GUILSBOROUGH, ENGLAND (Aug. 10, 10 a.m. ET) — A new report says emerging flexible packaging markets will expand by at least 50 percent by 2016 to be worth $21.6 billion, up from its current level of $14.1 billion.
Guilsborough-based PCI Films Consulting Ltd. looked at 13 flexible packaging markets - Poland, Russia, Turkey, Mexico, Brazil, India, Indonesia, Thailand, Vietnam, Saudi Arabia, UAE, Nigeria, and South Africa – which have grown by almost 70 percent since 2006.
Eight of the 13 emerging markets are expected to be producing over $1 billion worth of flexible packaging by 2016.
India currently accounts for 27 percent of total emerging market flexible packaging production, although Indonesia, Brazil and Russia are also significant production centers, says the report.
“India, in particular, is absolutely booming and there is some talk of it becoming the next China,” report author Steve Hillam told European Plastics News. “There are many reasons for this; the country has a massive population and GDP is growing strongly.”
He added: “The UAE has a population of five million, compared to India's 1.2 billion, so growth potential is automatically a bit higher in India.”
Driving forces for growth will be continued urbanization, the easing of regulatory restrictions and a changing consumer lifestyle.
Three of the countries in the report – the UAE, Mexico and South Africa - countries posted overall growth of less than 30 percent between 2006 and 2011. The UAE just missed the 30 percent mark while Mexico and South Africa are more developed markets than some others in the report, meaning they are growing from a higher base, Hallam said.
