Packaging Industry Overview

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Packaging industry overview

Industry Definition
The companies in this industry pack goods in bottles, cans, cartons, collapsible tubes, plastic sachets, plastic film or bags or other containers or materials on a contract or fee basis. The industry is a crucial step in the production and sale processes of many everyday product manufacturers, which means that demand for the industry's services has remained relatively resilient. Industry performance depends on activities in manufacturing and wholesaling industries, including cosmetic and toiletry product manufacturing, pharmaceutical product manufacturing, and adhesive and cleaner product manufacturing (IBISWorld, 2012).

Market Overview
IBISWorld (IBISWorld, 2012) estimates that industry revenue will increase at an average annual rate of 1.8% over the five years through 2011-12. Industry revenue is expected to increase by 1.8% over 2011-12 to a total of $704.8 million, as merchandise trade improves, because the growth in the number of niche operators servicing specific manufacturers and products. Demand from manufacturing companies and wholesalers tends to generate the greatest amount of revenue. It is estimated that the manufacturing sector generates nearly 45% of revenue and the wholesaling sector generates 35% of revenue. Moreover, in 1990s, packaging has been criticised as unnecessary and wasteful, as a visible part of the litter stream. In response to concerns such as this, an Environmental Code of Practice for Packaging has been developed. The code provides companies with guidelines to help evaluate the environmental impact of new packaging materials and products. Due to various covenant such as The National Packaging Covenant, an issue facing this industry over the next five years is the development of environmentally sustainable packaging materials and processes, as consumers become more environmentally concerned. Meanwhile, The provision of reliable and flexible packing services will be the key...
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