Flexible packaging grows fastest in Russia and Turkey By Roger Brownlie

Flexible packaging grows fastest in Russia and Turkey

Two-speed market growth is revealed by a study on converted flexible packaging in Europe undertaken by PCI Films Consulting.

The E9.2bn market is forecast to grow by 2.4% a year over the next five years, driven mainly by growth outside western Europe.

In value terms, average European consumption increased by 2.2% during 2002. Slower growth in the more mature and highly competitive West European markets were offset by more rapid increases in Eastern Europe and Turkish markets.

Fastest growth rates were in Russia and Turkey with annual rates of 14% and 8% a year respectively. This eclipses the previous growth leaders Spain, Poland, Hungary and the Czech Republic.

Market leaders Amcor and Alcan control nearly 30% of the European market following a series of mergers and acquisitions. This compares to a combined market share of 12% in 2000. End-user markets such as fresh fruit and vegetable packaging, which currently enjoys double-digit growth rates, are far in excess of the European average.

PCI’s Paul Gaster said: “Against a backdrop of overcapacity and intense competition the European flexible packaging market continues to be dynamic and innovative. The leading players are getting bigger primarily through acquisition and this looks set to continue.”