Market Trends of france adhesives Industry
Rising trend of cheap and lightweight packaging in France drives the demand for flexible and rigid plastic packaging
- France had a GDP of USD 44,750 per capita, with a growth rate of 2.9% Y-o-Y in 2022. The packaging industry sector contributed around 0.68% of the country's GDP. France has the third-largest packaging industry in Europe. The factors affecting the French packaging industry are trade exchanges, employment, wine production, government policy support, etc.
- The country's economy observed a slowdown in 2020 because of the impact of the COVID-19 pandemic. The production volume was reduced by 4.77% in the same year compared to 2019. This happened due to supply chain disruptions, labor shortages, and a lockdown in the country for nearly three months. The economic recovery in the country started as international borders opened in 2021, resulting in a regular supply of raw materials for production, which increased by 4,100 tons in 2021.
- In Europe, packaging production reached USD 400 billion annually, of which 13% is produced in France. The packaging industry in the country is dominated by plastic packaging (38%) and paper & paperboard (29%) packaging, which is majorly used in food packaging, beverages, healthcare, and beauty products. France is a leading producer of wooden packaging, accounting for 20% of the total European wooden packaging.
- Germany is the largest customer of the French packaging industry, with a trade deficit of EUR 920 million in 2019. The rising trend of cheap and lightweight packaging in France is expected to drive the demand for flexible and rigid plastic packaging in the coming years. Hence, it may lead to the growth of the packaging industry in the country. However, declining wine production in the country may hinder packaging products in the future.
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In addition to net-zero vehicle emissions by 2035, electric vehicle registrations growth is likely to propel the automotive production
- The automotive industry in France has fared much better compared to other major European economies. Automotive vehicle production experienced continuous growth till 2018 and further exhibited a decline of 8.3% in 2019, as the automotive market was negatively affected by the COVID-19 pandemic.
- In 2020, the country produced 1,316,371 cars and light commercial vehicles compared to 2,175,350 vehicles produced during 2019, recording a decline of 39.5%, as production came to a halt in 2020 due to the COVID-19 pandemic. The pandemic forced the temporary shutdown of manufacturing units across different parts of the country. Limited raw material supply added to the challenges faced by the automobile sector.
- In 2021, the country’s new plug-ins electric vehicle registration stood at over 315,000, registering a growth rate of 62% compared to 2020, enhancing the demand of the electric vehicle segment in France. Along with it, electric vehicles registered a 21.4% market share in March 2022, up from 16.1% Y-o-Y.
- The French car industry has unanimously condemned the European Parliament’s vote to ban the production of combustion engine cars from 2035. The country plans to achieve net-zero vehicle emissions by 2035, which is likely to drive the automotive vehicle market in the country over the forecast period.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Rising aircraft orders from countries like India, United States, and others to boost the aerospace industry
- In addition to the government recovery plans from COVID, being one of the largest footwear exporters to Europe, France footwear demand is likely to increase
- Hosting the 2024 Olympics is likely to boost the construction sector in the country
- Owing to the home of renowned manufactures including Egger Panneaux et Décors, ISB France, and Unilin SAS, the France woodworking and joinery to maintain the decent growth
