The unpredictable future of the packaging will not thwart the growth of packaging industry as for the coming six months due to focus on innovations and survival of the fittest conditions. The firms have to keep adapting to the competitive conditions by enhancing the existing customer base, making a persistent effort to introduce new products and working on the lines of Kaizen technique of making continuous improvements in the current scenario. There has been growing use of ecommerce which has made the packaging industry more cost-efficient that is it produces the same level of output at a reduced cost that marks serious improvement in manufacturing processes.
Major Forecasts for the Global Packaging Industry
‘Packaging Industry Business Outlook and Procurement Survey H1 2016’ published by Canadean delivers the management’s stance on business perspectives and procurement activities for the period spanning from April 2016 to September 2016. It underlines supplier price fluctuations, main operational priorities, firm’s take on procurement using digitalization techniques and the expected alterations in capital expenditure. Furthermore, it puts forward the prognosis of vertical and horizontal mergers and acquisitions within the packaging industry for the coming time period of six months.
The way a product is packaged can lead to serious changes in product selection patterns of the consumers since it helps the organization to position its product in a better and correct way in the minds of the consumer. Packaging and branding is imperative to products as it is an important element for positioning the product correctly in the minds of the buyer. It signifies the social and economic status of the buyer and gives him something to relate to. The market for packaging products cannot be safely assumed to be stable in countries where there are severe fluctuations in the per capita disposable incomes of the suppliers. Packaging markets is divided into segments on the basis of material used and the type of packaging i.e. flexible packaging, rigid packaging and packaging accessories. There are certain tendencies that will hit the global packaging industry are brand transparency that builds brand trust, digital revolution, exceptional flexibility, eco-friendly packaging for the environmentally conscious buyers and apt size packaging.
The market for packaging products can be safely assumed to be stable in countries where there are no severe fluctuations in the per capita disposable incomes. These can be provided only for highly developed nations like Germany and the US and these are expected to emerge as prominent targets for the same reasons. Some of the management executives of big packaging brands expect the supplier price to soar in the coming time periods but 29% of them choose to remain on the risk averse side expecting no change to occur. The optimistic ones are leaving no stones unturned and are striving to introduce new launches in the market to tap more of the niche customers, spending more on capital goods to enhance manufacturing capabilities and henceforth drive the forecast of continuous growth prospects in the packaging industry.
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Ankur Gupta, Head Marketing & Communications