Packaging Industry in Canada
Euromonitor International's Packaging Industry in Canada report offers a comprehensive guide to the size and shape of the market at a national level. It provides historic market size data by industry, allowing you to identify the most popular pack types. It identifies the leading companies, and offers strategic analysis of key factors influencing the market- be they new product developments, recycling or legislation issues. Forecasts illustrate how the market is set to change.
Chapters: 5 | Tables: 39 | Publication date: May 2007
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Executive summary
Coming changes in demographics to affect packaging
Almost all products are delivered in some form of packaging, which enhances transportability, product protection and shelf life, and additionally serves to differentiate products by communicating brand messages like quality and performance.
Packaging consumption is driven by changes in consumer demand for convenience and portability, in addition to new product and package innovations. The growth in packaging remains in line with overall population growth of 3% per annum, but demographic and social trends are bound to affect growth going forward. For example, smaller households tend to significantly consume more packaging than larger households do, in part due to purchasing more quantities of smaller and single serve goods as opposed to bulk-size products. With a growing number of singles and couples – which are part of the baby boom echo generation – this trend is expected to intensify over the forecast period.
The environment is a concern
Social trends, particularly towards conservation and concern for the environment already altered the state of packaging in Canada and the US in particular. The use of flexible plastic refill packs for hair care are personal products is but one example of consumer demand for less packaging. Bio-plastics like PLA have seen wide adoption by retailers like Wal-Mart who seek to further strengthen their corporate record for environmental responsibility.
Industry concentration is high in the glass, metal and paper segments with two to five companies controlling approximately 90% of the market, and medium in the rigid plastic, flexible plastic and closure segments with 10 to 15 companies controlling about half the market. In Canada, the presence of large, US and foreign-based manufacturers makes up the bulk of competitors, while a few large domestic companies like Alcan operate packaging divisions of importance. Still, Canadian players like CCL Industries Inc, Norampac, Cascades and Atlantic Packaging field a significant presence in the Canadian packaging industry.
Energy and material costs
Energy costs, metal and resin pricing remain the biggest wild cards for the industry. The high cost of energy affected glass furnace economics, resin costs and freight costs. While supply shocks that severely impacted North American resin production capacity in 2005 have subsided, resin prices remain at the high end of historical norms, and aluminium and steel ingots have taken a similar path. Expected North American overcapacity for PET and HDPE production in the latter half of the forecast period could further dampen conditions in the plastics industry.
Canada’s largest liquor authority moves to refund-deposit scheme
The Ontario Government recently moved to a deposit refund scheme for LCBO packaging containers in an effort to boost both the rate of collection and minimise the cross-contamination that plagued the Blue Box collection system. The move especially addresses industry concerns from glass manufacturers who cited an ever decreasing quality and availability of viable glass cullet to be used for post-recovery manufacturing.
Table of contents
EXECUTIVE SUMMARY
Coming changes in demographics to affect packaging
The environment is a concern
Energy and material costs
Canada’s largest liquor authority moves to refund-deposit scheme
MARKET BACKGROUND
PACKAGING LEGISLATION
Food and Drugs Act and Regulations and the Consumer Packaging and Labelling Act
Regulations surrounding labelling and health claims for food
Summary 1 Allowable Prescribed Health Claims for Packaged Foods 2005
RECYCLING AND THE ENVIRONMENT
Recycling mandates clash with economic reality
Recycling fits social trends towards environmental sustainability
Stewardship for packaging waste reduction programs
Table 1 Overview of Packaging Recycling and Recovery 2005
Table 2 Packaging Material Generation and Recovery Rates – Ontario 2005
Table 3 Environmental Impact of Packaging Recycling 2005
CORPORATE ACTIVITY IN PACKAGING
Economies of scale drive consolidation
Rising materials costs
Diversification of product lines
MAJOR MARKET PLAYERS (LOCAL COMPANY PROFILES)
ALCAN INC
Company structure
Competitive environment
Business strategy moving forward
Summary 2 Alcan Inc: Packaging Operational Indicators 2005
Summary 3 Major End-Use Markets for Alcan Inc by Pack Type 2005
CASCADES INC
Company structure
Competitive environment
Business strategy moving forward
Summary 4 Cascades Inc: Packaging Operational Indicators 2005
Summary 5 Major End-Use Markets for Cascades Inc by Pack Type 2005
CCL INDUSTRIES INC
Company structure
Competitive environment
Business strategy moving forward
Noteworthy acquisitions
Summary 6 CCL Industries Inc: Packaging Operational Indicators 2006
Summary 7 Major End-Use Markets for CCL Industries Inc by Pack Type 2006
CELPLAST LTD
Company structure
Competitive environment
Business strategy moving forward
Summary 8 Major End-Use Markets for Celplast Ltd by Pack Type 2005
CONSOLIDATED BOTTLE CO
Company structure
Competitive environment
Business strategy moving forward
Summary 9 Major End-Use Markets for Consolidated Bottle Co by Pack Type 2005
CROWN CORK & SEAL CANADA INC
Company structure
Competitive environment
Business strategy moving forward
Summary 10 Crown Cork & Seal Canada Inc: Operational Indicators 2006
Summary 11 Major End-Use Markets for Crown Cork & Seal Canada Inc by Pack Type 2006
FPC FLEXIBLE PACKAGING CORP
Company structure
Competitive environment
Business strategy moving forward
Summary 12 Major End-Use Markets for FPC Flexible Packaging Corp by Pack Type 2005
GRAHAM PACKAGING CANADA LTD
Company structure
Competitive environment
Business strategy moving forward
Summary 13 Graham Packaging Canada Ltd: Operational Indicators Interim 2006
Summary 14 Major End-Use Markets for Graham Packaging Canada Ltd by Pack Type 2005
HOOD PACKAGING CORP
Company structure
Competitive environment
Business strategy moving forward
Summary 15 Major End-Use Markets for Hood Packaging Corp by Pack Type 2005
IPL INC
Company structure
Competitive environment
Business strategy moving forward
Summary 16 IPL Inc: Operational Indicators 2006
Summary 17 Major End-Use Markets for IPL Inc by Pack Type 2005
NORAMPAC INC
Company structure
Competitive environment
Business strategy moving forward
Summary 18 Norampac Inc: Operational Indicators Interim 2006
Summary 19 Major End-Use Markets for Norampac Inc by Pack Type 2005
PRETIUM PACKAGING LLC
Company structure
Business strategy moving forward
Summary 20 Major End-Use Markets for Pretium Packaging LLC by Pack Type 2005
REYNOLDS FOOD PACKAGING CANADA INC
Company structure
Competitive environment
Business strategy moving forward
Summary 21 Major End-Use Markets for Reynolds Food Packaging Canada Inc by Pack Type 2005
RICHARDS PACKAGING INC
Company structure
Competitive environment
Business strategy moving forward
Summary 22 Richards Packaging Inc: Operational Indicators 2006
Summary 23 Major End-Use Markets for Richards Packaging Inc by Pack Type 2005
SILGAN PLASTICS CANADA INC
Company structure
Competitive environment
Business strategy moving forward
Summary 24 Silgan Plastics Canada Inc: Operational Indicators 2005
Summary 25 Major End-Use Markets for Silgan Plastics Canada Inc by Pack Type 2005
TETRA PAK CANADA
Company structure
Competitive environment
Business strategy moving forward
Summary 26 Tetra Pak Canada: Operational Indicators 2006
Summary 27 Major End-Use Markets for Tetra Pak Canada by Pack Type 2006
WINPAK LTD
Company structure
Competitive environment
Business strategy moving forward
Summary 28 Winpak Ltd: Operational Indicators 2005
Summary 29 Major End-Use Markets for Winpak Ltd by Pack Type 2005
MAJOR MARKET PLAYERS BY PACK TYPE
RIGID PLASTIC
Summary 30 Major Rigid Plastic Packaging Manufacturers by Pack Type 2005
METAL
Mature market strives to remain relevant
Innovation offers additional consumer convenience
Summary 31 Major Metal Packaging Manufacturers by Pack Type 2005
FLEXIBLE PACKAGING
Low barriers to entry, huge variety of uses
Summary 32 Ranking of Major Flexible Packaging Manufacturers 2005
GLASS
Mature, expensive, glass declines in relevance
PEI goes it alone in soft drinks, beer dominates the rest of the country
Summary 33 Ranking of Major Glass Packaging Manufacturers 2005
LIQUID CARTONS
Two segments, each with a single dominant player
Summary 34 Ranking of Major Liquid Carton Manufacturers 2005
PAPERBOARD CONTAINERS
Wide variety of uses
Close relationship with the forestry industry
Summary 35 Major Paperboard Packaging Manufacturers by Pack Type 2005
CLOSURES
Specialisation and novelty differentiate closures
Healthcare products developing high margin specialist market
Summary 36 Ranking of Major Closure Manufacturers 2005