Production in the UK is under threat, says PCI Films Consulting
European demand for converted flexible packaging will grow by 1.4% per year from £6.3bn (€9.3bn) in 2005 to around £6.8bn (€10bn) by 2010.
This is according to market intelligence firm PCI Films Consulting in its report The European Flexible Packaging Market 2006.
However, it predicts growth in western Europe to remain at less than 1% per year over this period with almost 7% growth forecast in central and eastern Europe.
Author of the study, Paul Gaster, said: “While these changes are impacting on most west European countries especially northern Europe, of most concern is the future for flexible packaging in the UK where both market demand and production are forecast to decline significantly over the next five years.”
The report predicts that in spite of continuing plant rationalisation, the west European converted flexible packaging market continues to be oversupplied.
While multi-plant converters in western Europe can rationalise and relocate, many SME converters in the region cannot and are expected to suffer.
