Packaging Industry in the Netherlands
Euromonitor International's Packaging Industry in the Netherlands 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: Nov 2007
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Executive summary
The environment is number one on the agenda
Throughout the packaging industry in the Netherlands, the importance of environmental concerns cannot be overstated. All manufacturers and all packaging groups are striving to show customers and the government that their products are the most environmentally sound. The arguments are often complex, as the whole process needs to be considered from the point of the use of raw materials, production and transportation resources and the reusability and recyclability of the packaging after its end-use application. New legislation and consumer perceptions are placing increasing pressures on manufacturers to improve their environmental credentials. This process is costly but the greatest threat to the industry in the future is that these pressures may simply lead to a reduction in packaging volumes, as the need to reduce waste becomes an increasingly pressing reality.
Packaging records moderate volume growth
Overall, the Dutch packaging industry recorded moderate volume growth. The main factors driving growth are increasing personal incomes and changing demographics. Dutch consumers continue to see their incomes grow moderately even though the economy has performed fairly sluggishly in recent years. This means that the demand for end-use products has increased and sales of packaging have consequently grown albeit by a slower rate than for the economy as a whole. The two most significant demographic trends affecting the packaging industry are the ageing population and the increase in the number of single-person households.
Many sources state that manufacturers have largely ignored the ageing population trend, as they continue to be obsessed with appealing to young consumers, even though the older generation accounts for almost one half of the disposable income in the Netherlands. It is important that packaging manufacturers exploit the growth potential among older consumers. Manufacturers have proved more interested and successful in appealing to single-person households. Many manufacturers have benefited from the introduction of smaller pack sizes by generating increased unit volumes among single-person households.
Manufacturers face increasing costs
The cost of raw materials has increased significantly in recent years. Oil prices are just beginning to stabilise and there is some expectation that they may fall in the short term, however, raw material prices are likely to continue to increase. Increased oil prices affect some materials, such as plastic, more than others, as oil is directly used in its production. However, rising oil prices affect all pack types through transportation costs and aggregate input price increases.
Smaller manufacturers hit by global competition
Despite the growth recorded by the packaging industry trading conditions have become increasingly difficult for manufacturers, which have seen their margins progressively squeezed. Tighter environmental and safety legislation increases the legal, financial and social responsibilities on producers. Moreover, globalisation has increased the competition from lower cost countries, especially China. This competition reduces the price that packaging can be sold at and places intense pressure on Dutch producers. The effects of increased competition have led to the closure of a number of Dutch facilities, especially smaller producers, while larger multinational producers have moved their production south to China and Latin America. This development is less visible in glass and metal than for other pack types. The transportation costs for glass and metal are higher due to their weight and therefore local production can prove more competitive. In the future, rising oil prices will increase transportation costs further, though this would enhance the claims of local production. However, global competition will continue to place a ceiling on prices.
Table of contents
EXECUTIVE SUMMARY
THE ENVIRONMENT IS NUMBER ONE ON THE AGENDA
PACKAGING RECORDS MODERATE VOLUME GROWTH
MANUFACTURERS FACE INCREASING COSTS
SMALLER MANUFACTURERS HIT BY GLOBAL COMPETITION
MARKET BACKGROUND
PACKAGING LEGISLATION
Materials in contact with food
Labelling is key
RECYCLING AND THE ENVIRONMENT
European guidelines
Summary 1 EU Recycling Targets by 2008
Essential requirements
Packaging Covenant
Packaging Decree
Post-consumer packaging
Targets
Summary 2 Packaging Decree Recycling Targets
Nedvang
CORPORATE ACTIVITY IN PACKAGING
CONCENTRATION ON CORE AND HIGHER MARGIN MARKETS
PACK PRODUCTION MOVES SOUTH
MAJOR MARKET PLAYERS (LOCAL COMPANY PROFILES)
CLONDALKIN GROUP HOLDINGS BV
New product developments
Summary 3 Major End-Use Markets for Clondalkin Group Holdings BV by Pack Type 2005
BUDELPACK HOLDING BV
Company news
Summary 4 Budelpack Holding BV: Operational Indicators 2005
Summary 5 Major End-Use Markets for Budelpack Holding BV by Pack Type 2005
SYNPRODO BV
Summary 6 Major End-Use Markets for Synprodo BV by Pack Type 2005
ALCAN INC
Company news
Summary 7 Alcan Inc: Operational Indicators 2005
Summary 8 Major End-Use Markets for Alcan Inc by Pack Type 2005
LPF FLEXIBLE PACKAGING BV
Product range
Summary 9 Major End-Use Markets for LPF Flexible Packaging BV by Pack Type 2005
FIBOR PACKAGING BV
Summary 10 Major End-Use Markets for Fibor Packaging BV by Pack Type 2005
SMURFIT KAPPA BENELUX
Summary 11 Smurfit Kappa Benelux: Operational Indicators 2005-2006
Summary 12 Major End-Use Markets for Smurfit Kappa Benelux by Pack Type 2006
CROWN HOLDINGS BV
Summary 13 Major End-Use Markets for Crown Holdings BV by Pack Type 2005
SCA PACKAGING BENELUX BV
Summary 14 SCA Packaging Benelux BV: Operational Indicators 2005
Summary 15 Major End-Use Markets for SCA Packaging Benelux BV by Pack Type 2005
REXAM PLC
Summary 16 Rexam Plc: Operational Indicators 2006
Summary 17 Major End-Use Markets for Rexam Plc by Pack Type 2006
O-I EUROPE
Summary 18 O-I Europe: Operational Indicators 2005
Summary 19 Major End-Use Markets for O-I Europe by Pack Type 2005
ELOPAK BV
Summary 20 Elopak BV: Operational Indicators 2005
Summary 21 Major End-Use Markets for Elopak BV by Pack Type 2005
TETRA PAK NEDERLAND
Summary 22 Major End-Use Markets for Tetra Pak Nederland by Pack Type 2005
ARDAGH GLASS BENELUX BV
Summary 23 Ardagh Glass: Operational Indicators 2005-2006
Summary 24 Major End-Use Markets for Ardagh Glass by Pack Type 2005
MAJOR MARKET PLAYERS BY PACK TYPE
RIGID PLASTIC
Tighter environment
Natural threat
Rigid plastic is developing fast
Global impact
Summary 25 Major Rigid Plastic Packaging Manufacturers by Pack Type 2006
METAL
Recycling pedigree
Perceptions are dangerous
Dominance of global companies
Summary 26 Major Metal Packaging Manufacturers by Pack Type 2006
FLEXIBLE PACKAGING
Split between multinational, European, and domestic producers
Food contact laws become
Summary 27 Ranking of Major Flexible Packaging Manufacturers 2006
GLASS
Premium packaging for premium goods
Environment
End markets performing well
Summary 28 Ranking of Major Glass Packaging Manufacturers 2006
LIQUID CARTON
Liquid carton shows its “green” credentials
Entering new areas
Summary 29 Share of Major Liquid Carton Manufacturers 2006
PAPER-BASED PACKAGING
Folding carton is hit by the decline in tobacco
Tough market environment
Summary 30 Major Paper-based Packaging Manufacturers by Pack Type 2006
CLOSURES
Less is more
The older the better
Convenience is King
Summary 31 Ranking of Major Closure Manufacturers 2006