Packaging Industry in Belgium
Euromonitor International's Packaging Industry in Belgium Euromonitor International's World Market for Glass Packaging report offers insight into key trends and developments in global and regional consumer glass packaging. It provides analysis of the major growth markets and end-use applications, together with analysis of the corporate strategies of the leading companies.
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Chapters: 5 | Tables: 31 | Publication date: Aug 2007
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Executive summary
A shining example
Belgium has put in place a highly efficient packaging waste management scheme. The commitment of Belgian consumers to sorting packaging waste in order to prevent damage to the environment has helped local authorities, manufacturers and retailers to confidently exceed European targets for recycling and packaging waste recovery. The Belgian efforts are co-ordinated by FOST Plus, a non-profit organisation. The results published for 2005 put Belgium in the lead in Europe for recycling and recovery. This has been achieved at a very low cost per inhabitant of less than €10 per inhabitant per year.
Mounting amounts of packaging
Although the recycling and recovery results in Belgium are exceptionally high, there is a growing trend towards higher volume consumption of packaged goods, which could jeopardise the eco-friendly efforts in the country. Indeed, as the number of small households increases, the size of packaging is reducing to provide single-serve portions, which generate more packs and packaging waste than larger, family size packaging. This is also a consequence of the development of society, lifestyle trends, distribution methods and eating habits.
There will no doubt be increasing pressure on Belgians in the years to come to reverse their consumption habits. Sorting packaging waste for recycling will no longer be enough to protect the environment. Purchasing decisions in terms of packaging volume on products used will also have to be made.
Increased oil prices have a negative impact on raw material prices
All plastic packaging manufacturers have been hit by the price increase in raw material as oil prices went up over the review period. Although some of the costs have been passed on, some have been absorbed by the packaging companies and this has meant that many suffered a negative impact in terms of their financial results.
Packaging innovation led by consumer trends
Packaging and closure companies in all categories are led by consumer trends. In Belgium and many other European countries, the demand for individual packaging is rising due to the increasing number of single person and small households. Packaging companies have had to launch new, smaller sizes to meet the needs of food, drinks and other consumer products manufacturers. On-the-go consumption has meant that new closures had to be devised.
Another important trend has been the increasing demand for premium and value-added products: for example functional foods, premium fruit/vegetable juices or easy to use disposable cleaning wipes. This is translated into attractive and functional packaging, an important part of the marketing mix. The faster pace of life has also meant greater demand for ready meals solutions, with high demand for microwaveable, often plastic, packaging, making metal packaging less appealing.
Some controversy over the packaging tax
A packaging tax (called “eco-taxe”) was devised in 1993 by the Belgian government. It was only applicable to the drinks market and was only paid by a small number of drinks manufacturers as most complied with recyclability targets. The system was changed in April 2004, whereby most drinks manufacturers had to pay the new rate of eco-tax. The emphasis on recyclability has been shifted to refillability. The new rate applied generates on average €300 million every year for the Belgian government.
There is talk of a new eco-tax system being applied in 2007, which would be expanded to all packaged goods and dependant on packaging weight and CO2 emissions during the production process. These plans will depend on the 2007 elections, taking place on 10 June, but already generate some controversy among manufacturers, retailers and their trade associations.
Manufacturers and retailers are voicing their opposition to the amendment to the eco-tax through a website: www.taxe-emballage.be. There, they accuse the new eco-tax plans of being extortionate, unreasonable and impossible to monitor. The new eco-tax would still have to be approved by the European Commission before being applied in July 2007. The latest information in mid-March 2007 suggests that the government might extend the new eco-tax only to plastic bags, plastic films (cling film), foil, and disposable plastic cutlery.
Strong presence of multi-national groups in the Belgian packaging mix
The packaging landscape in Belgium changed over the review period, with many domestic companies being taken over by large multi-nationals. The increasing concentration of consumer products manufacturers has had a ripple effect on their packaging suppliers as they need to be large enough to cope with large volume orders and changing packaging requirements to suit the rapidly changing needs of end-consumers.
Table of contents
EXECUTIVE SUMMARY
A shining example
Mounting amounts of packaging
Increased oil prices have a negative impact on raw material prices
Packaging innovation led by consumer trends
Some controversy over the packaging tax
Strong presence of multi-national groups in the Belgian packaging mix
MARKET BACKGROUND
PACKAGING LEGISLATION
European legislation...
...implemented at a national and regional level
Latest developments: deregulation of pack sizes
The current eco-tax
Plans for a new eco-tax
RECYCLING AND THE ENVIRONMENT
Domestic packaging waste management
Industrial packaging waste management
Impressive recycling results
Collection system
The Green dot scheme
Packaging prevention plan in Belgium...
Packaging prevention facing challenge from changing consumers’ shopping habits
Table 1 Overview of Packaging Recycling and Recovery in Belgium 2005
CORPORATE ACTIVITY IN PACKAGING
Visual impact of packaging as important as ever
Concentrated packaging industry
MAJOR MARKET PLAYERS (LOCAL COMPANY PROFILES)
RPC COBELPLAST NV
Innovation
Healthy performance
Summary 1 RPC Cobelplast NV Operational Indicators 2005/2006
Summary 2 Major End-Use Markets for RPC Cobelplast NV by Pack Type 2005
RPC BRAMLAGE ANTWERPEN NV
Summary 3 RPC Bramlage Antwerpen NV Operational Indicators 2005/2006
Summary 4 Major End-Use Markets for RPC Bramlage Antwerpen NV by Pack Type 2005
RPC PACKAGING GENT NV
Summary 5 RPC Packaging Gent NV Operational Indicators 2005/2006
Summary 6 Major End-Use Markets for RPC Packaging Gent NV by Pack Type 2005
RESILUX NV
Independent, leading PET preform producer
Producing mono-layer and multi-layer bottles
2006 Results
Prospects
Summary 7 Resilux NV Operational Indicators 2006
Summary 8 Major End-Use Markets for Resilux NV by Pack Type 2005
CROWN VERPAKKING BELGIE NV
Global
Regional divisions
Good results in Belgium
Food cans and ends
Beverage cans and ends
Aerosols
Further segmentation
Summary 9 Crown Verpakking Belgie NV Operational Indicators 2005
Summary 10 Major End-Use Markets for Crown Verpakking Belgie NV by Pack Type 2005
CROWN SPECIALITY PACKAGING BELGIUM NV
Speciality packaging
Summary 11 Crown Speciality Packaging Belgium NV Operational Indicators 2005
Summary 12 Major End-Use Markets for Crown Speciality Packaging Belgium NV by Pack Type 2005
AMCOR FLEXIBLES TRANSPAC NV
Summary 13 Amcor Flexibles Transpac NV Operational Indicators 2005
Summary 14 Major End-Use Markets for Amcor Flexibles Transpac NV by Pack Type 2005
AMCOR PET PACKAGING EUROPE NV/SA
Summary 15 Amcor PET Packaging Europe NV/SA Operational Indicators 2005
Summary 16 Major End-Use Markets for Amcor PET Packaging Europe NV/SA by Pack Type 2005
TETRA PAK BELGIUM NV
Background
Tetra Pak closures: Novembal
Innovation
Summary 17 Tetra Pak Belgium NV Operational Indicators 2005
Summary 18 Major End-Use Markets for Tetra Pak by Pack Type 2005
ELOPAK BV
Belgian business managed from French office
New product range following consumer trends
Summary 19 Major End-Use Markets for Elopak by Pack Type 2005
VAN GENECHTEN PACKAGING
Summary 20 Van Genechten Packaging Operational Indicators 2005
Summary 21 Major End-Use Markets for Van Genechten Packaging by Pack Type 2005
GERRESHEIMER MOMIGNIES SA
Background
Supplying to prestigious cosmetics and toiletries manufacturers
Specialty glass packaging a key strength
Innovation with OpalNuance
Coloured glass for premium market
Summary 22 Gerresheimer Momignies S.A Operational Indicators 2005
Summary 23 Major End-Use Markets for Gerresheimer Momignies S.A by Pack Type 2005
MAJOR MARKET PLAYERS BY PACK TYPE
RIGID PLASTIC
Strong PET performance fuelled by on-the-go consumption and smaller formats
Innovation from manufacturers drives rigid plastic sales
Environmental issues will shape the future for Amcor PET
O-I: PET supplier of Belgian Tropicana production plant
Summary 24 Major Rigid Plastic Packaging Manufacturers by Pack Type 2005
METAL
Tough competition from PET
Metal packaging imported from other countries in Western Europe
Domestic vs European
Summary 25 Major Metal Packaging Manufacturers by Pack Type 2005
FLEXIBLE PACKAGING
Oil prices increased raw material costs
Sustainable packaging
Pouches
Summary 26 Major Flexible Packaging Manufacturers 2005
GLASS
Some national production...
...facing tough European dominance
Summary 27 Major Glass Packaging Manufacturers 2005
LIQUID CARTONS
Sustained success in off-trade distribution channels
Concentrated industry with production sites abroad
Tetra Pak still leading the way
SIG Combibloc adapting to consumer demand for smaller formats
Elopak – strong presence through Tropicana
Summary 28 Major Liquid Carton Suppliers 2005
PAPER-BASED PACKAGING
Good prospects for biodegradable packaging
Importance of European imports
With some strong domestic players
Summary 29 Major Paper-based Packaging Manufacturers by Pack Type 2005
CLOSURES
Demand for more convenience boosts the closures market
Integrated closure operations evident
A strong influence from abroad
Silgan White Cap Belgium NV bought Amcor White Cap
PROCAP Hoboken NV in plastic closures
Summary 30 Ranking of Major Closure Manufacturers 2005