Industry Analysis

The Packaging Industry is a multi-faceted, $425 billion global business, which encompasses our everyday lives whether we notice or not! The business grows on average at GDP. This estimate includes finished packages, related machinery and services. The materials utilized include glass, paper, steel, aluminum, plastics and composites thereof.

Today some 70% of all packaging produced is for the consumer market place with the latter or 30% utilized for industrial applications. The geographic dispersion of packaging revenues approximates: 30% for North America, 30% for Eastern & Western Europe, 15% for Japan and 25% for the rest of the world (ROW). The industry features a wide array of ownership structures and business models.

Packaging continues to play a critical role in brand management, distribution, merchandising, environmental compliance and end user satisfaction. This is driven by the strong need to differentiate, gain market share, reduce cost and/or improve pricing yield.

More recently, packaging has evolved from a converting business to a product delivery system. Increasingly, packaging is moving from an after thought to integral component of a system, which is designed concurrently with the product it will contain. Clearly, innovation is front and center!

The shift from being just a converting business to a product delivery system has been noticed by investors as the Cranial Capital Packaging Shares Index (30 leading global packaging shares) has consistently outperformed the DJIA, S&P 500 and FTSE over the last 5-years.

Achieving success in the packaging industry, whether as an investor, packaging company or industry constituent, is first and foremost knowledge. Secondly, it is devising the appropriate strategic plan. Thirdly, it is superior execution. Cranial Capital’s [1] Packaging Reports, are designed to provide the roadmap you need to achieve your goals.

Click here to print.