Following a strong performance in 2011, German sales of plastics packaging and film stagnated in 2012. According to recent information provided by the German packaging producers association, the Industrievereinigung Kunststoffverpackungen (IK, Bad Homburg; www.kunststoffverpackungen.de), with the Eurozone financial crisis and weakened domestic economic growth looming large, the industry found itself mired in slumping sales markets.

Packaging Production volume 7 in Germany shrunk by 1.8% to 4.2m t, which the IK attributes to continued material savings in packaging manufacturing, and turnover in 2012 remained relatively stable registering a drop of 0.4% against the previous year’s record level of EUR 13.2 bn – see Plasteurope.com of 13.06.2012.

Broken down, in terms of volume and by product, plastic bottles experienced the largest decline at 3.7% followed by containers and canisters at 3.3% with packaging films rounding out the group at 1.6%. Containers and canisters were the biggest losers looking at 2012 revenues with a 2% drop over the previous year. In the films segment, 2012 profits also lagged behind the previous year’s results but only by 1%.

In contrast, bottles experienced a slight increase at 0.2% with pouches and carrier bags as well as caps and closures each up 0.5% against 2011 results.

Despite getting off to a healthy start in 2012, German plastics packaging manufacturers recorded fewer orders, particularly in the second half of the year. This was especially the case in the film industry as well as for industry-related packaging. In addition to the wavering demand, packaging manufacturers had to also deal with climbing raw material prices. These costs were passed on at a delay – if at all – to the market. If this was not enough, the Germans were also battling stronger industry competition from the rest of Europe.

The renewable energy (EEG) levy had a drastic effect on energy Prices, further exacerbating the situation for mid-sized companies who were feeling the pressure from these various factors.

Yet, there may be reason to cheer for the German plastics packaging industry in 2013: Results from IK’s recent economic trends survey indicate that its members are optimistic for the second quarter of the year and this could translate into a return to growth for the industry in 2013. The optimism for an improved economic climate within the industry was also recently echoed by IK’s general manager, Ulf Kelterborn, in an exclusive interview with Plasteurope.com – see Plasteurope.com of 18.04.2013.