Flexible packaging demand in Asia hit by sluggish regional economy

Overall flexible packaging demand is Asia grew by 4.8 per cent in 2019, down from 5.6 per cent in 2018, mainly due to slower growth rates in major national markets, according to Wood Mackenzie.

The “Flexible Packaging Asia Supply Demand Report” shows that the region’s largest markets, China and India, experienced significant disruptions in 2019, with neighbouring countries also impacted.

Brendan Connell-French, Wood Mackenzie Analyst, said: “After more than two decades of rapid economic advancement in China, the past few years have seen GDP growth fall from over ten per cent in 2010 to 6.1 per cent in 2019.”

“This trend is reflected in flexible packaging, with double-digit sales growth at the beginning of the decade declining to 6.5 per cent in 2019."

“In India, the economy has slowed significantly since 2018 because of the introduction of demonetisation of the Goods & Service Tax in 2016 and 2017 respectively.”

“The subsequent sharp decline in consumer spending impacted demand for flexible packaging, with sales growth declining from ten per cent in 2018 to 7.4 per cent in 2019.”

“Although China and India have both had the largest impact on this slowdown, it’s important to note that both continue to grow rapidly relative to other major national markets in Europe and the Americas.”