Highlights from New 2015 Food Packaging Research
Euromonitor International is very pleased to announce the publication of its latest packaging data, providing you with an up-to-date understanding of packaging demand, the trends underlying demand and prospects through to 2019, across nine consumer goods industries. Today’s new publication follows the recent publications of our beverage packaging data, on 10 November 2014, and of beauty and personal care, home care, tissue and hygiene, dog and cat food and tobacco packaging data, on 22 December 2014. These three publications represent the culmination of the past eight months of country, regional and global research. Included here are some of the findings from the just published food packaging edition.
Global need for food packaging is strong, with Asia Pacific providing added dynamism
Globally, 2014 proved to be another solid year for demand for food packaging, with total retail packaging demand rising by 3% to exceed 1.9 trillion packs, recording a sold increase in growth on 2013, shaped by an impressive performance from Asia Pacific. This region alone recorded 5% growth in 2014, translating into 320 billion additional packs.
China and India are the indomitable powerhouses of global food packaging demand and together are set to account for 58% of global food packaging growth in 2015. Rising levels of urbanisation and disposable incomes combined with a continuing shift in buying habits, from unpackaged to packaged, makes these important countries for development. In contrast to Western economies, there additionally exists heightened purchasing of food in smaller pack sizes in China and India, such as in dairy, confectionery and bakery, to enable maximum affordability and accessibility amongst this large consumer base characterised by lower incomes.
Pack Type Prospects in the Global Foods Industry, Volume Growth and % CAGR 2014-2019
Plastics packaging consolidates its dominant position within food
Plastics packaging is extending its strong position in food packaging. The three plastic pack types most in demand, namely flexible plastic, thin wall plastic containers and HDPE bottles, are set to total 1.2 trillion packs in 2015 and are forecast to see combined incremental growth of 193 billion units to 2019, representing 60% of global food packaging growth over 2014-2019.
Flexible plastic’s versatility sees it usage widespread, with the greatest forecast unit volume growth expected to come from the confectionery, bakery and snacks strongholds, where innovation in on-the-go sizing and value-for-money larger packs is present and answering many consumer needs. Zip/press closures also showed greater levels of penetration across flexible plastics in 2014 as brands from breakfast cereals to chilled processed meats and from cheese through to sweet and savoury snacks look to provide consumers with that all appreciated resealability convenience.
For thin wall plastic containers and HDPE bottles, dairy remains their primary source of fortunes. More specifically, for the thin wall plastic container, the second most-sold pack type in foods in 2014, demand for thin wall plastic containers within food is forecast to increase by 30 billion units to 2019. In dairy, which constitutes, more than two thirds of thin wall plastic container volumes, Asian and Latin American countries are particular highlights exhibiting fast expanding demand for spoonable yoghurt in single-serve sizes. Meanwhile, in more mature Western European and North American economies, brand competition is strong and we see product content and pack innovation as a response, the latter through pack design and shaping. For example, a greater presence of the split-pot style thin wall container and in different shapes and colours, such as Müller Rice Remix dairy dessert in the UK, helps harness greater brand recognition amongst consumers.
Versatile stand-up pouch makes inroads
The stand-up pouch, whilst not among the most used plastic pack types in the food industry, is among the fastest growing and is forecast to increase at a 6% CAGR over 2014-2019, as it becomes part of many brands’ packaging portfolios. The pouch enjoys a less niche presence, with it used as a microwaveable pack solution in ready meals, rice and pasta, as a share pack in biscuits, confectionery and sweet and savoury snacks and as a single-serve pack where products is consumed directly from the pouch as seen in ice cream, yoghurt and baby food.
Some of the interesting 2014 pouch launches include Kellogg’s breakfast cereals in France, offering recloseability, Heinz ready meals in Germany featuring a transparent window, answering the trend of being able to assess product quality and see before one buys, and Green Giant’s sweetcorn that requires just one minute heating time, making it a quick meal solution. The miniatures trend and share pack trend in confectionery also continues apace, with recent launches in pouches including KitKat Bites (Nestlé), Skittles (Mars Inc), Milka Lila Stars,(Mondelez International) Mentos (Perfetti Van Melle) and Orbit chewing gum (Wrigley), many of which incorporate recloseability.