| The Packaging Industry is a multifaceted, $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 suite of products, are designed to provide the roadmap
you need to achieve your goals.
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