"Global Packaging Survey 2012-2013: Market Trends, Marketing Spend and Sales Strategies in the Global PackagingIndustry" is a new report by Canadean that analyzes how packaging companies' media spend, marketing and sales strategies and practices, and business planning, are set to change in 2012-2013. This report provides the current size of the marketing and advertising budgets of global packaging suppliers and how spending by suppliers will change, providing insight into global marketing behavior. In addition, the report identifies future growth of buyers and suppliers, and M&A activity. This report not only grants access to the opinions and strategies of business decision makers and competitors, but also examines their actions surrounding business priorities. The report also provides access to information categorized by region, company type, and size.
Introduction and Landscape
Why was the report written?
This report is the result of an extensive survey drawn from Canadean's exclusive panel of 279leading global packagingindustry executives. The report provides data and analysis on global packagingindustry suppliers' media spend, marketing and sales strategies, and practices and business planning within the global packagingindustry. This report includes key topics such as media channel spending outlooks, media budgets, marketing agency selection criteria, business challenges, and sales tactics of leading suppliers within the global packagingindustry. The report also identifies suppliers' future growth, M&A, and investment expectations.Most secondary research reports are based on general industry drivers and do not understand the industry executives' attitude and changing behaviours, creating a gap in presenting the business outlook of the industry. In an effort to bridge this gap, Canadean created this primary-research based report by gathering the opinions of multiple stake holders in the value-chain of the global packagingindustry.
What is the current market landscape and what is changing?
Of respondents across the global packaging industry, 44% are 'more optimistic' about revenue growth for their company over the next 12 months than the previous 12 months.
What are the key drivers behind recent market changes?
Strong growth in emerging markets such as India and China has contributed to an increase in revenue optimism. The packaging sector in India is growing considerably and is expected to increase over the next two years, due to the high demand from industry sectors such as food and beverage and pharmaceutical packaging. Moreover, the global market recovery will aid growth expectations as it will result in increased demand for packaging machinery. Additionally, the top priorities for the global packaging industry in 2012 are 'improving operational efficiency', 'new products and services', and 'expand in current market'. Furthermore, a total of 28% of respondents from global packaging buyers, and 36% from suppliers, anticipate a minimum of 2% increase in their current workforce.
What makes this report unique and essential to read?
"Global Packaging Survey 2012-2013:Market Trends, Marketing Spend and Sales Strategies in Global Packaging Industry" is a new report by Canadean that analyzes how packagingindustry companies' media spending, marketing, sales strategies andpractices, and business planning are set to change in 2012-2013. This report provides the current size of the marketing and advertising budgets of global packagingindustry suppliers and how spending by global packagingindustry suppliers will change, providing insight into global marketing behaviour. In addition, the report identifies future growth of buyers and suppliers,and M&A activity. This report not only grants access to the opinions and strategies of business decision makers and competitors, but examines their actions surrounding business priorities. The report also provides access to information categorized by region, company type, and size.
Key Features and Benefits
Project industry trends and revenue growth expectations in 2012, and make informed business decisions.
Drive revenues by understanding future product investment areas and key growth regions.
Uncover key challenges and opportunities and identify the key actions required to maintain and win buyer business.
Formulate effective sales and marketing strategies by identifying how suppliers' marketing budgets are changing and the direction of spending in the future. Better promote your business by aligning your capabilities and business practices with your customer's changing needs.
Secure stronger customer relationships by understanding the behaviour and changing strategies of industry suppliers.
Key Market Issues
Of respondents across the global packaging industry, 44% are 'more optimistic' about revenue growth for their company over the next 12 months than the previous 12 months. Strong growth in emerging markets such as India and China has contributed to an increase in revenue optimism. The packaging sector in India is growing considerably and is expected to increase over the next two years, due to the high demand from industry sectors such as food and beverage, and pharmaceutical packaging. Moreover, the global market recovery will aid growth expectations as it will result in increased demand for packaging machinery.
Executives from the global packaging industry expect increased levels of consolidation, with 55% of respondents anticipating that there will be either a 'significant increase' or an 'increase' in merger and acquisition (M&A) activities over the next 12 months. Large packaging companies are seeking small and specialized companies to strengthen their core competencies, reduce costs, and resist competition with their enriched product mix. The higher expected levels of consolidation in the global packaging industry is also due to new cost or demand pressures, repayment of debts, the potential need to meet new compliance procedures, or gain quick access to new markets, business expansion, and attempts to increase market share. Additionally, global packaging industry buyer respondents reveal that they will increase capital expenditure towards 'new product development' and 'machinery and equipment purchase' over the next 12 months.
According to 43% of packaging buyer respondents, Eastern Europe is considered the most important region for growth amongst emerging markets, along with India, China, and Brazil, according to 35%, 33%, and 28% of respective respondents. Furthermore, packaging supplier respondents consider China to be the most promising market for growth, followed by India and Eastern Europe. As in most emerging markets, China has a high growth potential due to its growing domestic demand for consumer products, resulting from a rising middle-income population and growing affluence.
Among buyers, 65% of respondents rate 'raw material prices' as the most important business concern in 2012, while 57% and 45% highlight 'responding to pricing pressure' and 'cost containment' respectively. Similarly, among suppliers, 'market uncertainty' and 'raw material prices' are considered the significant business challenges in 2012, according to 59% and 52% of respective respondents. Overall, buyer respondents consider 'innovate product', 'engage in partnerships to optimize working capital and reduce costs', and 'provide support for generating new business' to be the leading actions for suppliers to secure buyers' business.
Canadean's industry survey 2012 reveals that the marketing budgets of global packaging industry supplier respondents are expected to rise by an average of 5.9% over the next 12 months. Noticeably, 48% of respondents expect an increase in marketing expenditure of between 1% to 10% in 2012, while only 5% of respondents expect a decrease of between 1% and 10%.
''Email and newsletters', 'social media and networking sites', and 'corporate and brand websites' are expected to register the highest investment, as identified by 44%, 37%, and 34% of respective respondents. Conversely, 'television and video', 'outdoor', 'radio', and 'newspaper' advertisement are expected to attract the least investment.
'Customer retention', 'customer acquisition', and 'brand building or awareness' are identified as the key marketing aims for global packaging industry suppliers, with 62%, 40%, and 38% of industry respondents respectively expressing that these are very important aims. The most significant strategy that suppliers plan to employ in 2012 is to 'focus sales efforts on generating new business' and to 'trial new and innovative products in the market', as identified by 59% and 52% of respondents respectively.
According to the survey, 47% of respondents project an increase in investment toward 'IT infrastructure development'. For example, in November 2011, Omni Systems a private label converter based in the US announced that they planned to invest in new MIS and ERP software. A senior executive from the company states, "We have selected the Radius ERP solution because of its specific focus on the labeling industry, its robustness, and the ability to cover the complete workflow, from quoting, to printing, to shipping."
Global packaging industry suppliers plan to increase capital expenditure on 'new product development' and 'IT infrastructure development' over the next 12 months. For example, in March 2012, Benco Pack, a supplier of aseptic form fill seal machines with headquarters in Italy, announced the introduction of an updated version of its FFS Packline machine, featuring an integrated sleeve applicator. According to the company, the new FFS Packline is able to produce thermoformed containers from a roll of multi-layer barrier plastic film, in sizes ranging from 250gm to 500gm, using a three-step packaging and filling process.
According to 28% of respondents from packaging buyers and 36% from packaging supplier companies, headcounts in their organizations in 2012 are expected to increase steadily up to 2%. However, 47% of respondents from packaging buyers and 46% from packaging supplier companies anticipate 'no change' in recruitment activity in 2012.
1) Online Survey
2) Secondary Research
3) Data Analysis and Report Writing
4) Quality Control