Packaging Industry in the Czech Republic
Euromonitor International's Packaging Industry in the Czech Republic 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: 6 | Tables: 52 | Publication date: Oct 2007
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Executive summary
Rapid expansion of the packaging industry challenges domestic manufacturers
Approximately 400 firms in the Czech Republic are developing their activities in packaging, and more than 100 companies offer packaging machinery, filling lines and equipment, printing, coding and other activities linked to packaging. The legislative steps discouraging price regulation, together with the opening of borders after joining the EU in 2004, have triggered rapid expansion of packaging in the country. The variety of imported pack types is a challenge for domestic manufacturers. In order for local players to cope with the new and highly competitive situation, they have had to improve their technologies, thus incurring vast investments, as well as to implement new pack types into their production.
Paper-based containers hold dominant position
According to the Czech Packaging Association SYBA, the turnover in the Czech packaging industry exceeded CK35 billion in 2006. The leading position in terms of value sales is occupied by flexible packaging, followed by paper-based containers and metal packaging. Many key packaging producers are part of multinational companies, especially in paper-based containers (MeadWestvaco Svitavy), metal packaging (Rexam Beverage Can Czech Republic, Impress) and glass packaging (Avirunion).
Innovative pack types focus on differentiation
The leading packaging manufacturers focus on innovation to make their products different from those of competitors. As many food, drink and non-food products are highly competitive, packaging is the crucial factor that sets apart individual players. Although the emphasis is on practical, light and graphically attractive types, glass packaging is successfully withstanding attack by rigid plastic packaging. This is because glass has a long tradition and is perceived as the premium packaging type for alcoholic drinks and soft drinks sold through consumer foodservice channels, as well as for food and non-food applications (including cosmetics and toiletries).
Rigid plastic packaging forecast to experience the highest volume growth
During the forecast period, there is expected to be a continued rise in consumption of paper, board and metal packaging. However, the most dynamic volume increase is expected to be for rigid plastic packaging. Despite the long tradition of glass packaging in the Czech Republic, its position is predicted to stagnate or even decrease slightly due to strong pressure from rigid plastic packaging.
Metal crowns and plastic screw closures dominate
Closures are mostly used with rigid plastic (PET and HDPE) bottles, and glass bottles and jars. Metal crowns are predominately used in beer and in soft drinks such as carbonates and fruit/vegetable juice. Plastic screw closures have benefited from the large penetration of rigid plastic PET bottles, mainly within soft drinks. In food packaging, the main focus is on easy-to-open closures that require minimal use of an opener, particularly with respect to metal food cans.
Table of contents
EXECUTIVE SUMMARY
Rapid expansion of the packaging industry challenges domestic manufacturers
Paper-based containers hold dominant position
Innovative pack types focus on differentiation
Rigid plastic packaging forecast to experience the highest volume growth
Metal crowns and plastic screw closures dominate
MARKET BACKGROUND
PACKAGING LEGISLATION
Packaging legislation in the Czech Republic
Conditions for placing packaging into circulation in the Czech Republic
Planned returnable scheme for rigid plastic PET bottles
RECYCLING AND THE ENVIRONMENT
No compulsory deposits for drinks packaging
Table 1 Actual Recycled and Recovered Packaging in 2005
Table 2 Required Levels for Packaging Recycling in the Czech Republic 2007-2012
CORPORATE ACTIVITY IN PACKAGING
Local players become part of large international chains
MAJOR MARKET PLAYERS (LOCAL COMPANY PROFILES)
ALPLA SPOL SRO
History
Focus on plastic pre-forms
Czech plant as base for research and development
Summary 1 Alpla spol sro: Operational Indicators 2006
Summary 2 Major End-Use Products for Alpla spol sro by Pack Type 2006
RPC BEBO CZECH REPUBLIC SRO
History
Summary 3 RPC BEBO Czech Republic sro: Operational Indicators 2006
Summary 4 Major End-Use Products for RPC BEBO Czech Republic sro by Pack Type 2006
ADPACK GROUP SRO
PET bottles hold major share of product range
Active in the supply of closures too
Shrink sleeves
Active also in glass packaging for beverages
Summary 5 Adpack group sro: Operational Indicators 2006
Summary 6 Major End-Use Products for Adpack group sro by Pack Type 2006
IMPRESS AS
History
Lower demand for metal food cans boosts exports
Focus on non-food products
Summary 7 Impress as: Operational Indicators 2006
Summary 8 Major End-Use Products for Impress as by Pack Type 2006
TECNOCAP SRO
History
New development –metal food cans for grill condiments
New premium look with Advintage/Vin-Guard closures
Summary 9 Tecnocap sro: Operational Indicators 2006
Summary 10 Major End-Use Products for Tecnocap sro by Pack Type 2006
REXAM BEVERAGE CAN CZECH REPUBLIC SRO
History
Boom in metal beverage cans boosts net sales
Sleek can due to be launched in 2008
Summary 11 Rexam spol sro: Operational Indicators 2006
Summary 12 Major End-Use Products for Rexam spol sro by Pack Type 2006
AL INVEST BRIDLICNA AS
History
Important position in tobacco
Penetration into dairy products, both domestic and foreign
Summary 13 Al Invest Bridlicna as: Operational Indicators 2006
Summary 14 Major End-Use Products for Al Invest Bridlicna as by Pack Type 2006
OTK GROUP AS
History
Flexible packaging
Production driven by clients’ demands
Summary 15 OTK Group as: Operational Indicators 2006
Summary 16 Major End-Use Products for OTK Group as by Pack Type 2006
PERGAMENKA-PRAHA SRO
History
Papers for industrial use
Bags with rectangular bases
Production for domestic consumption and export
Summary 17 Pergamenka-Praha sro: Operational Indicators 2006
Summary 18 Major End-Use Products for Pergamenka-Praha sro by Pack Type 2006
AVIRUNION AS
History
Supply of glass to food and drink manufacturers
Active in recycling
Focus on light weight bottles
Summary 19 Avirunion as: Operational Indicators 2006
Summary 20 Major End-Use Products for Avirunion as by Pack Type 2006
VETROPACK MORAVIA GLASS AS
History
Focus on innovations
Supply of glass bottles and glass jars for food and beverages
Increasing activities in exports and innovations
Summary 21 Vetropack Moravia Glass as: Operational Indicators 2006
Summary 22 Major End-Use Products for Vetropack Moravia Glass as by Pack Type 2006
SKLARNY MORAVIA AS
History
Specialisation in transparent, brown and black colours
Supply of glass bottles for wine and liqueurs
Summary 23 Sklarny Moravia as: Operational Indicators 2006
Summary 24 Major End-Use Products for Sklarny Moravia as by Pack Type 2006
TETRA PAK CESKA REPUBLIKA SRO
Strong position in the Czech Republic
Aim for packaging that maximally exploits available shelf space
Success of liquid cartons is assured by positive environmental profile
New developments
Summary 25 Tetra Pak Ceska Republika sro: Operational Indicators 2006
Summary 26 Major End-Use Products for Tetra Pak Ceska Republika sro by Pack Type 2006
ELOPAK TRADING AG
History
Aim for attractive and high-quality packaging
Focus on hygiene
New developments
Summary 27 Elopak Trading AG: Operational Indicators 2006
Summary 28 Major End-Use Products for Elopak Trading AG by Pack Type 2006
HUHTAMAKI CESKA REPUBLIKA AS
History
Strategy to produce packaging from moulded fibres
New developments
Future strategies
Summary 29 Huhtamaki Ceska Republika as: Operational Indicators 2006
Summary 30 Major End-Use Products for Huhtamaki Ceska Republika as by Pack Type 2006
MEADWESTVACO SVITAVY SRO
History
Domestic activities
Younger generation demands premium products
Two main types of folding cartons
New product development focuses on graphics
Summary 31 MeadWestvaco Svitavy as: Operational Indicators 2006
Summary 32 Major End-Use Products for MeadWestvaco Svitavy as by Pack Type 2006
MODEL OBALY AS
History
Consumer packaging products account for 30% of production
Summary 33 Model Obaly as: Operational Indicators 2006
Summary 34 Major End-Use Products for Model Obaly as by Pack Type 2006
PAPIRNY BELA AS
History
Innovative production of folding cartons
Ecological activities
Summary 35 Papirny Bela as: Operational Indicators 2006
Summary 36 Major End-Use Products for Papirny Bela as by Pack Type 2006
GRAFOBAL SPOL SRO
History
Paper-based containers
Domestic production
Summary 37 Grafobal spol sro: Operational Indicators 2006
Summary 38 Major End-Use Products for Grafobal spol sro by Pack Type 2006
MAJOR MARKET PLAYERS BY PACK TYPE
RIGID PLASTIC
Production driven by growing demand for rigid plastic PET bottles
Summary 39 Major Rigid Plastic Packaging Manufacturers by Pack Type 2006
METAL
Summary 40 Major Metal Packaging Manufacturers by Pack Type 2006
FLEXIBLE PACKAGING
Innovation is the key to continued success
Summary 41 Ranking of Major Flexible Packaging Manufacturers 2005
GLASS
Top two players dominate domestic glass production
Differentiation used to offset declining demand for glass
Summary 42 Ranking of Major Glass Packaging Manufacturers 2006
LIQUID CARTONS
Two global players dominate supply
Summary 43 Share of Major Liquid Carton Manufacturers 2006
PAPER-BASED CONTAINERS
Top five players dominate
Exports are an important source of revenue
Growing penetration of foreign investment
Summary 44 Major Paper-based Containers Manufacturers by Pack Type 2005
CLOSURES
Metal closures
Corks
Plastic screw closures
Summary 45 Ranking of Major Closure Manufacturers 2006
APPENDIX
Table 3 Production of Packaging in the Czech Republic 2003-2005
Table 4 Imports of Packaging by Pack Type 2005-2006
Table 5 Imports of Packaging by Pack Type 2005-2006
Table 6 Exports of Packaging by Pack Type 2005-2006
Table 7 Exports of Packaging by Pack Type 2005-2006