Raw material price increases are threatening the financial backbone of the flexible packaging industry, warns Flexible Packaging Europe (FPE), which represents 75 per cent of European flexible packaging production. Raw material prices represent 60 per cent of the total cost of flexible packaging.
“The squeeze on margins caused by increased raw material prices and rising energy, transport and labour cost is putting enormous pressure on this highly innovative packaging sector,” says FPE executive director Stefan Glimm.
“Innovative developments in downgauging and consumer convenient packaging options have done much to meet the demands of end user customers and consumers, while also promoting growth in the sector,” he says, “but the time has now come for each customer to work together with its flexible packaging producers to create solutions to what is becoming an untenable position.”
