Sustainability to nurture green-shoots for cartonboard sector

Pro Carton, the European Association of Carton and Cartonboard manufacturers, said an increase in carton and cartonboard usage in branded products and the retail sector is likely to boost demand in 2010. The group said the first positive signs are “already on the horizon”​ thanks to moves by Cadbury and Nestle to switch away from metal and plastic to folded boxes and card for some products.

“We expect cartonboard packaging to play a greater role in the future for branded products and in the retail trade",​ said Pro Carton president Stéphane Thiollier.

Sustainability and promotional effects are the innovation drivers in the packaging industry - one of the reasons why the cartonboard and folded box industries are expecting growth for next year, said the body.

“Sustainability is at the forefront of people’s strategy and this is having an impact, and will continue to have a beneficial effect for the sector,”​ Pro Carton general manager Richard Dalgleish told FoodProductionDaily.com.

​

Market analysis​

The body said the last 24 months had been characterised by major differences by market segments – with the food and pharmaceutical sectors performing “relatively” ​well while luxury goods were hit by the recession.

​

“However, industry is confident for the next 15 months and beyond,”​ said Pro Carton

European demand for cartonboard fell by 3.8 per cent in 2007 - 2008. But the trend varied according to country, with German demand actually increasing by 0.5 per cent. This year began poorly but conditions improved and European demand in 2009 is expected to recover to 2008 levels of between six and seven million tonnes, said Dalgleish.

“Whilst turnover decreased during the first nine months of 2009, orders have started to pick up and a further increase is expected toward the end of the year,”​ said a Pro Carton statement

Demand is expected to recover best in countries that are emerging quickest from recession, such as Germany and France, while Spain is forecast to struggle, added the Pro Carton general manager.

Consolidation​

Production capacity in 2009 was characterised by a trend towards consolidation. Two plants were closed down permanently, one in Germany and one in the UK, while a further facility in Italy was shuttered for a year.

While exports from Europe were satisfactory overall, sales to the Far East declined. This was caused not only by the strength of the Euro but because of production expansion in China. This move did not just result in a loss of exports to the Chinese market but also saw an increase in Chinese exports into the European sector. But exports from China have now declined on strengthening demand from its domestic market, added the trade association. This is likely to impact on the growth of European exports to the Far East although Dalgleish said they were still likely to increase in 2010.

Eastern Europe​

Eastern Europe is predicted as being a growth market for cartonboard. Consumption in the region is presently at 30 per cent of levels in Western Europe, with a level of 50 per cent forecast for 2015. Sales to Eastern Europe continued to increase in 2009 and further "steady" growth is expected.

Pro Carton issued an optimistic prognosis for the nest few years as “most importing countries are expected to show continued growth and sustainability issues are on the increase”, ​it said.