Report: Packaging industry eyes at other markets to grow

Report says packaging industry looks to other markets to grow

Despite modest improvements in the economy, growth in the packaging and containers industry remains stagnant, according to research by RothmanResearch.com.

Economic issues in the US and Europe have primarily stunted growth, as both regions suffer from high unemployment rates, sluggish wage increases and a poor housing market.

A small hike in the cost of the resin, a component of food packaging, also negatively affected revenues for some companies.

A few areas remain positive for the packaging and containers industry however.

Liquid/chemical, protective and car related packaging were strong in recent quarters partially negating losses in food packaging.

The current trend in the industry is an increased interest in global expansion and more efforts to improve cost efficiency to offset the economies of the US and Europe.

The industry is specifically targeting emerging and underdeveloped markets in an effort to kick start low volume numbers and diminished profit margins.

Cost cutting measures are also being implemented by many companies to continue funneling capital into innovation and product development to help sustain long-term growth.