Fresh Twists for Flexible Packaging Converters

Flexible packaging players continue to regroup in order to ensure future growth.

by Susan Friedman, Editor

Though consultants say consolidation activity in the packaging industry is slowing, the face of the flexible packaging industry continues to be changed by mergers, acquisitions, and divestitures.

In packagePRINTING's annual Top Flexible Packaging Converters Survey, such past participants as Duralam, Pac One, and Rex Int'l are now part of larger players' umbrella portfolios. And International Paper's flexible packaging division, sold to Exo-Tech Packaging LLC in 2001, is now called Exopack.

Of the estimated $19 billion flexpack market, more than $14 billion in total sales is represented in the list of survey participants below. Three quarters of those sales can be found in the first ten companies listed.

A challenging economic climate, reflected in consolidation and bankruptcy announcements, rendered the list of survey participants a bit shorter this year. Still, slightly more than half of converters participating in both 2001 and 2002's surveys reported higher sales figures than in the previous year.

Converters responding to the survey for the past two years cite staff additions as the most common mode of expansion (25 percent), perhaps due to acquisition, over the period 2000 to 2001. Twenty-one percent have increased press capacity during this period, and 16 percent have added facilities.

In light of still-crowded capacity conditions, converters looking to snare further growth will need to get creative on where to find it. Associate Editor Jessica Millward reported in pP's 2002 State of the Industry Report (March 2002), "End-use applications with the most potential for flexible packaging ... are markets ... already cultivated: fresh produce, drugs, medical/surgical, pet food, and snacks." Notably, of the 47 percent of respondents indicating expansion plans for 2002, exploring new end uses was the most popular strategy cited. In addition, unexplored geographical territory may be tough to come by. Nearly half of all respondents report serving an international customer base.

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