3. Rigid plastic packaging to continue success in North America
According to The Future of Packaging in North America to 2017, a market report from Smithers Pira, the rigid plastic packaging market is forecast to grow on average by 2.6% per annum to achieve sales worth $40 billion and 11.9 million tonnes by 2017. Mexican rigid plastic packaging sales are expected to grow the fastest in the region, with an average annual growth rate of 4.8% and surpass the Canada packaging market consumption levels by $45 million in 2017. Rigid plastic packaging is expected to continue to gain popularity in the market, experiencing the highest growth rate across plastics, ahead of PET (Polyethylene terephthalate) and PE (Polyethylene).
In 2017, the rigid plastic packaging market is forecast to be worth $433.5 billion, with PE and PET remaining the main plastics used for consumer manufacturing.
4. Industrial sectors to demonstrate recovery
Uncertainties still remain concerning the North America economy - specifically the impacts of the European economic crisis and political uncertainty in oil-exporting countries. The US has also been significantly affected by falling real estate values and difficulties in securing financing for future investments. However, the industrial segments have been in recovery since a sharp downturn in demand in 2009. Real estate values are now also starting to show recovery.
Growth rates of industrial packaging are showing the same forecasted growth rates as those in consumer packaging in coming years. Industrial packaging is expected to increase on average by 1.2% per annum above inflation levels to reach $62.5 million by 2017.
5. The growth of retail ready packaging
Retail ready packaging (RRP) refers to packaging delivered to a retailer in a self-contained unit, which is immediately ready for on-shelf product display without the need for assembling or unpacking. This type of packaging provides an attractive structure which both advertises and displays a product, cutting down on operation costs as the shipping package itself arrives basically shelf-ready.
Retail ready packaging is continuing to gain popularity and traction in North America as a number of retailers consider its implementation and others expand their efforts in the area. This is due to an increased understanding of RRP, and the ever-growing penetration of RRP across categories. According to a survey conducted by Packaging World, 57% of suppliers in North America stated that they had received an increased number of requests for RRP in the last 12 months from their retail customers.
More information on the report to be found on Smithers Pira website.
Future of the North American Packaging Market