Global Packaging Industry CEO Business Outlook Survey 2012–2013

• Publication date: May 2012
• Report size: 105 pages

Product Synopsis “Global Packaging Industry CEO Business Outlook Survey 2012–2013” is a new report by Canadean that analyzes how global packaging industry companies’ procurement expenditure, business strategies, and practices are set to change in 2012–2013. This report provides data and analysis on category-level spending outlooks, budgets, supplier selection criteria, business challenges, and investment opportunities of leadi...

Product Synopsis
“Global Packaging Industry CEO Business Outlook Survey 2012–2013” is a new report by Canadean that analyzes how global packaging industry companies’ procurement expenditure, business strategies, and practices are set to change in 2012–2013. This report provides data and analysis on category-level spending outlooks, budgets, supplier selection criteria, business challenges, and investment opportunities of leading purchase decision makers in the global packaging industry. This report provides the current size of the marketing and advertising budgets and how spending will change, providing insight into global marketing behaviour.The report also identifies future growth, M&A, and e-procurement in the global packaging industry. This report not only grants access to the opinions and strategies of business decision makers and competitors in the global packaging industry, but also examines their actions surrounding business priorities. The report also provides access to information categorized by region and size.

Introduction and Landscape
Why was the report written?
This report is the result of an extensive survey drawn from Canadean’s exclusive panel of leading global packaging industry C-level executives. The report provides data and analysis on expenditure, procurement, and developments within the global packaging industry. This report includes key topics such as global packaging industry expenditure, procurement behaviors and strategies, current size of the marketing and advertising budgets, and how spending will change, providing insight into global marketing behavior.This report identifies the threats and opportunities within the global packaging industry, economic outlook trends, and business confidence within global packaging industry C-level executives.Most secondary research reports are based on general industry drivers and do not understand the industry executives’ attitude and changing behaviors, creating a gap in presenting the business outlook of the industry. In an effort to bridge this gap, Canadean created this primary-research based report by gathering the opinions of multiple stake holders in the value-chain of the global packaging industry.

What is the current market landscape and what is changing?
C-level respondents from the global packaging industry expect increased levels of consolidation, with 61% of respondents anticipating that there will be either a ‘significant increase’ or an ‘increase’ in merger and acquisition (M&A) activities over the next 12 months.

What are the key drivers behind recent market changes?
Large packaging companies are seeking small and specialized companies to strengthen their core competencies, reduce costs, and resist competition with their enriched product mix. The higher expected levels of consolidation in the global packaging industry is also due to new cost or demand pressures, repayment of debts, the potential need to meet new compliance procedures, or gain quick access to new markets, business expansion, and attempts to increase market share.

What makes this report unique and essential to read?
“Global Packaging Industry CEO Business Outlook Survey 2012–2013” is a new report by Canadean that analyzes how packaging industry companies’ procurement expenditure, business strategies, and practices are set to change in 2012–2013. This report gives you access to category-level spending outlooks, budgets, supplier selection criteria, business challenges, and investment opportunities of leading purchase decision makers. This report provides the current size of marketing and advertising budgets and how spending will change, providing insight into global marketing behaviour.The report also identifies future growth, M&A, and e-procurement. This report not only grants access to the opinions and strategies of business decision makers and competitors, but also examines their actions surrounding business priorities. The report also provides access to information categorized by region and size.

Key Features and Benefits
Project industry trends and revenue growth expectations in 2012, and make informed business decisions.

Drive revenues by understanding future product investment areas and key growth regions.

Uncover key challenges and opportunities, and identify key actions required to maintain and win buyer business.

Formulate effective sales and marketing strategies by identifying how buyer budgets are changing the direction of expenditure in the future. Better promote your business by aligning your capabilities and business practices with your customer’s changing needs.

Secure stronger customer relationships by understanding the behavior and changing strategies of industry buyers.

Key Market Issues
Global packaging industry C-level respondents identify China to be the most important region for growth among emerging markets, along with India and the Middle East. Strong growth of semiconductor wafer fabrication and domestic electronics markets is further aiding growth expectations in China. There has been significant growth in the aseptic packaging sector in the country, driven by a rise in technological sophistication.

According to the survey, 56% of C-levelrespondents rate ‘raw material prices’ as the most important business concern in 2012, while 54% and 46% highlight ‘responding to pricing pressure’ and ‘cost containment’ respectively.

The average size of the global annual procurement budget among packaging industry C-level respondents is forecast at US$85 million for 2012. In addition, the Canadean industry survey reveals that C-level respondents’ procurement expenditure is projected to rise by 11.5% over the next 12 months.

‘Quality’, ‘level of service’, and ‘price’ are considered very important factors for C-level respondents while selecting a supplier, whereas ‘supplier's environmental record’, ‘supplier's CSR reputation’, and ‘proximity of supplier operations’ are considered the least important factors.

The main reasons for an expected increase in the level of consolidation in the global packaging industry have changed to new equipment acquisition, increase operational efficiency, and to acquire growth opportunities.

Key Highlights
An analysis of responses by packaging C-level respondents reveals that ‘new product development’, ‘IT infrastructure development’, and ‘machinery and equipment purchase’ will record a significant increase in capital expenditure over the next 12 months.

As global packaging demand is projected to increase in the next 12 months, packaging C-level respondents plan to significantly increase their capital expenditure on ‘new product development’.

According to the survey, 67% of C-level respondents project an increase in investment toward ‘IT infrastructure development’. For example, in November 2011, Omni Systems, a private label converter based in the US, announced that it will invest in new MIS and ERP software. A senior executive from the company states, “We have selected the Radius ERP solution because of its specific focus on the labeling industry, its robustness, and the ability to cover the complete workflow, from quoting to printing to shipping.”

Global packaging industry C-level respondents plan to increase capital expenditure on ‘machinery and equipment purchase’ over the next 12 months. For example, in March 2012, Beatson Clark, a glass packaging manufacturer based in the UK, decided to invest US$15.6 million in furnace improvements and new equipment at its Rotherham plant, and plans a complete reconstruction of its white flint furnace in July 2012. A senior executive from Beatson Clark states: “Our company sees growth in the food, beverage, and pharmaceutical sectors in the UK over the next 12 to 18 months. Therefore, we expect to invest in new design technology by updating its computer-aided design system to the 3D visualization software.”

‘Email and newsletters’, ‘social media and networking sites’, and ‘public relations’ are expected to register the highest investment, as identified by 47%, 44%, and 36% of respective C-level respondents. Conversely, ‘television and video’, ‘outdoor’, ‘radio’, and ‘newspaper’ advertisement are expected to attract the least investment.

Global Packaging Industry

Table of Contents
1 Introduction
1.1 What is This Report About?
1.2 Definitions
1.3 Methodology
1) Online Survey
2) Secondary Research
3) Data Analysis and Report Writing
4) Quality Control
1.4 Profile of Global Packaging Industry C-level Survey Respondents
2 Executive Summary
3 Global Packaging Industry Dynamics: C-level Respondents
3.1 Revenue Growth Expectations in the Global Packaging Industry
3.1.1 Revenue growth projections in the global packaging industry by region
3.2 Future Developments in Business Structure in the Global Packaging Industry
3.2.1 Future developments in the global packaging industry
3.2.2 Future developments in the global packaging industry by region
3.3 Merger and Acquisition Activity Projections in the Global Packaging Industry
3.3.1 Merger and acquisition activity projections in the global packaging industry
3.3.2 Merger and Acquisition activity projections in the global packaging industry by region
3.4 Capital Expenditure Projections: Global Packaging Industry
3.4.1 Projection of capital expenditure in the global packaging industry
3.4.2 Projection of capital expenditure in the global packaging industry by company turnover
3.5 Planned Change in Staff Recruitment in the Global Packaging Industry
3.5.1 Planned change in staff recruitment in the global packaging industry
3.5.2 Planned change in staff recruitment in the global packaging industry by region
4 Global Packaging Industry Market Growth Outlook: C-level Respondents
4.1 Global Packaging Industry: Demand in Emerging Markets
4.2 Global Packaging Industry: Demand in Developed Markets
5 Threats and Opportunities for the Global Packaging Industry: C-level Respondents
5.1 Global Packaging Industry: Leading Business Concerns for 2012–2013
5.1.1 Global packaging industry: leading business concerns for 2012–2013 by region
5.2 Global Packaging Industry: Key Supplier Actions to Maintain and Win Buyer Business
5.2.1 Global packaging industry: actions to maintain and secure buyer business
5.2.2 Global packaging industry: actions to maintain and secure buyer business by region
6 Global Packaging Industry Buyer Spend Activity: C-level Respondents
6.1 Annual Procurement Budgets in the Global Packaging Industry
6.2 Global Packaging Industry: Planned Change in Procurement Expenditure
6.3 Planned Change in Procurement Expenditure by Product and Service Category
6.4 Global Packaging Industry: Variations in Regional Supplier Prices
7 Global Packaging Industry Procurement Behaviors and Strategies: C-level Respondents
7.1 Critical Success Factors for Supplier Selection in the Global Packaging Industry
7.2 Future Procurement Objectives in the Global Packaging Industry
7.3 E-procurement in the Global Packaging Industry
8 Global Packaging Industry Marketing Spend Activity: C-level Respondents
8.1 Annual Marketing Budgets: Global Packaging Industry
8.2 Global Packaging Industry: Planned Change in Marketing Expenditure Levels
8.3 Global Packaging Industry: Future Investment in Media Channels
8.4 Global Packaging Industry: Future Investment in Marketing and Sales Technology
9 Global Packaging Industry Marketing and Sales Behaviors and Strategies in 2012: C-level Respondents
9.1 Global Packaging Industry 2012: Key Marketing Aims
9.2 Global Packaging Industry: Essential Amendments to Marketing Activities 2012–2013
9.3 Global Packaging Industry: Use of New Media for Business Prospects
9.4 Global Packaging Industry: Critical Factors for Choosing a Marketing Agency
10 Appendix
10.1 Global Packaging Industry - C-level Respondents Full Survey Results
10.2 About Canadean
10.3 Disclaimer

List of Tables
Table 1: Global Packaging Industry Survey: C-level Respondents by Company Type, 2012
Table 2: Global Packaging Industry: C-level Respondents by Company Turnover (%), 2012
Table 3: Global Packaging Industry: C-level Respondents by Region (%), 2012
Table 4: Revenue Growth Optimism in the Global Packaging Industry(%), 2012
Table 5:Revenue Growth Optimism in the Global Packaging Industry by Region (%), 2012
Table 6: Key Expected Changes in Business Structure: Global Packaging Industry (%), 2012
Table 7: Key Expected Changes in Business Structure by Region: Global Packaging Industry (%), 2012
Table 8: Merger and Acquisition Activity: Global Packaging Industry (%), 2012
Table 9: Merger and Acquisition Activity by Region: Global Packaging Industry (%), 2012
Table 10: Global Packaging Industry: Projection of Capital Expenditure (%), 2012
Table 11: Global Packaging Industry: Planned Change in Staff Recruitment (%), 2012
Table 12: Global Packaging Industry: Planned Change in Staff Recruitment by Region (%), 2012
Table 13: Global Packaging Industry: Demand in Emerging Markets (%), 2012
Table 14: Global Packaging Industry: Growth Projections in Developed Markets (%), 2012
Table 15: Global Packaging Industry: Leading Business Concerns (%), 2012–2013
Table 16: Global Packaging Industry: Leading Business Concerns by Region (%), 2012–2013
Table 17: Global Packaging Industry: Securing Buyer Business (%), 2012
Table 18: Global Packaging Industry: Securing Buyer Business by Region (%), 2012
Table 19: Global Packaging Industry: Annual Procurement Budgets in US$ (%), 2012
Table 20: Global Packaging Industry: Planned Change in Total Procurement Expenditure (%), 2012
Table 21: Global Packaging Industry: Change in Spend on Products and Services (%), 2012
Table 22: Global Packaging Industry: Variations in Regional Supplier Prices (%), 2012
Table 23: Critical Success Factors for Supplier Selection: Index Score, 2012
Table 24: Global Packaging Industry: Future Procurement Objectives (%), 2012
Table 25:Global Packaging Industry: E-Procurement, Level of Implementation (%), 2012
Table 26: Annual Marketing Budgets in the Global Packaging Industry (%), 2010–2012
Table 27: Planned Change in Marketing Expenditure Levels: Global Packaging Industry(%), 2010–2012
Table 28: Future Investment in Media Channels: Global Packaging Industry, 2012
Table 29: Global Packaging Industry: Planned Investment in Marketing and Sales (%), 2012
Table 30: Key Marketing Aims: Global Packaging Industry(%), 2012
Table 31: Amendments to Marketing Activities: Global Packaging Industry (%), 2012
Table 32: Use of New Media by Global Packaging Industry (%), 2012
Table 33: Critical Factors for Choosing a Marketing Agency: Global Packaging Industry(%), 2010–2012
Table 34: Global Packaging Industry,C-level Respondents: Survey Results - Closed Questions

List of Figures
Figure 1: Revenue Growth Optimism in the Global Packaging Industry(%), 2012
Figure 2: Revenue Growth Optimism in the Global Packaging Industry by Region (%), 2012
Figure 3: Key Expected Changes in Business Structure: Global Packaging Industry (%), 2012
Figure 4: Key Expected Changes in Business Structure by Region: Global Packaging Industry (%), 2012
Figure 5: Merger and Acquisition Activity: Global Packaging Industry (%), 2012
Figure 6: Merger and Acquisition Activity by Region: Global Packaging Industry (%), 2012
Figure 7: Global Packaging Industry: Projection of Capital Expenditure (%), 2012
Figure 8: Global Packaging Industry: Projection of Capital Expenditure by Turnover (%), 2012
Figure 9: Global Packaging Industry: Planned Change in Staff Recruitment (%), 2012
Figure 10: Global Packaging Industry: Planned Change in Staff Recruitment by Region (%), 2012
Figure 11: Global Packaging Industry: Top Ten Growth Regions, 2012
Figure 12: Global Packaging Industry: Top Five Emerging Markets, 2012
Figure 13: Global Packaging Industry: Demand in Emerging Markets (%), 2012
Figure 14: Global Packaging Industry: Top Five Developed Regions by Growth, 2012
Figure 15:Global Packaging Industry: Growth Projections in Developed Markets (%), 2012
Figure 16: Global Packaging Industry: Leading Business Concerns (%), 2012–2013
Figure 17: Global Packaging Industry: Top Five Leading Business Concerns, 2012–2013
Figure 18: Global Packaging Industry: Leading Business Concerns by Region (%), 2012 –2013
Figure 19: Global Packaging Industry: Securing Buyer Business (%), 2012
Figure 20: Global Packaging Industry: Securing Buyer Business by Region (%), 2012
Figure 21: Global Packaging Industry: Annual Procurement Budgets in US$ (%), 2012
Figure 22: Global Packaging Industry: Planned Change in Total Procurement Expenditure (%), 2012
Figure 23: Global Packaging Industry: Change in Spend on Products and Services (%), 2012
Figure 24: Critical Success Factors for Supplier Selection: Index Score, 2012
Figure 25: Global Packaging Industry: Future Procurement Objectives (%), 2012
Figure 26: Global Packaging Industry: E-Procurement, Level of Implementation (%), 2012
Figure 27: Annual Marketing Budgets in the Global Packaging Industry (%), 2010–2012
Figure 28: Planned Change in Marketing Expenditure Levels: Global Packaging Industry (%), 2010–2012
Figure 29: Future Investment in Media Channels: Global Packaging Industry, 2012
Figure 30: Global Packaging Industry: Planned Investment in Marketing and Sales (%), 2012
Figure 31: Key Marketing Aims: Global Packaging Industry(%), 2012
Figure 32: Amendments to Marketing Activities: Global Packaging Industry(%), 2012
Figure 33: Use of New Media by Global Packaging Industry, (%), 2012
Figure 34: Critical Factors for Choosing a Marketing Agency: Global Packaging Industry (%), 2012

Companies Mentioned
Shiner International, Uflex Ltd., Chevler, DS Smith, Geka, Huhtamaki Oyj, Taghleef Industries, Sonoco, HJ Heinz Canada, Beatson Clark, Omni Systems, RockTenn, Rexam, International Paper, SIG Combibloc, Tetra Pak, Gruppo Campari, Amcor, Flint Group, United Therapeutics, Ossid, Metten, Smurfit Kappa, Mondi coatings and consumer packaging and Dupont.