Printer Friendly

Bemis dominates NAFTA'S $18.3B converted flexible packaging industry.

NAFTA's flexible packaging converting industry is dominated by Bemis Inc. with a 20% share, according to PCI (1) (Payment Card Industry) See PCI DSS.

(2) (Peripheral Component Interconnect) The most widely used I/O bus (peripheral bus).
 Films Consulting Ltd's latest review of the market. This position was consolidated with the purchase of Alcan Packaging Food Americas in 2010,

Bonus is now twice as large as the next biggest player, Sealed Air Corporation, and triple the size of the number three supplier, Printpack. Another important recent development has been the emergence of Prolamine pro·la·mine or pro·la·min
Any of a class of simple proteins found in the seeds of wheat, rye, and other grains that are insoluble in water and neutral salt solutions but are soluble in dilute acids and alkalis.
 Corporation via acquisition and green field investment as a major new force in the converting industry.

With current annual turnover of around $300 million in North America, Prolamina has ambitions to top $2 billion in converted flexible packaging sales within the next few years, mostly through acquisitions.

The North American North American

named after North America.

North American blastomycosis
see North American blastomycosis.

North American cattle tick
see boophilusannulatus.
 converted flexible packaging market is vast, approaching 30% of global consumption and an annual spend of $18.3 billion in 2010, reveals a new report from PCI Films. Just below 90% of sales in the region are concentrated in the U.S., with Canada and Mexico accounting for 6% and 5%, respectively.

"The North American Flexible Packaging Market to 20 I 5" explains the recent history, the current situation and predicts how converted flexible packaging will grow in the U.S., Canada and Mexico over the next few years.

In value terms, the North American flexible packaging market grew by more than 4% per annum Per annum

 between 2005 and 2008. but with the onset of the global financial crisis, fell hack by 6% to 7% in 2009. However. 2010 saw a strong recovery in the value of flexible packaging sales as the supply chain re-stocked and raw material prices were passed on through the supply chain.

While the market has been volatile in value terms over the past few years, flexible packaging demand in area/unit volume has shown continuing growth.

Nevertheless, converter margins have been squeezed, which has resulted in a significant amount of rationalization and plant closures.

The region's flexible packaging market is relatively self-contained, although imports, particularly from India and China, have now reached nearly 2% of demand and continue to grow.

Exports outside the region run at less than 1% of regional production, mostly destined for customers in Central and South America and Europe.

For the future, converted flexible packaging growth in North America is forecast to average around 3.5% per annum, reaching nearly $22 billion by 2015, with Mexico set to grow by 5% per annum.

Per capita [Latin, By the heads or polls.] A term used in the Descent and Distribution of the estate of one who dies without a will. It means to share and share alike according to the number of individuals.  consumption of flexible packaging in Mexico is only around a fifth of the U.S. figure, underlining its "emergent market" status. The North American Free Trade Agreement North American Free Trade Agreement (NAFTA), accord establishing a free-trade zone in North America; it was signed in 1992 by Canada, Mexico, and the United States and took effect on Jan. 1, 1994.  (NAFTA NAFTA
 in full North American Free Trade Agreement

Trade pact signed by Canada, the U.S., and Mexico in 1992, which took effect in 1994. Inspired by the success of the European Community in reducing trade barriers among its members, NAFTA created the world's
) also continues to provide extra impetus behind growth in Mexico, with many U.S. packaged food companies manufacturing in Mexico Manufacturers are under increasing competitive and pricing pressures that require them to aggressively control and reduce costs. While this can be achieved through the implementation of lean manuacturing, consolidation and automation strategies,some firms seek to reach their goals through  to take advantage of lower labor rates.

Commenting on the report, PCI consultant Paul Gaster said, "The resilience of flexible packaging demand is to a great extent underpinned by the recession-resistant nature of its end use markets, especially food, pharmaceuticals and pet food, which between them account for approaching 85% of total North American flexible packaging demand. Moreover, strong population growth in the region of nearly 1% per annum has helped to maintain volume growth and will continue to do so over the coming years."

PCI's report, "The North American Flexible Packaging Market to 20 15," gives all the detail behind the headlines, with statistics and in depth commentary on industry trends, converter profiles and descriptions of trends in individual end use markets in each country, providing essential reading for suppliers, converters, buyers and investors in this huge market.

The report is available from PCI Films Consulting Ltd for C3,500. Further information can be accessed at

Others incl. Imports       38%
Oracle Flexible Packaging   1%
Constantia                  1%
Clondalkin USA              1%
Packaging Dynamics          1%
Global Pack                 1%
Ampac                       1%
Graphic Packaging           1%
Coating Excellence          1%
Amcor                       2%
Prolamina                   2%
American Packaging          2%
Bryce                       2%
Sonoco                      2%
Berry Plastics              2%
Winpak                      2%
Hood Packaging              3%
Exopack                     3%
Printpack                   6%
Sealed Air Corp             8%
Bemis                      20%

Source: PCI Films Consulting Ltd/Industry estimates

Note: Table made from pie chart.
COPYRIGHT 2012 Rodman Publishing
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2012 Gale, Cengage Learning. All rights reserved.

 Reader Opinion




Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:market watch
Publication:Ink World
Geographic Code:1MEX
Date:Mar 1, 2012
Previous Article:DIC names Yoshiyuki Nakanishi president and CEO.
Next Article:The European ink report: the slowing European economy and higher raw material prices are serious concerns ink manufacturers in 2012.

Terms of use | Copyright © 2014 Farlex, Inc. | Feedback | For webmasters