how consumer trends influence flexible packaging …...global flexible packaging market by region...

How Consumer Trends influence Flexible

Packaging Markets

Guido Aufdemkamp, FPE Executive Director

ASD Ambalaj Kongresi 2019

Uluslararası Ambalaj Sanayi Kongresi

Flexible Packaging is produced through adding

value to a wide variety of substrate materials

including plastic films, paper and aluminium foil

– either separately or in combination – mainly for

primary retail food packaging and non-food

packaging applications.

This specifically excludes shrink and stretch

films used for secondary packaging, carrier

bags, supermarket and self-service counter

bags, etc.

Definition of Flexible Packaging

80+ member companies

plus 6 national associations

9 FPE members listed in Europe’s Top10

5 FPE members in World’s Top10

Representing about 85% of European

flexible packaging turnover

Who is Flexible Packaging Europe

… and many more in Western, Central and Eastern Europe

FLEXIBLE PACKAGING MARKETS



Global Flexible Packaging Market by Region 2018

Total Market = $90.3 billion (+4.5% vs. 2017)

Source: Wood Mackenzie Chemicals / Industry estimates

North America 29%

Eastern Europe

3%

Western Europe

14%

Middle East & Africa

5%

South East Asia &

Oceania 18%

Central & East Asia 25%

Central & South America

6%

Estimated global

market in 2023:

$113 billion

73,3 76,2 79,2 82,3 85,6 90,3

94,2 98,3

102,6 107,2

113

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Global Consumption of Flexible Packaging

Source: Wood Mackenzie / Industry estimates; 2019-2023 forecast

in billion US$

13,0 13,2 13,5 13,8 14,1 14,4 14,7 15,0 15,4 15,7 16

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

European Consumption of Flexible Packaging

Source: Wood Mackenzie / Industry estimates; 2018-2023 forecast

in billion €

European Consumption of Flexible Packaging

Source: Wood Mackenzie Chemicals / Industry estimates

Production: 15,5 billion EUR

in billion EUR 2017 2018e % Change

Western Europe 11,220 11,445 2,0

Central and Eastern Europe 2,845 2,935 3,2

TOTAL EUROPE 14,065 14,380 2,2

France Germany Italy Spain UK Turkey Poland Russia Total

Europe

Total 1,1% 0,8% 0,9% 1,4% 0,9% 3,9% 2,5% 1,5% 1,5%

Confectionery -1,2% 0,6% -1,8% 1,9% 0,4% 1,3% 0,2% 0,8% 0,6%

Snacks 2,4% 3,2% 2,2% 3,5% 1,1% 4,3% 4,2% 1,8% 2,4%

Pet food 10,2% 3,1% 7,4% 4,6% 1,2% 19,5% 8,5% 5,4% 4,5%

Coffee 0,3% 0,4% -1,2% -0,9% 3,1% 5,2% 1,1% 0,5% 1,1%

Dairy 1,4% 1,1% 0,2% 0,4% 0,1% 8,9% 2,2% 5,4% 0,9%

Ready meals 1,0% 1,5% 0,5% 4,1% 2,7% 4,3% 4,2% 1,8% 1,9%

Flexible Packaging sales in European retail (FMCG)

Source: Euromonitor International

Unit growth rates in % Forecast: 2019 vs 2018

CONSUMER TRENDS



Age agnostics

Back to basics for status

Conscious consumer

Digitally together

Everyone’s an expert

Finding my jomo (“Joy of

missing out”)

I can look after myself

I want a plastic-free world

I want it now

Loner living

Top 10 Global Consumer Trends for 2019

Simplifying options, being mindful and opting out for

higher self-sufficiency and authenticity

Based on Euromonitor International’s ‘Top 10 Global Consumer Trends for 2019’

Older people want to feel, behave and be treated as younger

People are living for much longer, want to remain active, contribute to society and maintain an ageless attitude towards life

Age Agnostics do not hold with conforming to demographic expectations — everyone connects

Baby boomers have much more in common with the values and priorities of millennials and younger generations then many realise

Overall, later lifers are in better financial shape than the rest of the population, boasting the highest spending power among all age groups

Age agnostics


Consumers are tired of generic products and starting to place more value on

higher quality, unique and differentiated offerings, which convey a certain

level of status

Shifting consumer values favour authenticity

Consumers are rejecting the mass-produced and will

favour products positioned as simplified, back to basics

and of better quality

Buying hyperlocal food reflects the shift of Back to Basics for Status

Back to Basics for Status


Mindful, respectful and compassionate consumption

Fair trade, animal welfare and healthy lifestyles are important topics

The rise in this more conscious consumption approach has consequently seen increasing demand for plant-derived ingredients such as plant extracts, oils etc.

Quest for higher transparency of ingredient lists, origin and processing

Increase in the number of vegetarians and vegans

Milk alternative and meat substitute sales continue to grow

Conscious consumer


The growing ubiquity of high-speed (mobile) internet is driving live interactive

experiences online and facilitating collaboration

Social media will continue to dominate online activity

Wearable fitness devices are also developing

increased biometric capabilities

VR in games will push boundaries everywhere

Industries are also transforming quickly to adapt to demands for virtual

options. Law, medicine and other high-compliance fields continue to move

online

Digitally together


Everyone’s an Expert incorporates both the Influencers and their audiences;

Influencers are paid, often vast, sums to advertise, review anything from

clothes to make-up

Everyone’s an Expert expresses the switch in power between retailer and

consumer. Previously shoppers relied on a certain brand or information source

to get what they wanted, now companies must constantly innovate

‘The customer is always right’ has never been truer

A strong product review culture is boosting a website’s

popularity

Everyone’s an expert


Plastics, such as single-use packaging for food and beverages and micro-

plastics are coming under increased scrutiny

There is a widespread lack of consumer understanding about what can and

can’t be recycled

Recycling rates vary hugely by region and country as awareness, incentives

and capacity to treat plastic waste differ widely

Awareness is encouraging people to take action,

through campaigns and grass-roots conservation

projects.

I want a plastic-free world


INFLUENCE OF PUBLIC PERCEPTION &

POLITICAL ACTIONS



Political Actions/Initiatives by the EU Commission

EU Circular Economy

Package (CEP)

EU Plastics Strategy

EU Plastics Bags

Directive

Packaging and

Packaging Waste

Directive

Single-Use Plastics

Directive (SUP)

Multi Annual Financial

Framework …

Green Public

Procurement

Guidelines

Reactions by European Retailers

THE FACTS (SCIENTIFIC BASED)



Flexible Packaging protects and preserves valuable goods

Flexible Packaging is designed to minimise the

use of packaging materials

Flexible Packaging supports circular economy

beyond just recycling

A rigid pack (weight 70g) with 80%

recycling rate?

Or a flexible pack (weight 10g) with

0% recycling rate?

Which packaging is more resource efficient?

Material loss is 14 g Material loss is 10 g

Prevention and Light-weighting outperform Recycling

Packaging Scenarios for EU Food Supply (except beverages) in units:

Source: ifeu 2014, verified/reviewed by Carbotech 2014

non-flexibl

e pac…

flexible

packagin… non-

flexible

pac…

flexible

packagi…

“Focus on Prevention”

with 0% recycling

“Focus on recycling”

with 100% recycling

Potential consequences (per annum):

Carbon footprint

(in CO2-eq) 6% more 40% less

(=0.9% of total EU CO2-eq)

Weight of packaging

material 17 mio t more 26.5 mio t less

(=1 million truck loads)

“Base scenario“

Situation today

Flexible Packaging plays a minor part of a food product´s

environmental footprint but a major role in preservation

Flexible Packaging helps prevent food waste

Flexible Packaging supports Sustainable

Consumption and Production

Part of food chain

Flexible Packaging is an

essential part of the food chain

Resource efficient

Flexible Packaging is generally more

resource efficient than alternative

solutions due to its very light weight.

Food preservation

It helps to contain and preserve food

throughout the chain and enables proper

and safe delivery to the consumer.

Preventing food waste

Flexible Packaging is part of the solution to

prevent food waste which is a major

environmental and economic problem globally.

CONCLUSIONS



FMCG markets are becoming more diverse and adapting faster to

consumer trends

Big brands feel pressure of smaller “start-ups”

Flexible packaging markets are growing due to its advantages (e.g.

cost-effective, processability, environmental, …)

Sustainability is becoming a major influencer

Conclusions and Impacts for Flexible Packaging

Multilingual

Infographics

Poster

Fact sheet

Pocket guide

Website

FPE’s Key Sustainability Messages

www.sustainability.flexpack-europe.org

Visit, Contact and Follow Us

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Contact us: [email protected]

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