The European food packaging industry is valued at over EUR 40 bn and offers considerable potential for suppliers of plastics in functional food packaging according to "Western European markets for plastics in flexible food packaging," recently published by management consultant Frost & Sullivan (London / UK; www.frost.com).

The report says that plastics now represent almost 30% of the global food packaging market, and are expected to enjoy increased demand in flexible food packaging across western Europe. Changing consumer habits are leading to greater demand for pre-processed foods while flexible food packaging offers improved filling rates, increasing the growth in plastics and with emphasis on multi-layer structures and vacuum packaging.

Improvements in the properties of PE, the largest selling segment, achieved by new synthesis methods, will contribute to its sustained growth, the consultant says. Moreover, producers should include linear low-density polyethylene (LLDPE) in their portfolios to fuel demand in this segment. PP, which currently represents 30 per cent of the sales volume in the market, is also likely to show growth, thanks to its price advantage. PET, PA and EVOH segments are likely to contribute to overall market revenues, the report forecasts.

While most plastics suppliers are active in the food packaging market, new products will have to compete with more established resins in this price-sensitive market, Frost & Sullivan says. Intensifying competition is increasingly leading to market consolidation and key participants such as Amcor and Alcan have acquired smaller companies with speciality products that offer good revenue potential.