Flexible Packaging and Materials Markets in Asia

Flexible Packaging and Materials Companies in Asia

I    Current Trends and Future Prospects of Flexible Packaging Materials Markets in Asia

• Due to economic growth, domestic markets of China and Southeast Asian countries are expanding.
• Increasing demand from middle and upper class consumers for high function/added value of flexible packaging.
• The demand of packaging materials links to consumption of foods and daily products which are packed, distribution system, lifestyle and diet.
• Need to compare and evaluate changes of population growth rate, growth rate of real GDP and purchasing power per capita of major countries as indicators of packaging material demand.
• In Vietnam and Malaysia, member nations of TPP, entry of foreign companies to market is increasing owing to abolishment of tariffs and deregulation.
• Entry expansion of flexible packaging materials manufacturers is expected due to economic regionalization and globalization such as TPP and AFTA.
• Create a new market with comprehension and response to change of lifestyle, eating practices and distribution system.
• Suggest a package which corresponds to future needs like easy opening, easy pouring and differentiate your products from others.

II   Current Trends of Flexible Packaging Materials Markets in Asia

2-1. Japan

• In transparent vapor deposition film market where Japan holds the global share, the adoption as long storage and microwave use is increasing in Europe and US in stead of can/bottle.
• New needs for foreigners arise due to the inbound demand and TPP participation.
• Incresing importance to have global point of view in both innovation and marketing

2-2. Republic of Korea

• In ROK there are around 250 flexible packaging companies and its market size is 4 to 5 trillion won.
• To have a further growth, originality in products and strong proposal skill for users is necessary.
• Increasing number of people living alone and the aging society, the demand for retort pouch is growing.
• Retort pouch has a low number of microwave cook type and boiling the pouch is common.
• There is a movement to make domestic transparent vapor deposition film, but cost and quality is the challenge.
• Development of related products and guaranteeing production volume will be the supporting factors for domestication.

 2-3. China

• The number of Chinese packaging manufacturers is around 40,000～50,000 and within that only 5 companies have over billion yuan yearly sales.
• VOC regulation and other environmental restrictions being reinforced, middle/small size packaging companies could be weeded out.
• Change of lifestyle and leisure population growth could lead to increasing adoption of retort pouch.
• Necessary both to develop products and to suggest new package taking in Chinese food culture and lifestyle.
• Demand for EVOH with high gas-barrier and transparency expanded.
• Flexible packaging manufacturers started to develop transparent vapor deposition films.

2-4. Thailand

• As domestic demand increases, foods and daily necessities market expands.
• Foods and daily necessities are the main use of flexible packaging.
• Foreign manufacturers like Fuji Ace Co., Ltd, Huhtamaki Ltd., and Amcor flexibles Bangkok PLC. occupy the flexible packaging market in Thailand.
• Export of processed foods, modern retailing and change of life styles are possible factors of market growth.
• It is very difficult to procure high-barrier films in Thailand.
• It is a good opportunity for Japanese, barrier film manufacturers to cooperate with local manufacturers and supply materials in Thailand and other East Asian countries.

2-5. Vietnam

• Dongwon Systems (South Korea) bought Tan Tien Plastic Packaging and Minh Viet Packaging.
• Utilizing both bases, Dongwon Systems make efforts on taking in Vietnamese domestic demand and on expanding exports.
• Due to the participation in TPP, more global manufacturers of foods and daily products advanced to Vietnam.
• Flexible packaging grew with modern retailing and change in consumers' thinking.
• Compared with neighboring countries, packaging materials are not localized in Vietnam.
• Especially barrier materials, base films and CPP sealant are required to be localized.

2-6. Indonesia

• Flexible packaging market volume is around USD 2.8 billion in Indonesia.
• Expecting the expansion of domestic market, many manufacturers including those from different business sectors entered the Indonesian market.
• Composition rate of traditional and modern retailing based on sales volume is 75% and 25% in 2014.
• Modern retailing with 13% to 15% of yearly growth rate leads the expansion of flexible packaging market.
• There is an increase in customer demand for high-functions and performances and excellent design.
• Considering potential of growth, it is very important to enter the market promptly.

III   Company information

3-1. Republic of Korea

1. Lotte Aluminium Co.,Ltd.

• Lotte Aluminium is the only manufacturer in the ROK to deal with packaging products from flexible packaging materials, CAN, PET, to corrugated cardboards. With the advantage of a total ability of proposals, it aims at expanding sales volume both for the domestic demand and export

2. YOULCHON CHEMICAL CO.,LTD

• With the stable consumer base, Youlchon Chemical aims at establishing a strong position in the ROK by expanding environmental-friendly packaging materials and developing products for various kinds of usage.

3. KSP CO., LTD.

• As a leading company of retort pouches, KSP seeks after sustainable growth by establishing a strong position in the ROK and expanding export to abroad.

4. WONJI CO., LTD.

• Pursuing high-function, high added-value and environmental-friendly products, Wonji aims at being a Global Total Packaging Solution Company.

 3-2. People's Republic of China

1. AMCOR FLEXIBLES ZHONGSHAN CO., LTD. （安姆科軟包装（中山）有限公司）

• R&D technologies and achievements of Amcor Zhongshan are far ahead of other manufacturers.
• In addition to the advantage, it is continuously expanding its business with the brand power.

2. HUANGSHAN NOVEL CO., LTD. （黄山永新股份有限公司）

• As a leading manufacture of Chinese flexible packaging, Huangshan Novel is expanding its business by focusing on developing high-barrier films and high-strength but thin films.

3. ZHEJIANG CHANCING PACKAGE MATERIAL CO., LTD.（浙江誠信包装材料有限公司）

• As well as sales of bottle labels, Zhejiang Chancing puts efforts on stabilizing quality, improving after-sales service and proposing new products.

4. DONGGUAN WONDERFUL PACKAGING CO., LTD（東莞奇妙包装有限公司）

• With advantage of coextruded-multilayer films and technical gas cooking system, Dongguan Wonderful concentrates on accommodating Chinese local demand.

5. LANGFANG ZHONGBEN PACKAGE CO.,LTD（廊坊中本包装有限公司）

• Focusing on sales of PP shrink films and retort pouches, Langfang Zhongben is developing its business towards Chinese market with attractive designed packaging materials.

6. DALIANDAFU PLASTIC COLOUR PRINTING CO.,LTD（大連大富塑料彩印有限公司）

• As a pioneer of Chinese flexible packaging, Dalian Dafu is well-known with its sales performance and technologies, and is now trying to acquire new customers.

 3-3. Thailand

1. SOUTH EAST PACKAGING INDUSTRY CO., LTD.

• South East is delivering samples of retort pouches for export.
• As well as pharmaceutical packaging materials, it is trying to shift to high value-added packaging materials.

2. THAI FILM INDUSTRIES PUBLIC COMPANY LIMITED

• Thai Film is a pioneer of BOPP films in Southeast Asia.
• It is exploring a possibility of developing value-added products like high-barrier films for retort.

 3-4. Vietnam

1. TAN TIEN PLASTIC PACKAGING JOINT STOCK COMPANY

• Being a top flexible packaging manufacturer in Vietnam, Tan Tien has started its business as an subsidiary of Dongwon Systems since October 2015.

2. LIKSIN CORPORATION

• As a Vietnam total packaging company, Liksin tries to expand domestic demand and export.

3. TONG YUAN PACKAGING CO., LTD.

• Tong Yuan is promoting to develop high value-added products such as flat bottom bags and retort pouches.

4. NGAI MEE PACKAGING (VN) COMPANY LIMITED

• With its stable quality, punctuality of delivery and customer service, Ngai Mee is trying to strengthen marketing capacity in order to increase orders both from current and new customers.

 3-5. Indonesia

1. P.T.INDONESIA TOPPAN PRINTING

• Utilizing technologies and know-how of letterpress printing, Indonesia Toppan is making efforts on developing packages meeting with local needs and costs, and on proposing potential packaging products.