Packaging

Germany remains the biggest market in Europe for the folding carton industry

Wednesday 29. July 2015 - The German folding carton industry maintained its leading position in Europe ahead of Italy and Great Britain in the 2014 financial year, with production value amounting once again to EUR 1.879 billion and production volume of 839,368 tonnes.

For statistical reasons – due to the inclusion of the Eastern European folding carton markets in European figures for the first time – the proportion of the total European market accounted for by Germany decreased by almost 4% over the previous year to 20.9%. The same is true of production volume, which was 11,000 tonnes lower in 2014 than in 2013. This represents a drop of 1.3%. The ratio of volume to production value development in 2014 was EUR 2.24 per kilogram of folding cartons produced, which was therefore 3 cents or 1.4% higher than in the previous year. Capacity utilisation increased during the first three quarters of 2014, but decreased slightly to 86.9% in the final quarter. The losses suffered as a result of the financial and economic crisis have been made up for again on an ongoing basis. “We are delighted that the German folding carton industry is continuing to operate at a relatively stable, high level and is still the top European country even after inclusion of the Eastern European folding carton markets”, says Steffen Schnizer, spokesman for the Executive Committee of Fachverband Faltschachtelindustrie e.V. (FFI).
CONSOLIDATION OF THE INDUSTRY IS CONTINUING
As in the previous years, the number of folding carton companies in Germany decreased again in 2014 – due mainly to corporate mergers. The number of FFI members increased, on the other hand. Since the last members’ meeting, one full member and one associate member have left, while two new members have joined in each case. This means that the FFI continues to represent three quarters of the production value (74.9%) and about two thirds of the production volume (67.3%) of the entire industry, even though there were reductions of 1.0% and 0.5% over the previous year. The specific figures: in 2014, the corporate members of the FFI recorded a production value of EUR 1.407 billion (-1.3% over 2013) and a production volume of 564,855 tonnes (-2.0% over 2013). “The large proportion of the industry as a whole accounted for by FFI’s corporate members is impressive evidence of how we as an association help our members to become more competitive. We see this as a commitment to continue promoting the significance of folding cartons as a packaging and sales medium”, says Steffen Schnizer.
FFI FOCUSSES ON INCREASING COMPETITIVENESS
The FFI provides many different products and services to its members and as a result helps them to make sustainable improvements in their competitive position. These products and services include the transfer of know-how and the upgrading of skills via events and seminars as well as guidelines, samples and checklists for the standardisation of business processes. One of the most important of the association’s projects is the revision already started in 2012 together with the association of German board manufacturers of the “FFI/VMK quality characteristics for folding carton board” that were last issued in 1998. The quality characteristics were made available to the members in early 2014. The central aspect of them is the switch in board ordering and supply from weight to sheet numbers, in order to reduce working capital and optimise the supply chain. Additional features are intensive marketing activities to inform branded goods manufacturers, the trade and agencies about the advantages of retail packaging made from board. “The ‘2015 Touchpoint Study’ demonstrates that packaging not only leads to numerous touchpoints with consumers; tremendous advertising impact can also be achieved with it for companies and their brands”, explains Steffen Schnizer. The study concentrates on media equivalent value, which for the first time specifically calculates the value of the contacts on the basis of the gross reach of a pack and enables comparisons to be made with other advertising media.
Since not only professional information about business administration, technology, quality management and purchasing is becoming increasingly important, but also staff management skills, the FFI developed a six-part training series for technical managers in 2014 as well. As a capable, major representative of the interests of the folding carton industry, the FFI will in addition be continuing to participate actively in discussions with the political community and administrative authorities; current examples here are statements about the planned mineral oil and printing ink regulations.