In recent years, flexible packaging plastics are increasingly being used in food packaging, and gradually replace paper, glass and metal and some other traditional packaging materials. United States Frost & Sullivan's recently published study reported that the food industry plastic packaging market in Southeast Asia is still in development stage. New product development and technological progress is driving this market, the two major driving force for sustainable development, countries should take into account the export of domestic markets.
Thailand's market leader in Southeast Asia
Soft plastic food packaging is mainly used for biscuits, chips, desserts, candy, drinks and coffee powder, milk powder, frozen food, sauces, instant noodles and microwave food. Flexible key development areas including: stand-up pouches, retort pouches (or sterilization bags) and can be re-sealed pocket. Modified atmosphere packaging (MAP) is the focus on the development of technology, application of this technology in the meat after slaughter and cleaning can be directly packed up, ready to be added to the sale, to further ensure the freshness of food, while extending the protection shelf life.
2008 Southeast Asian food industry plastic packaging market size reached $ 1.414 billion, is expected to grow in 2015 to $ 2.023 billion, an average annual growth rate of 6.7%. Regionally, Thailand and currently holds the entire food industry plastic packaging market in Southeast Asia more than 40% of the share, the next 5-6 years will be expanded to about 45%. Considerable proportion of Malaysia and Indonesia in 2008 has reached 20%. As the range of halal food exports continued to expand, food plastic packaging market is expected to Malaysia's growth rate is expected to catch up with the average growth rate in Southeast Asia. Although Indonesia has the largest population base in the region and growth potential, but which is relatively backward economic level to a certain extent, restricted the development of the market in the country. Philippines and Singapore, the share of small, focused primarily on the future development of the Philippines local market, while the Singapore market is relatively mature, and its small population base, the future growth rate is likely to be lower than the Southeast average.
Technology upgrade choice
Frost & Sullivan found that as the development of new technologies, flexible packaging in such areas are expanding, and replacing part of the rigid packaging market. Plastic packaging manufacturers will from time to time feedback to the resin manufacturer for the material properties of their needs. At the same time, raw material suppliers are beginning to pay more attention to the development of environmentally friendly products. As people for green, health, the importance of the concept of the future will be more and more biological polymers as a new type of flexible packaging materials.
The biggest challenge facing the industry from continued compression of profit margins. Most plastics used in food packaging is a common polymer, with the volatility of oil prices and strong. As the competitive market, plastic packaging manufacturer bargaining power is not high, the pressure on raw material prices can not be quickly transferred to the food processing enterprises and end consumers. Therefore, these companies have to internalize some of the pressure, which for those small businesses is fatal. Another reason for reduced profits caused by packaging companies need to continuously update the technology, and investment in equipment to improve production quality printing up to ensure the stability of effects and film quality. Therefore, for plastic packaging businesses, improve production technology, providing high value-added products and effective cost control are based on the market, to ensure good yields of choice.
Present in this market are about 44 large manufacturers, and small and medium-sized manufacturers have as many as 650. More cooperation merger is the only way for the future development of this market. Some of the leading local enterprises will gradually expand their markets in Southeast Asia, the layout, and the current global financial crisis has accelerated a number of small businesses are out of speed. Polyethylene (PE) supplier Dow Chemical Company believes that customers need not only cost-effective processing solutions, as well as continue to improve and upgrade the technical support. Therefore, only those companies with a systematic research and development capabilities possible in the future to gain a stronger market position.
Domestic exports are necessary to grasp two
Southeast Asian countries, a slice of the export market will be very beneficial to the development of business, so it also deserves considerable attention.
In Singapore, a small population base, resulting in some degree of excess capacity, only through the export of products to ensure long-term competitiveness. For Thailand, the to be the "World Kitchen" target to the food processing industry is highly dependent on exports, so the packaging and food industry-related industries will benefit. Some of the world's leading packaging companies, such as AlcanHuhtamika and SealedAir, have already set up a production base in Thailand. Malaysia also has its own characteristics and advantages, the nature of the Islamic countries to promote halal food exports. It is worth mentioning that Thai food can include a variety of halal food, which poses a potential threat to Malaysia. Philippines and Indonesia, although there are export opportunities and potential, but the two countries is more focused on meeting local market needs.
To develop the food packaging industry, food processing industry is essential to the prosperity, the demand from the domestic and export markets, so countries need to attract foreign investment in food processing industry. Southeast Asian countries, Thailand and Malaysia in attracting foreign investment in food processing industry, the most successful; Indonesia and the Philippines as investment in the food industry has not yet developed policies and guidelines in this regard is not significant progress; and Singapore as small size, manufacturing costs are high, do not have the attraction of foreign investment.