Financial Package to Packaging Industry
Financial crisis happened in global market has got severe threat to consumer packaging industry and got shrink in its market value and spending on packaged goods. But consumption levels are not yet declined. Even though total spending on consumer packaging has dropped down, the customer persistently interested towards purchasing of packaged food and beverages with cheaper options. That market is recovered in 2010 and will get fine structure by 2014.
Like in past years packaged food and beverages are considered as largest end user markets and has its accountability as 70 percent sales. Packaging might have coupled with most of other industries like healthcare and retail. Packaging of healthcare industry and personal care products and applications are the two main significant areas for Rexam which has made more than 10 percent sales in global consumer packaging.
Consumer spending was got registered with the reduction in every market by end user and at the same time sales value of health care has remained extensively flat, for the food industry it has come to slight decline and spending of consumers on non-essential products like personal care applications and cosmetic products got slow down drastically. Over the 2009-2014, packaging of cosmetics is drastically created high growth along with the healthcare product or application packing.
In terms of materials for packaging on global basis, plastic package has major role in global packing sales and huge share in market. The faster growing sales in packing industry is rigid plastic packaging and Rexam’s area of focus in the period of 2009 to 2014 which expects a continuous growth of annual growth rate of 5. The drivers of growth are impacts with popularity growth of single serving packaging. Plastics will also continue to benefit from advances in material properties which are facilitating the substitution of traditional packaging materials, predominantly glass.
The global packaging material and packaging machinery industries creates nearly 500 billion dollars per year and this is accounting for 1 to 2 percent gross domestic product in industrialized nations. In accordance with world packaging organization, the above results are supported and there are 1 lakh companies for manufacturing packaging materials which are functioning and representing nearly 5 million jobs.
Packaging technology is recording a rapid growing from past decades with relying on consumer packaging materials for food and safety and transportability also. The supermarkets are the much reliant on packaging industry and it is not possible to develop without packaging. Recent advancements in packaging industry is environmental friendly packaging which helps in manufacturing of packaging industries to meet reusable products for consumers to get advantage from waste and limits the harmful diseases caused by the waste. The major issue facing by packaging industry is sustainability and packaging companies are relying on government legislation for recycling and encouragement towards it. Lightweight and traditional packing are the alternatives for the manufacturers to cut down the costs involved in transportation.