Global Packaging Survey 2013-2014 Market Trends, Marketing Spend and Sales Strategies in the Packaging Industry

Wednesday 29 May 2013, Amsterdam

According to 42% of packaging buyer respondents, Brazil is considered the most important region for growth amongst emerging markets, along with India and China, according to 37% and 32% of respondents respectively. Furthermore, packaging supplier respondents also consider China to be a promising market for growth, followed by Brazil and Eastern Europe. As in most emerging markets, Brazil has a high growth potential due to its growing demand in the domestic and Latin American markets for consumer products, resulting from a rising middle-income population and growing affluence.

Survey results indicate that the top five developed countries expected to generate the most significant demand for the global packaging industry in 2013 are the US, Singapore, Taiwan and Hong Kong, Germany, South Korea, and the UK. The US is a chief packaging market and the prime location of many packaging companies; stringent regulatory policies enforced by the US Government and increasing consumer awareness regarding recyclable and green packaging for the food and beverage sector have forced manufacturers of food processing packaging materials and machinery to invest in research and development, and new facilities.

Figure 2: Comparison of Revenue Growth Optimism between Buyers and Suppliers (%), 2013

Our research’s industry survey 2013 reveals that, on average, the marketing budgets of global packaging industry suppliers are expected to rise by 5.4% in 2013 as compared to an average expected rise of 5.9% in 2012. Furthermore, 45% of respondents expect an increase in marketing expenditure of 1% to 10% in 2013, as compared with 48% in 2012, while 6% of respondents expect a decrease of between 1% and 5% in 2013 and 16% of respondents expect no change in the marketing budget. Factors such as preapproved marketing plans or budgetary constraints are the major reasons for the decrease in the budget. The average size of the global annual marketing budget for supplier companies in the packaging industry in 2012 was US$3.1 million, but this decreased to US$2.2 million in 2013.