The flexible packaging market of thirteen countries was shown to be collectively valued at $14bn and to have grown by almost 70% since 2006, according to the Emerging Flexible Packaging Markets to 2016 report.
India, Indonesia, Brazil and Russia are leading the demand growth, which is averaging 11%, despite a number of the emerging markets being affected by the global economic downturn.
But India accounts for around 27% of total emerging market flexible packaging production.
Only three of the thirteen markets posted overall growth of less than 30% between 2006 and 2011.
Production spurt
The report found that eight of the 13 markets will be producing more than $1bn worth of flexible packaging by 2016 and three will be at $2bn annually.
The major driving forces include strong GDP and high population growth, liberalisation in a number of markets, continued urbanisation and the development of mass retailing.
Changing consumer lifestyles and increasing disposable incomes have encouraged the development of convenient packaged food and non-food products, the report noted.
Poland, Russia, Turkey, Mexico, Brazil, India, Indonesia, Thailand, Vietnam, Saudi Arabia, UAE, Nigeria, and South Africa are identified as the emerging markets in the report.
Steve Hillam, the report’s author, told FoodProductionDaily.com the key drivers of the growth were higher disposable incomes and a trend towards getting foods quicker.
“There have been high rates of investment in some of the countries and government incentives to encourage packaging development.”
He added that China would always be a big market, but it is a self-contained market as it only exports 5% of what it produces.
“Customers feel better when the product is closer to them and not produced half way around the world.”
Further growth
Hillam also predicted demand from the 13 countries could rise to 25% in the next five years, adding India, Indonesia and Brazil will drive growth.
“Convertors are looking to high growth markets where they think their products will do well and they can sell them.
“Some emerging markets lack expertise in certain methods, such as high barrier and retort pouch, which is where an already established company can provide.
“Mexico, in terms of the context of the report, is a mature growth market so it won’t grow at the same rate as some of the others but it is still developing.”