F 10 09 08 07 06 05 0

personal care
10,000 20,000 30,000 0 1,000 2,000 3,000 4,000 *Africa includes: Egypt, Morocco, SouthAfrica, Tunisia.
middle east/africa* Cans

Glass 14F Plastics 13F Draught 12F 11F 10 09 08 07 06 05
Antarctica beer AmBevs Antarctica beer brand, popular in Brazil, retails in a Rexam Sleek can.The can includes thermochromic ink which turns blue when the beer hasreached the perfect temperature.
Cans Glass Plastics Draught
Rexam at a glance
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ambient food
household care
healthcare
beverages
In Western Europe, glass accounts for just over half the pack mixfor beer, cans represent just over a fifth while the plastics shareis negligible. Draught beer accounts for 25% of total beer consumption. The high glass share reflects the growing success ofpremium beers, which accounts for 31% of total beer consumption in Western Europe. Reduction in on premise consumption and the evolution of consumer tastes, along withanexpanding older population, means that the premium segmentshould continue to grow. Cans are also successfully targeting this market.
western europe
14F 13F 12F 11F 10 09 08 07 06 05
global overview
12
beverages
CSD packaging
Globally around 60% of CSDs are sold in plastic bottles and around 20% in cans. The rest is split between glass and bulk packs (over five litres). Plastic bottles are the fastest growing pack type for CSDs (4%) globally. In the US, the CSD market is mature and has a stable pack mix largely of beverage cans and plastic bottles. Packaging innovation in the form of new pack sizes are being tested and introduced in specific retail formats; multipack sizes have also been used to drive increased purchasing. In Western Europe, another mature CSD market, glass is being substituted by plastic bottles while beverage cans are maintaining their share. In Eastern Europe, glass has been largely replaced by plastic. Beverage cans are maintaining their share, especially in Russia where growth rates are expected to reflect economic growth over the next few years. CSD consumption in Russia isexpected to enjoy healthy growth as per capita consumption is still significantly lower than in other European countries (38litres per capita versus 61litres in Poland).
north america*
14F 13F 12F 11F 10 09 08 07 06 05 0 20,000
consumed CSD volume (m litres)
40,000
60,000
80,000
western europe
14F 13F 12F 11F 10 09 08 07 06 05 0 10,000
20,000
30,000
40,000
eastern europe
14F 13F 12F 11F 10 09 08 07 06 05 0 5,000
10,000
15,000
20,000
Coca-Cola light Demand for healthier lifestyles is increasing the need for lower calorie beverages, packaged in single serve sizes, which help consumers with portion control and dieting.
Cans Glass Plastics Bulk
*North America includes: Canada, Mexico, US.
13
In Western Europe, another mature CSD market, glass is being substituted by plastic bottles while beverage cans are maintaining their share.
Plastic dominates in South America and growth is in line with CSDconsumption growth of around 5%. Cans, however, are growing faster than the market at 10%, and gaining share at the expense of glass. Plastic bottles are the dominant pack for Asia. CSD consumption is growing above the average rate in the region but glass and cans are losing market share to plastic bottles. Cans,however, are growing particularly well in India. In the Middle East and Africa region, CSDs are packaged in a combination of plastic bottles, glass and cans. All pack types are growing in line with CSD growth of around 5% for the region.
south america*
14F 13F 12F 11F 10 09 08 07 06 05 0 10,000
20,000
30,000
40,000
Pepsi Istanbul Pepsi Istanbul, a limited edition lemon and mint twist on the classic drink, comes in a can with a sparkling varnish technique, which is available for the first time in Europe. The effect ofthe varnish complements the packagings design, a night scene ofacity skyline with twinkling lights and stars, making it eye catching on the shelf.
asia
14F 13F 12F 11F 10 09 08 07 06 05 0

personal care
10,000 20,000 30,000 40,000 0 5,000 10,000 15,000 *South America includes: Argentina, Brazil, Chile, Colombia, Guatemala, Venezuela. ** Africa includes: Egypt, Morocco, SouthAfrica, Tunisia.
middle east/africa**
14F 13F 12F 11F 10 09 08 07 06 05
Glass Plastics Bulk
Rexam at a glance
Cans
thirst principles
ambient food
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global overview
14
beverages
energy drinks packaging

The packaging of choice for energy drinks is the can. Energy drinks in North America are predominantly packaged incans with the remainder retailing in plastic bottles. In South America, where the energy market is growing rapidly, four out offive energy drinks retail in a can with a small amount also packaged inplastic and glass. The can share is expected toincrease mainly at the expense of glass. Energy drinks in cans are also dominant in Europe but plastic bottles do have a sizeable share. In Western Europe the can accounts for 56% of the market with plastic bottles taking 42%, andgaining share in a growing market. The can has a much largershare in Eastern Europe at 75% and plastic bottles account for 23%. Both pack types are growing well and maintaining theirshares. Asia has the most varied pack mix for energy drinks of any other region in the world. Glass has 42% market share followed by cans at 25% and pouches/sachets at 23%. Plastic bottles account for just 7% of the energy drinks market. The can is expected to be the star performer, growing at almost double the average growth of 8% at the expense of glass.
the americas*
14F 13F 12F 11F 10 09 08 07 06 05 0 750
consumed energy drinks volume (m litres)
1,500
2,250
3,000
europe
14F 13F 12F 11F 10 09 08 07 06 05 0
550
1,100
1,650
2,200
asia
14F 13F 12F 11F 10 09 08 07 06 05 0
Fusion energy drink The first energy drink from AmBev was introduced in the Brazilian market in 2011. The innovative can includes the new UVLumiset that glows in the dark when exposed to UV light. It was awarded the Latin Can award in 2011.
800
1,600
2,400
3,200
Cans Glass Plastics Pouch/sachet Cartons Other packaging Bulk *The Americas includes: Argentina, Brazil, Canada, Chile, Colombia, Guatemala, Mexico, US, Venezuela.
15
Globally around 62% of RTD iced tea is sold in plastic bottles with both cans and cartons each having a 10% share. The remainder issplit between pouches/sachets, glass and bulk. In North America, however, the can accounts for 30% of the RTDiced tea market. Plastic bottles have a 24% share followed byglass at 7%, pouches/sachets at 5%and cartons at 2%. The remainder retails in bulk and other packaging. Glassiscurrently losing share to pouches/sachets while the canismaintaining its share and growing ahead of the market. The biggest market overall for RTD iced tea is Asia. Plastic bottles are the dominant pack type for RTD iced tea with a 76% share. Cartons have a 9% share with the remaining pack types having similar shares. Cans, glass and cartons are losing share to plastic bottles and pouches which are growing strongly. The two main pack types for RTD iced tea in Western Europe are plastic bottles at 43% and cartons with 38%. The can has an 8% share of the market and pouches/sachets account for 4%. Plastic bottles and cartons are growing at the expense of the other pack types. RTD iced tea in Eastern Europe is dominated by plastic bottles with an 81% share. Both South America and Middle East and Africa have small RTD iced tea markets and both regions are growing well below the global annual average of 10%.
north america*
14F 13F 12F 11F 10 09 08 07 06 05 0 2,000
consumed RTD iced tea volume (m litres)
4,000
6,000
8,000
10,000
western europe
14F 13F 12F 11F 10 09 08 07 06 05 0 1,000
2,000
3,000
4,000
10,000
20,000
30,000
40,000
Glass Plastics Pouch/sachet Cartons Other packaging Bulk *North America includes: Canada, Mexico, US.
Rexam at a glance
Cans
thirst principles
14F 13F 12F 11F 10 09 08 07 06 05
ambient food
AriZona Iced tea AriZonas signature single serve 24oz can has helped the brand stay on top of the RTD iced tea segment in the US.
asia
household care
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healthcare
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global overview
RTD iced tea packaging
16
healthcare
17
In the longer term developing regions, especially China, India, Brazil and South Korea, will offer the faster growth opportunities for pharmaceutical packaging.
global trends in healthcare
The healthcare industry is being impacted byacombination of external factors and growthdrivers. The increased prevalence ofchronic diseases, changing lifestyles, anageingpopulation and increased income inemerging countries are all driving the growth ofpharmaceuticals. There is also the rise of generics and biotech to factor in.
At the same time, regulatory standards are becoming increasinglystringent and healthcare cost control initiatives indeveloped countries are being balanced by rising welfare inemerging countries. These trends reinforce the strategic importance of healthcare packaging but there is expected to be stronger expectations in terms of patient compliance, cost effectiveness and performance. The global pharmaceutical packaging market (both primary and secondary packaging) was valued at over $47bn in 2010 and isforecast to grow at around 6% a year to reach $58bn by 2014. Western Europe, the US and Japan will account for over 70% ofthis total. The large share in these developed markets reflects thehigh volume and broad diversity ofethical and over the countermedicines; the strict government standards defining quality,safety and security of pharmaceutical packaging products;and the expanding use of high value added containers, closures and devices to meet unit dose, counterfeit and functional packaging requirements. The Asia Pacific region represents just under a quarter of all global pharmaceutical packaging in terms of value. Central and South America, Eastern Europe and the Middle East and Africa region combined make up just 10% of the global pharmaceutical packaging market with most of the demand being standard containers and closures for low cost generic drugs. In the longer term, developing regions, especially China, India, Brazil and South Korea, will offer the fastest growth opportunities forpharmaceutical packaging. This will be driven by the expansion and diversification of pharmaceutical manufacturing capabilities inthese regions as well as ongoing efforts to improve the quality andintegrity of medicines.
geography
2010: US$47 .2bn
North America Western Europe Asia Paci c Middle East & Africa Central & South America Eastern Europe 36% 31% 4% 4% 2% 23%
Cental & South America 7% Middle East & Africa Asia Paci c Eastern Europe Western Europe North America 7% 6% 5% 5% 5%
source: The Freedonia Group
Novelia Rexams Novelia represents a majorinnovation in ophthalmic drug delivery device by providing users with a preservative free alternative for chronic treatments with a patient friendly package.
Rexam at a glance
thirst principles
ambient food
household care
personal care
healthcare
beverages
global overview
18
healthcare
healthcare consumption trends
Plastic bottles are the largest pharmaceutical packaging category valued at $10bn in 2010. The packaging of oral tablets, capsules and liquids make up the largest share of demand. The largest share within plastic bottles is for ovals, square and round containers with threaded necks designed to fit a wide variety of closures. Dispensing bottles, jars and cans make up the remainder. Dispensing bottles are used mainly for the packaging of liquid, spray and low viscosity topical medicines. Plastic bottles are expected to continue to record the biggest demand both in terms of volume and value for the pharmaceutical packaging industry over the coming years, but the category as a whole will experience below average growth. Dispensing bottles are expected to grow at around 6% a year with growth opportunities expected to come from the efforts made by drug makers to improve the functional features of these bottles. Caps and closures represent 15% of the global pharmaceutical packaging market and were valued at around $7bn in 2010. Childresistant and standard plastic caps, especially push and turn varieties, are the leading closures for pharmaceutical bottles and jars. However, plastic dispensing closures are expected to perform better based on ease of use and convenience advantages in the delivery of liquid medicines and low viscosity lotions. Future growth in caps and closures will come from drug makers efforts to stay current with government and industry guidelines involving the child resistant, senior friendly and security features oftheir packaging systems. The global market for pharmaceutical blister packaging was valued at$6.5bn in 2010. Blister packs are used largely for unit dose packaging of solid oral ethical drugs dispensed directly to patients and administered in hospitals. Future growth for blister packs will be driven by their adaptability to higher value added unit doses and promoting better patient drug compliance. Growth opportunities will also come from recent and forthcoming switches of previous prescription only drugs to over the counter distribution. Prefillable syringes, valued at $3.2bn in 2010, are forecast to experience the strongest growth of all the product segments driven by their advantages in the delivery of critical care and emergency medication. Advances, too, in biotechnology and other life science fields are broadening the range of potential drugs adaptable to prefillable syringes. They are also liked by consumers and medical practitioners for their safety features and ease of use. A key driver for growth includes the trend towards self administration. It is gaining importance because it reduces the costs associated with involving a patients caregivers in drug administration. It also helps in increasing compliance and is convenient. The global market for parenteral vials and ampuls was valued at $2.8bn in 2010 and is expected to grow by 9% a year to 2014. Vials dominate demand in this product group based on ease of use advantages over ampuls and because they are less vulnerable to drug cross contamination. Growth for parenteral vials and ampuls will be driven by the increasing availability and use of injectable biological and pharmaceuticals based on biotechnology and nanotechnology.
Pre llable syringes Pre llable inhalers Caps & closures Medication tubes Blister packs Pouches Plastic bottles Other* 11% 6% 5% 5% 5% 5% 4% 5%
global end use

2010: US$47.2bn
Plastic bottles Caps & closures Blister packs Pre llable syringes Parenteral vials & ampuls Pre llable inhalers Pouches Medication tubes Other* 21% 15% 14% 7% 6% 3% 3% 2% 29%
Parenteral vials & ampuls 9%
Prefillable inhalers, valued at $1.6bn and with a 3% share ofthe global pharmaceutical packaging market, are forecast to grow by6% per annum. The market is divided between two types of devices. Metered dose inhalers (MDIs) which account for 53% of world demand and dry powder inhalers (DPI). MPIs are used for the administration of liquid and spray medication. Advances in technology are leading to the development of smaller sized aerosol particles capable of depositing larger quantities of medication intothe lungs. Dry powder inhalers (DPIs) serve as a combination container and delivery system. In terms of innovations, the DPI focus is on minimising the dependence of the efficiency of the device on the patients inspiratory flow while the MDI devices mainly focus onthe dose counters and metering valves. Overall growth for prefillable inhalers will be driven by the growing numbers of asthma, allergy and migraine patients treated with inhalation drugs. Asthma affects 60 million people in the seven major markets (France, Germany, Italy, Japan, Spain, UK and US). Growth in prefillable inhalers will also benefit from dosage accuracy advantages over alternative delivery systems. Theywillalso enjoy extended market exclusivity because generics companies have not been able to develop copies that satisfy regulatory requirements. Other pharmaceutical packaging consists of pouches, medication tubes, IV containers, prescription containers as well as packaging accessories and labels.
*Other includes: glass bottles and jars, IV containers and secondary pharmaceutical packaging containers.
19
global healthcare packaging

The principal material used for pharmaceutical packaging is plastics at 61% based on the range and diversity of applications served. Paper and paperboard accounts for 20% with most demand coming from secondary containers, labels and pack inserts. The glass share stands at 11% with parenteral vials, prefillable syringes, liquid medication bottles and topical medication jars the main applications. Aluminium foil is used mainlyin blister packs, tubes and unit dose pouches. Global consumption for pharmaceutical packaging volume is forecast to grow at 3% a year to reach 5.7bn lbs by 2014. Aluminium foil is expected to experience the highest percentage growth at 3.5% a year to 2014. However, plastic resins will account for around 60% of the extra packaging material requirements. Both glass and paper & paperboard are expected to grow at 2.6% a year to 2014. Continuing improvements in packaging materials are leading to improved pharmaceutical containers with better aesthetics, barrier protection, security, ease of use and compliance features. Also,improved cost efficiencies in production are resulting in the volume of pharmaceutical packaging materials decreasing relative to the value of pharmaceutical packaging over the long term. Generally, trends in the level and mix of worldwide drug consumption will create favourable growth opportunities for the pharmaceutical packaging industry. The introduction of new, advanced biotechnology and nanotechnology based medicines will boost demand for high value added packaging systems. Highvalue added healthcare packaging will also be employed increasingly to differentiate brand products from generic drugs.
Aluminium foil Plastic resins Glass Paper & paperboard 3.5% 2.8% 2.6% 2.6%
global pack material

2010: 5.1bn (lbs)
Plastic resins Paper & paperboard Glass Aluminium foil Other raw materials* 61% 20% 7% 1% 11%
Other raw materials* 3.4%
*Other raw materials include: adhesives, rubber, elastomers, inks & coatings, stainless steel, wood, etc.
Rexam at a glance
thirst principles
Insulin pen With the growing number of people afflicted with diabetes globally (c.250m today and forecast to reach 380m by 2025), devices such as this insulin pen can help greatly the patient administer the correct dose in an easy, fast and private way.
SafenSoundTM Passive safety device for prefilled syringes. A major step to protect care givers.
InhaliaTM Rexams precision metering valves inhalers that combine reliable performance through product life; the best material in terms of mechanical performance and extractable control but also seal performance for optimum dose content uniformity.
ambient food
household care
personal care
Pack material chart is in lbs (pounds) because many of the sources used to compile the data are stated in lbs
healthcare
beverages
global overview
20
personal care
21
While global value sales of fragrances dipped during the height of the recession, global volume growth continued to rise due to an increase in mass fragrances.
global trends in personal care
Global retail sales for the personal care market (defind below) reached over $380bn in 2010 (around $56 per capita globally), growing by 7% from the previous year indicating a recovery to the sector as awhole following the global economic downturn of previous years. Sales in personal care are forecast to grow on average by 3% ayear to2014.
Total pack use for the personal care market in 2010 is estimated tobe just over 122bn units. The biggest category is haircare making up 40% (49bn units) of the global total for personal care. Western Europe, the US and Japan accounted for 50% of haircare sales in 2010 and had the highest per capita consumption (withthe exception of Brazil). Hence, any change in market dynamics in these regions impacts global sales significantly. Bath & shower is the second biggest category with a 24% volume share. However, bath & shower is the top category in all regions with the exception of Asia where haircare is the biggest. The third biggest is facial skincare followed by deodorants. Deodorant sales are booming in emerging regions where their useis becoming incorporated into the daily hygiene regimes of consumers. LatinAmerica, and particularly Brazil, is driving global deodorant sales, with consumers tending to use deodorant as a body spray.
In categories such as skincare (facial, body & hand care), for example, sales are still largely concentrated in mature Western regions, such as North America, although emerging markets such as Brazil are now key players. Low disposable income levels in the BRIC markets mean that per capita spend remains very meagre (Chinas spend per person was just US$7 in 2010, and India under US$1), but their vast populations mean that they are still major skincare markets in value terms. Overall total global packaging volume for the personal care market is expected to grow by around 5% a year to reach c.147bn units by 2014. The best performances globally are expected from haircare, fragrances and facial skincare. In haircare, growth will be driven by products that help consumers to colour and style their own hair as well as low maintenance haircare routines, for example, colourant products to retouch roots. Demand is increasing for easy and straightforward solutions, minimising the products used and offering added value. Consumers are not looking for a one product fits all option but for simple products adapted to their specific needs. The fragrance industry has been under threat in recent years from down trading in many different forms. While global value sales of fragrances dipped during the height of the recession, global volume growth continued to rise due to an increase in mass fragrances. This is indicative of a global trend towards buying cheaper fragrances and streamlining the number of beauty products used.
market scope
For the purposes of this report the personal care market includes toiletries, cosmetics and fragrances.
Rexam at a glance
thirst principles
SOFNCAPTM mini lotion pump A fun to use, mini lotion pump that allows consumers to experience their favourite cream anytime and anywhere.
ambient food
household care
personal care
healthcare
beverages
This regional picture changes when looking at the market in terms of value sales with the US and Europe accounting for around half ofglobal sales. China and India account for just 8% of total sales. However, Asia will be boosted by growth in China, with the prospect of over US$10bn added to the size of its beauty industry by 2015.
global overview
The Asia Pacific region accounts for the biggest share of the global personal care market with a 56% share (c.68bn units) followed by Europe at 19%, Latin America with 14%, North America with 8% and the whole Middle East and Africa accounting for just 2%.
22
personal care
growth by geographic market Asia Pacific
In Asia Pacific, haircare is the largest category with a share of 57%. Thebiggest sub category in haircare is hair colourants making up62% of haircare followed by shampoo at 30%. Haircare is expected to experience the fastest growth, growing at 9% a year with hair colourants outperforming all other haircare categories. We are seeing significant changes in haircare habits in countries such as India and China. In China, more added value products, suchas conditioners and styling agents, are now being introduced, helped by the development of specialist retailers. In India, consumers historically bought shampoo and conditioners as general or family use products but purchases have become more targeted. Hair colouring is also growing dynamically in both markets. Bath & shower is also a significant category with a 20% share of the market. Bar soap is the biggest sub category (87%) accounting for the majority of sales. However, body washes/shower gels and liquid soaps are growing well above the average growth rate of3% for the whole category. They are perceived to be more convenient and offering value added through features such as antibacterial properties. Facial skincare has a 4% volume share of the market and is expected to grow at around 7% a year. China and Japan are the two biggest markets followed by Indonesia and India. China is forecast to grow at 7%, in line with market growth for the region, while Japan is growing at just 1%. In Japan, consumers attach a great deal of importance to their facial skincare routine and, even in economic hard times, they still use a broad range of products. According to a Euromonitor report, research indicates that 60% ofJapanese women cleanse, exfoliate and use toner every day where the figure in the US is closer to 20%. Countries that are expected to show double digit growth for facial skincare in the region are Indonesia and India, as well as Vietnam, albeit from a very low base. Deodorants are also expected to grow strongly in Asia Pacific and are also becoming more sophisticated in scents and formulations, andare thus beginning to encroach on the traditional territory offragrances. In emerging markets there is a penchant among low income consumers to use body sprays as a cheaper substitute for fragrances which will further drive growth in this category.
geography
2010: c.122bn units
Asia Paci c Europe Latin America* North America Middle East & Africa Rest of World 56% 19% 14% 8% 2% 1%
Asia Paci c Latin America* Middle East & Africa Europe North America Rest of World
7% 4% 3% 2% 0% 1%
Primary packaging only, unit volume sold through all retail outlets source: Euromonitor
R ShapeTM lipstick The R ShapeTM family from Rexam is fun, innovative and different from other lipsticks on the market. The new lipstick solution provides greater convenience and ease of use, and both dispenses and protectsmulti benefits soft formulae.
*Latin America includes: Argentina, Brazil, Chile, Colombia, Mexico, Venezuela.
23
In Europe the personal care market accounts for 19% of the global share in terms of packaging volume sales. This can be split 70/30 between Western and Eastern Europe respectively. The bath & shower segment is the biggest category with a share of 23% followed closely by haircare at 20%. Both the facial skincare and deodorant categories have an 8% share. Within bath & shower, bar soap represents half the category followed by body washes/shower gels and liquid soaps at 42%. Europe has the biggest share of liquid bath & shower of all the regions followed by North America at 31%. This sub category is performing well above the average in all regions. Overall packaging volumes in Europe are expected to grow ataround 5% a year to reach c.25bn units by 2014. The best performances are expected to come from facial skincare, deodorants and fragrances. Skincare, especially facial skincare, is deemed essential by the majority of consumers, the key reason behind its continued good performance and predicted growth. Innovation has been key: added benefits such as anti ageing and sun protection factor (SPF)predominate, and premiumisation, whereby consumers are spending more on products perceived to be of higher value and offering additional benefits, is on the rise as they equate higher prices with better quality. Deodorants are forecast to grow in pack volume at around 3% ayear with Eastern Europe expected to outperform Western Europe. For fragrances also, growth in Eastern Europe is set to bounce back from the recession induced knock it took in 2009. Theproliferation of beauty specialist retailers in Eastern Europe isalso set to drive growth in premium fragrances. Western Europe is set to continue to see value growth rise, drivenmainly by the UK which is expected to account for 24% ofthe predicted US$1,445m absolute growth in the region over 20102014. Growth is expected to come mostly from male fragrances, in line with the continued success of mens groomingproducts.
global end use

2010: c.122bn units
Haircare Bath & shower Facial care Deodorants Men & womens shaving Body & handcare Fragrances Eye makeup Lip products Facial makeup Other* 40% 24% 4% 3% 3% 1% 1% 1% 17% 1% 5%
Haircare Fragrances Facial care Facial makeup Body & handcare Deodorants Men & womens shaving Eye makeup Lip products Bath & shower
7% 5% 5% 4% 3% 3% 3% 3% 2%
source: Euromonitor
XD11 TwistTM Rexams XD11 TwistTM is the first pump on the market to address the need for a premium and sustainable fragrance pump. It has high filling efficiency and the pump can be easily separated from the bottle once the fragrance is used, which facilitates component recycling.
*Other includes baby care, nail products, oralcare, sun care.
Rexam at a glance
thirst principles
ambient food
household care
Primary packaging only, unit volume sold through all retail outlets
personal care
3%
healthcare
beverages
global overview
Europe
24
personal care
Latin America
In Latin America, bath & shower is the biggest category with a 33%volume share with bar soap accounting for 95% of thetotal. Haircare is also a significant category with the bulk of the category comprising shampoos and conditioners (70%). Colourants are very popular among teens and young adults. Product penetration is high and should increase further as consumers seek at home alternatives. Theperception of conditioners is gradually changing from that of anon essential item to one that 60% of women buy regularly. Deodorants is the third biggest category and is forecast to grow ataround 4% a year to 2014. Brazil leads global retail sales of deodorants and body sprays are often used as a more affordable substitute for fragrances by lower income consumers. However, many companies also market their fragrances as body sprays to avoid high federal VAT taxes on fragrances. Fragrances in Latin America are set to increase in importance asdisposable incomes continue to rise, and also as fragrance offerings from direct sellers such as Avon and Natura continue to move upmarket. This will probably mean consumers in the region trading up to more expensive fragrance products. As in Western Europe, men are expected to be a key driving force behind the value growth in the region as more men enter the workforce, creating new wealth and a need to look well groomed and smell good. Latin America accounted for 26% of all fragrance sales globally in 2010. Overall the personal care market in Latin America is expected to grow in packaging volume terms by 4% a year reaching around 20bn units by 2014. The best performances are expected from facial make up, fragrances and eye make up. In terms of sales, Latin America is expected to be the main growth driver of the global beauty industry, with the region set to add over US$18bn toits value size by 2015. The share of premium make up in Latin America, however, is still very low. The main reasons for this are high import and excise taxes in Brazil, the major market for beauty and personal care in the region, which have kept premium cosmetics largely out of the market and enabled the mass market to thrive.
North America
North America is a mature market and accounts for 8% of the global market in terms of volume sales. The personal care market has been stagnating and is expected to remain flat while a general feeling of economic uncertainty remains. The biggest personal care category in North America, bath & shower, is expected to decline but sub categories within this category such as body washes/ shower gels and liquid soaps are forecast to grow annually at around 3% a year. The second largest category in North America in terms of volume is haircare. The biggest single market for haircare is still the US, with value sales of over US$10bn in 2010, or a 15% share of the global haircare market. Americans are also the biggest consumers of salon haircare, with an annual spend of US$2.4bn in 2010. Other personal care categories expected to perform well in North America are facial skincare, eye make up and deodorants. Despite the stiltifying effect of the US economy on some personal care categories, facial skincare remains a strong category. Women in the US are very loyal to both their skincare regimens and the products they use, such as anti agers. The continued ageing of theUS population, and womens reluctance to trade down in an area that promises to fight off the effects of ageing, bodes well for the future. Eye make up in North America is expected to be the top performer in volume terms, growing at around 2% a year to 2014, with value sales forecast to grow by 4%. The growth is lower than previous years but fashion trends are expected to continue highlighting the eye area for the next few years. In addition, manufacturers are expected to retain consumer interest through technological innovations, especially in mascara.
Middle East and Africa

The Middle East and Africa region represents just 2% of the personal care market which equates to around 3bn units. Theregion is expected to grow annually by 3% a year. However, colour cosmetics are expected to perform well above the average growth rate. Facial make up is forecast to grow at 11% a year while eye make up is expected to grow at 7% a year. Fragrances are also expected to perform well. Sales of fragrance inthe region are heavily weighted in a small minority of wealthier countries Saudi Arabia, South Africa, Israel, UAE and Iran while most others still remain largely insignificant for the fragrance industry.
Glossy DaysTM Rexams Glossy DaysTM is a rich and unique choice of design for lip gloss applicators that adapt to all lip shapes. They help create perfect make up results, aswell as delicate tactile sensations, for a great consumer experience.
25
In terms of sales, Latin America will be the main growth driver of the global beauty industry, with the region set to add over US$18bn to its value size by 2015.
personal care packaging flexibles*

Flexible packaging was the biggest pack type used in volume terms for the personal care market in 2010. Flexibles account for nearly half the global packaging total. The majority of this share is attributable to the two main categories haircare and bath & shower which make up 87% of the total. Flexibles is forecast to perform best of all pack materials and is expected to grow by 6% ayear reaching 75bn units by 2014. The majority of this growth is expected to come from the Asia Pacific region with hair colourants and shampoo accounting for 90% of the growth. A small amount of growth will also come from Latin America and the Middle East and Africa. In North America flexibles are expected to decline over the next few years while in Europe the market is expected to remain flat. Flexibles in both North America and Europe are losing share to rigid plastics.

2010: c.122bn units
Flexibles* Rigid plastic Paper based containers Glass Metal 49% 38% 3% 3% 7%
rigid plastic
Rigid plastic packaging is the second major pack type used for thepersonal care market. Asia Pacific, however, distorts the global picture. Rigid plastic is the biggest pack material in all other regions. North America has the largest share at 66% followed by Europe at 63%. It is present inalmost all personal care categories, with the exception of fragrances. Thelargest categories using rigid plastics are haircare, bath & shower, facial skincare and deodorants. The largest pack sub category within rigid plastics is plastic bottles followed by squeezable plastic tubes, which together make up over 80% of total rigid plastics. Another important category in rigid plastics is specialty cosmetic containers which includes cosmetic compacts and lipstick and mascara cases. This category is growing at 3% a year but in Asia Pacific, Latin America and the Middle East and Africa it is expected to grow at 56% a year to 2014. The top performing rigid plastic pack is expected to be plastic jars growing at 5% a year.
Flexibles* Glass Rigid plastic Metal
6% 5% 3% 2%
Paper based containers 4%
glass
Glass packaging has been enjoying strong growth, albeit from a low base, driven by strong growth in Latin America. Overall glass isforecast to grow at 5% per annum due to good growth in fragrances and nail polish which are predominantly packaged inglass. Facial care is also growing strongly with about 14% packaged in glass. However, glass is only increasing its overall share of the pack mix in the Latin American region.
household care Rexam at a glance
*Flexibles encompasses a variety of materials, predominantly plastics, aluminium foil andpaper.
Nea AirlessTM Rexams Nea AirlessTM pump combines ultra smooth actuation, formula protection, precise dosage, a self closing orifice and appealing aesthetics.
thirst principles
Paper based containers make up 7% of the global packaging totalwith a large proportion (two thirds) of the bath & shower (barsoaps) category packaged in this material. It is forecast to grow at a rate of 4% a year to 2014. In North America, however, the pack material is declining and in Europe it is forecast to grow atjust 2% a year. A large proportion of paper based containers (mainly folded cartons) is dominant in bath & shower with haircare also responsible for a large share.
ambient food
paper based containers
metal
Metal packaging has a 3% share and is expected to show the lowest growth of all pack materials for the personal care market. Itis forecast to grow at 2% a year, well below the 5% volume growth for the personal care packaging market. It is, however, forecast to grow by 7% ayear in Asia Pacific. Deodorants are by far the biggest category for metal packaging followed by haircare and men & womens shaving.
personal care
healthcare
beverages
global overview
26
household care
27
global trends in household care
air care products Easy to use with adjustable scent levels, air care products are increasingly seen as the finishing touches to inviting homes. Aircare fresheners create personal sanctuaries to relax, create memories and atmosphere to entertain friends or to simply eliminate unwanted odours.
Rexam at a glance
thirst principles
In terms of packaging material, rigid plastics makes up the main portion of the packaging mix for household care at 42% followed by flexibles at 35%. Paper based containers, predominantly folding cartons, account for 17% with the remaining packaging types metal, glass and liquid cartons less significant for household care. Overall the household care packaging market is expected to grow by 2% a year to reach 68bn units by 2014.
ambient food
Asia has the biggest share of the household care market, in terms of pack volume, representing 46% of the global total. Europe accounts for 25% of the pack volume with Western Europe responsible for over two thirds of the total, although the strongest growth will come from Eastern Europe. In Latin America the market has been growing successfully in recent years and the region now accounts for 15% of global household care. The biggest markets are Brazil, Mexico and Argentina. North America has struggled in recent years as consumers cut their spending and sought better value for money. The market, representing 9% of the global household care market in volume terms, is expected to remain subdued over the next few years. The Middle East and Africa region looks set to be the shining star in terms of volume growth, but it currently represents only 3% ofthe global household total.
household care
personal care
healthcare
Global retail sales in household care reached approximately US$132bn in 2010, representing an increase of 6% on the previous year. While the global recession hit growth in other sectors, the household care market is a very developed market with many products considered as essential items. Laundry care, dishwashing and surface care form the backbone of a market which enjoys high penetration rates across both mature and developing markets.
In terms of pack volumes for household care, the market is estimated at around 62bn units. Laundry care and dishwashing are driving sales, as two of the largest categories and also the best performing categories in household care. Laundry care is seeing a significant shift to concentrated products evident in both liquid and powder detergents. Dishwashing has the advantage of providing automatic dishwashing products to maturing economies in Eastern Europe and first tier cities in China where dishwasher penetration continues to drive growth. In less developed regions such as Latin America and the Middle East and Africa, a significant rise in branded dishwashing specific products will phase out the use of traditional hand washing products. Other categories including surface care and air care, which had been hit by the economic problems of recent years and were considered less essential by consumers, are likely to recover as consumers confidence returns.
beverages
The main story over the last few years has been the low growth in thekey regions of Western Europe and North America, which made up 44% of global value in 2010, down from 52% in 2005. Overallgrowth in household care is now moving from developed todeveloping markets. This has been part of a much longer term trend which has seen the key markets of North America and Western Europe representing a significant proportion of value but offering little in terms of growth.
global overview
28
household care
Asia has the biggest share of the household care market with laundry care the main driver of growth. Laundry care is forecast to grow at 4% per annum and will account for over 60% of all the extra pack requirements in the region. Insecticide is the second most important category in Asia and is enjoying particularly strong growth in countries that combine good income growth with tropical or sub tropical climates (particularly India, Vietnam and Indonesia). Toilet care, dishwashing and surface care are expected to see the strongest percentage growth over the next few years. Toilet care value sales in China have been driven in large part by factors such as the spread of supermarkets/hypermarkets, which has helped to improve availability and continued urbanisation. Also increased marketing has boosted consumer awareness of the benefits and availability of surface care products, while rising health awareness linked to H1N1 (Avian flu) is driving an increase in the frequency with which household cleaning tasks are carried out. Overall the household care market, in terms of volume, is expected to grow at 3% per annum to 2014. Increased per capita consumption, rising incomes and widening distribution will be the major driving factors for the further development of the market.
global end use

2010: c.62bn units
Laundry care Dishwashing Surface care Insecticides Air care Toilet care Chlorine bleach Polishes 42% 13% 12% 11% 8% 5% 5% 4%
Laundry Dishwashing Surface care Chlorine bleach Insecticides Toilet care Air care Polishes
3.2% 2.5% 2.2% 2.1% 1.6% 1.6% 1.0% 0.0%
laundry spouts The laundry spouts are custom moulded and all have a dual functional benefit. The spouts allow easy anddirectional dispensing and volume control. They are also drip resistant and have a drain back, preventing the laundry bottle getting messy and sticky.
29
Increased per capita consumption, rising incomes and widening distribution will be the major driving factors forthe further development of the market.
The European market is estimated at around 15.4bn units with laundry care and surface care the biggest categories. Air care and chlorine bleach are expected to experience the strongest growth over the next couple of years. Air fresheners are seeing a rebound across Europe, with electric air fresheners seeing further promotion and consumers reporting a desire to have fragrances in the home. In Western Europe, within the laundry care category, sales of liquid detergent have climbed rapidly since 2005 whereas powder has been less dynamic. Eastern Europe has been slower to develop thistrend but compaction, especially in liquids, has huge potential torapidly develop. The current trend for two, three or four times concentrate is likely to increase further meaning less packaging material and lower transportation costs. This may ultimately open up more markets to affordable laundry care and drive growth in thecategory. A key trend in Europe is a growing demand for products which claim to offer more than one function. Products like hand dishwashing liquid are being launched, for example, with added hand care ingredients to offer added value and extra benefits. Thisis seen as part of a much wider global trend with the likelihood of many more products entering the market inspired by other categories and products launched in other regions. Also, consumers perception of value is being redefined. Theyareno longer seeing cheap pricing as the only consideration. Consumers are looking at products that offer value for money, especially in the search for products that offer efficacy, multi functionality and product design and packaging. Cleaning will invariably remain a less than popular task for the majority of consumers, and they will continue to look at ways to cut the length of time required to complete a task or the amount of materials or power required to do so.
geography
2010: c.62bn units
Asia Paci c Europe Latin America* North America Middle East & Africa Rest of World 46% 25% 9% 3% 2% 15%
Middle East & Africa Asia Paci c Latin America* Europe Rest of World North America
5% 3% 3% 1% 1% 1%
household wipes Cleaning will invariably be a chore forthe majority of consumers and products such as wipes can simplify and cut the length of time required to complete a household task.
*Latin America includes: Argentina, Brazil, Chile, Colombia, Mexico, Venezuela.
Rexam at a glance
thirst principles
ambient food
household care
personal care
healthcare
beverages
global overview
Europe
30
household care
Latin America
In Latin America, the household market, in terms of volume, equates to 9.5bn units with Brazil, Mexico and Argentina representing the lions share. Laundry care is the dominant category and is expected to perform well over the next couple of years. In Brazil, sales growth in laundry care will be fuelled by the rising number oflower incomeconsumers starting to purchase laundry care products. Fabric softeners and automatic detergents are expected to register good retail volume and value growth over the next few years asthese consumers increasingly adopt these products. Thetotal volume of liquid detergents remains relatively small in Brazil, although in Mexico they are expected to record thehighest volume growth due to growing consumer acceptance. Other categories expected to perform well, in terms of volume growth, are air care, bleach and surface care. The growth in multipurpose cleaners and kitchen cleaners within the surface carecategory can be attributed to trading up to relatively more sophisticated products as well as to the cocooning trend which isseeing consumers spending more time at home. Overall, household care is expected to grow in volume by 3% a year drivenby the emergence of a strong lower middle class, evolving retail infrastructure, urbanisation and the westernisation of consumption habits.
Middle East and Africa

The Middle East and Africa region represents a small share of thehousehold care market at 3% but is forecast to deliver the strongest volume growth at 5% per annum to 2014. The main markets areEgypt, South Africa, Morocco, Saudi Arabia and Israel with themain categories being laundry care, dishwashing, surface care and air care. The region represents good longer term opportunities, with a large population which has so far remained relatively underdeveloped. Demographics in the form of youthful populations, leading to high levels of new household formation, and resource fuelled economic growth remain major drivers of home care demand in markets such as Saudi Arabia. Additionally, a strong increase in population is fuelling growth in home care in both volume and value terms. InSaudi Arabia, for example, the population expanded by over 11% between 2004 and 2009 to almost 26 million. With a median age of just under 26 years in 2009, a significant proportion of the population in this region is young and eager to adopt western consumption habits.
North America
North America is a well developed market and represents a total of5.7bn units, 9% of the global total. Like other regions, laundry care accounts for the biggest share at 32%. Laundry care is a mature market dominated by long established brands, so growth tends to be driven by new product launches as well as packaging innovation. Sustainability is also a key consideration in laundry care with energy efficiency as well as cold water washing becoming more mainstream. Another important change is the conversion by manufacturers to smaller, concentrated products and this is likely to continue with even higher degrees of concentration and reduced packaging material. Dishwashing is the second largest category representing 18% of household care. In the US, the market entered a period of disruption when the use of phosphates was banned in 2010. The transition tophosphate free automatic detergents has pushed unit prices upwards. The change has also helped make the automatic dish detergent category significantly greener. Overall, the US household care market is expected to remain flat in volume terms over the next few years. Down trading in the last few years has been particularly evident as consumers opt for cheaper and private label brands, as well as shopping at discounters which has put downward pressure on pricing. Future growth will be dependant on the economic recovery.
Ezi foamerTM Rexams Ezi foamerTM has an inverted format that allows easy, one hand operation. A single squeeze actuation creates instant, creamy rich foam, without priming. The Ezi foamerTM also works without chemicals or propellants, for consumer, eco friendly appeal.
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household care packaging rigid plastic

2010: c.62bn units
Rigid plastic Flexibles* Paper based containers Metal Glass Liquid cartons & other 42% 35% 17% 6% 0.3% 0.1%
The home care market is dominated by rigid plastic containers, themajority being HDPE or PET bottles. These rigid plastic containers are benefiting from good performances in laundry care, dishwashing and surface care. These three categories alone are expected to account for more than 85% of the extra rigid plastic packaging growth to 2014. About half of this extra growth will come from the Asia Pacific region. Overall rigid plastic packaging is expected to grow at 2% a year to reach 28bn units by 2014. Rigid plastic has become the package of choice with its improved appearance interms of transparency, its potential for new shapes and sizes, aswell as being lightweight and recyclable.
flexibles*
Liquid cartons & other Flexibles* Rigid plastic Metal Glass Paper based containers Other
6% 3% 2% 2% 1% 1% 6%
Flexible packaging is expected to show the strongest growth with the vast majority expected to come from the Asia Pacific region. The fastest growth in recent years has been in stand up pouches driven, inpart, by consumer demand for lightweight and low waste packaging. Within flexible packaging, flexible plastics accounts forthe greatest demand, widely used in laundry care for powdered detergents. Blister and strip packs are used mostly for toilet care, insecticides and air fresheners.
paper based containers

Folding cartons make up most of the paper based containers packaging category for household products. The majority of sales for this pack are generated in laundry care and insecticides and overall sales performance is closely linked to developments in these product groups. As, however, liquid and tablet formats for laundry detergents grow globally the resultant switch from paper based formats to more modern and convenient flexible pack types will probably weaken growth for folding cartons.
metal
Metal packaging consists of metal aerosol cans, metal collapsible tubes and metal tins. Metal aerosol cans dominate in the air care and insecticides categories while metal collapsible tubes and metal tins are used mainly for polishes. Metal packaging accounts for 6% of global household care volume with growth confined to the two main categories insecticides and air care.
ambient food Rexam at a glance thirst principles
glass
Glass packaging represents a very small part of household care volume versus the other pack materials and does not feature strongly for household care.
household care
personal care
healthcare
beverages
global overview
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ambient food
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Economic uncertainty also means consumers are eating out less, especially in developed markets, to the further betterment of overall packaged food retail volume sales and growth.
global trends in ambient food
Global retail sales of packaged food as a wholereached approximately US$2trn in 2010, representing a real term gain of nearly 2% on theprevious year and indicating that real term consumer spending across theglobal packaged food industry remains relatively unaffected by broader macroeconomic conditions and lingering uncertainty regarding the future. Itseems, however, that consumers are shopping more smartly and seeking out value for money. Within the ambient food sector (as defined below), retail sales were in the region of US$550bn, a little over a quarter (27%) ofthe total global packaged food market.
Total global pack use for ambient food is estimated to be around 382bn units. The biggest ambient food category globally is pasta & noodles, followed by meat & meat products, sauces, dressings & condiments and fruit & vegetables. These four categories account for 73% of the total ambient food market. The two biggest categories, pasta & noodles and meat & meat products, are expected to grow above the average 3% growth rate with sauces, dressings & condiments and prepared baby food also expected to perform well.
The health and wellbeing trend is also one of the biggest drivers of food sales in recent years. Consumers are increasingly trying to eat healthier and making conscious attempts to stay healthy. We are seeing more and more ambient food products, packaged in plastic microwaveable containers and trays, being used by the diet food industry. These packs come in single serve size containers that help consumers with portion control and calorie counting. The packs also have sufficient space for clear labelling that help consumers understand the specific dietary ingredients in the product. The health and wellbeing trend is likely to remain a driving force forfurther growth especially as economic prospects improve and consumers get older (as well as the overall average age of consumers increasing, they try to remain healthier and fitter). Consumers are also becoming more concerned about the source of products and how they are produced, packaged and transported.
Please note that dry, powdered and dehydrated foods of all types are not included in the scope of this report. The report also excludes dairy products and spreads.
Rexam at a glance
This section focuses on ambient food products, consisting principally of foods that are packed and heat processed in metal food cans, glass jars, plastic containers, trays, flexibles and stand up pouches. For the purpose of this report, the market is defined as including the following product categories: prepared baby food; fish & seafood; fruit & vegetables; meat & meat products; pasta &noodles; pet food (cat & dog wet pet food only); ready meals; sauces, dressings & condiments; and soups.
thirst principles
market scope
ambient food
household care
personal care
healthcare
Overall the total pack use for the ambient food market is expected to grow by around 3% a year to reach 426bn units by 2014. Increased volumes are being bolstered as more consumers in developing markets substitute unpackaged and fresh food for the perceived benefits of packaged food. Economic uncertainty also means consumers are eating out less, especially in developed markets, to the further betterment of overall packaged food retail volume sales and growth.
beverages
Asia Pacific has the biggest share of the ambient food packaging market with a 45% share, which is due partly to the high consumption of noodles in the region. Noodles, a staple in many Asian countries, accounts for over 40% of the total pack volume, with flexibles the dominant pack material for this category. Western Europe is the second largest market for ambient food with a share of 24%, followed by the US with 13%. Eastern Europe and Latin America have similar market sizes with 8% and 6% respectively.
global overview
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ambient food
The Asia Pacific region is the top performer with total packaging use estimated to be around 173bn units. China makes up almost half of the total with a 47% share followed by Japan at 26%. Thailand and Vietnam account for around 10bn units while India accounts for less than 4bn units. India has been growing rapidly over recent years and is forecast to grow at 12% per annum compared with 4% for the Asia Pacific region. The rise in urban population levels in the Asia Pacific region and the development of organised retail operations will secure retail food packaging growth among a large, growing and increasingly affluent consumer base. Demand from discerning consumers for added value food products and packaging will also become more commonplace. Looking at the packaging mix in the Asia Pacific region, the dominant pack type is flexibles which accounts for 62% of the ambient food packaging market. A large proportion of this is for the pasta & noodles category (77bn units). The other main types ofpackaging are rigid plastic containers at 10% and glass at 7%. Plastic trays are expected to show the strongest growth in the region, derived largely from ready meals and meat & meat products. Flexibles will also perform well with volume growth mainly driven by noodles and meat & meat products. Rigid plastic containers will also gain good volume increases, again driven by the noodles category. The noodle category is benefiting from launches of non fried instant noodles, with manufacturers promoting their ranges to appeal to consumers looking for a healthier option.
Plastic trays Flexibles* Stand up pouches Glass Metal Plastic jars & bottles Other**
asia paci c
2010: c.173bn units end use
Pasta & noodles Meat & meat products Fish & seafood Ready meals Fruit & vegetables Cat & dog food (wet only) Soup Prepared baby food 44% 21% 8% 6% 2% 1% 0.2% 0.1%
Sauces, dressings & condiments 18%
pack material
Flexibles* Rigid plastic containers Glass Metal Stand up pouches Plastic jars & bottles Plastic trays Other** 62% 10% 7% 6% 4% 3% 2% 6%
16.3% 4.6% 4.2% 3.5% 3.3% 1.9% 2.1%
Rigid plastic containers 2.8%
Nutrisystem diet meals Successful diet plans include specific meals in shelf stable plastic packaging that provides targeted marketing and portion control. Moving from frozen and refrigerated to ambient food reduces energy cost, carbon footprint and food waste.
*Flexibles encompasses a variety of materials, predominantly plastics, aluminium foil andpaper. **Other includes: paper based containers, liquid cartons and other packaging.
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The ambient food market in Western Europe is estimated to be more than 92bn units and is growing at around 2% a year. Although most of the region has been slow to recover from the economic downturn, the region will remain important in terms of value sales, while developing countries will hold dynamic volume growth prospects. Metal packaging is the biggest packaging category in Western Europe with a 28% share, but is losing share to rigid plastic containers and stand up pouches. Within the rigid plastic containers category are value added microwaveable bowls (theplastic can), a modern format and a fast growing segment offering convenience and benefiting consumers because they caneat directly from the pack. The bowls can be decorated with high impact gloss or insulating labels and do not dent. Flexibles account for 22% followed by glass and rigid plastic containers, both with a 15% share. Plastic trays (a very small category), alongwith stand up pouches are expected to grow well above the average. Plastic trays are used mainly for ready meals and fish & seafood which are showing positive growth.
western europe
Meat & meat products Fruit & vegetables Cat & dog food (wet only) Ready meals Fish & seafood Prepared baby food Pasta & noodles Soup 26% 17% 13% 12% 10% 3% 2% 2%
pack material
Metal Flexibles* Rigid plastic containers Glass Stand up pouches Plastic jars & bottles Plastic trays Other** 28% 22% 15% 5% 1% 0.1% 12% 15%
Plastic trays Stand up pouches Plastic jars & bottles Flexibles* Glass Metal Other**
3.7% 3.6% 2.2% 1.6% 1.1% 0.2% 2.1%
Tulips pork meat products Tulip, Denmarks leading producer of pork based meat products, has taken a traditional format and moved to a modern and convenient pack which is highly distinctive on retailers shelves.
Rexam at a glance
thirst principles
ambient food
household care
personal care
healthcare
beverages
global overview
Western Europe
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ambient food
growth by geographic market US
The US market represented a total of 50bn units in 2010 with metal packaging accounting for 38% in terms of pack volume. Metal, however, is losing share to rigid plastic containers and plastic jars. Flexibles are the second largest packaging category at 19%, followed by rigid plastic containers at 13%. Although the US market will remain relatively flat overall, rigid plastic containers and stand up pouches will perform well and experience the fastest growth among all the pack types, supplanting metal, glass and other containers. Categories that are expected to perform well in rigid plastic containers are prepared baby food, meat & meat products and fruit & vegetables. Stand up pouches are expected to perform well for cat & dog food, which at 60% is easily the most popular pack for this category.
us
Fruit & vegetables Meat & meat products Cat & dog food (wet only) Ready meals Soup Fish & seafood Pasta & noodles Prepared baby food 21% 18% 18% 15% 6% 4% 4% 3%
pack material
Metal Flexibles* Rigid plastic containers Glass Stand up pouches Plastic jars & bottles Plastic trays Other** 38% 19% 13% 7% 6% 3% 1% 13%
Rigid plastic containers 3.3% Stand up pouches Plastic jars & bottles Flexibles* Plastic trays Metal Glass Other** 3.2% 1.4% 1.4% 0.1% 1.3% 1.4% 0.7%
Copper Mountain This modern pack format is used under license from Campbells Soup Co. The growing trend to added value product category extensions insingle serve plastic packaging now includes hot beverages.
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In Eastern Europe the packaged ambient food market accounts for30bn units. Russia accounts for around 57% of the total (17bn units) and Poland has a 13% share. The market is forecast to grow at around 3% over the next four years reaching atotal of c.35bn units by 2014. Flexibles are dominant in Eastern Europe with almost 40% of the packaging share. The main categories for flexibles are sauces, dressing & condiments, as well as fish & seafood and pasta & noodles. Metal accounts for 22% of the packaging share and is mainly used for fish & seafood, fruit & vegetables and meat & meat products. Glass accounts for 15%, predominantly for sauces, dressings & condiments. Rigid plastic containers and stand up pouches have similar shares with 7% and 6% respectively. The top categories for rigid plastic containers are pasta & noodles, fish & seafood and meat & meat products. Pouches are dominant in sauces, dressings & condiments as well as cat & dog food. Stand up pouches and plastic trays are expected to grow fastest. Plastic trays will perform well in ready meals and meat & meat products. In Russia, ready meals recorded stable growth in 2010 asmany consumers appreciate ready meals time saving attributes and simple preparation as their lifestyles become busier. Atthesame time, traditional frozen ready meals such as pelmeni (dumplings with meat) and pancakes with different fillings are already a part of daily life for many Russians. The traditional at home preparation of these popular dishes is fairly complicated andtime consuming so Russian consumers are opting more and more for ready meals as an alternative.
eastern europe*
Sauces, dressings & condiments 31% Fish & seafood Fruit & vegetables Ready meals Cat & dog food (wet only) Pasta & noodles Prepared baby food Soup 15% 11% 6% 5% 5% 3% 0.1% Meat & meat products 24%
pack material
Flexibles** Metal Glass Rigid plastic containers Stand up pouches Plastic jars & bottles Plastic trays Other*** 39% 22% 15% 6% 3% 1% 7% 7%
Plastic trays Stand up pouches Metal Glass Flexibles** Plastic jars & bottles Other***
8.9% 8.6% 3.1% 2.9% 2.8% 2.1%
Rigid plastic containers 2.4% 3.4%
Topfinito Consumers find Nestls microwaveable packs very convenient as a flavoursome and nutritious meal for people on the go.
*Eastern Europe includes: Bulgaria, Czech Republic, Hungary, Poland, Romania, Russia, Slovakia, Turkey, Ukraine. **Flexibles encompasses a variety of materials, predominantly plastics, aluminium foil andpaper. ***Other includes: paper based containers, liquid cartons and other packaging.
Rexam at a glance
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ambient food
household care
personal care
healthcare
beverages
global overview
Eastern Europe*
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ambient food
Latin America*
Latin America represents the smallest slice of the ambient food market with total pack use estimated at 22bn units. The largest market is Brazil (38%) followed closely by Mexico (35%). Metal is the biggest category at 31% followed by flexibles at 23% and rigid plastic containers at 10%. Fastest growth is expected from plastic trays (albeit from a low base) and stand up pouches with demand for ready meals, meat & meat products and fish & seafood driving the growth. Consumers purchasing power is increasing rapidly and more andmore consumers are now able to afford products in categories such as ready meals, soups and cooking sauces. According to Euromonitor estimates, the proportion of households in Brazil with amonthly disposable income of over US$750 increased from 16% in 2001 to nearly 47% in 2010 and Euromonitor predicts that it willfurther increase to 57% by 2015. As consumers become more affluent, they also start to move to more sophisticated and more convenient products such as microwaveable meals, better for you options and indulgent treats. The search for higher added value products is expected to remain a key trend and the number of consumers willing to pay a little extra for better quality products willcontinue to grow.
latin america*
Sauces, dressings & condiments 42% Pasta & noodles Meat & meat products Fish & seafood Fruit & vegetables Ready meals Prepared baby food Cat & dog food (wet only) Soup 17% 13% 12% 11% 2% 2% 1% 0.2%
pack material
Metal Flexibles** Rigid plastic containers Glass Plastic jars & bottles Stand up pouches Plastic trays Other*** 31% 23% 10% 9% 6% 4% 0.1% 17%
Plastic trays Stand up pouches Flexibles** Plastic jars & bottles Metal Glass Other***
10.7% 5.8% 5.2% 3.5% 3.2% 2.4% 4.3
Isabel cold fish salads Isabel, a leading brand of fish salads and ready meals, has moved from cans toplastic. The plastic container is modern, eye catching and different to reflect a new process and improved taste and has enabled a hot range of products to be launched.
*Latin America includes: Argentina, Brazil, Chile, Colombia, Mexico, Venezuela. **Flexibles encompasses a variety of materials, predominantly plastics, aluminium foil andpaper. ***Other includes: paper based containers, liquid cartons and other packaging.
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ambient food packaging

Future growth in ambient food packaging will bedriven by growth in population and disposable income, smaller household sizes, new convenience oriented foods, and technological advances related tobarrier properties, aesthetics and consumer convenience. Flexibles and rigid plastics remain the most popular choices in almost all areas of the ambient food packaging market resulting in the more traditional pack materials of glass and metal losing share. This trend is likely to continue into the future. Plastic trays and jars have advantages over conventional glass containers and metal cans. They include convenience in storage and transport; can be consumed direct from the pack (on the move or at home); and offer retail display impact and potential for adding value. They are also easy to open, lightweight, flexible interms of shape and design and are cost efficient.
flexibles*
Flexible packaging has the largest share of the global ambient foodmarket and is the strongest competitor to rigid plastic. Flexibles are used widely in most of the ambient food categories with the exception of prepared baby food and soup. It is particularly strong in pasta & noodles and meat & meat products.
rigid plastic
Rigid plastic food packaging (consisting of rigid plastic containers, plastic jars & bottles andplastic trays) offers the greatest convenience in pack sizes, portability, microwaveability and cooking flexibility of all of the packs types. It offers a wide range offormats that can offer barrierprotection, shape, colour, flexibility, non breakability and transparency which makes it a very versatile material. We are also seeing a crossover occurring where hot beverages like tea and coffee are utilising high barrier, shelfstable plastic packaging. Microwaveable bowls are trendy and convenient and meet the needs of busy professionals and young adults for lunchtime and evening snacks and meals. They come in a wide choice of shapes and pack types, require no cooking utensils, are easy to open andare enjoying good growth. These containers have a long shelflife without the need for refrigeration or freezing, so less foodis wasted. The growth in microwave use around the world bodes well forfurther growth in shelf stable plastic packaging. In Brazil in 2001 microwave ownership stood at 21%; today that number stands at 34%. Similar increases can also be seen in Mexico wheremicrowave penetration in 2000 was 40%; today microwavepenetration in homes is 54%.
metal
Metal has a global share of 19%. It is gradually losing share and being pushed towards the lower value end of the market, but it has still an important role to play in ambient food. The market for food cans in developed regions is mature and in long term slow decline, while in developing regions growth continues. In the current economic downturn, cans have benefited from consumers switching to this economical food format, away from higher cost alternatives, looking for security in the familiar as well as the affordable. Although cans are experiencing unit declines, they are set to remain an important segment of the food container mix due to their long shelf life, efficiency of production and theeconomic advantages of canned items in controlling food expenditures as they are normally priced lower than other optionsavailable. Increased demand is anticipated for cans withconvenience factors such as easy open and resealable tops, as wellas non traditional can types such as retortable aluminium bowls and shaped cans.
Glass has lost market share in the shift to plastics and flexibles, driven largely by concerns over weight and breakability and the lackof filling flexibility. However glass offers opportunities for niche, value added products and for many standard applications isstill competitive on a unit cost basis versus barrier plastics.
Rexam at a glance
thirst principles
ambient food
glass
household care
personal care
healthcare
Stand up pouches have grown strongly in recent years. The largest market for pouches is cat & dog food, as well as pasta & noodles and sauces, dressings & condiments. Pouches are gaining acceptance as an alternative to the can. Advantages of pouches include lightweight, flexible shape, printing and decoration opportunities and they are easy and convenient for consumers. Pouches, however, lack robustness, consumer familiarity and areless easy to recycle than traditional metal cans.
beverages
stand up pouches
global overview
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thirst principles
thirst principles
by Canadean
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Canadean is a global market research and data management company focusing on the international beverage industry and its suppliers. With almost 40 years of experience in this field, Canadean has a wealth of information on soft drinks, beer, wines, spirits and beverage packaging. Rexam invited Canadean to share its vision of the future outlook for beverage consumption and packaging trends.
packaging for an evolving and demandingmarket
developing world picks up the baton

Growth is by no means uniform in terms of region or indeed beverage sector and category. The world can be split roughly between the developed world and the developing world. In the developed markets of North America, Australasia and Western Europe, consumption is at best sluggish and at worst shrinking, asconsumption patterns become shaped by changing lifestyles. Inthedeveloped world, overindulgence is out and this is impacting volume growth. In these markets opportunities are defined more in value terms as operators look to meet consumer interests in products that do more than just quench thirst. More and more people are assessing their liquid intake in an overall nutritional context. Drinks with a purpose will be at the forefront of the next generation of beverage innovation. Whether it is to increase your alertness, boost your immune system, supplement your diet or look after your skin and hair, the modern drink must tick many more boxes for the consumer. The ingredients of tomorrows beverage will drive the change; what goes into these drinks will not be developed in factories and laboratories but will be found in the forests, fields and the world around us to meet a newer expectation of naturalness. Artificial is not compatible with the changing mood. It is as if we have turned a full circle when many of the earliest drinks were tonics, consumed for their perceived medicinal qualities. This process is prompting a blurring of the traditional boundaries between soft drink categories. Differing ingredients can make astilldrink a sports drink or an energy drink. Carbonation can seea nectar positioned as a healthy carbonate. A water brand cancomfortably make the transition into the still drinks, carbonates, sports or even the energy drink category. It is already possible
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 BRIC MAVINS* Global
*MAvINS: Mexico, Australia, vietnam, Indonesia, Nigeria, South Africa source: Canadean
topurchase an energy drink beer. Fewer products highlight the category blur more than the vitamin water phenomenon. These are the premium, functional or enhanced products that will enable drinks producers in the developed world to compensate slowing volumes with added value. The role of the packaging industry will be to reinforce the message, justify the added value price and match the perception of the beverage. Consumers who pay a premium will want the product to look and feel right. It is not just the beverage that must be natural; the packaging must be, too, and that means green, not in colour but in ethic. As the developed world slows, the developing world grows. Yesterday and today, the so called BRIC markets of Brazil, Russia, India and China have been the engine for much of that volume growth. Tomorrow, new markets that often feed off the economic progress of these powerhouses will be making their own valuable contribution to the rising demand for commercial refreshment. They,too, are seeing the rise of the middle class and the subsequent expansion of disposable income levels. New markets are picking up the baton from the BRIC markets. The so called MAvINS of Mexico, Australia, vietnam, Indonesia, Nigeria and South Africa are rising to play a more influential role in the direction of the global marketplace.
Rexam at a glance
thirst principles
ambient food
household care
personal care
Recoveryhas not been like growing cress but rather green shoots are appearing in all different sizes and in some cases not at all. Theindustry has to adapt to a very different global marketplace. Despite these challenges, the demand for refreshment has continued to edge forward ahead of population growth in short, we are drinking more. Soft drinks, wine, spirits and beer demand has increased even during the eye of the storm in 2009. 2010 saw a further acceleration in consumption and all the indicators point toongoing growth in the years ahead. A beverage is not likeother foodstuffs in that it has to be packaged, whether thats ina bottle, acarton, a cup, a can, bag in box or a pouch. Consequently the packaging industry will be a key factor in facilitating the expansion of the global beverage market.
93% of soft drinks traded feature in a bottle, a can or a carton
soft and alcoholic drinks growth index

250 225 200 175 150 125 100 75 50
healthcare
beverages
The turbulence in the financial markets in recent times has presented new challenges for the globalbeverage industry. The post credit crunchenvironment is one with a more cautious consumer; its a place where there has been significant industry upheaval and consolidation and one where uncertainty still exists.
packaged soft drinks by pack type 2010

Bottle Can Carton Others 76% 11% 6% 7%
global overview
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thirst principles
thirst principles
The packaging requirements of these fast moving developing markets contrast with those of the beverage strongholds of the developed world. Drinkers in these markets are more price sensitive and the packaging of beverages often fulfils a more basicfunction. The modern retail channel is less developed and consumers have fewer fridges. Consumption at home is not so muchof a feature as it is in the developed world. Today, impulse consumption and price are the main influences on the pack choice of drinks companies but this will evolve as consumers become moreaffluent and adopt the same consumption patterns and practices as the developed world. The needs of these new markets will increasingly influence the makeup of the global beverage packaging split in the future. The developed world will add the value and the developing world the volume. But to look forward you must first look back and it is the trends of yesterday that provide the clues for the trends of tomorrow.
The beverage can was to be one such alternative. With thousands of GIs stationed all over Europe after the second world war demanding the taste from home, a more practical solution to the glass bottle was sought which would be more suited to mass exporting; the can was that solution. It was actually more a yearning for soda than beer that was to be the catalyst for the rise of the can. Cans appealed to everyone in the chain; producers and retailers liked them for their ease of handling and the reassurance that you knew that the consumer would receive the product in the same condition as when it left the production site. The consumer liked cans because they were portable, durable and light with recyclability only really gaining traction in recent years. The first carton actually made its debut over a hundred years ago but for soft drinks it only really came to prominence following the development of the first aseptic filling machines. It was thus not until the 1980s that consumers first began to see cartons available in large numbers in the soft drinks marketplace. The rise of juice, nectars and still drinks helped to facilitate the cartons growing presence and vice versa. The carton is seen by many as the symbol of the juice and nectar categories but has also established firm footholds in other soft drink categories. From a soft drink perspective probably the most influential development followed Nathaniel Wyeths patenting of the first PET bottle in the late 70s. It was to trigger a considerable shift away from glass as producers recognised the practical advantages of a bottle that does not break and weighs considerably less than its glass counterpart. Like the can and the carton, the PET bottle enabled drinks makers to satisfy more and more consumption occasions.
it started with a glass bottle

A few hundred years ago the glass bottle kick started the global beverage industry by enabling the earliest beverage pioneers to sell their beverages further afield and in bigger volumes. Since then there have been a number of key developments that have had a dramatic impact on the beverage packaging landscape and how we quench our thirsts. Today, although there is a plethora of other packaging choices, it is more likely than not that you will either be drinking out of a bottle, a beverage can or a carton. All these years on and the glass bottle remains highly visible and an important vehicle for beverage packaging and distribution. Its share has waned though as one by one, innovators have provided new options for drinks producers.
Rainforest The modern drink needs to tick many boxes for the consumer. Drinks with apurpose are set to lead the next generation of beverage innovations.
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Many of the earliest drinks were tonics, consumed fortheir perceived medicinal qualities.
In the short to medium term we are unlikely to have any new can, carton or PET type revolution. The trends of the last decades are set to carry on into the next. Glass will continue to concede share to PET in the soft drinks category as rising affluence in the developing world prompts consumers to seek out cleaner water. Industry consolidation may generate more investment in modern PET packaging lines to reach a mass audience in the developing world. Glass will not lose its association with quality enabling it to maintain a strong presence in the Horeca (hotel, restaurant and catering channels). The glass bottle is likely to remain iconic and will be a valuable tool for brand owners looking to target the top end of the soft drink and beer markets. Meanwhile in the alcohol sector, the threat to glass from PET is less pronounced and glass will continue to prosper. With the exception of Eastern Europe, PET has failed to win over beer drinkers. With rising demand for beer in thedeveloping markets, it is expected that refillable glass, which accounts for a large part of beer volume in these markets, will actually make gains in the next 10 years globally as a result. In soft drinks, the can multi pack has given consumers the chance to enjoy the single serve experience at home and this will continue to prove popular. In the convenience channel, the resealable can may well help cans recapture some presence from PET, where portion sizes have often replaced the can. In the developed world, with obesity very much on the radar of consumers and governments alike, portion control will become more of an issue, something that the can is well equipped to cater for. The can will also benefit from being the standard format in much of the world for the energy drinks category which, from a historic perspective, remains at the growth stage of its life cycle.
Sunlover This new drink claims to improve the quality of the consumers skin and tan. The slim can and gold varnish reflect the feeling of wellbeing.
Pelican Younger wine consumers have shown an increasing interest in alternative packaging for wine (wine in cans), particularly when it comes to convenience.
Rexam at a glance
thirst principles
ambient food
household care
Assumptions can be made as to what format the next generation ofbeverage will be packed in but where will they be packed? Theglobal village of today has seen a shift in manufacturing from West to East and it is realistic to assume that in the decades ahead we may see increasing numbers of drinks packed and exported from the East. Just a few markets have set the beverage agenda ofthe past but this could be turned on its head. If drinks in the futureare to be produced in the East, will the West begin to import tomorrows beverage concepts from there? An energy drink couldbe just the first of a plethora of new functional ideas to be successfully sourced from the Asian continent, so rich in its tradition of providing herbal and natural solutions to consumer lifestyles. Incorporated into beverages, these solutions are compatible with meeting the developing criteria of consumers in the West. Tomorrow, we in the developed world may well be adopting beverage consumption habits from other parts of the world and notthe other way round.
personal care
healthcare
beverages
global overview
looking into the crystal ball
Improved PET barrier technology in the so called sensitive juice, nectar, still drinks and RTD iced tea categories may not dislodge thecarton as the dominant format for these beverages but may hinder their progress and PET will inevitably raise its presence in these categories. Carton manufacturers are responding to the challenge and the carton is becoming increasingly user friendly and, importantly, in categories that are often susceptible to private label penetration. The range of carton choices is enabling drinks producers to easily differentiate and segment their products in termsof price and quality. The carton will benefit from rising consumption of juice, nectars and still drinks in the developing world but opportunities may be constrained by the amount of freshly squeezed fruit juices available on the street in many developing markets.
44
thirst principles
thirst principles
green is the new black

One feature that will help to shape the direction of the packaging industry now and in the coming years is the issue of our planets wellbeing. Producers of all formats are very much on the front line of the green tide; environmental responsibility and accountability are set to dictate future strategy. Green thinking is being driven by consumer and government alike; it will help determine what the consumer buys and how the government legislates. The developing world may be less sensitive to such matters but this is changing and, being a global issue, will be addressed at an international level. For packaging companies, it is predicted that there will be an increasingly direct correlation between green credentials and competitiveness. Expanding populations mean that there is more competition for resources and this is pushing up commodity prices. Stakeholders inthe packaging industry have to adapt to a trading environment where both packaging and beverages are costing more to produce. Glass, PET and can producers are all having to invest in lightweight to compensate for high oil and metal prices. There is a fine line between lowering production costs and ensuring that the product shelf life is not compromised and that the beverage is delivered to the consumer in the same condition that it left the production site.
Lightweighting is only part of the solution; a product will be judged on its all round environmental performance and measured by its total carbon footprint something that is already being printed on packs in some markets and we are likely to see more of, either through legislation or through voluntary agreements. Packaging companies can play their part but the overall footprint needs to incorporate other factors such as how far the beverage has travelled or how much water is embedded in the product. These factors may have implications for any shift in production to the East. The product will be scrutinised from the moment the beverage is conceived, to when it is consumed and to what happens to the empty container. More and more there will be an expectation to return the container to the production process and create a virtuous circle. Both producers and packaging companies need to work together to meet these expectations to gain a competitive advantage or even just to keep market share. The rewards of utilising fewer resources are not just limited to meeting environmental aspirations. Green has a feel good factor, is contemporary, efficient and, most of all, a greener package will be more competitive.
a non conventional beverage Petrol is a dog treat beverage in a can. Is this the start of a whole new beverage category?
Foam liqueur The worlds first foam liqueur launched byBols is powered by Rexam dispensing technology. The Rexam pump creates two litres of foaming liqueur from a single 200ml bottle ofBols Foam.
45
Rexam at a glance
Rexam is a leading global consumer packaging company

Our two main operations are Beverage Cans and Plastic Packaging.
Beverage Cans is a leading global beverage can maker comprising three regional businesses: Europe&Asia, North America and South America. Plastic Packaging is a major global player in rigid plastic packaging with two divisions: Healthcare and Personal Care. In all, we have close to 100 plants in more than 20 countries across the globe and some 19,000 employees. About 30% of our sales come from emerging markets.
share of sales and underlying operating profit 2010

sales*
80% Beverage Cans 20% Plastic Packaging
underlying operating pro t*

77% Beverage Cans 23% Plastic Packaging
* Continuing operations.
our locations
US The US is our largest market in terms of sales.
Europe Europe is our second largest market in terms of sales. Our corporate head office is in London while our European beverage can operation is headquartered inLuton.
Brazil We are the largest beverage can maker inBrazil.
Beverage Cans Plastic Packaging head office regional offices
China The vast majority of our employees in China work in our plastic packaging operations which were originally established for export, but are now increasingly focused on the local market.
sales* by customer location (m)

2010 2009 2010 2009
US Brazil Austria Russia Spain * Continuing operations.
1,586 700 288 267 218
1,619 554 268 300 241
UK France Germany Other countries
200 178 131 1,051
184 173 166 1,028
Rexam is listed on the FTSE4Good global sustainabilityindex
Rexam PLC 4 Millbank London SW1P 3XR United Kingdom www.rexam.com
Designed and produced by Radley Yeldar www.ry.com

Packaging Unwrapped 2011

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consumer packaging report 2011/12

introduction global overview

Graham Chipchase chief executive, Rexam

Rexam consumer packaging report 2011/12

annual average growth 2.9% 201015

Healthcare Cosmetics Food Beverage Other consumer

4.5% 4.3% 2.8% 2.7% 2.6%

annual average growth 2.9% 201015

annual average growth 2.9% 201015

4.1% 3.8% 2.7% 2.4% 1.9% 1.6%

Rexam consumer packaging report 2011/12

megatrends affecting packaging

sustainability/ ethical consumerism

health and wellbeing/ health conscious

value/hi lo consumerism/ premiumisation

convenience/ on the go lifestyles

concerns about product safety and security

growing ethnic diversity/ rapid urbanisation

Impact on developed markets Impact on emerging markets

Rexam consumer packaging report 2011/12

market trends and movements

global trends in beverages

global average litres per capita 2010: 231 litres

litres per capita

annual average growth 3% 201014

Rexam consumer packaging report 2011/12

market trends and movements

global beverage packaging

Rexam consumer packaging report 2011/12

market trends and movements

consumed beer volume (m litres)

source: Rexam Beverage Radar

14F 13F 12F 11F 10 09 08 07 06 05 0 10,000 20,000 30,000

source: Rexam Beverage Radar

consumed beer volume (m litres)

source: Rexam Beverage Radar

consumed beer volume (m litres)

source: Rexam Beverage Radar

middle east/africa* Cans

source: Rexam Beverage Radar

Cans Glass Plastics Draught

consumed beer volume (m litres)

source: Rexam Beverage Radar

consumed beer volume (m litres)

Rexam consumer packaging report 2011/12

market trends and movements

consumed CSD volume (m litres)

source: Rexam Beverage Radar

consumed CSD volume (m litres)

source: Rexam Beverage Radar

consumed CSD volume (m litres)

source: Rexam Beverage Radar

Cans Glass Plastics Bulk

*North America includes: Canada, Mexico, US.

consumed CSD volume (m litres)

consumed CSD volume (m litres)

source: Rexam Beverage Radar

source: Rexam Beverage Radar

Glass Plastics Bulk

consumed CSD volume (m litres)

source: Rexam Beverage Radar

Rexam consumer packaging report 2011/12

market trends and movements