Is packaging the another ‘P’ addition to the 4 ‘P’s of marketing? – One might wonder! A new research report indicates that 2012-13 is set to witness significant changes in the Global Packaging Industry. The 137- page report is titled “Global packaging Survey 2012-13: Market Trends, Buyer Spend and Procurement Strategies in the Global Packaging Industry.” Canadean, an Industry cum Consumer Research Company, prepared the report. ()?. The report is based on the opinions and performance of multiple stakeholders in the industry.
The report is a valuable reference for suppliers, buyers, leading purchase decision makers, strategy creators and other major players in the global packaging industry. This is because it provides the present picture of the advertising and marketing budgets of the industry suppliers and depicts how the spending pattern will change in the future. In addition to this, it highlights the future growth of buyers and suppliers and the increase in mergers and acquisition (M&A) activities in the coming year. Projected industrial trends and revenue growth patterns will help making well informed business decisions, creating effective marketing /sales strategies and securing customer relationships in the ever changing market.
Over the next year, capital expenditure will increase with new product development and purchase of machinery and equipment. This will result in the rise of global packaging demand. 47% of respondents in the survey anticipate the increase in investment towards the development of IT infrastructure. East Europe is the major growth region among emerging markets and India and China are also coming in line.
Rising cost of raw materials will be a major concern in 2012 according to 65% of the buyer respondents. The business challenges perceived by suppliers are the ‘market uncertainty’ and ‘prices of raw materials.’ $120 million is the forecasted average annual procurement budget globally among packaging industry buyers in 2012.
Recruitment activity is bound to be quiet throughout the year with figures showing only an increase of around 2% in manpower. The main reasons for the rise in consolidation of manpower levels in the industry are attributed to acquisition of new equipment and increase of operational efficiency and manpower development opportunities. The packaging industry seems to be on a roll with new technology, emerging markets but on the other hand raw material prices continue to pinch!