ASIA PACIFIC SUSTAINABILITY WESTERN EUROPE IMPACT NORTH AMERICA FUNCTIONALITY LATIN AMERICA VALUE EASTERN EUROPE MIDDLE

E MIDDLE EAST & AFRICA

2015

Global Packaging Trends -

Global Growth Markets for Packaging

A market research study highlighting future packaging demand, product categories, and opportunities for
growth in packaging amongst fast-growing and maturing world economies.

GLOBAL PACKAGING LANDSCAPE: GROWTH, TRENDS & INNOVATIONS

PackagingMachineryManufacturersInstitute
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PublicationDate:September 2015
PaulaFeldman,Director,BusinessIntelligence,PMMI
Jorge Izquierdo, Vice President, Market Development
PMMI, The Association for Packaging and Processing Technologies 2015. All rights reserved. The information contained herein shall not be distributed or shared by the
recipient. No part of this document may be reproduced without the express written permission of PMMI.
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provided without any warranties or representations about accuracy or completeness. Any reliance on such material is made at users own risk. This document is confidential and for
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INTRODUCTION

EXECUTIVE SUMMARY

GLOBAL PACKAGING/$1'6&$3(
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GLOBAL PACKAGING TRENDS: INTRODUCTION

Who is Euromonitor International

Our Services
Syndicated Market Research

Custom Research and Consulting

Expansive Network
On the ground researchers in 80 countries
Complete view of the global marketplace

Cross-comparable data across every market

Our Expertise
Consumer Trends & Lifestyles
Companies & Brands

Product categories & Distribution channels

Production & Supply Chains
Economics & Forecasting
Comparable data across markets

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GLOBAL PACKAGING TRENDS: INTRODUCTION

Euromonitor International network and coverage

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GLOBAL PACKAGING TRENDS: INTRODUCTION

Presentation background and solution

Category Coverage

Presentation Background

Packaging

In partnership with PMMI, Euromonitor International has assembled

this packaging market landscape presentation entitled Global
Packaging Landscape: Growth, Trends & Innovations.

Beauty and Personal Care

Beverages
Dog and Cat Food
Home Care

Packaged Food
Tissue and Hygiene
Tobacco

Regional Coverage
Asia Pacific
(including Asia and Australia)

Western Europe
North America
Latin America
Eastern Europe
Middle East & Africa

This presentation will explore key trends driving development and

innovation in primary packaging, such as, increasing awareness of
health and wellness, growing concerns of environmental impact, as
well as rising disposable incomes, while seeking to identify hot spots
for packaging growth in all regions throughout the world.
Key views that will be addressed in the global packaging market are
regional, cross-regional and country-specific trends, data analysis and
qualitative observations.

Euromonitor Solution
In building this report, Euromonitor leverages its internal Passport
database, which compiles data points and qualitative analysis in 80
countries, covering nearly 30 industries, including packaging.
Data used in this presentation includes only final consumer product
packaging. Excluded from this presentation is data regarding shipping
packaging or other non-final consumer product packaging.
All data presented in this presentation is retail unit volume in billions
of units, unless otherwise noted and includes online purchases.

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GLOBAL PACKAGING75(1'6
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GLOBAL PACKAGING TRENDS: EXECUTIVE SUMMARY

Three trends affect the packaging market in every region of the world
Other macroeconomic and consumer behavior trends are large factors for the packaging market in certain regions

TOP TRENDS AFFECTING GLOBAL PACKAGING

OTHER IMPORTANT REGIONAL TRENDS

Primary:

Secondary:

Greater consumer
awareness of health and
wellness
Urbanization

Branding strategies

Convenience

Internet retailing

Smaller pack sizes

Premiumization

Stronger influence of
recycling and environmental
issues

Increasing disposable
income and purchasing
power

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GLOBAL PACKAGING TRENDS: EXECUTIVE SUMMARY

Globally, flexible plastic remains the dominant pack type

However, pack types such as brick liquid cartons and PET bottles will register the highest growth rates
Top 10 Pack Types in World by 2014 Total Volume

Other

2014 Volume Share of Top 10 Pack Types in World

HDPE Bottles
HDPE Bottles,
2%

Brick Liquid Cartons

Brick Liquid
Cartons, 3%

Other, 12%
Flexible Plastic,
29%

Flexible Paper
Of the top 10 pack
types, PET bottles will
experience one of the
largest forecast volume
growth rates, with a
CAGR of 4.7%

Thin Wall Plastic Containers

Metal Beverage Cans
Flexible Aluminium/Paper

Flexible Paper,
4%
Thin Wall
Plastic
Containers, 5%
Metal Beverage
Cans, 7%
PET Bottles,
12%

Flexible
Aluminium/Paper,
7%

Folding Cartons

Folding
Cartons, 9%

Glass Bottles

Glass Bottles,
10%

PET Bottles
Flexible Plastic
Total 2014 Volume
Total 2019 Volume

200

400

600
800
1000
Total Volume (in billions of units)

1200

Euromonitor International Ltd 2015. Applicable terms and conditions of use and the disclaimer at the front of this document apply.

1400

1600

GLOBAL PACKAGING TRENDS: EXECUTIVE SUMMARY

Cigarettes is largest category by volume though low forecast growth

Bottled water, yogurt and sour milk products and juice are the three categories with greater than 5.0% growth and
will add a combined 161 billion packaging units by 2019
Top Categories in World by 2014 Volume
90

Bottled water is the

leading category by
forecast volume growth
in three regions, Asia
Pacific, Western Europe
and North America

Absolute Vol. Growth 2014 2019 (in billions)

80

70

60

50

Currently the largest

category in Western
Europe, cigarettes will
be surpassed by
bottled water and beer
in total volume by 2019

Drinking Milk Products

Bottled Water

Yogurt and Sour Milk

Products

Beer

40

Juice
30

Biscuits
Sugar Confectionery

Cigarettes
20

Carbonates
Baked Goods

10

0
0.0%

1.0%

2.0%
3.0%
4.0%
Forecast Volume CAGR 2014 - 2019

5.0%

6.0%

Size of bubbles represents total 2014 volume

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GLOBAL PACKAGING TRENDS: EXECUTIVE SUMMARY

Flexible plastic will see large growth in non-cigarette categories

Bottled water is strong within PET bottles, accounting for 54% of the absolute volume growth for that pack type

Glass Bottles

PET Bottles

Flexible Plastic

Top Categories by Total Volume, 2014

(in billions)

Top Categories by Absolute Volume Growth,

2014 2019 (in billions)

Total Pack Type Absolute Volume

Growth, 2014 2019

Cigarettes

248

Sugar Confectionery

30

Biscuits

110

Biscuits

19

Sugar Confectionery

109

Extruded Snacks

12

Baked Goods

102

Baked Goods

11

+ 186

Instant Noodles

10

billion units

Instant Noodles

82

Bottled Water

244

Bottled Water

73

Carbonates

115

RTD Tea

19

Juice

45

Juice

16

RTD Tea

42

Carbonates

12

+ 135

Sports and Energy Drinks

16

Sports and Energy Drinks

billion units

Beer

248

Beer

27

Carbonates

57

Spirits

Spirits

34

Carbonates

Wine

31

Wine

+ 52

Bottled Water

20

Cider/Perry

billion units

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GLOBAL PACKAGING TRENDS: EXECUTIVE SUMMARY

Top consumers trends drive performance of top pack types

PET and glass bottles lead environmental push, whereas an emerging middle class will drive growth in flexible

While cigarettes are the largest category in flexible plastic packaging, the
category has a forecasted absolute volume decline. This is a result of the growing
health and wellness trend where consumers are more disinclined to purchase
products harmful to their health.

Recyclability and reusability of packaging are major trends that will continue in the
forecast period with the increasing use of PET and glass bottles in beverage
packaging; in fact, conservation efforts taken by packaging & product
manufacturers are a key marketing component on the physical packaging.
Returnable packaging, especially in Latin America, will see major strides in the
forecast period.

The growing middle class in many regions around the world, especially Asia
Pacific and Latin America, is leading to larger disposable incomes. In turn, more
consumers are purchasing packaged goods from modern retail locations. While
the largest pack types, such as flexible plastic, will continue to see absolute
volume growth, high forecast growth rates are expected for newer, non-traditional
pack types like pouches.

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GLOBAL PACKAGING TRENDS: EXECUTIVE SUMMARY

Asia Pacific region maintains a 46% volume share of total market

With about 1,300 billion fewer packaging units, Western Europe is the second largest region with volume share of 18%
Total Packaging Volume by Region

362

798

billion units

billion units

589
billion units

167
billion units

2,091

508

billion units

billion units

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GLOBAL PACKAGING TRENDS: EXECUTIVE SUMMARY

Though from smaller base, Middle East & Africa register largest growth
Due to economic conditions, North America and Europe will see comparatively smaller packaging growth
Forecast Volume CAGR 2014 2019 by Region

1.1%
forecast vol.
CAGR

0.5%
0.4%

forecast vol.
CAGR

forecast vol.
CAGR

5.3%
2.8%

forecast vol. CAGR

4.3%
forecast vol.
CAGR

forecast vol.
CAGR

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1

GLOBAL PACKAGING TRENDS: EXECUTIVE SUMMARY

Beverage packaging drives the trends in PET and Glass

However, other various categories, such as confectionery and biscuits, prop up the popularity of flexible plastic

SIGNIFICANT GROWTH IN
HEALTHY CATEGORIES

CONVENIENCE AND SMALLER

SIZES DRIVE DEMAND

MATURE MARKET; INNOVATION

AND DESIGN IMPORTANT

While flexible plastic is dominant, In response to fast paced lifestyles, Despite slow growth in this market,
several categories are gaining
propped up by cigarette
Western European consumers are
consumer interest, including
packaging, the health and wellness
demanding smaller and more
healthy categories like bottled
trend throughout the region is
convenient pack sizes that reflect
increasing demand for PET
the on-the-go lifestyle, primarily
water, and innovative packaging
bottles, especially in the bottled
affecting snack foods and
categories such as wine and
water category
beverages
confectionery

Asia Pacific
PACKAGING MARKET OPENING
TO BROADER CONSUMER BASE

With an urbanizing population and

larger incomes, more consumers
are able to purchase packaged
goods at modern retail locations,
boosting sales of traditionally
popular categories such as beer
and bottled water

Latin America

Western Europe
DOMESTIC / REGIONAL
PACKAGING FLOURISHING

North America
SMALLER MARKET, BUT LARGE
GROWTH OPPORTUNITY

Despite the regional geopolitical

Consumers are increasingly
situation, packaging continues to
exposed to modern lifestyles
see growth in the region, especially
throughout Middle East & Africa,
in domestic/regional product and
which is providing large growth
packaging manufacturing in beer
opportunity for packaging in
and bottled water
carbonates, biscuits and yogurt
and sour milk products

Eastern Europe

Middle East & Africa

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1

GLOBAL PACKAGING TRENDS: EXECUTIVE SUMMARY

Bottled water will see the largest unit growth in three regions
Asia Pacific will account for 70% of global absolute volume growth in bottled water from 2014 - 2019
Top Categories of Absolute Volume Growth by Region
Bottled
Water

Bottled
Water

Bottled
Water

+ 55.6

+ 5.2

+ 6.2

billion units

billion units

billion units

Asia Pacific

Western Europe

Beer

Beer

North America

Carbonates

+ 11.6

+ 3.1

+ 5.8

billion units

billion units

billion units

Latin America

Eastern Europe

Middle East & Africa

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1

GLOBAL PACKAGING TRENDS: EXECUTIVE SUMMARY

Flexible plastic will see largest absolute volume gains in 5 of 6 regions

PET bottles, with global forecast growth of 4.7%, appear in the top three pack types in nearly every region
Top Pack Types by Absolute Volume Growth by Region (in billions of units)
8

147

North America is the

only region where
flexible plastic is not
the top pack type by
absolute volume growth

11
6

98
3
37

Flexible Plastic

PET Bottles

Metal Beverage
Cans

Flexible Plastic

Asia Pacific
13

PET Bottles

Thin Wall
Plastic Conts.

PET Bottles

Western Europe

Glass Bottles

Thin Wall
Plastic Conts.

North America

12

14
4

Flexible Plastic

PET Bottles

Glass Bottles

Latin America

Flexible Plastic

Glass Bottles

PET Bottles

Eastern Europe

Flexible Plastic Folding Cartons Metal Beverage

Cans

Middle East & Africa

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1

GLOBAL PACKAGING TRENDS: EXECUTIVE SUMMARY

Categories associated with health and wellness will see large growth
Recycling /reusable packaging and demand for premium packaging will also affect the future packaging market

Bottled water, yogurt and sour milk drinks, and RTD tea have experienced
large growth due to the trend of increased awareness of health and wellness

Recyclable and reusable packaging within pack types like PET bottles and
glass bottes will become large purchasing factors for global consumers

As consumers have larger disposable incomes and greater purchasing power,

premium packaging for products will become more visible in the market,
especially metal beverage cans in alcoholic drinks.

Euromonitor International Ltd 2015. Applicable terms and conditions of use and the disclaimer at the front of this document apply.

1

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