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Asia-Pacific Packaging

Despite the recent economic crisis affecting South East Asia, it remains the most important market of opportunity for the global packaging industry. According to the new 'Packaging in Asia-Pacific Report 16', in China, for example, the production and consumption of packaging materials has soared over the past few decades. In fcat, in most sectors China now faces a problem with oversupply. China's total packaging industry production value has grown 199% from 45.4 billion Yuan in 1990 to 135.8 billion Yuan in 1997, and is expected to reach 190 billion Yuan by 2000. There is now great demand for higher-quality packaging in China, as well as materials which are environmentally-friendly. fast food boxes and trays are also a key growth sector. However, China has not escaped unscathed by economic collapse in some of its neighbouring countries - the country's export market, for example, has been severely damaged by reduced demand in South East Asia. In India, the need for foreign investment remains strong. Key growth sectors include beverage cans and PET bottles for soft drinks, OPP films, flexible materials and other sophisticated barrier materials. Some of the leading packaging companies in Europe and the US have been active in the Indian packaging market in recent years, including SCA, Courtaulds and Tetra Pak. Japan and Australia, meanwhile, remain by far the most developed packaging industries in the region and consider much of te rest of Asia as their marketplace. However, the Japanese industry in particular has suffered from the prolonged effects of economic recession. Countries such as Vietnam and Malaysia, continue to offer great potential for packaging companies looking to expand, however, as yet this potential has largely been unfulfilled. Key trends affecting the future of packaging in the region are: the entrance of multinational food and drink companies, such as Unilever, Nestlé, Coke and Pepsi which require international standard packaging services; an increased emphasis by many Asian packaging industries on the export market; and the development of legislation governing packaging waste. Multinationals entering the region are causing a consolidation of local packaging producers into more cohesive sectors. For example, while the paper and board packaging sector in Asia-Pacific is still mainly organised on a national basis, this is changing fast. Until recently, no company which operated on a pan-Asian basis had emerged, and most national markets were dominated by local producers. Moreover, national markets themselves tended to be highly fragmented. However, in the same way as industry concentration is increasing at a national level, in recent years the more ambitious Asia-Pacific producers have started to enhance their regional presence by entering into joint ventures and starting off-shore production. The total value of the Asia-Pacific packaging industry is forecast to grow by 56.6% between 16, with countries such as India and China seeing average annual growth exceeding 10% up to 2001. However, the depth of the economic turmoil has severely affected growth in a number of countries, the immediate consequence of which has been the postponement or cancellation of investment projects. 'Packaging in Asia-Pacific 16' is one of a series of market research reports produced through the partnership of Packaging Magazine and market research company Market Tracking International (MTI). The report provides extensive information on the packaging markets of the key Asia-Pacific nations, including: China, India, Japan, Australia, Thailand, Hong Kong, Indonesia, Malaysia, Pakistan, the Philippines, Singapore, South Korea, Taiwan and Vietnam. Covering all packaging products in the paper and board, plastics, metal and glass material sectors, the report is essential reading for companies looking to invest in the region or to track the progress of the national packaging markets. The report also includes information on the main packaging end-use markets - food and drink, tobacco, cosmetics and pharmaceuticals - and the developments taking place here, as well as an analysis of the operating environment in Asia-Pacific, opportunities for investment and future prospects and forecasts by country. Other publications produced by Packaging Magazine and MTI include World Drinks Packaging 1998, European Food Packaging 1997/1998 and World Packaging Companies 1995/1996 (updated version due in late 1998). 'Packaging in Asia-Pacific Report 16' is available from MTI Ltd, 7 Archway Business Centre, Wedmore Street, London N19 4RU at a cost of £1,500 (US$2,500). For further information on this or any of MTI’s reports please contact: Chris Brockman on tel: (00 44) 17, fax: (00 44) 17 E-mail: Website: http://www.marketfile.co.uk