Packaging Unwrapped 2011

7/31/2019 Packaging Unwrapped 2011

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consumer packaging report 2011/12

packagingunwrapped

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01 introduction02 global overview

market trends and movements06 beverages16 healthcare

20 personal care26 household care32 ambient food

42 thirst principles45 Rexam at a glance

Contributors:Pira International, Canadean, Plato Logic,Euromonitor, The Freedonia Group, Datamonitor, Rexam Radar.

in this report


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Since our last report, we have seen a global economic downturn and the world has gone through muchchange. Parts of the global economy are showing early signs of recovery and the value of packaging indollar terms is back at 2008 levels. As you will see from the data in this report, the long term prospectsthe industry remain promising.But we are seeing a shift of emphasis from the larger, traditional and mature markets towards emerginmarkets. This is not to say that the mature markets are unimportant. On the contrary, but the total packmarket value of Asia, for example, is now equal to that of Europe, and the fastest growth rates are to be

found in developing countries. Much has been made of the BRIC countries (Brazil, Russia, India, andand their return to centre stage in 2010, and few deny that their growth potential is promising. But newacronyms are appearing, such as MAVINS (Mexico, Australia, Vietnam, Indonesia, Nigeria and SouthAfrica), not to mention countries such as Poland and Turkey, as the new frontiers in growth potential.Why this shift of emphasis? Because consumer packaging is an essential component of modern livingIt also makes a positive contribution to a sustainable society, making sure that goods reach the consumin the state intended, preventing waste and spoilage.As a leading global consumer packaging company, our job at Rexam is to ensure that we provide ourcustomers with the latest and best packaging solutions. Part of this is a better understanding of what m

the consumer tick. Part of it is forging closer partnerships along the whole supply chain making sure thconstituents appreciate fully the demands and dynamics of end markets so that we are prepared to heldevelop solutions that are suited to tomorrows consumers today.I hope that this latest edition of our consumer packaging report will help broaden your understandingof the market and help us all towards our ultimate goal of developing better and more sustainablepackaging solutions.

introduction

Graham Chipchasechief executive, Rexam


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2 Rexam consumer packaging report 2011/12 global overview

The global market for consumer packagingin 2010 was valued at just over US$395bn.The packaging market grew by 6% between2009/10 reverting back to packaging valuesseen in 2008. The near term outlook is stillclouded by economic challenges and fragileconsumer con dence. However, long term growthis expected to be on average around 3% a year,with the market reaching US$456bn in 2015,although some segments will display highergrowth rates.

Food packaging is the largest segment, accounting for 51% of thetotal market value at US$202bn. Beverage packaging accountsfor 18%, followed by 6% for healthcare and 5% for cosmetics.Packaging for healthcare and cosmetics is experiencing goodgrowth, with healthcare predicted to be the fastest growing enduse category, at 4.5% per year until 2015. Food and beveragepackaging are also growing but are more in line with overallpackaging growth of c.3%.

global overview

US$395bn

Food 51%Beverages 18%Healthcare 6%

Other consumer 20%Cosmetics 5%

Healthcare

annual average growth 2.9% 201015

4.5%Cosmetics 4.3%Food 2.8%BeverageOther consumer

2.7%2.6%

source: Pira

end use


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Long term growth strongly underlines a shift in balance towardsthe emerging markets. The Asia, Oceania, Africa & Middle Eastregion has now increased its packaging market value share to 34%matching that of Europe which dropped by 2% between 2009/10.Both North America and Europe show moderate year on yearincreases with Europe faring a little bit better than North America.

Plastic (rigid plastic and exible) accounted for 37% of allglobal packaging sales in 2010, the largest share of the market.Within plastics, rigid plastics is expected to be the fastest growingpackaging material during the period 2010 to 2015 with a predictedaverage annual growth rate of just over 4%. Growth will be drivenby consumer preference for lightness, safety, transparency,convenience and the microwaveability of rigid plastic packaging.Metal, which includes food and beverage cans, accounted for15% of the consumer packaging market value in 2010 with metalbeverage cans accounting for 6% of this share. Metal packagingoverall is forecast to grow at around 2% a year to 2015.

US$395bn

Europe 34%Asia, Oceania, Africa & ME 34%North America 27%South & Central America 5%

South & Central America 5.5%Asia, Oceania, Africa & ME5.0%Europe 1.7%North America 1.2%


source: Pira

US$395bn

Paper & board 34%Rigid plastic 27%Glass 11%

Beverage cans 6%Other metal 9%Other 3%

Flexible plastic 10%

Rigid plastic 4.1%Flexible plastic 3.8%Glass 2.7%Paper & boardOther metalBeverage cansOther

2.4%1.9%1.6%

0.4%


source: Pira

geography pack material


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4 Rexam consumer packaging report 2011/12 global overview

Key megatrends, such as convenience, health and wellbeing andsustainability, are creating long term shifts and in uences onconsumers lives across many different markets, regions anddemographics. While most of these megatrends are not new, theymanifest themselves in many different forms and appear to have node nite end. Although these megatrends are global they tend tohave different impacts regionally, depending on the maturity orstage of development of the market in question.

developed marketschanging demographics, ageing society and growing

ethnic diversityThe average age of the population in developed markets isincreasing. According to the UN, one in three people in thedeveloped world will qualify for pensions or social security by2050. Older consumers are looking for products that are easy touse, healthy, value for money, and nostalgic with packagingtailored to their needs.The rise in the number of single person households is alsoin uencing new product development. Preference is growing forlonger shelf life, smaller portion sizes and products that offerconvenience and time saving.

Greater ethnic diversity and greater availability of multiculturalfoods also provide increased opportunities for packaging.The desire is for product authenticity and differentiation.Packaging that incorporates clear signs of provenance and standsout on the shelf will become more sought after in the future.health and wellbeing, safety and sustainabilityThe health and wellbeing trend is now moving towards preventivehealthcare which is fuelling growth in food and beverage productsthat target healthy lifestyles. Demand for low and light, fresh andsafe, natural and organic as well as functional and forti ed optionsare expected to continue to grow in 2011 and beyond.

Wellbeing extends to product safety and security. More packaginginnovations that prevent contamination or degradation,counterfeiting and tampering will become increasingly importantin reassuring consumers about the safety and authenticity of theproducts they are buying.Concerns about the use of excessive packaging and thesustainability of our society remain prevalent. Consumers continueto challenge green claims on products and packaging.They want more help understanding the complex, confusingworld of environmentally friendly products and packaging. Small,subtle changes to packaging, such as lightweight and recyclinginformation on packs, will make it easier for consumers to make

global overview

Impact on developed marketsImpact on emerging markets

convenience/on the go lifestyles

Single unitdosing

Easy open/close Longer shelf life Simpli ed

formats Temp control

packs DIY beauty/spa

Emergence of impulse shopping

Shift towardseating out culture

Ready to eat/cook

Alternativedistributionchannels/vending

concerns about product safetyand security

Anti counterfeiting Child resistant

packs Compliance RFID (security

packs) Blister packaging Intelligent

packaging Time strips

(expiry)

Concerns aboutfood security

Increaseddemand forpharma packs

Transparentpacks

Clear labellingand instructions

growing ethnic diversity/rapid urbanisation

Greater choiceof products/variants

More ethnic foods Product

saturation/category blurring

Packs standout Authenticity/

provenance

More ef cient useof packaging

Greater use of returnable packs

Burden onresources

Better logistics New products

demographic trends/ageing society

Less family packs Simple solutions Vitality, energy

and longevitykey to greyappeal

Easy to openpacks

Anti ageingproducts

Growing middleclasses increasein packagingrequired

Rising number of women working

Kid/tween power Male grooming

sustainability/ethical consumerism

Small moves ineco Eco Easy

Excessivepackagingconcerns

Lightweight Waste/recycling Ethically sourced

Recyclable packs Reusable packs Cheaper pack

forms Alternative

packs/energyshortages

Biodegradablepacks

Wastemanagement

health and wellbeing/health conscious

Calorie controlpacks

Product labelling Dosing/portion

control Self medication Customised

products Natural/organic Comfort/

cocooning

Preventivevaccines/medicines

Tamper resistantpacks

Anti counterfeiting Medical tourism Rising awareness

of tness/diet

value/hi lo consumerism/premiumisation

Balancingadded value/affordability

Quality andmoderation

Multi functional Trading down/

private label Mass

customisation Indulgence/treats

Conspicuousconsumption

Rising demandfor luxury andimported goods/brands

Personalisedgoods

Transparentpacks

megatrends affecting packaging

megatrends affecting consumer habitand behaviour


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informed lifestyle choices and they are more likely to purchaseproducts that are packaged in eco friendly packaging.value, hi lo consumerism and convenienceFollowing the global economic downturn, many consumers curbedtheir spending on some basic items so that they could trade upto more premium goods, a term known as hi lo consumerism.This led to consumers seeking out at one end of the spectrum lesssophisticated, simple forms of packaging that convey value and, atthe top end of the scale, more premium packaging. There was alsoevidence of a slight shift in the positioning of premium productstowards discretion and added value.

Convenience continues to have a big impact on peoples lives.Packaging features such as single unit dosing, which originated infood, is now gaining momentum and moving into other categoriessuch as laundry care, soap, cosmetics, skincare and over thecounter (OTC) drugs. There is also an increase in demand forproducts that serve several needs, or can be used in a variety of ways, and these require unique forms of packaging and deliverysystems. Added features such as dual chamber packs, foamformats for liquids, resealable aluminium bottles, specialty closuresand purse ready packaging solutions for beauty products, will allhelp consumers manage their daily lives better.

emerging marketschanging demographics, growing middle incomes andrapid urbanisationIn emerging markets the proportion of the ageing populationis also growing, and although less pronounced than in thedeveloped markets, this will have an impact due to the largeabsolute population sizes. In Asia, for example, by 2050 thenumber of people aged 60 and over will be around two billion.The demands for packaging that is portable, single serve, easyto open, easy to grip, lightweight and clearly labelled featureswe have seen for some time in developed markets are expectedto intensify. This will result in a greater demand for a more diverserange of packaging formats and suppliers.Rapid urbanisation has led to a rise in the number of prosperousmiddle income groups. Greater spending power is resulting inrapid growth in household consumption and a shift of expenditurefrom basic needs to lifestyle products and cosmetics. Demand

is expanding for a wide range of both high and low valuegoods across all markets, including convenience foods andindulgence products.The rise in male grooming is another signi cant trend. Men arebecoming more conscious of the way they look and the emergenceof speci c products to cater for this need is having an impact in thepersonal care market. Packaging designed for men generally is inmore sober colours and needs to take into account features such asportability, compactness and clear instructions.Over half the worlds tweens (children aged seven12) live in Asiaand the brands they buy have a big in uence on them. They areattracted by packaging that is colourful, fun and even features

non essential functionality. They are also more inclined to buythrough automated systems such as vending machines and onlineshopping which puts new demands on packaging.health and wellbeing, safety and sustainabilityHealth and wellbeing are now distinct consumer trends in emergingmarkets. Higher disposable incomes, government programmes forhealthier diets, western in uences and changing lifestyles haveseen a shift in public perception. This has fuelled demand not justfor healthy food and drinks, in particular fat free or low caloriefoods, and nutrient enriched products, but also anti ageingproducts and beauty foods such as collagen boosting beauty

products and spa treatments.Due to the sheer size of populations in emerging markets, theyare becoming major consumers of pharmaceutical and healthcareproducts, and many of these consumers are elderly. The market forOTC medication is growing, largely fuelled by higher educationlevels, the expansion of government health programmes as well asincreasing health awareness. There is more self medication whichprovides opportunities for packaging to include value addedfeatures like dosage information and compliance features.There appears to be a correlation between health and wellbeingand concern for the environment. Consumers who shop forhealthier products are also more likely to prefer packaging thatis environmentally friendly and easy to recycle. In the emergingmarkets we are seeing an increasing appetite for environmental

friendliness and the need for more ef cient use of packaging.It appears that sustainable packaging now goes beyond reducingpackaging volumes and encompasses sustainability in the supplychain, the use of local products and materials, return programmesand curbs on the use of materials that cannot easily be recycled.convenience and conspicuous consumptionWhile developed markets have largely been more focused onvalue, emerging markets, in uenced by big spending in westerncultures, are trending towards more conspicuous consumption.They are rapidly becoming sophisticated consumers demandingmore premium products and personalised luxury goods. Packagingplays a key role in presenting brand values and this is particularlytrue of luxury goods, where it creates an image of superior quality,sophistication and style.In terms of convenience, emerging markets are following developedmarkets with an increase in the number of one person households,dual income families and more working women. This has led to ashift in lifestyle towards eating out and a demand for conveniencein pre prepared foods, single serve portions and multipacks.This will in turn increase consumption of packaging materials assmaller portions tend to use more packaging relative to their size.Portability is also seen as important in single serve packagingto meet the rise of the on the go market. Retail structures haveundergone signi cant change, with convenience stores fastbecoming the most important points of sale for consumers of allages and backgrounds. Many convenience items are also availablefrom vending machines allowing consumers to save time.


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6 Rexam consumer packaging report 2011/12 market trends and movements

beverages


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The global commercial beverage marketwas c.1.6trn litres in 2010, an increase of3% on 2009. This gure equates to the averageconsumer drinking 231 litres a year.Consumption levels and growth rates, however,differ widely by beverage type and region.

The US remains the largest market for beverages, with annualconsumption at 564 litres per capita, followed closely by WesteEurope, consuming 558 litres per capita. These markets havewitnessed some decline over recent years, especially in categosuch as carbonated soft drinks (CSD), where they face increasicompetition from other beverages. Consumption in Eastern Eustands at 455 litres per capita, catching up with drinkingconsumption levels of Western Europe.The declines experienced in the more mature markets, howeverare being offset by volume migration to the developing marketof Asia, South America and the Middle East and Africa. In Asithe average consumption rate is 167 litres per capita. This lowper capita consumption highlights how much potential remainsunexploited, especially when compared with the high consumplevels experienced in the US and Europe. It is interesting to noAsias strong growth over recent years means that it now accoufor one in every four litres of soft drinks sold globally.Similarly, South America has experienced solid growth in rece years taking consumption level to 324 litres per capita in 2010.Consumption levels in the Middle East and Africa are at similalevels to Asia, 173 litres per capita.

global trends in beverages

It is interesting to note that Asias strong growth overrecent years means that it now accounts for one in every four litres of soft drinks sold globally.

global average litres per capita 2010: 231 litres

CSD 31Packaged water 25

soft drinks

Juice, nectars & still drinks 12

Squash & fruit powders 6Sports & energy drinks 2

alcoholic beveragesBeer 28Spirits 5Wine 3

other drinks

RTD iced tea & coffee 6

Dairy drinks 38Hot drinks 75

RTD iced tea 11%Energy drinks

m litres

10%Still drinks 8%Packaged waterSports drinksSpirits

Juice & nectarsBeer

6%6%6%3%3%

Wine 2%CSD 2%RTD iced coffee 1%

annual average growth 3% 201014litres per capita

source: Canadean


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beverages

CSD is the largest single packaged soft drink in the world, at31 litres per capita in 2010. Globally, the CSD market is expectedto grow at around 2% a year. Overall growth in Europe is in linewith average global growth with Eastern Europe expected toperform better than Western Europe. In the US, however, CSDconsumption levels are declining as consumers are more concernedabout their overall health and wellbeing. They are now adoptinga more holistic approach to health which is fuelling the growthin RTD iced tea, energy drinks, still drinks, packaged water andsports drinks.In South America, Asia and the Middle East and Africa, the CSDmarket is growing at around 5% a year, aided by rising consumerincomes, enabling more regular purchases of such products.In India, the CSD market is growing even faster at around 10%a year. Ready to drink (RTD) iced tea and energy drinks are the topperformers among all beverage categories, with double digitgrowth forecast to 2014. Energy drinks have experienced strongannual growth rates of 12% since 2005 while RTD iced tea hasbeen growing at around 11% a year. The availability of low calorieand reduced sugar options, with their claimed health bene ts,as well as 100% natural variants, are all serving to drive growthin these categories which appeal to a more sophisticated palate.That said, as sales of energy drinks are soaring in the moredeveloped markets such as the US, some medical concerns havebeen raised about the popularity of such high caffeine drinksamong young people. Energy drinks are no different in caffeinelevels than coffee, and, therefore, if consumed in similar quantitieshave no additional effects. Some people, however, dont drinkenergy drinks as they do coffee, which can lead to peopleaccumulating higher concentrations of caffeine more quickly thanwould otherwise be the case. These concerns are now alsospreading to the emerging markets, with a 25% tax increasemooted in Mexico for 2011 and India also reviewing caffeinecontent levels.Still drinks, juice and nectars are gaining ground as they arecapable of satisfying a variety of criteria important to healthfocused consumers fresh, indulgent, authentic and refreshing.Packaged water continues to catch up with carbonates (38% of global soft drinks volume) and has now reached 31% of worldwidesoft drinks volume.The beer market remains a mature but growing market. Globally,the market is growing at around 3% a year. North America isexpected to grow at just 2%, with consumers exhibiting a greaterinterest in premium beers, as well as light, low ABV (alcoholby volume), low calorie beer. A growing consumer interest inmicrobreweries and craft beer will also be an important driverfor growth.

In Western Europe, the market is experiencing a reduction in tobeer consumption as the region remains under pressure due to teconomic climate, especially in Greece, Portugal, Ireland, Italyand Spain. Eastern Europe is expected to experience growthof 2%, slightly below the global average.The strongest performance for beer consumption will come froSouth America and Asia, particularly in Brazil, China and IndiIn India, beer has a low per capita consumption rate of just oveone litre, but growth is accelerating due to the recent trend of Indians increasingly consuming alcoholic beverages.Spirits are experiencing good growth, especially in China, primon the back of the rapid increase in Horeca (hotel, restaurant ancatering channels) consumption. Wine is growing at around 2%globally but in Western Europe, the biggest region for wineconsumption, the market is at. The UK and Germany, howeveare expected to show some growth.

beverage consumption trends

OCO in FusionTMOCO is a light and fruity drinkpackaged in Rexams FusionTMbottles.The striking imagery and innovativepackaging reinforce the producersclaim of the beauty enhancingqualities of the drink. Three timeswinner at the Beverage InnovationFunctional Drinks Awards in 2011.


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Convenience, health and wellbeing and sustainability are the keytrends affecting beverage packaging. New packaging featuresare emerging to address these trends and to make life easier forthe consumer. We are seeing contoured bottles and cans to givea better grip; packaging becoming available in a variety of sizesto suit different needs and occasions; resealable closures andwider openings for convenience and life on the go; andpack downsizing, lightweighting and making packs more easyto recycle.Consumers preference for convenience and the low pricesof large family packs are driving strong growth of plastic bottles.Plastic bottles are stealing share from all packaging formats butin particular glass. Glass is becoming increasingly associatedwith premium products. This is mainly due to consumers perceptionof glass as a natural, quality material. Alcoholic drinks form themainstay of glass bottle demand, where the dominance of glassstems from the long established use of this format across a numberof products. In the more developed markets of Europe and NorthAmerica, growing consumer interest in craft, low ABV and premiumbeer is presenting opportunities for glass packaging, as well as forspecialty cans. Cans are also expanding into the wine market andcreating new drinking occasions. Recent research carried out byRexam found that 55% of consumers surveyed agreed that winein a can was a great idea for picnics and out of home drinking.

global beverage packaging

Demand for healthy drinks is increasing the need for more singserve pack sizes, which help with portion control and caloriecounting. Beverage cans are now being offered in smaller sizesand multipacks in categories like beer, wine, FABs ( avouredalcoholic beverage) and CSDs.New product development is also being devoted to improvinglabelling and decoration. New specially designed inks and nisare being used to enhance the look of the can making them stanout more clearly on the shelf, thereby making it easier forconsumers in their choice of beverage.Another trend driving beverage packaging, and in particular thcan, is the growing preference for socialising at home, supporteby more stringent drink and drive legislation.We are also seeing the growing popularity of aluminiumbottles, much appreciated by consumers for the convenience oresealability along with their unique look. Like cans, they are aeasily chilled, 100% recyclable and come in a variety of sizes.

Rexam creates a new family of cansThe family of cans demonstrate theimpact that using specially designedinks can have, particularly indifferentiating a brand from others atpoint of sale. Some inks make the cansaesthetically pleasing, such as sparklevarnishes, whereas others make thedrinking experience more tactile, suchas spot matt varnish. The family of cans also includes thermochromicinks, that indicate when the beverageinside is at the perfect drinkingtemperature.


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beverages

Tuborg 1 litre canThe new can size has been releasedby Carlsberg in Germany as aresponse to growing consumerdemand for an alternative to the

existing three piece, non aluminiumone litre can.These cans have a distinctive, on shelf presence that help them to tower overthe competition and appeal to a newrange of consumers.

north america*consumed beer volume (m litres)

14F

0 5,000 10,000 15,000 35,000

13F12F11F100908070605

14F13F12F11F100908070605

0 10,000 20,000 30,000

south america**consumed beer volume (m litres)

14F13F12F11F10

0908070605

0 20,000 40,000 60,000 80,000

asiaconsumed beer volume (m litres)

beer packagingGlass bottles and metal cans are the main pack types for beerglobally. In 2010 glass bottles represented 62% of the global beerpack mix, while metal cans accounted for 23%. The remainderis split between plastic bottles at 5% and draught beer at 10%.However, beer packaging differs from region to region with glassbottles showing a much higher share in the more developingregions, supported by well established returnable bottledistribution systems.In North America, where the beer market is mature, the pack mixfor beer is more or less evenly split between cans at 47% and glassat 45% with the remainder being draught beer. Cans have theadvantage over glass as they are able to eliminate light damageand oxidation and this keeps the beer fresher for longer.

CansGlassPlasticsDraught

source: Rexam Beverage Radar


*North America includes: Canada,Mexico, US.

**South America includes: Argentina, Brazil,Chile, Colombia, Guatemala, Venezuela.



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14F13F12F11F100908070605

0 10,000 20,000 30,000

western europeconsumed beer volume (m litres)

14F13F12F11F100908070605

0 10,000 20,000 30,000

eastern europeconsumed beer volume (m litres)

14F13F12F11F10

0908070605

0 1,000 2,000 3,000 4,000

middle east/africa*consumed beer volume (m litres)

In Western Europe, glass accounts for just over half the packmix for beer, cans represent just over a fth while the plasticsshare is negligible. Draught beer accounts for 25% of total beerconsumption. The high glass share re ects the growing successof premium beers, which accounts for 31% of total beerconsumption in Western Europe. Reduction in on premiseconsumption and the evolution of consumer tastes, alongwith an expanding older population, means that the premiumsegment should continue to grow. Cans are also successfullytargeting this market.In Eastern Europe, beer is packaged in cans, plastic bottles andglass. Glass has the biggest share of the market as the traditionalpack type but glass is losing share to cans and plastics due toconsumers interest in new pack types.In the emerging markets of South America, Asia and the MiddleEast and Africa, the predominant pack mix for beer is in glassbottles with most of the remainder in cans. Beverage cans aregrowing well in all these markets, but are growing particularlystrongly in South America, especially Brazil.

CansGlassPlasticsDraught



source: Rexam Beverage Radar Antarctica beerAmBevs Antarctica beerbrand, popular in Brazil,retails in a Rexam Sleekcan. The can includesthermochromic ink whichturns blue when the beerhas reached the perfecttemperature. *Africa includes: Egypt, Morocco,

South Africa, Tunisia.


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beverages

CSD packagingGlobally around 60% of CSDs are sold in plastic bottles andaround 20% in cans. The rest is split between glass and bulk packs(over ve litres). Plastic bottles are the fastest growing pack type forCSDs (4%) globally.In the US, the CSD market is mature and has a stable pack mixlargely of beverage cans and plastic bottles. Packaging innovationin the form of new pack sizes are being tested and introduced inspeci c retail formats; multipack sizes have also been used to driveincreased purchasing.

In Western Europe, another mature CSD market, glass is beingsubstituted by plastic bottles while beverage cans are maintainingtheir share. In Eastern Europe, glass has been largely replaced byplastic. Beverage cans are maintaining their share, especially inRussia where growth rates are expected to re ect economic growthover the next few years. CSD consumption in Russia is expected toenjoy healthy growth as per capita consumption is still signi cantlylower than in other European countries (38 litres per capita versus61 litres in Poland).

north america*consumed CSD volume (m litres)

0 20,000 40,000 60,000 80,000

14F13F12F11F100908070605

14F13F12F11F100908070605

0 10,000 20,000 30,000 40,000

western europeconsumed CSD volume (m litres)

14F13F12F11F10

0908070605

0 5,000 10,000 15,000 20,000

eastern europeconsumed CSD volume (m litres)





Cans

Glass

Plastics

Bulk

Coca-Cola lightDemand for healthierlifestyles is increasing theneed for lower caloriebeverages, packaged insingle serve sizes, whichhelp consumers with portioncontrol and dieting.


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Plastic dominates in South America and growth is in line withCSD consumption growth of around 5%. Cans, however, aregrowing faster than the market at 10%, and gaining share at theexpense of glass. Plastic bottles are the dominant pack for Asia.CSD consumption is growing above the average rate in the regionbut glass and cans are losing market share to plastic bottles.Cans, however, are growing particularly well in India.In the Middle East and Africa region, CSDs are packaged in acombination of plastic bottles, glass and cans. All pack types aregrowing in line with CSD growth of around 5% for the region.

14F13F12F11F100908070605

0 10,000 20,000 40,00030,000

south america*consumed CSD volume (m litres)

14F13F12F11F100908070605

0 10,000 20,000 30,000 40,000

asiaconsumed CSD volume (m litres)

14F13F12F11F10

0908070605

0 5,000 10,000 15,000

middle east/africa**consumed CSD volume (m litres)


* South America includes: Argentina, Brazil,Chile, Colombia, Guatemala, Venezuela.

** Africa includes: Egypt, Morocco,South Africa, Tunisia.



Cans

Glass

Plastics

Bulk

In Western Europe, another mature CSD market, glass isbeing substituted by plastic bottles while beverage cansare maintaining their share.

Pepsi IstanbulPepsi Istanbul, a limited edition lemonand mint twist on the classic drink,comes in a can with a sparklingvarnish technique, which is availablefor the rst time in Europe. The effectof the varnish complements thepackagings design, a night sceneof a city skyline with twinkling lightsand stars, making it eye catching onthe shelf.


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beverages

energy drinks packagingThe packaging of choice for energy drinks is the can. Energy drinksin North America are predominantly packaged in cans with theremainder retailing in plastic bottles. In South America, where theenergy market is growing rapidly, four out of ve energy drinksretail in a can with a small amount also packaged in plastic andglass. The can share is expected to increase mainly at the expenseof glass.Energy drinks in cans are also dominant in Europe but plasticbottles do have a sizeable share. In Western Europe the canaccounts for 56% of the market with plastic bottles taking 42%,and gaining share in a growing market. The can has a muchlarger share in Eastern Europe at 75% and plastic bottles accountfor 23%. Both pack types are growing well and maintainingtheir shares.Asia has the most varied pack mix for energy drinks of any otherregion in the world. Glass has 42% market share followed by cansat 25% and pouches/sachets at 23%. Plastic bottles account for just7% of the energy drinks market. The can is expected to be the starperformer, growing at almost double the average growth of 8% atthe expense of glass.

the americas*consumed energy drinks volume (m litres)

0 750 1,500 2,250 3,000

14F13F12F11F100908070605

europeconsumed energy drinks volume (m litres)

0 550 1,100 1,650 2,200

14F13F12F11F100908

070605

asiaconsumed energy drinks volume (m litres)

0 800 1,600 2,400 3,200

14F13F12F11F10

0908070605




CansGlassPlastics

Pouch/sachetCartonsOther packagingBulk

Fusion energy drink The rst energy drink fromAmBev was introduced inthe Brazilian market in 2011.The innovative can includesthe new UV Lumiset thatglows in the dark whenexposed to UV light. It wasawarded the Latin Canaward in 2011.

*The Americas includes: Argentina, Brazil,Canada, Chile, Colombia, Guatemala,Mexico, US, Venezuela.


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14F13F12F11F100908070605

0 2,000 4,000 6,000 10,0008,000

north america*consumed RTD iced tea volume (m litres)

14F13F12F11F100908

070605

0 1,000 2,000 3,000 4,000

western europeconsumed RTD iced tea volume (m litres)

14F13F12F11F10

0908070605

0 10,000 20,000 40,00030,000

asiaconsumed RTD iced tea volume (m litres)




CansGlassPlastics

Pouch/sachetCartonsOther packagingBulk

RTD iced tea packagingGlobally around 62% of RTD iced tea is sold in plastic bottles withboth cans and cartons each having a 10% share. The remainderis split between pouches/sachets, glass and bulk.In North America, however, the can accounts for 30% of theRTD iced tea market. Plastic bottles have a 24% share followedby glass at 7%, pouches/sachets at 5% and cartons at 2%. Theremainder retails in bulk and other packaging. Glass is currentlylosing share to pouches/sachets while the can is maintaining itsshare and growing ahead of the market.

The biggest market overall for RTD iced tea is Asia. Plastic bottlesare the dominant pack type for RTD iced tea with a 76% share.Cartons have a 9% share with the remaining pack types havingsimilar shares. Cans, glass and cartons are losing share to plasticbottles and pouches which are growing strongly.The two main pack types for RTD iced tea in Western Europe areplastic bottles at 43% and cartons with 38%. The can has an 8%share of the market and pouches/sachets account for 4%. Plasticbottles and cartons are growing at the expense of the other packtypes. RTD iced tea in Eastern Europe is dominated by plasticbottles with an 81% share.Both South America and Middle East and Africa have small RTDiced tea markets and both regions are growing well below theglobal annual average of 10%.

AriZona Iced teaAriZonas signature single serve24 oz can has helped the brandstay on top of the RTD iced teasegment in the US.



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healthcare


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The healthcare industry is being impactedby a combination of external factors andgrowth drivers. The increased prevalenceof chronic diseases, changing lifestyles,an ageing population and increased incomein emerging countries are all driving the growthof pharmaceuticals. There is also the rise ofgenerics and biotech to factor in.

At the same time, regulatory standards are becomingincreasingly stringent and healthcare cost control initiativesin developed countries are being balanced by rising welfarein emerging countries.These trends reinforce the strategic importance of healthcarepackaging but there is expected to be stronger expectations interms of patient compliance, cost effectiveness and performance.The global pharmaceutical packaging market (both primary andsecondary packaging) was valued at over $47bn in 2010 andis forecast to grow at around 6% a year to reach $58bn by 2014.Western Europe, the US and Japan will account for over 70%of this total. The large share in these developed markets re ects

the high volume and broad diversity of ethical and over thecounter medicines; the strict government standards de ningquality, safety and security of pharmaceutical packagingproducts; and the expanding use of high value added containers,closures and devices to meet unit dose, counterfeit and functionalpackaging requirements.The Asia Paci c region represents just under a quarter of all globalpharmaceutical packaging in terms of value. Central and SouthAmerica, Eastern Europe and the Middle East and Africa regioncombined make up just 10% of the global pharmaceuticalpackaging market with most of the demand being standardcontainers and closures for low cost generic drugs.In the longer term, developing regions, especially China, India,Brazil and South Korea, will offer the fastest growth opportunitiesfor pharmaceutical packaging. This will be driven by the expansionand diversi cation of pharmaceutical manufacturing capabilitiesin these regions as well as ongoing efforts to improve the qualityand integrity of medicines.

global trends in healthcare

source: The Freedonia Group

In the longer term developing regions, especially China,India, Brazil and South Korea, will offer the fastergrowth opportunities for pharmaceutical packaging.

NoveliaRexams Novelia represents amajor innovation in ophthalmic drugdelivery device by providing userswith a preservative free alternativefor chronic treatments with a patientfriendly package.

geography2010: US$47.2bn

North America 36%Western Europe 31%Asia Paci c 23%

Central & South America 4%Eastern Europe 2%

Middle East & Africa 4%

Cental & South America 7%Middle East & Africa 7%Asia Paci c 6%Eastern EuropeWestern EuropeNorth America

5%5%5%

annual average growth 6% 201014


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healthcare

healthcare consumption trends

Pre llable inhalers, valued at $1.6bn and with a 3% share of theglobal pharmaceutical packaging market, are forecast to growby 6% per annum. The market is divided between two types of devices. Metered dose inhalers (MDIs) which account for 53% of world demand and dry powder inhalers (DPI). MPIs are used forthe administration of liquid and spray medication. Advances intechnology are leading to the development of smaller sized aerosolparticles capable of depositing larger quantities of medicationinto the lungs. Dry powder inhalers (DPIs) serve as a combinationcontainer and delivery system. In terms of innovations, the DPI focusis on minimising the dependence of the ef ciency of the device onthe patients inspiratory ow while the MDI devices mainly focuson the dose counters and metering valves.Overall growth for pre llable inhalers will be driven by the growingnumbers of asthma, allergy and migraine patients treated withinhalation drugs. Asthma affects 60 million people in the sevenmajor markets (France, Germany, Italy, Japan, Spain, UK and US).Growth in pre llable inhalers will also bene t from dosageaccuracy advantages over alternative delivery systems.They will also enjoy extended market exclusivity because genericscompanies have not been able to develop copies that satisfyregulatory requirements.Other pharmaceutical packaging consists of pouches, medicationtubes, IV containers, prescription containers as well as packagingaccessories and labels.

Plastic bottles are the largest pharmaceutical packaging categoryvalued at $10bn in 2010. The packaging of oral tablets, capsulesand liquids make up the largest share of demand. The largest sharewithin plastic bottles is for ovals, square and round containers withthreaded necks designed to t a wide variety of closures.Dispensing bottles, jars and cans make up the remainder.Dispensing bottles are used mainly for the packaging of liquid,spray and low viscosity topical medicines.Plastic bottles are expected to continue to record the biggestdemand both in terms of volume and value for the pharmaceuticalpackaging industry over the coming years, but the category as awhole will experience below average growth. Dispensing bottlesare expected to grow at around 6% a year with growthopportunities expected to come from the efforts made by drugmakers to improve the functional features of these bottles.Caps and closures represent 15% of the global pharmaceuticalpackaging market and were valued at around $7bn in 2010.Child resistant and standard plastic caps, especially push and turnvarieties, are the leading closures for pharmaceutical bottles andjars. However, plastic dispensing closures are expected to performbetter based on ease of use and convenience advantages in thedelivery of liquid medicines and low viscosity lotions.Future growth in caps and closures will come from drug makersefforts to stay current with government and industry guidelinesinvolving the child resistant, senior friendly and security featuresof their packaging systems.

The global market for pharmaceutical blister packaging was valuedat $6.5bn in 2010. Blister packs are used largely for unit dosepackaging of solid oral ethical drugs dispensed directly to patientsand administered in hospitals. Future growth for blister packs willbe driven by their adaptability to higher value added unit dosesand promoting better patient drug compliance. Growthopportunities will also come from recent and forthcoming switchesof previous prescription only drugs to over the counter distribution.Pre llable syringes, valued at $3.2bn in 2010, are forecast toexperience the strongest growth of all the product segments drivenby their advantages in the delivery of critical care and emergencymedication. Advances, too, in biotechnology and other life science

elds are broadening the range of potential drugs adaptable topre llable syringes. They are also liked by consumers and medicalpractitioners for their safety features and ease of use.A key driver for growth includes the trend towards self administration.It is gaining importance because it reduces the costs associated withinvolving a patients caregivers in drug administration. It also helps inincreasing compliance and is convenient.The global market for parenteral vials and ampuls was valued at$2.8bn in 2010 and is expected to grow by 9% a year to 2014.Vials dominate demand in this product group based on ease of useadvantages over ampuls and because they are less vulnerable todrug cross contamination. Growth for parenteral vials and ampulswill be driven by the increasing availability and use of injectablebiological and pharmaceuticals based on biotechnology andnanotechnology.

global end use2010: US$47.2bn

Plastic bottles 21%Caps & closures 15%Blister packs 14%

Parenteral vials & ampuls 6%Pre llable inhalers 3%Pouches 3%Medication tubes 2%Other* 29%

Pre llable syringes 7%

Pre llable syringes 11%Parenteral vials & ampuls 9%Pre llable inhalers 6%Caps & closuresMedication tubesBlister packsPouchesPlastic bottlesOther*

5%5%5%5%4%5%



*Other includes: glass bottles and jars, IV containers and secondary pharmaceutical packaging containe


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global healthcare packaging

The principal material used for pharmaceutical packaging isplastics at 61% based on the range and diversity of applicationsserved. Paper and paperboard accounts for 20% with mostdemand coming from secondary containers, labels and packinserts. The glass share stands at 11% with parenteral vials,pre llable syringes, liquid medication bottles and topicalmedication jars the main applications. Aluminium foil is usedmainly in blister packs, tubes and unit dose pouches.Global consumption for pharmaceutical packaging volume isforecast to grow at 3% a year to reach 5.7bn lbs by 2014.Aluminium foil is expected to experience the highest percentage

growth at 3.5% a year to 2014. However, plastic resins willaccount for around 60% of the extra packaging materialrequirements. Both glass and paper & paperboard are expectedto grow at 2.6% a year to 2014.Continuing improvements in packaging materials are leading toimproved pharmaceutical containers with better aesthetics, barrierprotection, security, ease of use and compliance features.Also, improved cost ef ciencies in production are resulting in thevolume of pharmaceutical packaging materials decreasing relativeto the value of pharmaceutical packaging over the long term.Generally, trends in the level and mix of worldwide drugconsumption will create favourable growth opportunities for thepharmaceutical packaging industry. The introduction of new,advanced biotechnology and nanotechnology based medicines

will boost demand for high value added packaging systems.High value added healthcare packaging will also be employedincreasingly to differentiate brand products from generic drugs.

Inhalia TMRexams precision metering valvesinhalers that combine reliableperformance through product life; thebest material in terms of mechanical

performance and extractable controlbut also seal performance foroptimum dose content uniformity.

SafenSound TMPassive safety device for pre lledsyringes. A major step to protect caregivers.

global pack material2010: 5.1bn (lbs)

Plastic resins 61%Paper & paperboard 20%Glass 11%

Other raw materials* 1%Aluminium foil 7%

Aluminium foil 3.5%Plastic resins 2.8%Glass 2.6%Paper & paperboardOther raw materials*

2.6%3.4%



Pack material chart is in lbs (pounds) because many of the sources used tocompile the data are stated in lbs

Insulin penWith the growing number of peopleaf icted with diabetes globally(c.250m today and forecast to reach380m by 2025), devices such as this

insulin pen can help greatly the patientadminister the correct dose in an easy,fast and private way.

*Other raw materials include: adhesives,rubber, elastomers, inks & coatings, stainlesssteel, wood, etc.


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personal care


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Global retail sales or the personal care market(defnd below) reached over $380bn in 2010(around $56 per capita globally), growing by7% rom the previous year indicating a recoveryto the sector as a whole ollowing the globaleconomic downturn o previous years. Sales inpersonal care are orecast to grow on averageby 3% a year to 2014.

Total pack use for the personal care market in 2010 is estimatedto be just over 122bn units. The biggest category is haircaremaking up 40% (49bn units) of the global total for personal care.Western Europe, the US and Japan accounted for 50% of haircaresales in 2010 and had the highest per capita consumption (with theexception of Brazil). Hence, any change in market dynamics inthese regions impacts global sales signi cantly.Bath & shower is the second biggest category with a 24% volumeshare. However, bath & shower is the top category in all regionswith the exception of Asia where haircare is the biggest. The thirdbiggest is facial skincare followed by deodorants. Deodorant salesare booming in emerging regions where their use is becoming

incorporated into the daily hygiene regimes of consumers.Latin America, and particularly Brazil, is driving global deodorantsales, with consumers tending to use deodorant as a body spray.

The Asia Paci c region accounts for the biggest share of the globalpersonal care market with a 56% share (c.68bn units) followed byEurope at 19%, Latin America with 14%, North America with 8%and the whole Middle East and Africa accounting for just 2%.This regional picture changes when looking at the market in termsof value sales with the US and Europe accounting for around half of global sales. China and India account for just 8% of total sales.However, Asia will be boosted by growth in China, with theprospect of over US$10bn added to the size of its beauty industryby 2015.In categories such as skincare (facial, body & hand care), forexample, sales are still largely concentrated in mature Westernregions, such as North America, although emerging markets suchas Brazil are now key players. Low disposable income levels in theBRIC markets mean that per capita spend remains very meagre(Chinas spend per person was just US$7 in 2010, and India underUS$1), but their vast populations mean that they are still majorskincare markets in value terms.Overall total global packaging volume for the personal care marketis expected to grow by around 5% a year to reach c.147bn unitsby 2014. The best performances globally are expected fromhaircare, fragrances and facial skincare.In haircare, growth will be driven by products that help consumersto colour and style their own hair as well as low maintenancehaircare routines, for example, colourant products to retouch roots.Demand is increasing for easy and straightforward solutions,minimising the products used and offering added value. Consumersare not looking for a one product ts all option but for simpleproducts adapted to their speci c needs.The fragrance industry has been under threat in recent years fromdown trading in many different forms. While global value sales of fragrances dipped during the height of the recession, global volumegrowth continued to rise due to an increase in mass fragrances.This is indicative of a global trend towards buying cheaperfragrances and streamlining the number of beauty products used.

global trends in personal care

market scopeFor the purposes of this report the personal care market includestoiletries, cosmetics and fragrances.

While global value sales of fragrances dipped during theheight of the recession, global volume growth continuedto rise due to an increase in mass fragrances.

SOFNCAPTMmini lotion pumpA fun to use, mini lotion pump thatallows consumers to experiencetheir favourite cream anytimeand anywhere.


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*Latin America includes: Argentina, Brazil,Chile, Colombia, Mexico, Venezuela.


personal care

growth by geographic market

Asia PacifcIn Asia Paci c, haircare is the largest category with a share of 57%.The biggest sub category in haircare is hair colourants makingup 62% of haircare followed by shampoo at 30%. Haircare isexpected to experience the fastest growth, growing at 9% a yearwith hair colourants outperforming all other haircare categories.We are seeing signi cant changes in haircare habits in countriessuch as India and China. In China, more added value products,such as conditioners and styling agents, are now being introduced,helped by the development of specialist retailers. In India,consumers historically bought shampoo and conditioners as generalor family use products but purchases have become more targeted.Hair colouring is also growing dynamically in both markets.Bath & shower is also a signi cant category with a 20% share of the market. Bar soap is the biggest sub category (87%) accountingfor the majority of sales. However, body washes/shower gels andliquid soaps are growing well above the average growth rateof 3% for the whole category. They are perceived to be moreconvenient and offering value added through features such asantibacterial properties.Facial skincare has a 4% volume share of the market and isexpected to grow at around 7% a year. China and Japan are thetwo biggest markets followed by Indonesia and India. China isforecast to grow at 7%, in line with market growth for the region,while Japan is growing at just 1%. In Japan, consumers attach agreat deal of importance to their facial skincare routine and, evenin economic hard times, they still use a broad range of products.According to a Euromonitor report, research indicates that 60%of Japanese women cleanse, exfoliate and use toner every daywhere the gure in the US is closer to 20%.Countries that are expected to show double digit growth for facialskincare in the region are Indonesia and India, as well as Vietnam,albeit from a very low base.Deodorants are also expected to grow strongly in Asia Paci c andare also becoming more sophisticated in scents and formulations,and are thus beginning to encroach on the traditional territoryof fragrances. In emerging markets there is a penchant among lowincome consumers to use body sprays as a cheaper substitute forfragrances which will further drive growth in this category.

geography2010: c.122bn units

Asia Paci c 56%Europe 19%Latin America* 14%

Middle East & Africa 2%Rest of World 1%

North America 8%

Asia Paci c 7%Latin America* 4%Middle East & Africa 3%EuropeNorth AmericaRest of World

2%0%1%


source: Euromonitor

Primary packaging only, unit volume sold through all retail outlets

R Shape TMlipstick The R ShapeTMfamily from Rexamis fun, innovative and differentfrom other lipsticks on the market.The new lipstick solution providesgreater convenience and ease of use, and both dispenses andprotects multi bene ts soft formulae.


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EuropeIn Europe the personal care market accounts for 19% of the globalshare in terms of packaging volume sales. This can be split 70/30between Western and Eastern Europe respectively. The bath &shower segment is the biggest category with a share of 23%followed closely by haircare at 20%. Both the facial skincare anddeodorant categories have an 8% share.Within bath & shower, bar soap represents half the categoryfollowed by body washes/shower gels and liquid soaps at 42%.Europe has the biggest share of liquid bath & shower of all theregions followed by North America at 31%. This sub category isperforming well above the average in all regions.Overall packaging volumes in Europe are expected to growat around 5% a year to reach c.25bn units by 2014. The bestperformances are expected to come from facial skincare,deodorants and fragrances.Skincare, especially facial skincare, is deemed essential by themajority of consumers, the key reason behind its continued goodperformance and predicted growth. Innovation has been key:added bene ts such as anti ageing and sun protection factor(SPF) predominate, and premiumisation, whereby consumers arespending more on products perceived to be of higher value andoffering additional bene ts, is on the rise as they equate higherprices with better quality.

Deodorants are forecast to grow in pack volume at around 3%a year with Eastern Europe expected to outperform WesternEurope. For fragrances also, growth in Eastern Europe is set tobounce back from the recession induced knock it took in 2009.The proliferation of beauty specialist retailers in Eastern Europeis also set to drive growth in premium fragrances.Western Europe is set to continue to see value growth rise,driven mainly by the UK which is expected to account for 24%of the predicted US$1,445m absolute growth in the region over20102014. Growth is expected to come mostly from malefragrances, in line with the continued success of mensgrooming products.

global end use2010: c.122bn units

Haircare 40%Bath & shower 24%Facial care 5%

Men & womens shaving 3%Body & handcare 3%Fragrances 1%Eye makeup 1%Lip products 1%Facial makeup 1%Other* 17%

Deodorants 4%

Haircare 7%Fragrances 5%Facial care 5%Facial makeupBody & handcareDeodorantsMen & womens shavingEye makeupLip products

4%3%3%3%3%3%

Bath & shower 2%


source: Euromonitor

XD11 Twist TMRexams XD11 TwistTMis the rst pumpon the market to address the need fora premium and sustainable fragrancepump. It has high lling ef ciency andthe pump can be easily separatedfrom the bottle once the fragrance isused, which facilitates componentrecycling.


*Other includes baby care, nail products,oral care, sun care.


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North AmericaNorth America is a mature market and accounts for 8% of theglobal market in terms of volume sales. The personal care markethas been stagnating and is expected to remain at while a generalfeeling of economic uncertainty remains. The biggest personal carecategory in North America, bath & shower, is expected to declinebut sub categories within this category such as body washes/shower gels and liquid soaps are forecast to grow annually ataround 3% a year.The second largest category in North America in terms of volume ishaircare. The biggest single market for haircare is still the US, withvalue sales of over US$10bn in 2010, or a 15% share of the globalhaircare market. Americans are also the biggest consumers of salonhaircare, with an annual spend of US$2.4bn in 2010.Other personal care categories expected to perform well in NorthAmerica are facial skincare, eye make up and deodorants. Despitethe stiltifying effect of the US economy on some personal carecategories, facial skincare remains a strong category. Women inthe US are very loyal to both their skincare regimens and theproducts they use, such as anti agers. The continued ageing of the US population, and womens reluctance to trade down in anarea that promises to ght off the effects of ageing, bodes well forthe future.Eye make up in North America is expected to be the top performerin volume terms, growing at around 2% a year to 2014, with valuesales forecast to grow by 4%. The growth is lower than previous

years but fashion trends are expected to continue highlighting theeye area for the next few years. In addition, manufacturers areexpected to retain consumer interest through technologicalinnovations, especially in mascara.

Middle East and A ricaThe Middle East and Africa region represents just 2% of thepersonal care market which equates to around 3bn units.The region is expected to grow annually by 3% a year. However,colour cosmetics are expected to perform well above the averagegrowth rate. Facial make up is forecast to grow at 11% a year whileeye make up is expected to grow at 7% a year.Fragrances are also expected to perform well. Sales of fragrancein the region are heavily weighted in a small minority of wealthiercountries Saudi Arabia, South Africa, Israel, UAE and Iran whilemost others still remain largely insigni cant for the fragrance industry.

personal care

Latin AmericaIn Latin America, bath & shower is the biggest category with a33% volume share with bar soap accounting for 95% of the total.Haircare is also a signi cant category with the bulk of the categorycomprising shampoos and conditioners (70%). Colourants are verypopular among teens and young adults. Product penetration is highand should increase further as consumers seek at home alternatives.The perception of conditioners is gradually changing from that of a non essential item to one that 60% of women buy regularly.Deodorants is the third biggest category and is forecast to growat around 4% a year to 2014. Brazil leads global retail sales of deodorants and body sprays are often used as a more affordablesubstitute for fragrances by lower income consumers. However,many companies also market their fragrances as body sprays toavoid high federal VAT taxes on fragrances.Fragrances in Latin America are set to increase in importanceas disposable incomes continue to rise, and also as fragranceofferings from direct sellers such as Avon and Natura continue tomove upmarket. This will probably mean consumers in the regiontrading up to more expensive fragrance products. As in WesternEurope, men are expected to be a key driving force behind thevalue growth in the region as more men enter the workforce,creating new wealth and a need to look well groomed and smellgood. Latin America accounted for 26% of all fragrance salesglobally in 2010.

Overall the personal care market in Latin America is expected togrow in packaging volume terms by 4% a year reaching around20bn units by 2014. The best performances are expected fromfacial make up, fragrances and eye make up. In terms of sales,Latin America is expected to be the main growth driver of theglobal beauty industry, with the region set to add over US$18bnto its value size by 2015.The share of premium make up in Latin America, however, is stillvery low. The main reasons for this are high import and excisetaxes in Brazil, the major market for beauty and personal care inthe region, which have kept premium cosmetics largely out of themarket and enabled the mass market to thrive.

Glossy Days TMRexams Glossy DaysTMis a richand unique choice of design for lipgloss applicators that adapt to alllip shapes. They help create perfectmake up results, as well as delicatetactile sensations, for a greatconsumer experience.


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In terms of sales, Latin America will be the main growthdriver of the global beauty industry, with the region setto add over US$18bn to its value size by 2015.

exibles*Flexible packaging was the biggest pack type used in volume termsfor the personal care market in 2010. Flexibles account for nearlyhalf the global packaging total. The majority of this share isattributable to the two main categories haircare and bath &shower which make up 87% of the total. Flexibles is forecast toperform best of all pack materials and is expected to grow by 6%a year reaching 75bn units by 2014.The majority of this growth is expected to come from the AsiaPaci c region with hair colourants and shampoo accounting for90% of the growth. A small amount of growth will also come fromLatin America and the Middle East and Africa. In North America

exibles are expected to decline over the next few years while inEurope the market is expected to remain at. Flexibles in bothNorth America and Europe are losing share to rigid plastics.

rigid plasticRigid plastic packaging is the second major pack type used forthe personal care market. Asia Paci c, however, distorts theglobal picture. Rigid plastic is the biggest pack material in allother regions. North America has the largest share at 66%followed by Europe at 63%. It is present in almost all personalcare categories, with the exception of fragrances. The largestcategories using rigid plastics are haircare, bath & shower, facialskincare and deodorants.

The largest pack sub category within rigid plastics is plastic bottlesfollowed by squeezable plastic tubes, which together make up over80% of total rigid plastics. Another important category in rigidplastics is specialty cosmetic containers which includes cosmeticcompacts and lipstick and mascara cases. This category is growingat 3% a year but in Asia Paci c, Latin America and the Middle Eastand Africa it is expected to grow at 56% a year to 2014. The topperforming rigid plastic pack is expected to be plastic jars growingat 5% a year.

paper based containersPaper based containers make up 7% of the global packagingtotal with a large proportion (two thirds) of the bath & shower(bar soaps) category packaged in this material. It is forecast togrow at a rate of 4% a year to 2014. In North America, however,the pack material is declining and in Europe it is forecast to growat just 2% a year. A large proportion of paper based containers(mainly folded cartons) is dominant in bath & shower with haircarealso responsible for a large share.

personal care packaging

global pack material2010: c.122bn units

Flexibles* 49%Rigid plastic 38%Paper based containers 7%

Metal 3%Glass 3%

Flexibles* 6%Glass 5%Paper based containers 4%Rigid plasticMetal

3%2%

annual average growth4.7% 201014

source: Euromonitor

glassGlass packaging has been enjoying strong growth, albeit from alow base, driven by strong growth in Latin America. Overall glassis forecast to grow at 5% per annum due to good growth infragrances and nail polish which are predominantly packagedin glass. Facial care is also growing strongly with about 14%packaged in glass. However, glass is only increasing its overallshare of the pack mix in the Latin American region.

metalMetal packaging has a 3% share and is expected to show thelowest growth of all pack materials for the personal care market.It is forecast to grow at 2% a year, well below the 5% volumegrowth for the personal care packaging market. It is, however,forecast to grow by 7% a year in Asia Paci c. Deodorants are byfar the biggest category for metal packaging followed by haircareand men & womens shaving.

Nea Airless TMRexams Nea AirlessTMpumpcombines ultra smooth actuation,formula protection, precise dosage,a self closing ori ce and appealingaesthetics.


*Flexibles encompasses a variety of materials, predominantly plastics, aluminiumfoil and paper.


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household care


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Global retail sales in household care reachedapproximately US$132bn in 2010, representingan increase of 6% on the previous year. Whilethe global recession hit growth in other sectors,the household care market is a very developedmarket with many products considered asessential items. Laundry care, dishwashing andsurface care form the backbone of a marketwhich enjoys high penetration rates across bothmature and developing markets.

The main story over the last few years has been the low growth inthe key regions of Western Europe and North America, whichmade up 44% of global value in 2010, down from 52% in 2005.Overall growth in household care is now moving from developedto developing markets. This has been part of a much longer termtrend which has seen the key markets of North America andWestern Europe representing a signi cant proportion of value butoffering little in terms of growth.In terms of pack volumes for household care, the market isestimated at around 62bn units. Laundry care and dishwashing aredriving sales, as two of the largest categories and also the best

performing categories in household care. Laundry care is seeing asigni cant shift to concentrated products evident in both liquid andpowder detergents. Dishwashing has the advantage of providingautomatic dishwashing products to maturing economies in EasternEurope and rst tier cities in China where dishwasher penetrationcontinues to drive growth. In less developed regions such as LatinAmerica and the Middle East and Africa, a signi cant rise inbranded dishwashing speci c products will phase out the use of traditional hand washing products. Other categories includingsurface care and air care, which had been hit by the economicproblems of recent years and were considered less essential byconsumers, are likely to recover as consumers con dence returns.Asia has the biggest share of the household care market, in terms of pack volume, representing 46% of the global total. Europe accountsfor 25% of the pack volume with Western Europe responsible forover two thirds of the total, although the strongest growth will comefrom Eastern Europe. In Latin America the market has been growingsuccessfully in recent years and the region now accounts for 15%of global household care. The biggest markets are Brazil, Mexicoand Argentina. North America has struggled in recent years asconsumers cut their spending and sought better value for money.The market, representing 9% of the global household care marketin volume terms, is expected to remain subdued over the next few

years. The Middle East and Africa region looks set to be the shiningstar in terms of volume growth, but it currently represents only 3%of the global household total.In terms of packaging material, rigid plastics makes up the mainportion of the packaging mix for household care at 42% followedby exibles at 35%. Paper based containers, predominantly foldingcartons, account for 17% with the remaining packaging types metal, glass and liquid cartons less signi cant for household care.Overall the household care packaging market is expected to growby 2% a year to reach 68bn units by 2014.

global trends in household care

air care productsEasy to use with adjustable scentlevels, air care products areincreasingly seen as the nishingtouches to inviting homes. Air carefresheners create personal sanctuariesto relax, create memories andatmosphere to entertain friends or tosimply eliminate unwanted odours.


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household care


Asia Paci cAsia has the biggest share of the household care market withlaundry care the main driver of growth. Laundry care is forecast togrow at 4% per annum and will account for over 60% of all theextra pack requirements in the region. Insecticide is the secondmost important category in Asia and is enjoying particularly stronggrowth in countries that combine good income growth with tropicalor sub tropical climates (particularly India, Vietnam and Indonesia).Toilet care, dishwashing and surface care are expected to see thestrongest percentage growth over the next few years. Toilet carevalue sales in China have been driven in large part by factors suchas the spread of supermarkets/hypermarkets, which has helped toimprove availability and continued urbanisation. Also increasedmarketing has boosted consumer awareness of the bene ts andavailability of surface care products, while rising health awarenesslinked to H1N1 (Avian u) is driving an increase in the frequencywith which household cleaning tasks are carried out.Overall the household care market, in terms of volume, is expectedto grow at 3% per annum to 2014. Increased per capitaconsumption, rising incomes and widening distribution will be themajor driving factors for the further development of the market.

laundry spoutsThe laundry spouts are custommoulded and all have a dualfunctional bene t. The spouts alloweasy and directional dispensing andvolume control. They are also dripresistant and have a drain back,preventing the laundry bottle gettingmessy and sticky.

global end use2010: c.62bn units

Laundry care 42%Dishwashing 13%Surface care 12%

Air care 8%Toilet care 5%Chlorine bleach 5%Polishes 4%

Insecticides 11%

Laundry 3.2%Dishwashing 2.5%Surface care 2.2%Chlorine bleachInsecticidesToilet careAir carePolishes

2.1%1.6%1.6%1.0%0.0%


source: Euromonitor



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EuropeThe European market is estimated at around 15.4bn units withlaundry care and surface care the biggest categories. Air care andchlorine bleach are expected to experience the strongest growthover the next couple of years. Air fresheners are seeing a reboundacross Europe, with electric air fresheners seeing further promotionand consumers reporting a desire to have fragrances in the home.In Western Europe, within the laundry care category, sales of liquiddetergent have climbed rapidly since 2005 whereas powder hasbeen less dynamic. Eastern Europe has been slower to developthis trend but compaction, especially in liquids, has huge potentialto rapidly develop. The current trend for two, three or four timesconcentrate is likely to increase further meaning less packagingmaterial and lower transportation costs. This may ultimately openup more markets to affordable laundry care and drive growth inthe category.A key trend in Europe is a growing demand for products whichclaim to offer more than one function. Products like handdishwashing liquid are being launched, for example, with addedhand care ingredients to offer added value and extra bene ts.This is seen as part of a much wider global trend with the likelihoodof many more products entering the market inspired by othercategories and products launched in other regions.Also, consumers perception of value is being rede ned.They are no longer seeing cheap pricing as the only consideration.Consumers are looking at products that offer value for money,especially in the search for products that offer ef cacy, multifunctionality and product design and packaging. Cleaning willinvariably remain a less than popular task for the majority of consumers, and they will continue to look at ways to cut the lengthof time required to complete a task or the amount of materials orpower required to do so.

Increased per capita consumption, rising incomes and widening distribution will be the major driving factorsfor the further development of the market.

geography2010: c.62bn units

Asia Paci c 46%Europe 25%Latin America* 15%

Middle East & Africa 3%Rest of World 2%

North America 9%

Middle East & Africa 5%Asia Paci c 3%Latin America* 3%EuropeRest of WorldNorth America

1%1%

1%


source: Euromonitor


*Latin America includes: Argentina, Brazil,Chile, Colombia, Mexico, Venezuela.

household wipesCleaning will invariably be a chorefor the majority of consumers andproducts such as wipes can simplifyand cut the length of time required tocomplete a household task.


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household care

Latin AmericaIn Latin America, the household market, in terms of volume, equatesto 9.5bn units with Brazil, Mexico and Argentina representing thelions share. Laundry care is the dominant category and is expectedto perform well over the next couple of years. In Brazil, salesgrowth in laundry care will be fuelled by the rising number of lowerincome consumers starting to purchase laundry care products.Fabric softeners and automatic detergents are expected to registergood retail volume and value growth over the next few yearsas these consumers increasingly adopt these products. The totalvolume of liquid detergents remains relatively small in Brazil,

although in Mexico they are expected to record the highest volumegrowth due to growing consumer acceptance.Other categories expected to perform well, in terms of volumegrowth, are air care, bleach and surface care. The growth inmulti purpose cleaners and kitchen cleaners within the surfacecare category can be attributed to trading up to relatively moresophisticated products as well as to the cocooning trend whichis seeing consumers spending more time at home. Overall,household care is expected to grow in volume by 3% a yeardriven by the emergence of a strong lower middle class, evolvingretail infrastructure, urbanisation and the westernisation of consumption habits.

North AmericaNorth America is a well developed market and represents a totalof 5.7bn units, 9% of the global total. Like other regions, laundrycare accounts for the biggest share at 32%. Laundry care is amature market dominated by long established brands, so growthtends to be driven by new product launches as well as packaginginnovation. Sustainability is also a key consideration in laundry carewith energy ef ciency as well as cold water washing becomingmore mainstream. Another important change is the conversion bymanufacturers to smaller, concentrated products and this is likely tocontinue with even higher degrees of concentration and reducedpackaging material.Dishwashing is the second largest category representing 18% of household care. In the US, the market entered a period of disruption when the use of phosphates was banned in 2010. Thetransition to phosphate free automatic detergents has pushed unitprices upwards. The change has also helped make the automaticdish detergent category signi cantly greener.Overall, the US household care market is expected to remain at involume terms over the next few years. Down trading in the last few

years has been particularly evident as consumers opt for cheaperand private label brands, as well as shopping at discounters whichhas put downward pressure on pricing. Future growth will bedependant on the economic recovery.

Ezi foamer TMRexams Ezi foamerTMhas an invertedformat that allows easy, one handoperation. A single squeeze actuationcreates instant, creamy rich foam,without priming. The Ezi foamerTM also works without chemicals orpropellants, for consumer, ecofriendly appeal.

Middle East and AfricaThe Middle East and Africa region represents a small share of the household care market at 3% but is forecast to deliver thestrongest volume growth at 5% per annum to 2014. The mainmarkets are Egypt, South Africa, Morocco, Saudi Arabia and Israelwith the main categories being laundry care, dishwashing, surfacecare and air care.The region represents good longer term opportunities, with a largepopulation which has so far remained relatively underdeveloped.Demographics in the form of youthful populations, leading to highlevels of new household formation, and resource fuelled economicgrowth remain major drivers of home care demand in markets suchas Saudi Arabia. Additionally, a strong increase in population isfuelling growth in home care in both volume and value terms.In Saudi Arabia, for example, the population expanded by over11% between 2004 and 2009 to almost 26 million. With a medianage of just under 26 years in 2009, a signi cant proportion of thepopulation in this region is young and eager to adopt westernconsumption habits.


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household care packaging

rigid plasticThe home care market is dominated by rigid plastic containers,the majority being HDPE or PET bottles. These rigid plasticcontainers are bene ting from good performances in laundry care,dishwashing and surface care. These three categories alone areexpected to account for more than 85% of the extra rigid plasticpackaging growth to 2014. About half of this extra growth willcome from the Asia Paci c region. Overall rigid plastic packagingis expected to grow at 2% a year to reach 28bn units by 2014.Rigid plastic has become the package of choice with its improvedappearance in terms of transparency, its potential for new shapes

and sizes, as well as being lightweight and recyclable.exibles*

Flexible packaging is expected to show the strongest growth withthe vast majority expected to come from the Asia Paci c region.The fastest growth in recent years has been in stand up pouchesdriven, in part, by consumer demand for lightweight and low wastepackaging. Within exible packaging, exible plastics accountsfor the greatest demand, widely used in laundry care for powdereddetergents. Blister and strip packs are used mostly for toilet care,insecticides and air fresheners.

paper based containersFolding cartons make up most of the paper based containerspackaging category for household products. The majority of sales

for this pack are generated in laundry care and insecticides andoverall sales performance is closely linked to developments in theseproduct groups. As, however, liquid and tablet formats for laundrydetergents grow globally the resultant switch from paper basedformats to more modern and convenient exible pack types willprobably weaken growth for folding cartons.

metalMetal packaging consists of metal aerosol cans, metal collapsibletubes and metal tins. Metal aerosol cans dominate in the air careand insecticides categories while metal collapsible tubes and metaltins are used mainly for polishes. Metal packaging accounts for6% of global household care volume with growth con ned to thetwo main categories insecticides and air care.

glassGlass packaging represents a very small part of household carevolume versus the other pack materials and does not featurestrongly for household care.

global pack material2010: c.62bn units

Rigid plastic 42%Flexibles* 35%Paper based containers 17%

Glass 0.3%Liquid cartons & other 0.1%

Metal 6%

Liquid cartons & other 6%Flexibles* 3%Rigid plastic 2%MetalGlassPaper based containers

2%1%1%

Other 6%


source: Euromonitor


*Flexibles encompasses a variety of materials, predominantly plastics, aluminiumfoil and paper.


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ambient food


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Global retail sales of packaged food as awhole reached approximately US$2trn in 2010,representing a real term gain of nearly 2% onthe previous year and indicating that real termconsumer spending across the global packagedfood industry remains relatively unaffected bybroader macroeconomic conditions and lingeringuncertainty regarding the future. It seems,however, that consumers are shopping moresmartly and seeking out value for money. Withinthe ambient food sector (as de ned below), retailsales were in the region of US$550bn, a littleover a quarter (27%) of the total global packagedfood market.

Total global pack use for ambient food is estimated to be around382bn units. The biggest ambient food category globally is pasta& noodles, followed by meat & meat products, sauces, dressings &condiments and fruit & vegetables. These four categories account

for 73% of the total ambient food market. The two biggestcategories, pasta & noodles and meat & meat products, areexpected to grow above the average 3% growth rate with sauces,dressings & condiments and prepared baby food also expected toperform well.

Asia Paci c has the biggest share of the ambient food packagingmarket with a 45% share, which is due partly to the high consumptionof noodles in the region. Noodles, a staple in many Asian countries,accounts for over 40% of the total pack volume, with exibles thedominant pack material for this category. Western Europe is thesecond largest market for ambient food with a share of 24%,followed by the US with 13%. Eastern Europe and Latin Americahave similar market sizes with 8% and 6% respectively.Overall the total pack use for the ambient food market is expectedto grow by around 3% a year to reach 426bn units by 2014.Increased volumes are being bolstered as more consumers in

developing markets substitute unpackaged and fresh food for theperceived bene ts of packaged food. Economic uncertainty alsomeans consumers are eating out less, especially in developedmarkets, to the further betterment of overall packaged food retailvolume sales and growth.The health and wellbeing trend is also one of the biggest drivers of food sales in recent years. Consumers are increasingly trying to eathealthier and making conscious attempts to stay healthy. We areseeing more and more ambient food products, packaged in plasticmicrowaveable containers and trays, being used by the diet foodindustry. These packs come in single serve size containers that helpconsumers with portion control and calorie counting. The packsalso have suf cient space for clear labelling that help consumersunderstand the speci c dietary ingredients in the product.

The health and wellbeing trend is likely to remain a driving forcefor further growth especially as economic prospects improve andconsumers get older (as well as the overall average age of consumers increasing, they try to remain healthier and tter).Consumers are also becoming more concerned about the source of products and how they are produced, packaged and transported.

global trends in ambient food

market scopeThis section focuses on ambient food products, consistingprincipally of foods that are packed and heat processed in metalfood cans, glass jars, plastic containers, trays, exibles and standup pouches. For the purpose of this report, the market is de ned asincluding the following product categories: prepared baby food;

sh & seafood; fruit & vegetables; meat & meat products; pasta& noodles; pet food (cat & dog wet pet food only); ready meals;sauces, dressings & condiments; and soups.Please note that dry, powdered and dehydrated foods of all typesare not included in the scope of this report. The report also excludesdairy products and spreads.

Economic uncertainty also means consumers are eatingout less, especially in developed markets, to the furtherbetterment of overall packaged food retail volume salesand growth.


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ambient food


Asia Paci cThe Asia Paci c region is the top performer with total packaginguse estimated to be around 173bn units. China makes up almosthalf of the total with a 47% share followed by Japan at 26%.Thailand and Vietnam account for around 10bn units while Indiaa

Packaging Unwrapped 2011

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