Global flexible packaging market to grow at CAGR of 4.4% till 2019

MOSCOW (MRC) -- By 2019, global demand for flexible packaging will be valued at USD99.10 billion, registering a 4.4% CAGR from 2013 through 2019, said Plastemart, citing Transparency Market Research.

By value, the global demand for flexible packaging in 2012 was pegged at USD73.56 billion. The report also estimates the market in terms of value, stating that the demand will go from 18,666.0 kilo tons in 2012 to 24,728.7 kilo tons in 2019, charting a CAGR of 4.1% through 2019.

The convenience offered by plastics in packaging is unparalleled, making it the dominant segment in the market (70% market share as of 2012). However, the market is beginning to turn in favor of cellulose-based flexible packaging over the next five years, as environmental consciousness heightens. Nanotechnology could potentially create path-breaking developments in the global flexible packaging market as intensive R&D activities are being reported in this domain.

Flexible packaging for the pharmaceuticals market will be an area to watch out for as new tamper-proof packaging mandates have opened up opportunities here. The report also states that the Asia Pacific region will present the highest scope for growth through 2020.

Packaging is essential to preserve the quality of the product and it also prevents it from chemical reactions endangering the consumer’s health. Rise in the consumption of packaged products offers a strong customer base for the global flexible packaging market. Hence, an efficient and suitable packaging is imperative for every product.

The important materials used in flexible packaging market are polyethylene, polypropylene, BOPET, EVOH, polyamide, paper, aluminum, cellulosic, and PVC. This raw material is converted into films that are further converted into pouch, sachet, and bags in which the products are packaged.

Food dominated the flexible packaging market and pharmaceutical segment promises a healthy and fast growth in the market. Asia-Pacific has the highest market share and is estimated to grow with a CAGR of 7.1% during the period under review.

Europe is growing with a CAGR of 3.9%, and is driven mainly by the East European markets. The CAGR for ROW is 6.0% from 2013 to 2018. The four most potential nations for flexible packaging market are India, China, Russia, and Brazil which are poised to exhibit the fastest growing trend.
MRC

MOSCOW (MRC) - Total imports of high density polyethylene (HDPE) in Ukraine has decreased by 28% in the first ten months of the current year. The smallest decline in deliveries occurred for injection moulding HDPE, according to MRC DataScope.

October HDPE imports in the country decreased slightly to 10,100 tonnes, compared with the September level of 10,600 tonnes. Total HDPE imports in Ukraine decreased to 83,400 tonnes in January - October of this year, compared with 115,400 tonnes year on year.

Demand for HDPE decreased in all sectors, with the smallest reduction occurred for the injection moulding HDPE - down 8%. Structure of HDPE imports over the reported period was as follows.

Ukraine's HDPE imports dropped to 4,500 tonnes in October, compared with 4,900 tonnes in September. Ukraine's imports of film HDPE totalled 33,700 tonnes in the first ten months of the current year, down 28% year on year. Main import volumes occurred for the material from Europe and the Middle East.

October imports of pipe HDPE decreased almost twice compared with the September level to 1,100 tonnes. Ukraine's imports of pipe HDPE decreased to 15,300 tonnes in January - October 2014, compared with 24,000 tonnes year on year.

October imports of blow moulding HDPE in Ukraine rose to 2,100 tonnes, compared with 1,700 tonnes in September. Total imports of blow moulding HDPE in the country were 15,000 tonnes in the first ten months of the year, compared with 21,000 tonnes year on year.

October imports of injection moulding HDPE in the country practically remained at the level of September at 1,600 tonnes. Total imports of injection moulding HDPE in Ukraine decreased to 15,000 tonnes in January - October 2014, down 8% year on year.

Total imports of HDPE in other consumption sectors for the reported period were 3,500 tonnes, compared to 7,200 tonnes year on year.


MRC

MOSCOW (MRC) -- The Ukrainian polycarbonate (PC) market remained stable from January to October 2014 compared to last year, it totalled 3,600 tonnes, according to MRC DataScope.

Despite the devaluation of the national currency and higher domestic PC prices, the market managed to retain the previous consumption volumes. Converters said most contracts with the neighboring countries were still valid, despite the political and economic crisis in the region. This is mainly true for the injection moulding sector. Export shipments of injection moulding PC remained unchanged.

Traders also said new small converters that are domestically oriented had appeared in the injection moulding sector. They are given more attractive prices for PC shipments to facilitate the market entry.

Most traders were still working on prepayment basis. Settlements with buyers were done at the current interbank exchange rate at the time of payment. Payments to suppliers of material were often effected upon the receipt of payment from customers at the same exchange rate. Importers said it became somewhat easier to get the required amount of the foreign currency to repay debts.

The Ukrainian PC market completely depends on imports. Most supplies are made from the European region. Due to the instability of the national currency, PC prices are more dependent on the hryvnya exchange rate than on such traditional factors, as buying activity, seasonality, demand in the finished products market.

MRC

MOSCOW (MRC) -- Belarus' overall production of low density polyethylene (LDPE) decreased by 2.6% over the first ten months of 2014 and totalled 111,900 tonnes, reported MRC analysts.

According to the National Statistics Committee of Belarus, Polymir, a local LDPE producer, reduced its polyethylene (PE) production to 7,600 tonnes in October from 11,000 tonnes in September. Last month's fall in production was caused by a scheduled maintenance at the plant's second reactor. The overall LDPE production in Belarus totalled 111,900 tonnes over the first ten months of the year versus 113,700 tonnes a year earlier.

Polymir was founded in 1968. Technologies of the largest foreign firms of England, Japan, Germany, Italy (Courtaulds, Asahi Chemical Co. Ltd, Kanematsu Gosho, SNIA BPD, etc.), as well as developments of the CIS' scientific research institutes, were used in the process of creating the plant's technological base. The plant's annual production capacity is 130,000 tonnes of LDPE.
MRC

MOSCOW (MRC) -- Technip has been awarded a contract by Westlake Chemical to provide detailed engineering and procurement services to expand the recovery section of Westlake’s Petro 1 ethylene plant at its complex in Sulphur, Louisiana, as per Technip's press release.

Technip’s operating center in Houston will execute the project, with support from the group’s office in Mumbai, India.

"This award follows a series of Technip feasibility studies to help Westlake evaluate expansion options and development of the process design package and front end engineering design for the expansion," said Stan Knez, senior vice president of Technip Stone & Webster Process Technology.

"Technip is pleased to bring its extensive ethylene plant modernization experience and continue its involvement in bringing this important project to fruition," he added.

Technip has widened its range of services and has reinforced its leadership in the downstream business since the acquisition of Stone & Webster process technologies in 2012.

As MRC wrote earlier, in early 2013, Technip was awarded engineering and procurement contracts by Westlake Chemical Corporation for the expansion and modernization of the ethylene cracking furnaces and the recovery section of Westlake's ethylene plant in Calvert City, Kentucky.

Besides, the previously-announced expansion of the Petro 2 ethylene unit of Westlake Chemical at its Lake Charles complex in Louisiana started in mid-January. This expansion will be completed in conjunction with a planned maintenance turnaround and will increase ethane-based ethylene capacity by approximately 230-240 million lbs/year in support of the company's ethylene integration strategy.

Westlake Chemical Corporation is a U.S. manufacturer and supplier of petrochemicals and polymers, headquartered in Houston, Texas. The range of company's products includes ethylene, polyethylene, styrene, propylene, caustics, polyvinyl chloride and plastic products. Westlake is one of the major ethylene producers in the US and its Calvert City operation is a large integrated PVC site.
MRC