Germany Maintains Lead As Packaging Supplier For Cosmetics

Germany remains a world giant in the packaging material and machine sector, with a high demand, especially for plastics, about to reach record levels according to a new report.

The report, completed ahead of the FachPack+PrintPack+LogIntern exhibition in Nuremberg from 26 to 28 September, underlines the importance of German suppliers for the cosmetics industry, especially for those looking to introduce more automation into their plants.About two per cent of Germany's manufacturing production value is attributed to the country's consumer packaging sector according to the report.The worldwide production volume of packaging supplies and machinery is estimated at some €400bn. Almost one-third of the packaging machines sold worldwide comes from Germany, the survey found.


A new record quantity of some 3.8 million tons was also achieved. However, the plastics sector is being hit by rising prices for raw materials. Costs for supplies rose by up to 60 per cent in 2004, the report stated.

The cost of packaging plastics increased by between five to to 10 per cent in 2005.

The VDMA expects the extension of Germany's compulsory deposit scheme to create another boost for PET bottles. PET plastic bottles are more suitable for recycling than many other container materials.

Meanwhile Germany's container glass industry is under pressure from the compulsory deposit scheme and high energy prices.

The 32 companies in the German container glass industry sell 67.5 per cent of their production to the drink sector. Another 27.2 per cent is sold for use by preserved food manufacturers. The rest is bought by the pharmaceutical and cosmetic industry.

Container glass production dropped by 2.5 per cent to 4.1 million tonnes in 2004 and sales revenue by 3.5 per cent to €1.5bn in 2005.

Dramatically increased energy prices put the segment under extra cost pressure in 2005.

“The energy-intensive container glass industry has had more than it can take,” says Johann Overath, general manager of the Bundesverband Glasindustrie, an industry assocation. "Production capacities were therefore distinctly cut back last year by shutting down four large glass melting furnaces."

Paper and cardboard are among the most popular and most used packaging materials. The German corrugated cardboard industry is made up of 30 companies, owning about 100 factories.

The industry's sales rose by 3.2 per cent to a production of 7.6 billion square metres in 2005.

Turnover stagnated, with growth of 0.3 per cent to €3.309bn.

"Structural changes in the trade contributed partly to the growth in quantity," Rascher wrote. "Discounters use transport packages strategically in their outlets and therefore demand high-quality printed corrugated cardboard. Internet and mail order trade needs more transport packages. Around one fifth of all private customer packages handed in to Deutsche Post World Net are attributed to Internet transactions."

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600450 Germany Maintains Lead As Packaging Supplier For Cosmetics
Date: 2 August 2006

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