Packaging Industry in South Korea

Euromonitor International's Packaging Industry in South Korea 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.

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Executive summary

Successful performance of EPR

Since 2003, the effect of the Extended Producer Responsibility (EPR) has gained a great reputation helping reduce waste and promoting recycling among both consumers and manufacturers. The rate of recycling is increasing in the range from 7% to 12% every year since the system started. The EPR system will be extended to further items under the regulations – from 25 to 40 – by 2012. Overall, the EPR system has performed well for recycling rates and generated a positive economic value. Thus the system will be further extended and developed in the future.

Environmentally-friendly packaging as the main consideration

Every packaging company is intensively focusing on the production of environmentally-friendly packaging products. Needless to say, major companies are developing recycling systems for greater efficiency and smaller companies are also starting to promote the establishment of their recycling systems and carrying out campaigns for green packaging usage among consumers. These kinds of activities by manufacturers are also affecting consumers in terms of rethinking the bad effect on the environment of the overuse of packaging. Not just at the end of the review period but also in the forecast period more concentration on producing environmentally sound packaging for packaging will be considered by packaging companies in order to survive in modern society, which is very sensitive to this issue when people choose the products they purchase.

Trend towards less packaging in the packaging industry

The South Korean government announced that the additional packaging of manufactured products which has the purpose of promoting sales of the product must be reduced by 80% by 2012. Because of packaging’s bad effect on the environment, the government has started to regulate the packaging companies and carried out campaigns which pursue less product packaging. In 2008, packaging companies got together and agreed on plans to restrict packaging on their products. The manufacturers of products also agreed to the idea and joined the conference – they are planning to achieve certain levels in cutting packaging use. In particular, there are lots of products that have additional packaging for sales promotion. The packaging for sales promotion is seen as overuse of packaging because the products are just packaged again that have already been packaged within primary packaging solely to appeal to people due to having a bigger brand name written on the package. Thus the companies are all agreed on the idea of restraining the overuse of packaging. The companies’ efforts will be sustained in the future because in terms of packaging environmental concerns will be higher up the agenda in the future.

Competitiveness of company’s innovation for premium and green packaging

Packaging manufacturers have been exploring all avenues of competing with their products and, in 2008, premium image and environmentally-friendly packaging were the main considerations in packaging. The shape of beverage packaging in particular, which is slim and handy to use with convenient closures, was developing greatly in 2008. Additionally, the development of technology for green packaging is becoming more popular. Every packaging company is seeking to develop its technology to produce environmentally sounder packaging products. Both big and small players in packaging keep paying attention to these two main points – green packaging and stylish packaging.

Table of contents

EXECUTIVE SUMMARY

SUCCESSFUL PERFORMANCE OF EPR

ENVIRONMENTALLY-FRIENDLY PACKAGING AS THE MAIN CONSIDERATION

TREND TOWARDS LESS PACKAGING IN THE PACKAGING INDUSTRY

COMPETITIVENESS OF COMPANY’S INNOVATION FOR PREMIUM AND GREEN PACKAGING

MARKET BACKGROUND

PACKAGING LEGISLATION

EPR system extended to more sectors

Construction of environmentally-friendly packaging standard

All materials used in food products must be written down on the food packaging

Environment Ministry regulates the amount of heavy metal in packaging material

Additional sales promoting packaging (secondary packaging) will be reduced by 80%

Restrictions on selling unpackaged Chinese cabbage and radish

RECYCLING AND THE ENVIRONMENT

EPR system plays an important role in promoting recycling

Disposable paper cup no longer has a deposit

Starch-based container is well accepted by consumers

CORPORATE ACTIVITY IN PACKAGING

SUSTAINABILITY IS RAPIDLY INCREASING CONCERN ABOUT THE MANUFACTURE AND USE OF PACKAGING

ENVIRONMENTAL MATTERS TO DOMINATE KOREAN PACKAGING INDUSTRY

SHAPE AND SIZE OF THE PET BOTTLE AS SUCCESS FACTOR FOR THE COMPANY

BIG PLAYERS COVER SEVERAL PACKAGING SECTORS

ONLY A SMALL NUMBER OF KEY PLAYERS IN THE GLASS SECTOR

FLEXIBLE PACKAGING AFFECTED THE MOST BY OTHER ENVIRONMENTS

MAJOR MARKET PLAYERS

DOOSAN TECHPACK CO LTD

Leading packager maintains its share in South Korea in 2008

Two glass bottle trademarks boost company awareness

Summary 1 Doosan Techpack Co Ltd Operational Indicators 2007

Summary 2 Major End-Use Markets for Doosan Techpack Co Ltd by Pack Type 2008

KUMBI CORP

Summary 3 Kumbi Corp Operational Indicators 2007

Summary 4 Major End-Use Markets for Kumbi Corp by Pack Type 2008

SAM KWANG GLASS INDUSTRY CO LTD

Summary 5 Sam Kwang Industry Co Ltd Operational Indicators 2007

Summary 6 Major End-Use Markets for Sam Kwang Industry Co Ltd by Pack Type 2008

YOUL CHON CHEMICAL CO LTD

Summary 7 Youl Chon Chemical Co Ltd Operational Indicators 2007

Summary 8 Major End-Use Markets for Youl Chon Chemical Co Ltd by Pack Type 2008

HYOSUNG CHEMICALS INC

Summary 9 Hyosung Chemicals Inc Operational Indicators 2007

Summary 10 Major End-Use Markets for Hyosung Chemicals Inc by Pack Type 2008

HITE INDUSTRIAL CO

Summary 11 Hite Industrial Co Operational Indicators 2007

Summary 12 Major End-Use Markets for Hite Industrial Co by Pack Type 2008

LOTTE ALUMINIUM CO LTD

Gum packaging

Snack/biscuit packaging

Ice cream packaging

Meat products

Coffee and cream packaging

Retort pouch

Summary 13 Lotte Aluminium Co Ltd Operational Indicators 2007

Summary 14 Major End-Use Markets for Lotte Aluminium Co Ltd by Pack Type 2008

ESAENG TECHNOPACK CO LTD

Summary 15 ESaeng Technopack Co Ltd Operational Indicators 2007

Summary 16 Major End-Use Markets for ESaeng Technopack Co Ltd by Pack Type 2008

SAM-A ALUMINIUM CO LTD

Summary 17 Sam-A Aluminium Co Ltd Operational Indicators 2007

Summary 18 Major End-Use Markets for Sam-A Aluminium Co Ltd by Pack Type 2008

SHIN KWANG CHEMICAL CO LTD

Summary 19 Shin Kwang Chemical Co Ltd Operational Indicators 2007

Summary 20 Major End-Use Markets for Shin Kwang Chemical Co Ltd by Pack Type 2008

TAILIM PACKAGING INDUSTRIAL CO LTD

Summary 21 Tailim Packaging Industrial Co Ltd Operational Indicators 2007

Summary 22 Major End-Use Markets for Tailim Packaging Industrial Co Ltd by Pack Type 2008

TAESHIN INPACK CO LTD

Summary 23 Taeshin Inpack Co Ltd Operational Indicators 2007

Summary 24 Major End-Use Markets for Taeshin Inpack Co Ltd by Pack Type 2008

DAEYOUNG PACKAGING CO LTD

Summary 25 Daeyoung Packaging Co Ltd Operational Indicators 2007

Summary 26 Major End-Use Markets for Daeyoung Packaging Co Ltd by Pack Type 2008

SAMBO CORRUGATED BOARD CO LTD

Summary 27 Sambo Corrugated Board Co Operational Indicators 2007

Summary 28 Major End-Use Markets for Sambo Corrugated Board Co by Pack Type 2008

MAJOR PLAYERS BY PACK TYPE

MAJOR PLAYERS – RIGID PLASTIC

Reduction of packaging flow affects the major players in the development of their technology

ESaeng Technopack Co Ltd the leading company ahead of Doosan Techpack BG

Summary 29 Share of Major Rigid Plastic Companies 2007

Summary 30 Major Rigid Plastic Packaging Companies by Pack Type 2008

MAJOR PLAYERS – METAL

Lotte Aluminium Co Ltd still very much the leading player

Key players in metal-based packaging

Summary 31 Share of Major Metal Packaging Companies 2007

Summary 32 Major Metal Packaging Companies by Pack Type 2008

MAJOR PLAYERS – FLEXIBLE PACKAGING

Youl Chon Chemical Co Ltd affected by its major customer Nong Shim

Unchanged main players leading flexible packaging field

Summary 33 Share of Major Flexible Packaging Companies 2007

MAJOR PLAYERS - GLASS

Harsh market environment for survival for glass packaging

Key players seek to develop their technology for stylish design and environmentally-friendly packaging

Summary 34 Share of Major Glass Packaging Companies 2007

MAJOR PLAYERS – LIQUID CARTONS

Tetra Pak the leader in other shaped liquid cartons in South Korea

Other shaped liquid carton as a challenger to gable top liquid carton

Summary 35 Share of Major Liquid Carton Companies 2007

MAJOR PLAYERS – PAPER-BASED CONTAINERS

Hankook Package Co Ltd the leader in paper-based containers

Summary 36 Share of Paper-Based Container Companies 2007

Summary 37 Major Paper-based Container Companies by Pack Type 2008

MAJOR PLAYERS - CLOSURES

Closure as one of the main factors for attracting consumers

Main packaging company is also a major closure producer

Summary 38 Ranking of Major Closure Companies 2007