Canadian Plastics

Thin wall packaging industry is globally fragmented but gaining on aluminium and glass, report says

Thin wall packaging accounts for 12 per cent of the global packaging production, the report from AMI Consulting concludes, equivalent to 18 million tonnes.

February 17, 2020   Canadian Plastics

The thin wall plastics packaging industry lacks a clear global definition, a new report says, but is nevertheless increasing its penetration versus traditional media and flexible plastics.

Thin wall packaging (TWP) accounts for 12 per cent of the global packaging production, the report from AMI Consulting concludes, equivalent to 18 million tonnes; and it is a market with a clear definition in Europe, but not globally.

“Each of the global regions shows different level of market maturity, influenced by socio-economic factors,” the report said. “Local culture-driven applications and market idiosyncrasies have shaped preferred thin wall packaging formats in different regions, for example water cups in Indonesia, labneh in Turkey or dates in Saudi Arabia. Nevertheless, there is a high level of standardization as far as process technology and materials are concerned.”

Fuelled by consumer demand for convenient and attractive packaging solutions, TWP’s growth is also facilitated by the expansion of centralised retail distribution, on-the-go convenience formats, and technological advancement in plastics engineering, food processing, and packing.

Traditional packaging media, such as aluminium and glass, are under increasing pressure from the superior functionality offered by plastic alternatives, AMI noted. “The ability of TWP to enhance brand modernity, aesthetics and usability, and offer differentiation is driving demand and intensifying competition in its supply,” the report said.

Global TWP supply is very fragmented, the report said, with top 25 producers globally account for just 25 per cent of supply. “Market fragmentation varies by region,” AMI said. “NAFTA is the most consolidated region with top 10 players accounting for 56 per cent, while in Asia top 10 players account for just 3 per cent.”

The industry actively is consolidating, AMI continued, and the leaders attempted to re-define and re-structure their businesses to maximize technical competence and to create a stronger negotiation platform. “Global giants like Berry Global (now incorporating RPC Group), Paccor or Klöckner Pentaplast, have changed industry dynamics,” the report said.

For more on the report, click on this link. 


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