Market Trends of Europe Plastic Packaging Films Industry
Food Segment to Hold Significant Market Share
- Plastic films are extensively used in European nations to wrap many products: baked goods, biscuits, frozen foods, seafood, chips, snacks, meat, dairy, dry fruits, and even pet food. The European barrier film market is poised for growth in the future, primarily fueled by the food and pet food sectors. This surge directly responds to consumers' escalating packaging preferences, prioritizing health, hygiene, lightweight properties, and eco-friendliness.
- Each product in the food sector comes with its unique set of qualities and packaging requirements. Consequently, it's imperative that food packaging maintains the proper environmental conditions from the moment of packaging to consumption. With their flexible, solvent-free, and impermeable co-extruded structure (comprising single or multiple layers), plastic films are designed not to react chemically with the food they encase. These films go beyond limiting mineral oil and UV radiation migration; they prevent food from interacting with oxygen, carbon dioxide, or moisture. Crafted from specialized materials, these rigid barriers are instrumental in preserving the food's color, taste, texture, aroma, and flavor.
- Rising food consumption in the region is a crucial driver behind the increasing demand for various plastic films tailored to diverse food products. This trend is fueled by the need for better packaging solutions that ensure food safety, extend shelf life, and enhance product presentation. As consumers become more health-conscious and seek convenience, the market for plastic films in food packaging continues to expand, offering opportunities for innovation and growth.
- In Germany, consumer spending on food witnessed a notable rise, climbing from USD 176.64 billion in 2019 to USD 219.94 billion in 2023, driven by escalating consumption trends. This increase reflects a growing demand for diverse food products, influenced by factors such as higher disposable incomes, changing dietary preferences, and an expanding population. The trend indicates a robust market potential for food-related businesses and investors.
- Plastic films play a crucial role in the European food industry, enhancing shelf life and shielding products from external factors by serving as barriers against moisture and oxygen. Evolving food packaging demands, driven by novel applications, are setting higher standards for packaging materials. A key focus area is the pressing demand for enhanced barrier films to craft more effective packaging solutions. Improving the barrier properties of packaging films is essential to prolong food shelf life and mitigate the risks of spoilage and damage. One common approach is to coat the packaging sheet with either PVDC or aluminum, enhancing its barrier capabilities.
- Manufacturers in the packaging industry are introducing innovative plastic films tailored for food packaging, enhancing product safety and shelf life. For instance, companies spanning the flexible food packaging supply chain collaborated to introduce a novel snack packaging. This innovative packaging, used for Sunbites, a brand under PepsiCo, comprises 50% recycled plastic and meets stringent food contact regulations. The packaging, unveiled in the United Kingdom and Ireland, is crafted using an advanced recycling process that ensures the recycled materials meet EU regulatory standards for food-contact packaging and medical devices. Leveraging these cutting-edge PP films, PepsiCo rolled out the eco-friendly Sunbites packaging in the United Kingdom. This initiative is part of PepsiCo Positive, the company's program aimed at phasing out virgin fossil-based plastics from its European crisp and chip bags by 2030.
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Germany Expected to Hold Significant Share in the Market
- Germany is Europe's leading pharmaceutical market and ranks fourth globally, trailing only the United States, China, and Japan. Moreover, the pharmaceutical sector in Germany has seen a surge in the adoption of flexible packaging. This shift is primarily driven by the packaging's ability to shield medications from oxygen and moisture, preserving their efficacy until consumption.
- Germany's reputation as a pharmaceutical research, sales, and manufacturing hub is bolstered by its pioneering innovations, historical status as the "world's pharmacy," and a rising demand for healthcare products. Europe's largest pharmaceutical market is outpacing the overall German economy, propelled by shifting demographics, a rise in chronic illnesses, and an increasing emphasis on preventive and self-care measures.
- For instance, Coveris, a specialist in flexible packaging, unveiled a new recyclable thermoforming film in November 2023 designed specifically for medical devices. The company, headquartered in Vienna, debuted 'Formpeel P' at the Compamed trade show in Düsseldorf, Germany. The co-extruded film is puncture-resistant and can be paired with either a peelable polyethylene (PE) or polyolefin (PO) base. When combined with a sustainable lidding film, these bottom films, free of polyamide, present a compelling eco-friendly packaging solution for medical applications.
- As the German population is maturing, there has been a notable shift toward valuing food quality, health, and well-being. This evolving mindset, coupled with a receptiveness to new food trends and cultural influences, is paving the way for significant opportunities in plastic film packaging. The increasing demand for high-quality, health-conscious food products necessitates advanced packaging solutions that preserve freshness and extend shelf life. Additionally, the influence of global culinary trends is driving innovation in packaging designs to cater to diverse consumer preferences.
- Further, Germany stands out as one of Europe's fastest-growing e-commerce markets, driven by a surge in internet adoption. By 2023, e-commerce penetration in Germany had already hit 80%. Moreover, the country's online population is projected to grow from 62.4 million in 2020 to 68.4 million by 2025. Notably, plastic film packaging is gaining traction in e-commerce circles. Its appeal lies in its enhanced protection and durability, effectively safeguarding products against breakage and spills and ensuring bundled items stay intact.
- Further, retail sales revenue in Germany has shown consistent growth. In 2023, the German retail sector generated approximately USD 703.78 billion in sales revenue, marking a notable increase from USD 591.12 billion in 2019. This surge underscores the rising demand for plastic film and highlights a growing emphasis on innovation and sustainability. The continuous growth in retail sales revenue reflects Germany's robust economic environment and consumer confidence. Additionally, the increased revenue has driven advancements in packaging technologies, particularly in the development of eco-friendly plastic films, aligning with global sustainability trends.
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