There’s no need to search for harbingers of doom and gloom at the moment – we are surrounded by news of recession, and only need to flick to some news stories in this issue to learn of rising tinplate and plastics prices. We live in a boom and bust economy, and recessions every decade or so is part of the course. However, every cloud has a silver lining. For example, some of the major beneficiaries of the economic downturn are the mass discount stores, specialising in private-label products. They need packaging that is fit for purpose, yet without bells and whistles. This benefits the ‘invisible’ industry of private-label manufacturers, who in turn are always looking to minimise costs throughout the processing and packaging chain. One consequence of this is the migration of packaging services to Eastern Europe, where labour rates remain a fraction of that in Western Europe and the USA.
I recently visited the Taropak trade show in Poznan, Poland, which is claimed to be the largest packaging exhibition in Central and Eastern Europe. The mood was buoyant and there were 800 exhibitors from over 30 countries. I saw plenty of innovations, but also lots of directly competing machines, materials and pack concepts. There’s business to be had in the region.
Likewise, the rise in materials costs and the necessity to integrate sustainability concepts are providing opportunities for innovation. The PPMA show was a little smaller than in past years, but the atmosphere was buzzing and the quality of exhibitors and visitors was excellent. We are just living in changing times, with standard packaging migrating to developing economies, due to reduced costs, and more innovative concepts being developed and applied here in Western Europe.
The packaging industry certainly isn’t dying. But it is changing in unprecedented ways, and that’s exciting for all of us.
