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Packaging Industry Business Confidence Report H1 2016

Packaging Industry Business Confidence Report H1 2016

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Executive Summary

An increasing number of executives state that the current economic conditions are stable and are optimistic about company growth prospects in H1 2016 (January 2016-June 2016). The results reveal that the packaging market is gaining momentum in anticipation of the positive trend in e-commerce and related packaging activities, rising demand for packaging in Asian countries, and huge opportunities for advanced technologies in packaging across the globe. Over the next six months the industry will increase its expenditure towards new product development and IT infrastructure. Furthermore, in H1 2016 packaging companies intend to focus on improving operational efficiency, and protecting and growing their market share.

Key Findings

Overall, 44% of executives rate the current economic environment as stable, whereas 26% of respondents indicate that the economic condition is favorable or very favorable

Overall, 53% of respondents operating in the Asia-Pacific are favorable about their region in H1 2016 (January 2016-June 2016)

Overall, 79% of respondents who operate in North America are optimistic about company growth prospects over the next six months

Industry executives across the globe highlight the performance of the Eurozone and the performance of developing economies as key concerns that are likely to impact their companys performance over the next six months

Improving operational efficiency and protecting and growing market share are the main priorities for survey respondents over the next six months


Canadeans Packaging Industry Business Confidence Report H1 2016 examines executives opinion on the business environment over January 2016-June 2016. It also highlights existing economic conditions, supplier price variations, sales performance, industry and company growth outlook, spending patterns, and key priorities.

What else does this report offer?

Current state of the global economy: examines prevailing economic conditions globally and across various regions

Company and industry growth outlook: provides industry executives expectations towards their companys growth prospects and that of the industry over the next six months

Change in consumer confidence: analyzes packaging industry executives opinion about the change in consumer confidence during H1 2016

Supplier prices projection: determines expected changes in supplier prices across various categories and their impact on business confidence

Change in staff headcount and sales performance: tracks expected changes in staff headcount and sales for H1 2016 among industry executives globally

Significant investment activities: highlights various areas in which industry executives intend to invest over the next six months

Business concerns: provides information about potential business concerns indicated by survey respondents for H1 2016

Key priorities: identifies top priorities of industry executives operating in various regions

Reasons To Buy

Organizations will be supported in business expansion decisions by providing information about projected changes in sales performance and supplier prices

The report will benefit organizations and allow them to make effective business strategy decisions by knowing the prevailing business conditions and sentiment within the packaging industry

Helps to improve operational efficiency of the organization by knowing about key priorities and the main concerns of packaging industry executives

Helps to alter investment allocation by understanding key focus areas highlighted by survey respondents during H1 2016

1 Introduction

1.1 Definitions

1.2 Methodology and sample size

1.3 Respondent profile

2 Economic State, Growth Prospects and Consumer Confidence

2.1 Existing economic environment

2.1.1 In H1 2016, the highest percentage of executives indicate a stable economic environment, while 23% identify favorable economic conditions

2.1.2 Overall, 52% of respondents highlight favorable economic conditions in North America

2.1.3 Executives who operate in North America and Asia-Pacific have a more favorable opinion about their region

2.2 Industry and company growth outlook

2.2.1 The majority of industry executives are optimistic about company growth prospects in H1 2016

2.2.2 Overall, 37% of respondents are neither optimistic nor pessimistic about industry growth prospects in H1 2016

2.2.3 Confidence towards company growth is highest among executives with business operations in North America

2.3 Expected change in consumer confidence

2.3.1 Overall, 45% of respondents highlight either positive or very positive change in consumer confidence in H1 2016

2.3.2 Industry executives who operate in Europe and the Rest of the World region project minimum positive change in consumer confidence during H1 2016

3 Supplier Prices, Staff Headcount and Sales Performance

3.1 Supplier prices expectations

3.1.1 Packaging industry executives operating in North America and Asia-Pacific anticipate a significant increase in prices of raw materials in H1 2016

3.1.2 On average, respondents anticipate the prices of raw materials will increase by 0.6% over the next six months

3.1.3 Survey respondents indicate that prices of semi-finished products will rise by an average of 1.4% over the next six months

3.1.4 On average, industry executives project transit packaging prices will increase by 1.2% over the next six months

3.1.5 Survey respondents indicate that power and energy prices will rise by an average of 1.2% in H1 2016

3.2 Anticipated change in staff head count and sales projections

3.2.1 Respondents who operate in Asia-Pacific and the Rest of the World region expect a significant increase in sales growth in H1 2016

3.3 Anticipated change in spend on key activities

3.3.1 Executives foresee an increase in expenditure on new product development and IT infrastructure over the next six months

4 Business Concerns and Organizational Priorities

4.1 Level of concerns and expected impact

4.1.1 Economic, industrial, and societal issues can impact operations, profitability, and business strategy

4.1.2 The performance of the Eurozone is the biggest concern during H1 2016 for industry executives operating in North America and Europe

4.1.3 Globally, survey respondents view rising new competition and social unrest in country/countries of operation as the biggest worries

4.1.4 The highest percentage of global packaging executives are concerned about the performance of the Eurozone and developing economies

4.1.5 Social unrest in country/countries of operation is creating challenges for executives operating in North America

4.2 Significance of potential business priorities

4.2.1 Improving operational efficiency and new product development are top priorities for executives operating in Europe

4.2.2 In H1 2016, respondents intend to focus on improving operational efficiency, and protecting and growing market share

4.2.3 Overall, 47% of executives who operate in North America highlighted their aim to improve/increase social media presence over the next six months

5 Appendix

Figure 1: Profile of Respondents

Figure 2: Global Business Outlook-Key Takeouts

Figure 3: Current Economic Condition-Overall (H1 2016)

Figure 4: Current Economic Condition-Region

Figure 5: Current Economic Condition-Those Who Operate and Do Not Operate in a Region

Figure 6: State of the Economy- in Their Words-1

Figure 7: State of the Economy- in Their Words-2

Figure 8: State of the Economy- in Their Words-3

Figure 9: Growth Prospects and Consumer Confidence: Key Takeouts

Figure 10: Industry and Company Growth Prospects-Overall

Figure 11: Industry and Company Growth Prospects-Overall-In detail

Figure 12: Industry and company growth prospects-Region

Figure 13: Anticipated Variation in Consumer Confidence-Overall (H1 2016)

Figure 14: Anticipated Variation in Consumer Confidence-Region

Figure 15: Supplier Prices and Consumer Confidence: in Their Words-1

Figure 16: Supplier Price and Expenditure: Key Takeouts

Figure 17: Category Wise Supplier Prices Highlights

Figure 18: Projected Change in Supplier Prices-Raw Material-Overall and Regional

Figure 19: Projected Change in Supplier Prices-Semi-Finished Products-Overall and Regional

Figure 20: Projected Change in Supplier Prices-Transit Packaging-Overall and Regional

Figure 21: Projected Change in Supplier Prices-Power and Energy-Overall and Regional

Figure 22: Staff Headcount and Sales Outlook-Regional-H1 2016

Figure 23: Expenditure Projection on Key Activities-Overall

Figure 24: Priorities and Concerns: Key Takeouts

Figure 25: Concerns: Overview

Figure 26: Top Five Business Concerns-Region

Figure 27: Business Concerns-Regional Highlights

Figure 28: Business Concerns-Overall and Regional-A

Figure 29: Business Concerns-Overall and Regional-B-H1 2016

Figure 30: Top Five Organizational Priorities-Region

Figure 31: Organizational Priorities-Regional Highlights

Figure 32: Organizational Priorities-Overall and Region

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DuPont ADM

TC Transcontinental Packaging

Crown Holdings

Business Confidence, Economic Outlook, Packaging, Manufacturer, Converter, Equipment, Machinery, Global, Technology Vendor, Supplier, Staff Headcount, Sales Performance, Spending, Consumer Confidence, Threats And Priorities, Growth Prospects, Raw Materials, Transit Packaging, Power And Energy

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