An excellent outlook for 2018 and buyer priorities focused on investment and recycling
Drawing on feedback from the entire industry (buyers/packers, manufacturers, distributors), and on analysis from its PACK EXPERTS Committee*, the Packaging and Intralogistics Think Tank made up of professionals from international groups and from CITEO, the trade show ALL4PACK is publishing the findings of its 2017 Observatory.
The report offers valuable insights for this significant and high-potential sector of the French economy.
Investment perspectives stimulated by growth in packaging user sectors.
- The return to economic growth continues to fuel the packaging sector. 63% of buyers and 62% of suppliers forecast an increase in their output by volume in France. Distribution/retail/online holds onto its top position as the most optimistic user sector. The capital, intermediate and construction goods sector has turned optimistic once again for 58% of buyers. One out of two buyers has invested or plans to invest in the creation or manufacturing of packaging solutions.
- Processing and handling are driving investment. Out of the 91% of buyers with investments either ongoing or planned within the next two years, one out of three will be investing in processing/packing machines and one out of three in storage or load handling systems.
- The "Made in France" label is a guarantee for purchases, in spite of noticeable pressure on materials prices. 46% of buyers source their packaging in France. 78% believe that the "Made in France" label is a key to development in packaging, but 41% expect to see materials prices rise.
The circular economy at the heart of the industry, which anticipates new legal requirements.
- Recycling and recyclability of materials will drive innovation in the coming two years according to 52% of buyers. A long way ahead of design.
- Cost reductions and recycling round out the virtuous circle of packaging. Cost control is historically the most important factor driving change, and this is still the case according to 51% of buyers; however it is nonetheless becoming less predominant on the priority list. Recyclability and recycling of packaging is the second most important factor driving change, and reduction at source and eco-design moves back up to fourth position.
Powerful signals around distribution modes, the digital transformation and industry 4.0
- E-packaging has found its place on the market. Four buyers out of seven say that primary packaging should generally adapt to omnichannel distribution, while two out of seven think that it should be specifically adapted to the online sales channel. Development in shipping packaging is focussed most on boxes tailored to the size of parcels, envelopes, and air cushion and recycled paper gap filling, but in one case in two, it is a standard-size box.
- Connected/smart packaging to cater to Millennials. Or so think 79% of buyers. 29% of buyers consider it necessary to differentiate packaging aimed at millennials from that aimed at baby boomers. 71% think that format and size are differentiation criteria for baby boomers.
- Packing and packaging have now entered the era of industry 4.0 for 71% of buyers and suppliers. Buyers expect industry 4.0 to deliver better quality at lower cost, even more flexibility for equipment, and productivity gains. The key benefit according to suppliers is the reduction in time to market. 36% of buyers have already started investing to adopt the technology of industry 4.0, while others are waiting to assess its return on investment.
The positive outlook is there for all to see.
Make it work for you - come and meet the industry's stakeholders at ALL4PACK Paris, from 26 to 29 November 2018.
You'll find solutions, services and innovations to help you deliver successful projects.
*The ALL4PACK Paris 2018 Pack Experts Committee: Groupe Carrefour, Citéo, Charal, Coca-Cola, Laboratoires Expanscience, L'Oréal, Mars Petcare, Philips, Vente-privee.com
Survey administered online in September and October 2017. Out of 467 responses: 72% came from buyers (packaging user firms based in France), 28% came from suppliers (packaging manufacturers, original equipment manufacturers, manufacturers and distributors of packaging, handling and logistics machinery and equipment, based in France).
Source: ALL4PACK Paris 2017 Observatory – survey conducted on behalf of ALL4PACK Paris/Groupe Comexposium by Goudlink x MRCC, with analysis by Annette Freidinger-Legay, International packaging expert.
FACTS 1 FIGURES
- ALL4PACK Paris, the new name for the trade shows EMBALLAGE and MANUTENTION
- From 26 to 29 November 2018, Paris Nord Villepinte - France, Halls 6 and 7
- 1,500 exhibitors and brands represented from the Packaging, Processing, Printing & Handling sectors, including 50% from outside France
- Expected visitor attendance of 87,000 professionals, including 35% from abroad
- 100 countries represented
The Comexposium Group, one of the world's leading event organizers, is involved in more than 177 B2C and B2B events across 11 different sectors, including food, agriculture, fashion, security, digital, construction, high-tech, optics and transport. Comexposium hosts more than 3 million visitors and 45,000 exhibitors in 30 countries around the world. Comexposium operates across 30+ global economic growth zones, such as: Algeria, Argentina, Australia, Belgium, Canada, China, Denmark, France, Germany, India, Indonesia, Italy, Japan, Korea, Monaco, Netherlands, New Zealand, Philippines, Qatar, Russia, Singapore, Spain, Sweden, Thailand, Turkey, UAE, UK and USA.