According to Wood Mackenzie Chemicals' 'Global Flexible Packaging Market Overview' report, 2018 was a watershed year for mergers and acquisitions in the global flexible packaging sector.
Gilfillan, explained: “Amcor's $6.8 billion (approximately £5.29 billion) all-stock acquisition of the US-based converter Bemis is a deal that will shape the industry for many years to come. In addition, both Europe and North America have seen acquisitions of regional significance in the purchases made by Schur Flexibles and Transcontinental Inc., respectively.”
Wood Mackenzie Chemicals estimates the combined group will account for approximately 10 per cent of the global converted flexible packaging market.
According to the research, China now accounts for approximately 15 per cent of the $90 billion (approximately £70 billion)global flexible packaging market.
Gilfillan, added: "How will the reported slowdown in the Chinese economy, coupled with the uncertainty surrounding US-China trade tariffs, impact the world's second largest flexible packaging market? Will the country's relatively low consumption per capita offer a potential opportunity for growth? And with China's plastic waste ban creating a domino effect in South East Asia, how are Western nations responding to sustainability pressures without an obvious export market? These are all important questions that will shape the flexible packaging market throughout 2019.”
Wood Mackenzie Chemicals Research Analyst, Robert Gilfillan says Europe is currently leading the way in its approach to handling plastic packaging waste.
A comprehensive new law that has recently come into effect in Germany, as well as new taxes in France and the UK, are a few examples of how member states are falling in line with the European Union's directive on hitting more ambitious packaging waste recyclability targets.
As a high consumption per capita region, Europe is setting a trend for other regions to follow.