Rigid Plastic Packaging Offers Best Growth Prospects in European Food and Drink Packaging Market

26 April 2011

Leatherhead UK, 26 April 2011. The market for rigid plastic packaging for food and drink in Europe is expected to achieve above average growth in volume terms between 2010 and 2015. The combined CAGR of 3.7% projected for plastic bottles, plastic trays and rigid plastic pots and tubs is almost double the 1.9% growth predicted for the European food and drink packaging sector over all, according to new research from Smithers Pira.

In 2010 food and drink consumption in the 12 countries/regions covered by the Smithers Pira study totalled just over 574 million tonnes. The projected CAGR for 2010-15 is 0.6% for all food and drink consumption, but 1.9% for packaged food and drink consumption. This is an increase on growth of 1.7% between 2005 and 2010 and equates to 1,254 units per person per year.

Over the forecast period, Smithers Pira expects annual growth in packaging units to be four times the CAGR for volume (1.9% against 0.5%) just as it was between 2005 and 2010 (1.7% against 0.4%). By 2015 the annual volume of packaging units consumed is expected to exceed 858 billion - 75 billion more than in 2010.

The Future of European Food and Drink Packaging to 2015 provides a complete guide to food and drink packaging markets across western and eastern Europe. With market forecasts to 2015 broken down by end-use sector, pack type and 12 national markets, along with analysis of key market drivers and trends, the report is essential reading for anyone working in this thriving industry. The study covers the UK, France, Germany, Italy, Spain, Belgium, the Netherlands, Scandinavia (Denmark, Finland, Norway and Sweden), Poland, Russia, the Czech Republic and Turkey.

According to Smithers Pira, plastic bottles are the strongest performers in the larger packaging sectors. They added nearly 12 billion units to annual volumes between 2005 and 2010 and are forecast to add more than 17 billion a year by 2015, the CAGR consistently above 3%. They will still rank fifth, but look poised to overtake glass bottles and jars by 2020.

PET is the most widely used and fastest-growing polymer for the manufacture of plastic bottles and jars. In recent years, PET bottles have shown the strongest growth in the drinks sector by replacing glass bottles, liquid cartons and metal cans in many applications. PET bottles have several advantages over competing products, such as clarity, unbreakability, design flexibility, light weight, recyclability and economical production.

Smithers Pira expects technology will continue to play a vital role in future prospects for PET bottles. The uptake of increasingly sophisticated and expensive products will be required to maintain momentum. Better gas barriers and UV light protection are extending the shelf life of PET packaged products. New hot-filling processes are creating new opportunities for PET packaging of pasta, sauces, fruit juices, sports and energy drinks, ready-to-drink teas and beer. There have also been critical improvements in aseptic cold-filling processes.

Projected growth to 2015 varies across the full range of food and drink packaging formats and Smithers Pira highlights a number of trends in the study:

• Flexible packaging will continue to grow at a little above the market average. There are good growth prospects for plastic films, particularly films for stand-up pouches and shrink and stretch sleeve labels.
• Rigid plastic packaging will continue to replace other pack types such as glass bottles and jars for various food and drink products.
• Folding cartons will continue to grow at below average market rates. Further losses of share to flexible plastics are expected, although there will be opportunities for growth in some applications such as sleeving.
• Liquid carton consumption is expected to reduce a little between 2010 and 2015. Liquid cartons are losing share to plastic bottles and stand-up pouches. Key applications for liquid cartons such as milk are also very mature and suppliers need to find different technologies and new sectors in which they can be applied.
• Glass bottles and jars will see further declines between 2010 and 2015. Cans will take their place as the single largest category, with plastic bottles also poised to overtake them before 2020. PET bottles will continue to replace glass bottles for carbonated soft drinks, mineral water and milk, while plastic jars and bottles will replace a growing number of glass jars for food products.
• Metal can consumptionfor food and drinks is projected to grow at 2.3% per year to 2015. Slow growth in the use of metal cans for the mature canned food products market will be bolstered by higher than average growth in the use of metal cans for beverages.
• Metal trays growth will be in line with overall average annual advances, the format expected to lose out a little to plastic trays.

Across all packaging sectors, suppliers are constantly refining their offering, working their R&D departments hard and looking to add value through innovation. Smithers Pira has identified ten themes having an influence on packaging choice in the 12 countries/regions covered in this report. They are a mix of drivers from consumers, suppliers, producers and retailers, but the most important of these is the consumer.

Historically, power has been held by producers, then retailers. While these two continue to play a very important role in shaping and delivering food and drink today, they are each increasingly paying attention to the expectations of the consumer. The consumer will not always say what is right, but they will say when something is wrong, not necessarily by writing a letter or joining a protest, but by no longer buying the offending products or by shopping at another store.

Key food and drink industry drivers and their implications for food and drink packaging

• Healthy value: More basic packaging required, decelerated demand for complex packaging
• Affordable quality: Visibility to reinforce quality; multipacking to deliver affordability
• Appropriate packaging: Portion control delivered through optimised pack sizes; new, more difficult channels accessed similarly
• Lightweighting: Reduction in materials usage
• Bottled water: The perceived environmental impact of a product's packaging influencing consumer perceptions of the industry itself
• Systems, tariffs and commitments: Different stakeholders identifying packaging as the principal area to target environmental initiatives, especially retailers
• Recycling and biodegradability: Greater use of recycled materials or the loss of materials from the recycling systems through degradability
• Cost-driven innovation: New developments driven by cost implications, particularly where there is volatility in raw-material costs
• Consolidating retailers: Adapting to individual retailer requirements driven by their own logistics; tailor-making for each retailer
• Sustainability: A focus on all aspects of packaging design, use, function and afterlife

These themes are explored in detail in the study with an assessment of the corresponding opportunities and threats facing the packaging industry.

The Future of European Food and Drink Packaging to 2015 is available now for £3,750. For more information, please contact Stephen Hill at +44 (0) 1372 802025, or via e-mail Stephen

Press contact: For editorial queries, details of the study or an expanded article please contact: Rebecca Leigh +44(0)1372 802207 or email Rebecca

Smithers Pira
Smithers Pira - the worldwide authority on packaging, paper and print industry supply chains.

Established in 1930, Smithers Pira provides strategic and technical consulting, testing, intelligence and events to help clients gain market insights, identify opportunities, evaluate product performance and manage compliance.