Plastic Bags and Pouches Manufacturing Market

Home , Corrugated plastic, Extrusion coating, INDEVCO Group, Molding (process)

Plastics Bag and Pouch Manufacturing: Global Markets to 2020

January 2018

BCC Research Reference Staff

Report Code: PLS090A

Table of Contents Chapter 1: Introduction ...... 1 Study Goals and Objectives...... 1 Reasons for Doing This Study ...... 1 Scope of Report ...... 2 Information Sources ...... 2 Methodology ...... 2 Geographic Breakdown ...... 2 Analyst's Credentials ...... 5 Related BCC Research Reports...... 5 Chapter 2: Summary and Highlights ...... 7 Chapter 3: Plastics Bag and Pouch Market Characteristics ...... 10 Chapter 4: Plastics Bag and Pouch Market Size and Growth ...... 13 Historic Market Growth ...... 13 Drivers of the Market ...... 14 Restraints on the Market ...... 14 Forecast Market Growth ...... 16 Drivers of the Market ...... 17 Restraints on the Market ...... 17 Chapter 5: Plastics Bag and Pouch Trends and Strategies ...... 19 Investment in Developing Economies ...... 19 Increasing Manufacturing Capacity ...... 19 Chapter 6: PESTLE Analysis ...... 21 Political ...... 22 Economic ...... 22 Social ...... 23 Technological ...... 23 Legal ...... 23 Environmental ...... 24 Chapter 7: Plastics Bag and Pouch Market Segmentation ...... 26 Global Plastics Bag and Pouch Market, By Segment ...... 26 Global Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Segment ...... 28 Global Plastics Bag and Pouch Market, 2016, By Type of Material ...... 29 Global Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Type of Material ...... 32 Plastics Bag Manufacturing Market ...... 33 Market Characteristics ...... 33 Market Trends and Strategies ...... 33 Plastic Pouch Manufacturing Market ...... 34 Market Characteristics ...... 34 Market Trends and Strategies ...... 34 Chapter 8: Plastics Bag and Pouch Market: Regional and Country Analysis ...... 37 Global Plastics Bag and Pouch Market, 2016, By Region ...... 37 Global Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Region ...... 39 Global Plastics Bag and Pouch Market, 2016, By Country ...... 41 Global Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Country ...... 43 Chapter 9: Global Plastics Bag and Pouch Market Comparison with Macro Economic Factors ...... 46 Global Plastics Bag and Pouch Market Size, Percentage Of GDP...... 46 Global Plastics Bag and Pouch Market Size, Percentage Of GDP, By Country ...... 48 Global Per Capita Average Plastics Bag and Pouch Expenditure ...... 50 Global Per Capita Average Plastics Bag and Pouch Expenditure, By Country ...... 52 Chapter 10: Asia-Pacific Plastics Bag and Pouch Market ...... 55 Asia-Pacific Plastics Bag and Pouch Market Overview ...... 55 Region Information ...... 55 Market Information ...... 55 Background Information ...... 56 Major End User Industries ...... 56 Investments in Plastic Bags and Pouches Manufacturing Market ...... 56 Regulations Governing the Plastic Bags and Pouches Industry ...... 56 Asia-Pacific Plastics Bag and Pouch Historic Market, 2012-2016 ...... 58 Asia-Pacific Plastics Bag and Pouch Forecast Market, 2016-2020 ...... 59 Asia-Pacific Plastics Bag and Pouch Market, 2016, By Segment ...... 60 Asia-Pacific Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Segment ...... 62 Asia-Pacific Plastics Bag and Pouch Market, 2016, By Type of Material ...... 64 Asia-Pacific Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Type of Material ...... 66 Chapter 11: Asia-Pacific Plastics Bag and Pouch Market: Country Analysis ...... 69 China Plastics Bag and Pouch Market ...... 69 China Plastics Bag and Pouch Market Overview ...... 69 China Plastics Bag and Pouch Historic Market, 2012–2016 ...... 70 China Plastics Bag and Pouch Forecast Market, 2016-2020 ...... 71 China Market Size, By Segment ...... 73 China Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Segment ...... 74 China Plastics Bag and Pouch Market, 2016, By Type of Material ...... 75 China Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Type of Material ...... 77 India Plastics Bag and Pouch Market ...... 78 India Plastics Bag and Pouch Market Overview ...... 78 India Plastics Bag and Pouch Historic Market, 2012–2016 ...... 80 India Plastics Bag and Pouch Forecast Market, 2016–2020 ...... 82 India Market Size, By Segment ...... 83 India Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Segment ...... 85 India Plastics Bag and Pouch Market, 2016, By Type of Material ...... 86 India Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Type of Material ...... 88 Japan Plastics Bag and Pouch Market ...... 90 Japan Plastics Bag and Pouch Market Overview ...... 90 Japan Plastics Bag and Pouch Historic Market, 2012–2016 ...... 91 Japan Plastics Bag and Pouch Forecast Market, 2016–2020 ...... 92 Japan Market Size, By Segment...... 94 Japan Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Segment ...... 95 Japan Plastic Bag and Pouch Market, 2016, By Type of Material ...... 96 Japan Plastic Bag and Pouch Market, 2012-2020, Historic and Forecast, By Type of Material ...... 98 Australia Plastics Bag and Pouch Market ...... 99 Australia Plastics Bag and Pouch Historic Market, 2012–2016 ...... 99 Australia Plastics Bag and Pouch Forecast Market, 2016–2020 ...... 101 Australia Market Size, By Segment...... 102 Australia Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Segment ...... 104 Australia Plastics Bag and Pouch Market, 2016, By Type of Material ...... 105 Australia Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Type of Material ...... 107 Chapter 12: Western Europe Plastics Bag and Pouch Market ...... 110 Western Europe Plastics Bag and Pouch Market Overview ...... 110 Region Information ...... 110 Market Information ...... 110 Background Information ...... 110 Major End User Industries ...... 111 Investments in Plastic Bag and Pouch Manufacturing Market ...... 111 Regulations Governing the Plastic Bag and Pouch Manufacturing Industry ...... 111 Western Europe Plastics Bag and Pouch Historic Market, 2012–2016 ...... 113 Western Europe Plastics Bag and Pouch Forecast Market, 2016–2020 ...... 114 Western Europe Market Size, By Segment ...... 116 Western Europe Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Segment ...... 117 Western Europe Plastics Bag and Pouch Market, 2016, By Type of Material ...... 119 Western Europe Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Type of Material ...... 121 Chapter 13: Western Europe Plastics Bag and Pouch Market: Country Analysis 124 UK Plastics Bag and Pouch Market ...... 124 UK Plastics Bag and Pouch Market Overview ...... 124 UK Plastics Bag and Pouch Historic Market, 2012 – 2016 ...... 126 UK Plastics Bag and Pouch Forecast Market, 2016–2020 ...... 127 UK Market Size, By Segment ...... 129 UK Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Segment...... 131 UK Plastics Bag and Pouch Market, 2016, By Type of Material ...... 133 UK Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Type of Material ...... 135 Germany Plastics Bag and Pouch Market ...... 137 Germany Plastics Bag and Pouch Historic Market, 2012–2016 ...... 137 Germany Plastics Bag and Pouch Forecast Market, 2016–2020 ...... 139 Germany Market Size, By Segment ...... 141 Germany Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Segment ...... 143 Germany Plastics Bag and Pouch Market, 2016, By Type of Material ...... 145 Germany Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Type of Material ...... 147 France Plastics Bag and Pouch Market ...... 149 France Plastics Bag and Pouch Historic Market, 2012–2016 ...... 149 France Plastics Bag and Pouch Forecast Market, 2016–2020 ...... 151 France Market Size, By Segment ...... 153 France Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Segment ...... 155 France Plastics Bag and Pouch Market, 2016, By Type of Material ...... 157 France Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Type of Material ...... 159 Italy Plastics Bag and Pouch Market ...... 160 Italy Plastics Bag and Pouch Historic Market, 2012–2016 ...... 160 Italy Plastics Bag and Pouch Forecast Market, 2016–2020 ...... 161 Italy Market Size, By Segment ...... 163 Italy Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Segment ...... 165 Italy Plastics Bag and Pouch Market, 2016, By Type of Material ...... 167 Italy Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Type of Material ...... 169 Spain Plastics Bag and Pouch Market ...... 170 Spain Plastics Bag and Pouch Historic Market, 2012–2016 ...... 170 Spain Plastics Bag and Pouch Forecast Market, 2016–2020 ...... 172 Spain Market Size, By Segment ...... 174 Spain Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Segment ...... 176 Spain Plastics Bag and Pouch Market, 2016, By Type of Material ...... 178 Spain Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Type of Material...... 180 Chapter 14: Eastern Europe Plastics Bag and Pouch Market ...... 183 Eastern Europe Plastics Bag and Pouch Market Overview ...... 183 Region Information ...... 183 Market Information ...... 183 Background Information ...... 183 Major End User Industries ...... 183 Investments in Plastic Bags and Pouches Manufacturing Market ...... 183 Regulations Governing the Plastic Bags and Pouches Industry ...... 184 Eastern Europe Plastics Bag and Pouch Historic Market, 2012–2016 ...... 185 Eastern Europe Plastics Bag and Pouch Forecast Market, 2016–2020 ...... 187 Eastern Europe Market Size, By Segment ...... 189 Eastern Europe Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Segment ...... 191 Eastern Europe Plastics Bag and Pouch Market, 2016, By Type of Material ...... 193 Eastern Europe Bag and Pouch Market, 2012-2020, Historic and Forecast, By Type of Material ...... 195 Chapter 15: Eastern Europe Plastics Bag and Pouch Market: Country Analysis .. 198 Russia Plastics Bag and Pouch Market ...... 198 Russia Plastics Bag and Pouch Historic Market, 2012–2016 ...... 198 Russia Plastics Bag and Pouch Forecast Market, 2016–2020...... 200 Russia Market Size, By Segment ...... 202 Russia Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Segment ...... 204 Russia Plastics Bag and Pouch Market, 2016, By Type of Material ...... 206 Russia Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Type of Material ...... 208 Chapter 16: North America Plastics Bag and Pouch Market ...... 211 North America Plastics Bag and Pouch Market Overview ...... 211 Region Information ...... 211 Market Information ...... 211 Background Information ...... 211 Major End User Industries ...... 211 Investments in Plastic Bag and Pouch Manufacturing Market ...... 211 Regulations Governing the Plastic Bag and Pouch Manufacturing Industry ...... 212 North America Plastics Bag and Pouch Historic Market, 2012–2016 ...... 214 North America Plastics Bag and Pouch Forecast Market, 2016–2020 ...... 215 North America Market Size, By Segment ...... 217 North America Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Segment ...... 218 North America Plastics Bag and Pouch Market, 2016, By Type of Material ...... 220 North America Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Type of Material 222 Chapter 17: North America Plastics Bag and Pouch Market: Country Analysis ... 225 USA Plastics Bag and Pouch Market ...... 225 USA Plastics Bag and Pouch Historic Market, 2012–2016 ...... 225 USA Plastics Bag and Pouch Forecast Market, 2016–2020 ...... 227 USA Market Size, By Segment ...... 229 USA Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Segment ...... 231 USA Plastics Bag and Pouch Market, 2016, By Type of Material ...... 233 USA Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Type of Material ...... 235 Chapter 18: South America Plastics Bag and Pouch Market ...... 238 South America Plastics Bag and Pouch Market Overview ...... 238 Region Information ...... 238 Market Information ...... 238 Background Information ...... 238 Major End User Industries ...... 239 Investments in Plastic Bag and Pouch Manufacturing Market ...... 239 Regulations Governing the Plastic Bag and Pouch Manufacturing Industry ...... 239 South America Plastics Bag and Pouch Historic Market, 2012–2016 ...... 241 South America Plastics Bag and Pouch Forecast Market, 2016-2020 ...... 243 South America Market Size, By Segment ...... 245 South America Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Segment ...... 247 South America Plastics Bag and Pouch Market, 2016, By Type of Material ...... 248 South America Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Type of Material 250 Chapter 19: South America Plastics Bag and Pouch Market: Country Analysis ... 253 Brazil Plastics Bag and Pouch Market ...... 253 Brazil Plastics Bag and Pouch Historic Market, 2012–2016 ...... 253 Brazil Plastics Bag and Pouch Forecast Market, 2016–2020 ...... 255 Brazil Market Size, By Segment ...... 257 Brazil Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Segment ...... 259 Brazil Plastics Bag and Pouch Market, 2016, By Type of Material ...... 261 Brazil Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Type of Material...... 263 Chapter 20: Middle East Plastics Bag and Pouch Market ...... 266 Middle East Plastics Bag and Pouch Market Overview ...... 266 Region Information ...... 266 Market Information ...... 266 Background Information ...... 266 Major End User Industries ...... 266 Regulations Governing the Plastic Bags and Pouches Industry ...... 267 Middle East Plastics Bag and Pouch Historic Market, 2012–2016 ...... 268 Middle East Plastics Bag and Pouch Forecast Market, 2016 – 2020 ...... 270 Middle East Market Size, By Segment ...... 271 Middle East Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Segment ...... 273 Middle East Plastics Bag and Pouch Market, 2016, By Type of Material ...... 274 Middle East Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Type of Material .... 276 Chapter 21: Africa Plastics Bag and Pouch Market ...... 279 Africa Plastics Bag and Pouch Market Overview ...... 279 Region Information ...... 279 Market Information ...... 279 Background Information ...... 279 Major End User Industries ...... 279 Investments in Plastic Bag and Pouch Manufacturing Market ...... 280 Regulations Governing the Plastic Bag and Pouch Manufacturing Industry ...... 280 Africa Plastics Bag and Pouch Historic Market, 2012–2016 ...... 281 Africa Plastics Bag and Pouch Forecast Market, 2016–2020 ...... 283 Africa Market Size, By Segment ...... 284 Africa Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Segment ...... 286 Africa Plastics Bag and Pouch Market, 2016, By Type of Material ...... 288 Africa Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Type of Material ...... 290 Chapter 22: Plastics Bag and Pouch Market Competitive Landscape ...... 293 Company Profiles ...... 294 Chapter 23: The Plastics Bag and Pouch Market Customer Information ...... 304 Incentives Lead to An Increase in Reusable Bags ...... 304 Biggest Challenges and Trends in Bags Or Pouch Manufacturing ...... 304 Gusseted Bags Are the Most Preferred Type of Plastic Bags ...... 304 A Majority of People Oppose Plastic Bag Ban ...... 304 Overwhelming Support for EU Plastic Bag Ban ...... 304 Chapter 24: Key Mergers and Acquisitions in The Plastics Bag and Pouch Market ...... 306 Berry Plastics Group Inc. Acquired, AEP Industries Inc...... 306 ProAmpac Acquired PolyFirst Packaging ...... 306 ProAmpac Acquired Clondalkin Flexible Packaging ...... 306 ProAmpac Acquired Trinity Packaging Corporation ...... 306 Sonoco Acquired Plastic Packaging Inc...... 307 Pritzker Group Acquired ProAmpac LLC ...... 307 Carlyle Group Acquired Novolex ...... 307 Lindsay Goldberg Acquired Schur Flexibles Group ...... 307 Appendix ...... 309 NAICS Definitions of Industry Covered in This Report ...... 309 326111 – Plastics Bag and Pouch Manufacturing ...... 309 Research Methodology ...... 309 Abbreviations ...... 311 Currencies ...... 311 About BCC Research ...... 312 About BCC Research...... 313 BCC Membership ...... 313 BCC Custom Research ...... 313 References ...... 316

List of Tables Summary Table Global Plastics Bag and Pouch Market, Forecast Market Size, Through 2020 ($ Millions) 8 Table 1 Global Plastics Bag and Pouch Market, Historic Market Size, Through 2016 ($ Millions) ...... 14 Table 2 Global Plastics Bag and Pouch Market, Forecast Market Size, Through 2020 ($ Millions) ...... 16 Table 3 Global Plastics Bag and Pouch Market, By Segments, 2016 (%/$ Millions) ...... 27 Table 4 Global Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012- 2020 ...... 29 Table 5 Global Plastics Bag and Pouch Market, By Type of Material, 2016 (%/$ Millions) ...... 31 Table 6 Global Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020 ...... 32 Table 7 Global Plastics Bag and Pouch Market, By Region, 2016 (%/$ Millions) ...... 38 Table 8 Global Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Region, 2012-2020 ...... 40 Table 9 Global Plastics Bag and Pouch Market, By Country, 2016 (%/$ Millions) ...... 42 Table 10 Global Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Country, 2012- 2020 ...... 44 Table 11 Global Plastics Bag and Pouch Market Size as A Percentage of Global GDP, 2012–2020...... 47 Table 12 Global Plastics Bag and Pouch Market Size, Percentage of GDP, By Country, 2016 (%) ...... 49 Table 13 Global Per Capita Average Plastics Bag and Pouch Expenditure, 2012–2020 ($) ...... 51 Table 14 Global Per Capita Average Plastics Bag and Pouch Expenditure, By Country, 2016 ($)...... 53 Table 15 Asia-Pacific Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions) ...... 58 Table 16 Asia-Pacific Plastics Bag and Pouch Market, Forecast Market Size, Through 2020 ($ Millions) .. 60 Table 17 Asia-Pacific Plastics Bag and Pouch Market, By Segments, 2016 (%/$ Millions) ...... 61 Table 18 Asia-Pacific Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020 ...... 63 Table 19 Asia-Pacific Plastics Bag and Pouch Market, By Type of Material, 2016 (%/$ Millions) ...... 65 Table 20 Asia-Pacific Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020 ...... 66 Table 21 China Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions) ...... 71 Table 22 China Plastics Bag and Pouch Market, Forecast Market Size, Through 2020 ($ Millions) ...... 72 Table 23 China Plastics Bag and Pouch Market, By Segments, 2016 (%/$ Millions) ...... 73 Table 24 China Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012- 2020 (%) ...... 75 Table 25 China Plastics Bag and Pouch Market, By Type of Material, 2016 (%/$ Millions) ...... 76 Table 26 China Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020 ...... 78 Table 27 India Plastics Bag and Pouch Market, Historic Market Size, Through 2016 ($ Millions) ...... 81 Table 28 India Plastics Bag and Pouch Market, Forecast Market Size, Through 2020 ($ Millions) ...... 83 Table 29 India Plastics Bag and Pouch Market, By Segments, 2016 ($ Millions) ...... 84 Table 30 India Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012- 2020 ...... 86 Table 31 India Plastics Bag and Pouch Market, by Type of Material, 2016 (%/$ Millions)...... 88 Table 32 India Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020 ...... 89 Table 33 Japan Plastics Bag and Pouch Market, Historic Market Size, Through 2016 ($ Millions) ...... 92 Table 34 Japan Plastics Bag and Pouch Market, Forecast Market Size, Through 2020 ($ Millions) ...... 93 Table 35 Japan Plastics Bag and Pouch Market, By Segments, 2016 ($ Millions/%) ...... 94 Table 36 Japan Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012- 2020 ...... 96 Table 37 Japan Plastic Bag and Pouch Market, by Type of Material, 2016 (%/$ Millions) ...... 97 Table 38 Japan Plastic Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020 ...... 99 Table 39 Australia Plastics Bag and Pouch Market, Historic Market Size, Through 2016 ($ Millions) ..... 100 Table 40 Australia Plastics Bag and Pouch Market, Forecast Market Size, Through 2020 ($ Millions) .... 102 Table 41 Australia Plastics Bag and Pouch Market, By Segments, 2016 (%/$ Millions) ...... 103 Table 42 Australia Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020 ...... 105 Table 43 Australia Plastics Bag and Pouch Market, by Type of Material, 2016 (%/$ Millions) ...... 106 Table 44 Australia Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020 ...... 108 Table 45 Western Europe Plastics Bag and Pouch Market, Historic Market Size, through 2016 ($ Millions) ...... 114 Table 46 Western Europe Plastics Bag and Pouch Market, Forecast Market Size, through 2020 ($ Millions) ...... 115 Table 47 Western Europe Plastics Bag and Pouch Market, By Segments, 2016 ($ Millions/%) ...... 116 Table 48 Western Europe Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020 ...... 118 Table 49 Western Europe Plastics Bag and Pouch Market, by Type of Material, 2016 (%/$ Millions) .... 120 Table 50 Western Europe Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020 ...... 121 Table 51 UK Plastics Bag and Pouch Market, Historic Market Size, Through 2016 ($ Millions) ...... 127 Table 52 UK Plastics Bag and Pouch Market, Forecast Market Size, Through 2020 ($ Millions) ...... 128 Table 53 UK Plastics Bag and Pouch Market, By Segments, 2016 ($ Millions/%) ...... 130 Table 54 UK Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012- 2020 ...... 132 Table 55 UK Plastics Bag and Pouch Market, by Type of Material, 2016 (%/$ Millions) ...... 134 Table 56 UK Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020 ...... 136 Table 57 Germany Plastics Bag and Pouch Market, Historic Market Size, Through 2016 ($ Millions) ..... 138 Table 58 Germany Plastics Bag and Pouch Market, Forecast Market Size, Through 2020 ($ Millions) ... 140 Table 59 Germany Plastics Bag and Pouch Market, By Segments, 2016 ($ Millions/%) ...... 142 Table 60 Germany Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020 ...... 144 Table 61 Germany Plastics Bag and Pouch Market, By Type of Material, 2016 (%/$ Millions) ...... 146 Table 62 Germany Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020 ...... 148 Table 63 France Plastics Bag and Pouch Market, Historic Market Size, Through 2016 ($ Millions) ...... 150 Table 64 France Plastics Bag and Pouch Market, Forecast Market Size, Through 2020 ($ Millions) ...... 152 Table 65 France Plastics Bag and Pouch Market, By Segments, 2016 ($ Millions/%) ...... 154 Table 66 France Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012- 2020 ...... 156 Table 67 France Plastics Bag and Pouch Market, By Type of Material, 2016 (%/$ Millions) ...... 158 Table 68 France Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020 ...... 159 Table 69 Italy Plastics Bag and Pouch Market, Historic Market Size, Through 2016 ($ Millions) ...... 161 Table 70 Italy Plastics Bag and Pouch Market, Forecast Market Size, Through 2020 ($ Millions) ...... 162 Table 71 Italy Plastics Bag and Pouch Market, By Segments, 2016 ($ Millions/%) ...... 164 Table 72 Italy Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012- 2020 ...... 166 Table 73 Italy Plastics Bag and Pouch Market, by Type of Material, 2016 (%/$ Millions) ...... 168 Table 74 Italy Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020 ...... 169 Table 75 Spain Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions) ...... 171 Table 76 Spain Plastics Bag and Pouch Market, Forecast Market Size, Through 2020 ($ Millions) ...... 173 Table 77 Spain Plastics Bag and Pouch Market, By Segments, 2016 (%/$ Millions)...... 175 Table 78 Spain Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012- 2020 ...... 177 Table 79 Spain Plastics Bag and Pouch Market, By Type of Material, 2016 (%/$ Millions) ...... 179 Table 80 Spain Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020 ...... 181 Table 81 Eastern Europe Plastics Bag and Pouch Market, Historic Market Size, Through 2016 ($ Millions) ...... 186 Table 82 Eastern Europe Plastics Bag and Pouch Market, Forecast Market Size, Through 2020 ($ Millions) ...... 188 Table 83 Eastern Europe Plastics Bag and Pouch Market, By Segments, 2016 (%/$ Millions) ...... 190 Table 84 Eastern Europe Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020 ...... 192 Table 85 Eastern Plastics Europe Bag and Pouch Market, By Type of Material, 2016 (%/$ Millions) ...... 194 Table 86 Eastern Europe Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020 ...... 195 Table 87 Russia Plastics Bag and Pouch Market, Historic Market Size, Through 2016 ($ Millions) ...... 199 Table 88 Russia Plastics Bag and Pouch Market, Forecast Market Size, Through 2020 ($ Millions) ...... 201 Table 89 Russia Plastics Bag and Pouch Market, By Segments, 2016 (%/$ Millions) ...... 203 Table 90 Russia Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012- 2020 ...... 205 Table 91 Russia Plastics Bag and Pouch Market, By Type of Material, 2016 (%/$ Millions) ...... 207 Table 92 Russia Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020 ...... 209 Table 93 North America Plastics Bag and Pouch Market, Historic Market Size, Through 2016 ($ Millions) ...... 215 Table 94 North America Plastics Bag and Pouch Market, Forecast Market Size, Through 2020 ($ Millions) ...... 216 Table 95 North America Plastics Bag and Pouch Market, By Segments, 2016 (%/$ Millions) ...... 217 Table 96 North America Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020 ...... 219 Table 97 North America Plastics Bag and Pouch Market, By Type of Material, 2016 (%/$ Millions) ...... 221 Table 98 North America Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020 ...... 223 Table 99 USA Plastics Bag and Pouch Market, Historic Market Size, Through 2016 ($ Millions) ...... 226 Table 100 USA Plastics Bag and Pouch Market, Forecast Market Size, Through 2020 ($ Millions) ...... 228 Table 101 USA Plastics Bag and Pouch Market, By Segments, 2016 (%/$ Millions) ...... 230 Table 102 USA Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012- 2020 ...... 232 Table 103 USA Plastics Bag and Pouch Market, By Type of Material, 2016 (%/$ Millions) ...... 234 Table 104 USA Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020 ...... 235 Table 105 South America Plastics Bag and Pouch Market, Historic Market Size, Through 2016 ($ Millions) ...... 242 Table 106 South America Plastics Bag and Pouch Market, Forecast Market Size, Through 2020 ($ Millions) ...... 244 Table 107 South America Plastics Bag and Pouch Market, By Segments, 2016 (%/$ Millions) ...... 246 Table 108 South America Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020 ...... 247 Table 109 South America Plastics Bag and Pouch Market, By Type of Material, 2016 (%/$ Millions) ..... 249 Table 110 South America Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020 ...... 250 Table 111 Brazil Plastics Bag and Pouch Market, Historic Market Size, through 2016 ($ Millions) ...... 254 Table 112 Brazil Plastics Bag and Pouch Market, Forecast Market Size, Through 2020 ($ Millions) ...... 256 Table 113 Brazil Plastics Bag and Pouch Market, By Segments, 2016 (%/$ Millions)...... 258 Table 114 Brazil Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012- 2020 ...... 260 Table 115 Brazil Plastics Bag and Pouch Market, By Type of Material, 2016 (%/$ Millions) ...... 262 Table 116 Brazil Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020 ...... 264 Table 117 Middle East Plastics Bag and Pouch Market, Historic Market Size, Through 2016 ($ Millions) ...... 269 Table 118 Middle East Plastics Bag and Pouch Market, Forecast Market Size, Through 2020 ($ Millions) ...... 271 Table 119 Middle East Plastics Bag and Pouch Market, By Segments, 2016 (%/$ Millions) ...... 272 Table 120 Middle East Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020 ...... 273 Table 121 Middle East Plastics Bag and Pouch Market, By Type of Material, 2016 (%/$ Millions) ...... 275 Table 122 Middle East Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020 ...... 276 Table 123 Africa Plastics Bag and Pouch Market, Historic Market Size, Through 2016 ($ Millions) ...... 282 Table 124 Africa Plastics Bag and Pouch Market, Forecast Market Size, Through 2020 ($ Millions) ...... 284 Table 125 Africa Plastics Bag and Pouch Market, By Segments, 2016 (%/$ Millions) ...... 285 Table 126 Africa Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012- 2020 ...... 287 Table 127 Africa Plastics Bag and Pouch Market, by Type of Material, 2016 (%/$ Millions) ...... 289 Table 128 Africa Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020 ...... 290 Table 129 Global Market Shares for Plastics Bag and Pouch, By Key Competitor, 2016 ($ Millions/%) .. 294 Table 130 Amcor Limited Financial Performance, 2012–2016 ($ Billions) ...... 296 Table 131 Bemis Company, Inc. Financial Performance, 2012–2016 ($ Billions) ...... 298 Table 132 Sealed Air Corporation Financial Performance, 2012–2016 ($ Billions) ...... 302 Table 133 Market Data Sources ...... 310

List of Figures

Summary Figure Global Plastics Bag and Pouch Market, Forecast Market Size, 2016-2020 ($ Millions) .... 8 Figure 1 Global Plastics Bag and Pouch Manufacturing Market, 2016, Segment Differentiation ...... 11 Figure 2 Global Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions) ...... 13 Figure 3 Global Plastics Bag and Pouch Market, Forecast Market Size, 2016-2020 ($ Millions) ...... 16 Figure 4 PESTLE Analysis for Global Plastics Bag and Pouch Market, 2016 ...... 21 Figure 5 Global Plastics Bag and Pouch Market Share, By Segments, 2016 (%) ...... 26 Figure 6 Global Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012- 2020 ...... 28 Figure 7 Global Plastics Bag and Pouch Market Share, By Type of Material, 2016 (%) ...... 30 Figure 8 Global Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020 ...... 32 Figure 9 Global Plastics Bag and Pouch Market Share, By Region, 2016 (%) ...... 37 Figure 10 Global Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Region, 2012- 2020 ...... 39 Figure 11 Global Plastics Bag and Pouch Market Share, By Country, 2016 (%) ...... 41 Figure 12 Global Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Country, 2012- 2020 ...... 43 Figure 13 Global Plastics Bag and Pouch Market Value, Market Size as A Percentage of Global GDP, 2012–2020 (%) ...... 46 Figure 14 Global Plastics Bag and Pouch Market Size, Percentage of GDP, By Country, 2016 (%) ...... 48 Figure 15 Global Per Capita Average Plastics Bag and Pouch Expenditure, 2012–2020 ($) ...... 50 Figure 16 Global Per Capita Average Plastics Bag and Pouch Expenditure, By Country, 2016 ($) ...... 52 Figure 17 Asia-Pacific Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions) ...... 58 Figure 18 Asia-Pacific Plastics Bag and Pouch Market, Forecast Market Size, 2016-2020 ($ Millions) ...... 59 Figure 19 Asia-Pacific Plastics Bag and Pouch Market Share, By Segments, 2016 (%) ...... 60 Figure 20 Asia-Pacific Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020 ...... 62 Figure 21 Asia-Pacific Plastics Bag and Pouch Market Share, By Type of Material, 2016 (%) ...... 64 Figure 22 Asia-Pacific Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020 ...... 66 Figure 23 China Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions) ...... 70 Figure 24 China Plastics Bag and Pouch Market, Forecast Market Size, 2016-2020 ($ Millions) ...... 72 Figure 25 China Plastics Bag and Pouch Market Share, By Segments, 2016 (%) ...... 73 Figure 26 China Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012- 2020 ...... 74 Figure 27 China Plastics Bag and Pouch Market, By Type of Material, 2016 ($ Millions)...... 76 Figure 28 China Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020 ...... 77 Figure 29 India Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions) ...... 81 Figure 30 India Plastics Bag and Pouch Market, Forecast Market Size, 2016-2020 ($ Millions) ...... 82 Figure 31 India Plastics Bag and Pouch Market Share, By Segments, 2016 (%) ...... 84 Figure 32 India Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012- 2020 ...... 85 Figure 33 India Plastics Bag and Pouch Market Share, By Type of Material, 2016 (%) ...... 87 Figure 34 India Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020 ...... 89 Figure 35 Japan Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions) ...... 91 Figure 36 Japan Plastics Bag and Pouch Market, Forecast Market Size, 2016-2020 ($ Millions) ...... 93 Figure 37 Japan Plastics Bag and Pouch Market Share, By Segments, 2016 (%) ...... 94 Figure 38 Japan Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012- 2020 ...... 95 Figure 39 Japan Plastic Bag and Pouch Market Share, by Type of Material, 2016 (%) ...... 97 Figure 40 Japan Plastic Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020 ...... 98 Figure 41 Australia Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions) ...... 100 Figure 42 Australia Plastics Bag and Pouch Market, Forecast Market Size, 2016-2020 ($ Millions) ...... 101 Figure 43 Australia Plastics Bag and Pouch Market Share, By Segments, 2016 (%) ...... 103 Figure 44 Australia Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020 ...... 104 Figure 45 Australia Plastics Bag and Pouch Market Share, by Type of Material, 2016 (%) ...... 106 Figure 46 Australia Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020 ...... 107 Figure 47 Western Europe Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions) ...... 113 Figure 48 Western Europe Plastics Bag and Pouch Market, Forecast Market Size, 2016-2020 ($ Millions) ...... 115 Figure 49 Western Europe Plastics Bag and Pouch Market Share, By Segments, 2016 (%) ...... 116 Figure 50 Western Europe Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020 ...... 117 Figure 51 Western Europe Plastics Bag and Pouch Market Share, by Type of Material, 2016 (%) ...... 119 Figure 52 Western Europe Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020 ...... 121 Figure 53 UK Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions) ...... 126 Figure 54 UK Plastics Bag and Pouch Market, Forecast Market Size, 2016-2020 ($ Millions) ...... 128 Figure 55 UK Plastics Bag and Pouch Market Share, By Segments, 2016 (%) ...... 129 Figure 56 UK Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012- 2020 ...... 131 Figure 57 UK Plastics Bag and Pouch Market Share, by Type of Material, 2016 (%) ...... 133 Figure 58 UK Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020 ...... 135 Figure 59 Germany Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions) ...... 137 Figure 60 Germany Plastics Bag and Pouch Market, Forecast Market Size, 2016-2020 ($ Millions) ...... 139 Figure 61 Germany Plastics Bag and Pouch Market Share, By Segments, 2016 (%) ...... 141 Figure 62 Germany Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020 ...... 143 Figure 63 Germany Plastics Bag and Pouch Market Share, By Type of Material, 2016 (%)...... 145 Figure 64 Germany Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020 ...... 147 Figure 65 France Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions) ...... 149 Figure 66 France Plastics Bag and Pouch Market, Forecast Market Size, 2016-2020 ($ Millions) ...... 151 Figure 67 France Plastics Bag and Pouch Market Share, By Segments, 2016 (%) ...... 153 Figure 68 France Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012- 2020 ...... 155 Figure 69 France Plastics Bag and Pouch Market Share, By Type of Material, 2016 (%)...... 157 Figure 70 France Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020 ...... 159 Figure 71 Italy Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions) ...... 160 Figure 72 Italy Plastics Bag and Pouch Market, Forecast Market Size, 2016-2020 ($ Millions) ...... 162 Figure 73 Italy Plastics Bag and Pouch Market Share, By Segments, 2016 (%) ...... 163 Figure 74 Italy Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012- 2020 ...... 165 Figure 75 Italy Plastics Bag and Pouch Market Share, by Type of Material, 2016 (%)...... 167 Figure 76 Italy Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020 ...... 169 Figure 77 Spain Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions) ...... 170 Figure 78 Spain Plastics Bag and Pouch Market, Forecast Market Size, 2016-2020 ($ Millions) ...... 172 Figure 79 Spain Plastics Bag and Pouch Market Share, By Segments, 2016 (%) ...... 174 Figure 80 Spain Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012- 2020 ...... 176 Figure 81 Spain Plastics Bag and Pouch Market Share, By Type of Material, 2016 (%) ...... 178 Figure 82 Spain Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020 ...... 180 Figure 83 Eastern Europe Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions) ...... 185 Figure 84 Eastern Europe Plastics Bag and Pouch Market, Forecast Market Size, 2016-2020 ($ Millions) ...... 187 Figure 85 Eastern Europe Plastics Bag and Pouch Market, By Segments, 2016 (%) ...... 189 Figure 86 Eastern Europe Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020 ...... 191 Figure 87 Eastern Plastics Europe Bag and Pouch Market, By Type of Material, 2016 (%) ...... 193 Figure 88 Eastern Europe Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020 ...... 195 Figure 89 Russia Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions) ...... 198 Figure 90 Russia Plastics Bag and Pouch Market, Forecast Market Size, 2016-2020 ($ Millions) ...... 200 Figure 91 Russia Plastics Bag and Pouch Market Share, By Segments, 2016 (%) ...... 202 Figure 92 Russia Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012- 2020 ...... 204 Figure 93 Russia Plastics Bag and Pouch Market Share, By Type of Material, 2016 (%) ...... 206 Figure 94 Russia Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020 ...... 208 Figure 95 North America Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions) 214 Figure 96 North America Plastics Bag and Pouch Market, Forecast Market Size, 2016-2020 ($ Millions) ...... 216 Figure 97 North America Plastics Bag and Pouch Market Share, By Segments, 2016 (%)...... 217 Figure 98 North America Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020 ...... 218 Figure 99 North America Plastics Bag and Pouch Market, By Type of Material, 2016 (%) ...... 220 Figure 100 North America Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020 ...... 222 Figure 101 USA Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions) ...... 225 Figure 102 USA Plastics Bag and Pouch Market, Forecast Market Size, 2016-2020 ($ Millions) ...... 227 Figure 103 USA Plastics Bag and Pouch Market Share, By Segments, 2016 (%)...... 229 Figure 104 USA Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012- 2020 ...... 231 Figure 105 USA Plastics Bag and Pouch Market Share, By Type of Material, 2016 (%) ...... 233 Figure 106 USA Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020 ...... 235 Figure 107 South America Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions) ...... 241 Figure 108 South America Plastics Bag and Pouch Market, Forecast Market Size, 2016-2020 ($ Millions) ...... 243 Figure 109 South America Plastics Bag and Pouch Market, By Segments, 2016 (%) ...... 245 Figure 110 South America Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020 ...... 247 Figure 111 South America Plastics Bag and Pouch Market Share, By Type of Material, 2016 (%) ...... 248 Figure 112 South America Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020 ...... 250 Figure 113 Brazil Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions) ...... 253 Figure 114 Brazil Plastics Bag and Pouch Market, Forecast Market Size, 2016-2020 ($ Millions) ...... 255 Figure 115 Brazil Plastics Bag and Pouch Market Share, By Segments, 2016 (%) ...... 257 Figure 116 Brazil Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020 ...... 259 Figure 117 Brazil Plastics Bag and Pouch Market, By Type of Material, 2016 (%) ...... 261 Figure 118 Brazil Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020 ...... 263 Figure 119 Middle East Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions)... 268 Figure 120 Middle East Plastics Bag and Pouch Market, Forecast Market Size, 2016-2020 ($ Millions) . 270 Figure 121 Middle East Plastics Bag and Pouch Market Share, By Segments, 2016 (%) ...... 271 Figure 122 Middle East Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020 ...... 273 Figure 123 Middle East Plastics Bag and Pouch Market Share, By Type of Material, 2016 (%) ...... 274 Figure 124 Middle East Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020 ...... 276 Figure 125 Africa Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions) ...... 281 Figure 126 Africa Plastics Bag and Pouch Market, Forecast Market Size, 2016-2020 ($ Millions) ...... 283 Figure 127 Africa Plastics Bag and Pouch Market Share, By Segments, 2016 (%) ...... 284 Figure 128 Africa Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020 ...... 286 Figure 129 Africa Plastics Bag and Pouch Market Share, By Type of Material, 2016 (%) ...... 288 Figure 130 Africa Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020 ...... 290 Figure 131 Global Market Shares for Plastics Bag and Pouch, By Key Competitor, 2016 (%) ...... 293 Figure 132 Amcor Limited Financial Performance, 2012–2016 ($ Billions) ...... 295 Figure 133 Bemis Company, Inc. Financial Performance, 2012–2016 ($ Billions) ...... 297 Figure 134 Sealed Air Corporation Financial Performance, 2012–2016 ($ Billions) ...... 301

Chapter 1

Introduction

Chapter 1: Introduction

BCC Research’s goal in performing this study was to determine the global market and future demand growth for plastic bag and pouch manufacturing over the five-year period from 2016 through 2020. Of particular focus was characterizing and quantifying the potential of the market for plastic bag and pouch manufacturing by geography, and product (i.e., plastic bags and plastic pouches).

The report also evaluates the market across each geography. Opportunities in each type of geography have been discussed in detail. Factors that affect the market such as drivers, restraints, and trends have been discussed. The key objective was to present a comprehensive discussion of where the state-of-the- art is in plastic bag and pouch manufacturing and forecast the future commercial potential for the key market segments.

This discussion provides a basis for companies to make strategic choices about developing new products and markets or deciding which applications are needed in their organizations. The study will benefit plastic bag and pouch manufacturers, providers of raw materials, users of plastic bags and pouches, packaging companies, governments around the world, and others.

Study Goals and Objectives • To sum up the global plastic bag and pouch manufacturing market size. • To estimate the growth rate of the global plastic bag and pouch manufacturing market. • To segment the market in the deepest possible way. • To provide market numbers and growth rates at geographically. • To identify major drivers and restraints. • To identify key trends and technology updates in the field.

Reasons for Doing This Study Increasing investments in the FMCG, retail, and food and beverage manufacturing industries in developing countries, including India, China, and Brazil has led to an increase in demand for plastic bags and pouches. This is mainly due to government policies regarding outsourcing plastic packaging, FDI (foreign direct investment), and investments in food manufacturing and retail infrastructure, has led to rise in demand for global plastic bags and pouches. The global plastic bag and pouch manufacturing market is growing due to continued economic growth, positive demographic trends, reforms and initiatives by governments, policies inviting foreign investment, urbanization, increasing income levels, and comparatively cheap labor. These factors are expected to drive the plastic bag and pouch manufacturing market.

The market for plastic bag and pouch manufacturing is fairly consolidated with a few large players, dominating the market. Major players in the market include Amcor Limited, Sealed Air Corporation, Bemis Company Inc., and others.

Scope of Report This research report categorizes the plastic bag and pouch manufacturing market by type. Product type include plastic bags and plastic pouches.

Information Sources • Public information via annual reports to shareholders as well as other government reports that are available for public review. • Company marketing information, advertising, company press releases, state and local news sources, and subscription-based information. • Online research including third-party references. • Trade associations, directories and publications. • Telephone interviews with both current customers and prospects. • Various private industry sources. • Full sourcing giving in the Appendix.

Methodology Research methodology followed in this report is a top-down approach. Various sources were used to arrive at the total market figure, which was broken down into various applications and sub markets based on primary and secondary data. Both quantitative and qualitative approaches were used to derive the market size and growth rates. Many secondary sources were reviewed and extensive primary research was conducted with key opinion leaders, marketing managers, product managers and end users.

Market numbers have been calculated in constant U.S. dollars at 2016 exrates.

Geographic Breakdown In this report, the geographic regions and countries considered for market analysis include: • Asia Pacific: Australia, China, India, Japan, • North America: USA • South America: Brazil • Western Europe: UK, Germany, France, Spain and Italy • Eastern Europe: Russia • Middle East • Africa

Plastic Bags and Pouches Manufacturing, by Type of Material

Biodegradable

Plastic Bags and Pouches Manufacturing, BY TYPE OF MATERIAL

Non-biodegradable

Plastic Bags and Pouches Manufacturing, by Region

Asia Pacific

North America

Western Europe

Plastic Bags and Pouches Manufacturing, South America BY REGION

Eastern Europe

Middle East

Africa

Analyst's Credentials Led by head researcher Karthik Arun, BCC Research analysts craft Reference Reports with a unique end noted referencing methodology, which allows users to cross reference and trace market numbers back to their source. These individuals are experts in secondary research and primary forecasting - compiling and layering existing data with their original research and analysis. The team has decades of combined experience covering a wide range of industries, including healthcare, advanced materials and emerging technologies.

Related BCC Research Reports • PLS014H Plastics for Barrier Packaging • PLS025F Biodegradable Polymers • PLS050D Global Markets and Technologies for Bioplastics • PLS076B High-Performance Films: Global Markets • PLS083A The Plastics Compounding Market Outside North America

Chapter 2

Summary and Highlights

Chapter 2: Summary and Highlights

Global plastic bag and pouch manufacturing market is currently in a very crucial phase of transformation. Demand for industrial packaging products has increased recently in emerging nations due to increased consumption of processed foods, poultry, meat and agricultural products in these countries. At the same time, growing concern and awareness over the harmful effects of plastic waste is increasingly repelling customers from plastic bags and pouches. In addition, end users, such as restaurants, retail stores, and shops, are increasingly demanding paper bags, cloth bags, and recyclable bags. These factors are, in turn, generating demand for plastic bags and pouches to meet high expectations.

The market for plastic bag and pouch manufacturing reached a value of nearly $18.9 billion in 2016 and is expected to grow at a compound annual growth rate (CAGR) of 4.1% to nearly $22.2 billion by 2020.

The market for plastic bags and pouches manufacturing is marginally consolidated with a few large players dominating the market. Major players in the market are Amcor Limited, Sealed Air Corporation, and Bemis Company Inc., among others. Plastic bags accounted for the largest share of the market for plastic bag and pouch manufacturing in 2016 at 56.7%. The highest growth is projected to come from plastic pouches, which is forecast to grow at a CAGR of 4.7%.

Western Europe is the largest market for plastic bag and pouch manufacturing, accounting for 31.9% of the global market. It was followed by North America and Asia Pacific. Going forward, Asia Pacific is expected to witness the fastest growth in the plastic bag and pouch manufacturing market, estimated at a CAGR of 5.8%, followed by Africa, expected to grow at a CAGR of 5.4%.

USA is the largest market in terms of value and is driving the market for plastic bag and pouch manufacturing. India and Russia are expected to have the fastest growth, growing at a CAGR of 6.9% and 5.0%, respectively.

The market is challenged by increasing manufacturing cost of plastic bags and pouches over the forecast period. Biodegradable plastic such as polylactic acid is increasingly being preferred over traditional petroleum-based plastics, but is costlier to produce.

Summary Table Global Plastics Bag and Pouch Market, Forecast Market Size, Through 2020 ($ Millions)

2016 2017 2018 2019 2020 Forecast CAGR% 2016-2020 Global Plastics Bag and Pouch Market 18,900.1 19,675.3 20,481.9 21,321.8 22,195.7 4.1 Size ($ Millions)

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Summary Figure Global Plastics Bag and Pouch Market, Forecast Market Size, 2016-2020 ($ Millions)

23,000.0

22,000.0

21,000.0

20,000.0 $ Millions $

19,000.0

18,000.0

17,000.0 2016 2017 2018 2019 2020

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Chapter 3

Plastics Bag and Pouch Market Characteristics

Chapter 3: Plastics Bag and Pouch Market Characteristics

The plastics bag and pouch manufacturing market industry comprises establishments involved in converting plastic resins into plastics bags or pouches; and/or forming, coating, or laminating plastics film or sheet into single web or multi-web plastics bags or pouches. Establishments in this market may also print on the bags or pouches they manufacture.i

The plastics bag and pouch manufacturing industry is further classified as follows

• Plastic bag manufacturing companies convert plastic resins into plastic bags that are used to contain and transport goods. • Plastic pouch manufacturing companies primarily manufacture plastic pouches which are strong and durable and are used for the storage and transportation of foods, chemicals and other products. Plastic pouches are generally smaller in size compared to plastic bags and do not contain a handle.

Figure 1 Global Plastics Bag and Pouch Manufacturing Market, 2016, Segment Differentiation

Source: http://www.flickriver.com/photos/stevendepolo/tags/bags/ https://www.impakcorporation.com/image/data/stand%20up%20pouch%20packaging.jpg https://www.myprescottnow.com/wp-content/uploads/2017/01/garbage-bags-960x641.jpg

Plastics bag and pouch manufacturing companies procure raw materials such as polymers, plastic resins and additives from chemical and petrochemical companies. These materials are then converted into plastic formulations by blending or mixing polymers and additives into process ready pellets. This process may be followed by various processes including compression molding, extrusion molding, injection molding, blow molding or casting to obtain finished products such as plastic bags and pouches. Customers of plastic bag and pouch manufacturing companies include food & beverage packaging and retail outlets.

Chapter 4

Plastics Bag and Pouch Market Size and Growth

Chapter 4: Plastics Bag and Pouch Market Size and Growth

Historic Market Growth The chart and table below shows the year-on-year growth of the global plastics bag and pouch market during 2012–2016.

Figure 2 Global Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions)

20,000.0

18,000.0

16,000.0

14,000.0

12,000.0

10,000.0

$ Millions $ 8,000.0

6,000.0

4,000.0

2,000.0

- 2012 2013 2014 2015 2016

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 1 Global Plastics Bag and Pouch Market, Historic Market Size, Through 2016 ($ Millions)

Historic 2012 2013 2014 2015 2016 CAGR% 2012-2016 Global Plastics Bag and Pouch Market Size 16,716.4 17,237.5 17,774.8 18,328.9 18,900.1 3.1 ($ Millions)

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

The global plastics bag and pouch market grew from $16.7 billion in 2012 to $18.9 billion in 2016 at a compound annual growth rate (CAGR) of 3.1%.

Drivers of the Market Increased Demand for Industrial Packaging Products Demand for industrial packaging products has increased recently in emerging nations. Consumption of processed foods, poultry, meat and agricultural products increased as the size of the middle classes in these countries rose. For instance, according to the World Bank, China’s GDP per capita increased to about $7,594 in 2014 from $6992 in 2013ii, and India’s GDP per capita increased to about $1,596 in 2014 from $1,455 in 2013iii. Increased per-capita income in these economies resulted in the emerging middle class purchasing more packaged goods and services. Demand for packaged goods increased plastic bags and pouch consumption for its packaging.

Low Oil Prices The low price of oil in 2014 and 2016 improved the margins of companies operating in the plastic bags and pouch manufacturing market. Crude oil is a major input for plastic companies, therefore low oil prices decreased operating costs of plastics manufacturing companies and improved their profit margins. This also boosted disposable income of consumers as fuel, power and gas prices were cheaper, thereby increasing the sales of plastics manufacturing companies. For instance, according to a report by Zacks, a leading investment research company, $10 decline in oil prices translated to a 4% per pound decline in polyethylene prices, thereby low oil prices had a positive impact on the growth of the plastic bags and pouch manufacturing market. iv

Restraints on the Market Environmental Concerns Over Plastics Growing concern over environmental and water pollution caused by unrecyclable plastic bags and pouches. According to the Earth Policy Institute, nearly one trillion plastic bags are used worldwide annuallyv. The plastic bags and pouch manufacturing market was negatively affected by the increased demand for alternative packaging materials such as paper bags. In response, many countries instituted tough rules and taxes to control the use of plastic bags. For instance, many European countries,

including Germany, Denmark, and Italy have imposed partial or complete bans on the use of plastic bags in the historic periodvi. These concerns will continue to be a challenge to the plastic bags and pouch manufacturing.

Charge on Plastic Bags In order to reduce the usage of plastic bags, many supermarkets and other retail stores have started to charge a price for plastic bags rather than giving bags away freely as had previously been the case. In many countries such as Japan, Singapore and India, shoppers now must pay for plastic bags. The aim of this charge was to cultivate in consumers, a habit of always carrying a reusable bag. For example, in 2012, clothing chain Bossini started charging 10 cents per plastic bag. In April 2017, Japanese lifestyle brand Miniso imposed a 10-cent charge on consumers for every plastic bag they used, and since then, plastic bags usage at its outlets has dropped by as much as 75%.vii

Forecast Market Growth The chart and table below shows the year-on-year growth of the global plastics bag and pouch market during 2016 –2020.

Figure 3 Global Plastics Bag and Pouch Market, Forecast Market Size, 2016-2020 ($ Millions)

23,000.0

22,000.0

21,000.0

20,000.0 $ Millions $

19,000.0

18,000.0

17,000.0 2016 2017 2018 2019 2020

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 2 Global Plastics Bag and Pouch Market, Forecast Market Size, Through 2020 ($ Millions)

2016 2017 2018 2019 2020 Forecast CAGR% 2016-2020 Global Plastics Bag and Pouch Market 18,900.1 19,675.3 20,481.9 21,321.8 22,195.7 4.1 Size ($ Millions)

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

The global plastics bag and pouch market is expected to grow from $18.9 billion in 2016 to $22.2 billion in 2020 at a compound annual growth rate (CAGR) of 4.1%.

Drivers of the Market Growth in Retail Industry The plastic bags and pouch manufacturing market is expected to be driven by developments in the retail industry, worldwide. The global retail industry is expected to grow at a CAGR of 5.6% and reach $30 trillion by 2021. The rapid inroads made by the retail industry in the fast-moving consumer segment and increasing demand for consumer goods, food and beverage and grocery in the retail industry are expected to increase the number of retail outlets such as hypermarkets, supermarkets, and other convenience stores.

New Developments in Packaging New developments in packaging in terms of pack size and convenience are driving the demand for plastic bags and pouch manufacturing. Convenience features, such as resalable packs, easy-opening, stand-up pouches and smaller pack sizes for single-servings are being introduced. Moreover, more promotional packs and brand extensions are being developed to maintain customer loyalty. These developments in packaging will increase the consumption of plastics and will drive its market.

Restraints on the Market Reduction in Free Trade Many developed and developing economies are considering imposing restrictions on free trade to boost their local economy. Brexit is likely to lead to more trade restrictions between the UK and other countries in Europe. US President Donald Trump is expected to adopt a more protectionist stance, and renegotiate many trade agreements, including NAFTA (North America Free Trade Agreement). These changes could set off a wider trade war reversing the recent trend towards greater global free trade. For example, according to a report by the International Monetary Fund in 2015, rise in trade barriers, could increase import prices by 10% and decrease exports by 15% in the next five years, thus affecting the growth of the plastic bags and pouch manufacturing market, which relies on the easy and cheap movement of goods among countries.

Increasing Manufacturing Cost Growing cost of manufacturing plastic bags and pouches in the forecast period will hamper the growth of the plastic bag and pouch manufacturing market. Biodegradable plastic such as polylactic acid is increasingly being preferred over traditional petroleum-based plastics, but is costlier to produce. The production process for polylactic acid is expensive because of complex intermediary steps involved. Biodegradable materials are generally 2 to 10 times more expensive to produce than non-biodegradable materials.viii Moreover, forecasted stable growth in the oil industry is expected to increase the cost of crude oil, a major raw material of plastic bag and pouch manufacturing. Thus, higher manufacturing cost is expected to affect the growth of the plastic bags and pouch manufacturing market in the forecast period.

Chapter 5

Plastics Bag and Pouch Trends and Strategies

Chapter 5: Plastics Bag and Pouch Trends and Strategies

Major trends shaping the plastics bag and pouch market include the following –

Investment in Developing Economies Plastics bag and pouch manufacturers are increasingly investing in developing countries such as India, China, Brazil, and countries in Africa, to seek opportunities in untapped market segments, expand production capacity due to lower labor costs, and cater to growing demand from the rising population. For instance, in 2017, Amcor, a leading global flexible packaging manufacturer, announced a $28 million acquisition of Hebei Qite Packing Co. Ltd., Chinaix. In 2016, the company acquired Alusa, the largest flexible packaging business in South America, for $435 millionx.

Plastic packaging film and sheet manufacturers should look to gain a stronger foothold in developing countries to increase sales network and revenues.

Increasing Manufacturing Capacity Plastics manufacturing companies worldwide have increased investment in production plants to keep pace with growing demand for polyethylene products such as bags and pouches. For instance, ExxonMobil launched the Growing the Gulf initiative in March 2017. The company plans to invest more than $20 billion over a period of 10 years, to increase production capacity in the USA Gulf Coast Regionxi. In June 2017, American Packaging Corp. invested $170 million to build a new production facility in Monroe County, New York.xii Increasing production capacities by companies is expected to drive the sales and revenue of the plastic bags and pouches industry.

Plastics bag and pouch manufacturers should consider increasing investments in expanding manufacturing capacities to facilitate growing demand.

Chapter 6

PESTLE Analysis

Chapter 6: PESTLE Analysis

A PESTLE analysis covers the political, economic, social, technological, legal and environmental factors affecting a market. Particularly important factors in the plastic bags and pouches manufacturing industry include emerging economies, globalization, inflation, currency devaluation, regulations, laws, technological advances, government policies and initiatives and population demography. Government subsidies, increasing government expenditures and private investments, technological advances are driving the plastic bags and pouches manufacturing market.

Figure 4 PESTLE Analysis for Global Plastics Bag and Pouch Market, 2016

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Political Many food and beverage manufacturing and FMCG companies receive support in the form of incentives, subsidies, tax benefits, and investment leverage from national and state governments.

Government policies regarding outsourcing plastic packaging, FDI (foreign direct investment), and investments in food manufacturing and retail infrastructure, has led to rise in supply for global plastic bags and pouches.

Political agendas impact the budget for manufacturing industry, and research and development funding. For instance, the Australian government launched the $155 million Growth Fund in 2014, to provide funding to set up new manufacturing businesses in the states of South Australia and Victoriaxiii. The government also offers tax offset of upto 43.5% to companies investing in R&Dxiv. Developing countries have also started giving incentives to boost local manufacturing. Nigeria offers various incentives to companies to invest in the country’s packaging industry, including 3 years tax holiday, and 100% capital allowancexv.

Government intervention and bureaucracy, instability in government policies, and public unrest in some countries is causing delays to setup manufacturing plants, which affects the growth of this industry. Uncertain government policies and procedures can harm the growth of the plastic bags and pouches market.

Economic Developing countries, including India, China, and Brazil, are attracting investments in the FMCG, retail, and food and beverage manufacturing industries. This is mainly due to continued economic growth, positive demographic trends, reforms and initiatives by governments, policies inviting foreign investment, urbanization, increasing income levels, and comparatively cheap labor. These countries are witnessing changes in business models, reductions in bureaucracy and corruption, and promotion of private sector partnerships. For instance, in August 2017, American firm Sealed Air Corporation acquired Brazilian food packaging business, Deltaplam Embalagens Indústria e Comércio Ltda. Karl R. Deilyxvi. In January 2015, Huhtamaki, a Finnish global specialist in food packaging, acquired Positive Packaging, a growing Indian plastic packaging company for $336 million. The company has nine manufacturing facilities in India and the UAE. It also has significant business in Africaxvii.

“Our India revenues will double immediately after we acquire Positive Packaging. The transaction is in line with Huhtamaki’s global strategy to invest in fast growing emerging economies.”

Shashank Sinha, Executive VP, Flexible Packaging, Huhtamaki Group, as quoted in Livemint. xviii

In the forecast period, emerging countries are expected to witness 1) improvements in infrastructure 2) significant support for innovation 3) increase in foreign investments, thereby increasing the demand for plastic packaging films and sheets from these countries.

Social Socio-economic factors such as rising disposable income in many developed and developing countries and busy lifestyles is driving the demand for packaged and frozen foods, and food and beverage products. These industries widely use plastic pouches for packaging purposes.

However, growing concern and awareness over the harmful effects of plastic waste is increasingly repelling customers from plastic bags and pouches. End users, such as restaurants, retail stores, and shops, are increasingly demanding paper bags, cloth bags, and recyclable bags. This is due to growing pressure from government regulations as well as increasing company goodwill linked to environment safety measures. For instance, in January 2016, Walmart Canada started charging its customers 5 cents per plastic bag, in an effort to promote the use of reusable bags and reduce wastexix. The market for paper packaging material is expected to growth at a CAGR of 4.4% to 2020xx.

Technological The plastic bags and pouches industry is expected to be driven by advances in technologies such as digital printing and embellishing. These technologies are enabling plastic bags and pouches companies to optimize operations and reduce operational costs. Social media platforms and digital marketing technologies are also aiding plastic bag and pouches manufacturers to promote their services to diverse customers across the world. E-commerce platforms are also being widely used by plastics packaging companies to sell their products.

Companies, including HP, BOBST, and Radex are also developing digital lamination, printing, and digital embellishments solutions.xxi xxiiFor instance, ePac is researching the scope of digital printing technology for plastic bags and pouches. In September 2017, the company announced the establishment of a new plant in Los Angeles.xxiii In 2017, HP unveiled its HP Indigo WS6800 digital press. The company’s new range of digital printers can print pack ready bags and pouchesxxiv.

Legal Many national and state governments have stringent laws associated with plastic bags and pouches packaging and usage. For instance, France imposed a ban on single-use plastic bags in July 2016. According to the Environment Ministry, annually, the country used 17 billion plastic bagsxxv. Tougher laws include Kenya’s ban on plastic bag, which was imposed in August 2017. Production, selling, and using plastic bags can lead to imprisonment of up to four years or fines of $40,000xxvi.

Some of these regulations will lead to increase in operational costs, thereby affecting the profit margins of plastic bags and pouches manufacturers. Following the plastic ban in France, the food industry and retail outlets estimated an increase in cost by almost €300 million. This can be partially due to investment in alternative packaging solutions, such as biodegradable bags and paper bags. Moreover, manufacturers, distributors, and customers will also suffer from surplus inventory of plastic bags and pouchesxxvii.

A plastic bags and pouches manufacturer must undergo stringent and lengthy procedures for the approval of its product, especially in the food industry. Due to the tedious certification procedures in different countries, companies in the industry must face a long gestation period before sales start.

Environmental The rapid rise in air and water pollution levels, plastic waste, and harmful effects of plastic has led to public and private investment in bio-degradable plastic, waste management, and more environment friendly plastic.

Currently, close to one-third of the garbage produced every-day in the world consists of packaging. According to a report called The New Plastics Economy: Rethinking the Future of Plastics, published in January 2017, the plastic manufacturing industry produced 78 million metric tons of plastic packaging in 2013, out of which only approximately 2% was recycled into the high-value applications. It is estimated that an average plastic bag takes one second to be manufactured, it is used for roughly 20 minutes, and takes up to 400 years to degrade naturallyxxviii. Global plastic bag and pouch manufacturing companies are increasingly taking steps to reduce their carbon footprint while still manufacturing high quality packaging plastics. In 2016, The Ellen MacArthur Foundation launched the New Plastics Economy, a three-year initiative, which aims to bring together key stakeholders to re-think and re-design the future of plastic packagingxxix.

The environmental issues associated with disposal of non-biodegradable materials have led to the development of bioplastics. Bioplastics are plastics derived from renewable biomass sources including corn starch and vegetable oilsxxx. The market for bioplastics for packaging solutions is expected to increase in the forecast period.xxxi Growing popularity of bioplastics is expected to eventually reduce the demand for plastic bags and pouches.

Chapter 7

Plastics Bag and Pouch Market Segmentation

Chapter 7: Plastics Bag and Pouch Market Segmentation

Global Plastics Bag and Pouch Market, By Segment The chart and table below shows the split of the plastics bag and pouch market in 2016.

Figure 5 Global Plastics Bag and Pouch Market Share, By Segments, 2016 (%)

Plastic Pouches 43.3%

Plastic Bags 56.7%

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 3 Global Plastics Bag and Pouch Market, By Segments, 2016 (%/$ Millions)

Segment Segment Share Market Value (%) ($ Millions) Plastic Bags 56.7 10,724.8 Plastic Pouches 43.3 8,175.3 Total 100.0 18,900.1

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Plastic bags was the largest segment in the global plastics bag and pouch market with a 56.7% share of the market, worth $10.7 billion. The key factors that contributed to this were increasing demand for consumer goods and the rising disposable income of the urban population. High demand from food and beverages and retail industries were other key factors that contributed to plastic bags being the larger segment during 2016.

Plastic Pouches was the second largest segment with a 43.3% share of the plastics bag and pouch market. Key factors that contributed were consumers demanding for smaller, lightweight and transparent packaging. Advancements in pharmaceutical packaging and the constant high demand from the food and beverages industry were other factors that attributed to the market value.xxxii

Global Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Segment The chart and table below shows the plastics bag and pouch market historic and forecast growth rates by 2012-2020.

Figure 6 Global Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020

5.0%

4.5% Plastic Pouches 4.0%

3.5% Plastic Bags

3.0%

2.5%

2.0% Forecast Forecast CAGR 1.5%

1.0%

0.5%

0.0% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% Historic CAGR

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 4 Global Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020

Segment Historic CAGR% Forecast CAGR% 2012-2016 2016-2020 Plastic Pouches 3.5 4.7 Plastic Bags 2.8 3.6

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Plastic Pouches had the highest CAGR of 3.5% during 2012-2016; this segment is expected to grow at a CAGR of 4.7% during 2016-2020. Growing demand from end user sectors such as food and beverages, agriculture and construction among many will be the key attributors to the slight growth. Increasing disposable income and rising consumer demand for innovative packaging pouches that are lightweight and durable are other factors that will support the growth of the plastic pouches market during the forecasted period.

Plastic Bags had the second highest CAGR (compound annual growth rate) of 2.8% during 2012-2016; this segment is expected to grow at a CAGR of 3.6% during 2016-2020.

Global Plastics Bag and Pouch Market, 2016, By Type of Material The chart and table below shows the split of the plastics bag and pouch market by type of material in 2016.

Figure 7 Global Plastics Bag and Pouch Market Share, By Type of Material, 2016 (%)

Biodegradable 7.3%

Non-biodegradable 92.7%

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 5 Global Plastics Bag and Pouch Market, By Type of Material, 2016 (%/$ Millions)

Segment Share Market Value (%) ($ Millions) Non-biodegradable 92.7 17,526.3 Biodegradable 7.3 1,373.8 Total 100.0 18,900.1

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Non-biodegradable was the largest segment in the global plastics bag and pouch market by type of material with a 92.7% share of the market, worth $17.5 billion. Easy availability of conventional plastic bags and pouches, high demand from end user industries such as cosmetics, food and beverages, pharmaceuticals and home care were some of the key factors that contributed to the higher market value of non-biodegradable plastic bags and pouches.

Biodegradable was the second largest segment with a 7.3% share of the plastics bag and pouch market by type of material. Increased focus by the governments on minimizing the use of conventional plastic bags, awareness among consumers about the use of environment friendly plastics were the key factor that contributed to the market value.

Global Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Type of Material The chart and table below shows the plastics bag and pouch market historic and forecast growth rates by 2012-2020.

Figure 8 Global Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020

7.0%

6.0% Biodegradable 5.0%

Non-biodegradable 4.0%

3.0% Forecast Forecast CAGR 2.0%

1.0%

0.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% Historic CAGR

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 6 Global Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020

Historic CAGR% Forecast CAGR% 2012-2016 2016-2020 Biodegradable 5.2 6.2 Non-biodegradable 3.0 3.9

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Biodegradable had the highest CAGR of 5.2% during 2012-2016; this segment is expected to grow at a CAGR of 6.2% during 2016-2020. Rising concerns about the impact of non-biodegradable plastic bags and pouches on the environment and health will encourage countries to develop and switch to lighter and sustainable packaging such as biodegradable packaging. Advancements in manufacturing technologies to produce cost-effective and high-quality products will further support the growth of the market in the future.

Non-biodegradable had the second highest CAGR (compound annual growth rate) of 3.0% during 2012- 2016; this segment is expected to grow at a CAGR of 3.9% during 2016-2020.

Plastics Bag Manufacturing Market Market Characteristics The plastics bag manufacturing market comprises establishments involved in converting plastic resins into plastic bags that are used to contain and transport goods. Establishments in this industry may also print on the bags that they manufacture.

Different types of plastic bags include food storage bags, frozen food bags, grocery bags, merchandise bags, trash bags.

Plastic bag manufacturing companies procure raw materials such as polymers, plastic resins and additives from chemical and petrochemical companies. These materials are then converted into plastic formulations by blending or mixing polymers and additives into process ready pellets. This process is mostly followed by a molding or casting operation to obtain finished plastic bags. Customers of plastic bag manufacturing companies include food & beverage packaging and retail outlets.

Market Trends and Strategies Consolidation of Market The plastics bag and pouch manufacturing market has witnessed a significant increase in mergers and acquisitions over the last few years. Such collaborations are mainly aimed to increase product range or distributor network, and market share. For instance, in August 2016, leading plastic packaging manufacturer, Berry Plastics Group, Inc. acquired AEP Industries Inc. for $765 million.xxxiii In November 2016, Australia-based leading flexible packaging company, Amcor Limited, acquired US-based plastic packaging company, Sonoco Products Company, for $280 millionxxxiv xxxv. The company has six production facilities in the USA and one in Canada.

Large plastics bag and pouch manufacturing companies should consider acquiring smaller companies to diversify product portfolio and increase global reach of their products.

Biodegradable Plastic Bags With rising awareness about global warming and the effects of using harmful plastic bags, manufacturers are developing biodegradable plastic bags. Biodegradable plastic is made from petrochemicals and is manufactured in a way that the plastic begins decomposing in the presence of air, moisture and sunlight. Going forward, the market for biodegradable plastic bags and sacks is expected

to grow at a CAGR of 6.9% up till 2022. Rising research and developments in the manufacturing technologies of biodegradable plastic bags will not only result in high quality, but will also be more cost effective. An increasing number of flexible packaging manufactures are venturing into biodegradable plastic bags, including Novolex, Shabra Group, Xtex Polythene Ltd., and International Plastics Inc.

Plastics bag and pouch manufacturers should consider investing in the development and manufacture of biodegradable plastics to address growing environmental concerns.

Plastic Pouch Manufacturing Market Market Characteristics The plastic pouch manufacturing market comprises establishments that manufacture plastic pouches which are strong and durable and are used for the storage and transportation of foods, chemicals and other products. These pouches are manufactured from plastic resins by laminating multiple layers of scientifically-formulated plastic films.

Plastic pouches are used for packaging purposes where the product is to be protected from external environment such as dust, sunlight, moisture and others.

Plastic pouch manufacturing companies procure raw materials such as polymers, plastic resins and additives from chemical and petrochemical companies. These materials are then converted into plastic formulations by blending or mixing polymers and additives into process ready pellets. This process is followed by a molding or casting operation to obtain finished plastic pouches. Customers of plastic pouch manufacturing companies include food & beverage packaging, home and personal care, healthcare industries.

Market Trends and Strategies Self-Venting Microwavable Pouches Changing lifestyles and increasing demand for fast food has led to the development of self-venting microwavable pouches. These pouches have self-venting and steam release capabilities and can be used to heat food products without the need for microwavable dishes. Microwavable pouches also offer fast and even heating of food, and also protects the food from atmospheric pathogens.xxxvi For instance, Pace Ready Meals provides food products in self venting microwavable pouches that requires only a minute of microwave heating. Other brands offering food products in microwavable pouches include Tesco, Uncle Ben’s and others.xxxvii

Plastic pouch manufacturers should consider investing in the manufacture of microwavable pouches to cater to the increasing demand from fast food product companies.

Barrier Flexible Packaging Plastics bag and pouch manufacturers are increasingly investing in developing barrier flexible packaging for food and beverage products. Barrier packaging refers to the technology of preserving oxygen and creating a barrier against light, moisture, and gases for sensitive products such as personal care, milk, and chips.xxxviii Companies in the industry are researching and developing advanced barrier films. For instance, American company, Michelman, launched two new barrier films in 2017, namely, Michem Flex

Barrier 3510 and Michem Flex Barrier 1000. These are water-based flexible packaging coatings which are formulated to create a barrier for oxygen and mineral oil, thereby reducing the use of preservatives, chlorine, or other nanoparticles.xxxix xl

Plastic pouch manufacturing companies should consider investing in research and development of barrier flexible packaging products to cater to the growing demand.

Recycling and Waste Management Due to growing environmental concerns regarding the use of plastics and pollution caused by plastic waste, companies in the industry are investing in research and development to produce recyclable plastic bags and pouches. Governments across the globe are increasing regulations surrounding plastic waste generated by plastic bag and pouch manufacturers. Therefore, companies in this industry are increasing efforts to be more environment friendly to comply with growing regulations as well as boost the company’s goodwill amongst its customers. In September 2016, Dow Chemicals committed a total of $2.8 million over two years for waste management programs and promote recycling.xli In May 2016, Amcor joined the Ellen MacArthur Foundation’s New Plastics Economy initiative. The three-year initiative aims to advance the plastics value chain to reduce waste generatedxlii.

“Our packages are fully recyclable, and our paperboard is FSC [Forest Stewardship Council] certified, meaning that it comes from responsibly managed and certified forests. It is something we are extremely passionate about, we firmly believe we should take the lead on the sustainability and environmental agenda. We are in a position to shape the industry to create a better environment for the future.”

- Michael Zacka, Cluster VP of SEA and Oceania of Tetra Pak, quoted in CEO Magazine

Companies in the industry should work towards developing environmental-friendly plastic bags and pouches, and increase efforts to reduce waste generation to comply with government regulations and improve company image.

Chapter 8

Plastics Bag and Pouch Market: Regional and Country Analysis

Chapter 8: Plastics Bag and Pouch Market: Regional and Country Analysis

Global Plastics Bag and Pouch Market, 2016, By Region The chart and table below shows the split of the plastics bag and pouch by region in 2016.

Figure 9 Global Plastics Bag and Pouch Market Share, By Region, 2016 (%)

Middle East Africa 3.5% 2.8% South America 4.8% Western Europe Eastern Europe 31.9% 6.4%

Asia Pacific 24.8%

North America 25.9%

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 7 Global Plastics Bag and Pouch Market, By Region, 2016 (%/$ Millions)

Region Market Share Market Value (%) ($ Millions) Western Europe 31.9 6,020.8 North America 25.9 4,890.2 Asia Pacific 24.8 4,690.5 Eastern Europe 6.4 1,204.1 South America 4.8 899.4 Middle East 3.5 668.1 Africa 2.8 527.0 Total 100.0 18,900.1

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Western Europe was the largest region in the plastics bag and pouch market in 2016, accounting for $6 billion or 31.9% of the total.

North America was the second largest region, accounting for $4.9 billion or 25.9% of the total.

Asia Pacific was the third largest region accounting for $4.7 billion or 24.8% of the market.

Africa was the smallest region, accounting for $527 million or 2.8% of the market.

Global Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Region The chart and table below shows the plastics bag and pouch market historic and forecast growth rates by region 2012-2020.

Figure 10 Global Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Region, 2012-2020

7.0%

6.0%

Africa Middle East Asia Pacific 5.0% Eastern Europe 4.0% South America

North America 3.0% Western Europe

Forecast Forecast Growth Rate 2.0%

1.0%

0.0% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% Historic Growth Rate

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 8 Global Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Region, 2012-2020

Region Historic CAGR% Forecast CAGR% 2012-2016 2016-2020 Asia Pacific 4.0 5.8 North America 2.9 3.6 South America 3.2 4.2 Western Europe 2.9 2.7 Eastern Europe 2.3 4.9 Middle East 2.3 5.2 Africa 2.2 5.4

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Asia Pacific had the highest CAGR of 4.0 % during 2012-2016; this region is expected to grow at a CAGR of 5.8% during 2016-2020. Asia contains a range of fast growing nations where demand for consumer goods from an expanding middle class is driving the market.

South America had the second highest CAGR of 3.2% during 2012-2016; this region is expected to grow at a CAGR of 4.2% during 2016-2020.

Africa had the lowest CAGR of 2.2% during 2012-2016; this region is expected to grow at a CAGR of 5.4% during 2016-2020.

Global Plastics Bag and Pouch Market, 2016, By Country The chart and table below shows the plastics bag and pouch market by country in 2016.

Figure 11 Global Plastics Bag and Pouch Market Share, By Country, 2016 (%)

USA 17.6%

Others 34.5%

China 10.4%

UK Australia 6.2% 0.7% Brazil 2.0% Japan France 2.6% 6.1% Germany Russia Spain Italy India 2.7% 6.1% 3.3% 3.8% 3.9%

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 9 Global Plastics Bag and Pouch Market, By Country, 2016 (%/$ Millions)

Country Market Share Market Value (%) ($ Millions) USA 17.6 3,319.3 China 10.4 1,974.9 UK 6.2 1,169.5 France 6.1 1,156.1 Germany 6.1 1,152.9 India 3.9 746.3 Italy 3.8 725.7 Spain 3.3 623.7 Russia 2.7 515.5 Japan 2.6 482.5 Brazil 2.0 385.3 Australia 0.7 131.9 Others 34.5 6,516.5 Total 100.0 18,900.1

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

USA was the largest country in the plastics bag and pouch market in 2016, accounting for $3.3 billion or 17.6% of the total.

The China was the second largest country accounting for $2 billion or 10.4% market share.

UK was the third largest country accounting for $1.2 billion or 6.2% market share.

Of the featured countries, Australia was the lowest country accounting for $131.9 million or 0.7% market share.

Global Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Country The chart and table below shows plastics bag and pouch market historic and forecast growth rates by country 2012-2020.

Figure 12 Global Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Country, 2012-2020

8.0% India 7.0%

6.0% Russia 5.0% Brazil China 4.0% Australia UK USA 3.0% Italy France Forecast Forecast Growth Rate Germany 2.0% Spain 1.0% Japan

0.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% Historic Growth Rate

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 10 Global Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Country, 2012-2020

Country Historic CAGR% Forecast CAGR% 2012-2016 2016-2020 China 5.2 4.8 USA 3.0 3.5 Brazil 2.8 4.0 France 1.2 2.8 Japan 1.4 1.6 India 5.6 6.9 UK 4.2 3.6 Germany 4.3 2.8 Spain 3.8 2.1 Italy 5.0 3.1 Russia 2.2 5.0 Australia 1.8 4.0

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

India’s plastics bag and pouch market had the highest CAGR (compound annual growth rate) of 5.6% during 2012-2016; this country is expected to grow at a CAGR of 6.9% during 2016-2020. Strong growth of the consumer market and increased importance of the organized retail sector are the primary factors driving growth in this country.

The China had the second highest CAGR of 5.2% during 2012-2016; this country is expected to grow at a CAGR of 4.8% during 2016-2020.

The Italy had the third highest CAGR of 5.0% during 2012-2016; this country is expected to grow at a CAGR of 3.1% during 2016-2020.

France had the lowest CAGR of 1.2% during 2012-2016; this country is expected to grow at a CAGR of 2.8% during 2016-2020.

Chapter 9

Global Plastics Bag and Pouch Market Comparison with Macro Economic Factors

Chapter 9: Global Plastics Bag and Pouch Market Comparison with Macro Economic Factors

Global Plastics Bag and Pouch Market Size, Percentage Of GDP The chart below shows the historic and forecast percentage shares of the plastics bag and pouch in global GDP, which has remained stable.

Figure 13 Global Plastics Bag and Pouch Market Value, Market Size as A Percentage of Global GDP, 2012–2020 (%)

0.03%

0.02%

0.01%

0.00% 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 11 Global Plastics Bag and Pouch Market Size as A Percentage of Global GDP, 2012–2020

2012 2013 2014 2015 2016 2017 2018 2019 2020

Global Plastics Bag and Pouch 0.02 0.02 0.02 0.02 0.03 0.02 0.02 0.02 0.02 Market as A Percentage Of GDP

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

The global plastics bag and pouch market registered a compound annual growth rate (CAGR) of 3.1% from 2012 to 2016, while its percentage share in global GDP slightly increased from 0.023% to 0.025% during the same period.

During the forecast period, the global plastics bag and pouch share of global GDP is expected to decrease to 0.024% indicating that the global plastics bag and pouch market is expected to have a slightly slower growth rate than global GDP.

Global Plastics Bag and Pouch Market Size, Percentage Of GDP, By Country The chart and table below show global plastics bag and pouch market size as a percentage of GDP by country.

Figure 14 Global Plastics Bag and Pouch Market Size, Percentage of GDP, By Country, 2016 (%)

Japan

Australia

China

USA

Brazil

Germany

India

Italy

Russia

France

Spain

0.00% 0.01% 0.02% 0.03% 0.04% 0.05% 0.06%

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 12 Global Plastics Bag and Pouch Market Size, Percentage of GDP, By Country, 2016 (%)

Country Percentage of GDP Spain 0.05 France 0.05 UK 0.04 Russia 0.04 Italy 0.04 India 0.03 Germany 0.03 Brazil 0.02 USA 0.02 China 0.02 Australia 0.01 Japan 0.01

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Spain had the highest plastics bag and pouch market size as a percentage of GDP in 2016, accounting for 0.05% of country’s GDP.

France had the second highest plastics bag and pouch market size as a percentage of GDP in 2016, accounting for 0.046% of country’s GDP.

The UK had the third highest plastics bag and pouch market size as a percentage of GDP in 2016, accounting for 0.044% of country’s GDP.

Of the featured countries, Japan had the lowest plastics bag and pouch market size as a percentage of GDP in 2016, accounting for 0.01% of country’s GDP.

Global Per Capita Average Plastics Bag and Pouch Expenditure The chart and table below show global per capita average plastics bag and pouch market expenditure by year, which shows a gradual increase as more plastics bag and pouch is used per head of population, with the growth of the market slightly outstripping the growth of the population.

Figure 15 Global Per Capita Average Plastics Bag and Pouch Expenditure, 2012–2020 ($)

3.50

3.00

2.50

2.00 $ 1.50

1.00

0.50

0.00 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 13 Global Per Capita Average Plastics Bag and Pouch Expenditure, 2012–2020 ($)

2012 2013 2014 2015 2016 2017 2018 2019 2020

Per Capita 2.4 2.4 2.5 2.5 2.6 2.7 2.7 2.8 2.9 Consumption (USD $)

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Global per capita average plastics bag and pouch per annum grew from $2.4 in 2012 to $2.6 in 2016 at a CAGR of 1.94% and is expected to grow to $2.9 in 2020 at a CAGR of 2.9%.

Global Per Capita Average Plastics Bag and Pouch Expenditure, By Country The chart and table below show global per capita average plastics bag and pouch market expenditure by country.

Figure 16 Global Per Capita Average Plastics Bag and Pouch Expenditure, By Country, 2016 ($)

India China Brazil Russia Japan Australia USA Italy Spain Germany UK France

0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 20.00 $

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 14 Global Per Capita Average Plastics Bag and Pouch Expenditure, By Country, 2016 ($)

Country Per Capita ($) France 17.9 UK 17.8 Germany 14.0 Spain 13.5 Italy 11.9 USA 10.2 Australia 5.4 Japan 3.8 Russia 3.6 Brazil 1.9 China 1.4 India 0.6

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

France had the highest per capita average plastics bag and pouch expenditure in 2016, accounting for $17.9.

The UK had the second highest per capita average plastics bag and pouch expenditure in 2016, accounting for $17.8.

Germany had the third highest per capita average plastics bag and pouch expenditure in 2016, accounting for $14.

Of the featured countries, India had the lowest per capita average plastics bag and pouch expenditure in 2016, accounting for $0.6.

Chapter 10

Asia-Pacific Plastics Bag and Pouch Market

Chapter 10: Asia-Pacific Plastics Bag and Pouch Market

Asia-Pacific Plastics Bag and Pouch Market Overview Region Information Asia is the largest and most populated continent. According to the IMF, Asia’s total GDP was $25.3 trillion in 2016 accounting for 34.2% of $74 trillion global GDP in 2016xliii xliv. Asia accounts for around 60% of the global population. The huge population and large economy, and infrastructure spending makes Asia an attractive market for turbine and turbine generator units manufacturing.

Market Information Asia Pacific’s plastics bag and pouch market is the third largest in the world. It currently has about 24.8% share of the global plastics bag and pouch market. The market grew at a CAGR of 4.02% in the historic period and is expected to grow at a CAGR of 5.76% in the forecast period.

Growing demand for aseptic packaging in the Asia Pacific region will drive the market for plastics bag and pouch manufacturing market. Aseptic packaging refers to the process by which a sterile product, such as food or pharmaceutical is packaged in a sterile container. The expanding dairy industry, increased spending onfast and junk food, and growing demand for processed food and beverages in the region will drive the market for aseptic packaging plastic bags and pouches.xlv The region is also anticipated to be the key region driving overall demand for healthcare and hospital related sterile plastic packaging owing to the expanding medical tourism, rising demand for healthcare, increasing life-style related diseases, and growing consumer spending power. This includes a growing demand in medical packaging, medical implants sterile packaging, pharma packaging. Globally, plastic pouches & bags accounts for almost 53.1% of the overall medical and pharma packaging market and is expected to grow at a CAGR of 6.9% up to 2024. This will be mainly driven by developing countries such as India and China in the Asia Pacific region.xlvi

The plastics bag and pouch manufacturing market in Asia Pacific is further expected to grow due to the rising penetration of e-commerce. According to Frost & Sullivan, Asia's e-commerce market can expand by more than 30% in the next two years, to reach $960 billion by 2018. This will increase demand for plastic bags and pouches mainly used in packaging of goods. It has also opened up new routes of revenue for companies using plastic bags and pouches for packaging, thereby increasing overall revenues. xlvii

"Products that are manufactured are already packaged but when sold through e-commerce, they need to be individually re-packed and shrink-wrapped for transportation to end buyers. The increase in such 'secondary packaging' consumption has actually offset some of the demand lost due to the 'Green' issues such as the banning of plastic carrier-bags or reduction of polyethylene packaging products.”

JP Nah, Director Polyolefins, IHS Markit Chemical, as quoted in Plastemartxlviii

Background Information Asia Pacific is a large consumer of plastic bags. China consumes more than 1 trillion plastic bags a year. New Zealand, Singapore and Australia consume approximately 1 billion, 3 billion and 4 billion plastic bags, respectively, every year. Malaysia’s annual consumption of plastic bags is about 3 billion, while Indonesia consumes 10 billion plastic bags a year. Free plastic bags available at retail stores have encouraged customers in several Asian nations to request for or take extra plastic bags for domestic use, increasing consumption. Retail chains, such as New World and Countdown, in New Zealand banned using plastic bags in 2017 with several other retailers also expected to ban the use of plastic bags.xlixlliliiliii

Major End User Industries Plastic bags and pouches are utilized primarily for food storage, garbage disposal (domestic, services, hospitality and healthcare) and in retail industry in Asia Pacific. Plastic bag and pouches are also utilized by industrial packaging industry.

Investments in Plastic Bags and Pouches Manufacturing Market Major investments in Asia Pacific plastic bag and pouches market include • In April 2013, Thailand's DPAC, a regional plastic bag manufacturer, invested $5 million for a new plant in Yangon, Myanmar. The investment is intended to cater to the country’s rising demand and also to export to high-consuming countries like Japan.liv

Regulations Governing the Plastic Bags and Pouches Industry • Malaysia: Food Regulations of 1985, which implement the Food Act, is responsible for the general requirements required for safe packaging of food, and prohibits food packaging from rendering food injurious to human health or contributing to its deterioration. The regulations also include specific prohibitions on the use of packaging that imparts lead, antimony, arsenic, cadmium, or other toxic substances to food. As of 2011, retail customers in Malaysia’s Penang state are charged 20 sen per plastic bag. In 2017, Federal territories of Malaysia, including Kuala Lumpur, have banned the use of plastic bags.lv • Thailand: Ministerial Notification No. 295, B.E. 2548 (2005) specially applies to plastic food containers must be clean and free of germs and not emit any color to food. along with the additional requirement that plastic food containers cannot contain pathogenic microorganisms. It also specifies that plastic containers for milk and milk products must be made from polyethylene, ethylene, 1-alkene copolymerized resin, polypropylene, polystyrene, or polyethylene terephthalate. • South Korea: The subsection of Food Sanitation Act, on manufacturing standards also includes a prohibition of printing inks on the food-contact side of utensils, containers, and packaging, and specifies that printing inks applied to the non-food-contact side must be sufficiently dry to comply with certain migration limits. • Australia: All the states and territories of Australia, except New South Wales have imposed a ban on single-use plastic bags.lvi • Indonesia: The country is set to impose a ban on non-biodegradable plastic bags in order to eliminate them completely from the country’s market by 2019.lviilviii

Regulatory Bodies Major regulatory bodies governing the plastic bags and pouches industry in Asia Pacific include the Ministry of Environment, South Korea, Department of the Environment and Energy, Australia, Ministry of Environment and Forestry (Indonesia,) Department of Pollution Control of the Vietnam Environment Administration, Department of Environment of the Ministry of Natural Resources (Malaysia,) Ministry of Natural Resources and Environment (Thailand,) and Environmental Management Bureau (Philippines.)

Taxes and Duties Taxes levied on plastic bags and pouches (bought for domestic/commercial purposes) range from 6% in Malaysia, 7% in Thailand, to 10% in South Korea, Vietnam, Australia, and Indonesia, 18% in India and Japan, and 17% in China.lix lx lxi lxii

Plastic Bags and Pouches Machinery Manufacturers Associations Major associations that represent Asia Pacific plastic bags and pouches manufacturers include Thai Plastic Industry Association, Vietnam Plastics Association, Plastics and Chemicals Industries Association of Australia, Plastics New Zealand, Malaysian Plastics Manufacturers Association and The Indonesian Olefin, Aromatic and Plastic Industry Association (INAplas.)

Major Plastic Bags and Pouches Manufacturers Major companies in the Asia Pacific plastic bags and pouches market include Hanoi Plastic Bag JSC, Huhtamaki (Thailand,) King Pac, Da Nang Plastic Joint Stock Company, Dasaplast Nusantara, St Polymer Industries (M) Sdn Bhd, Naga Semut, CleanWrap, Siupak, JB Plastic Bags, and Poly Products Co.

Asia-Pacific Plastics Bag and Pouch Historic Market, 2012-2016 The chart and table below shows the year-on-year growth of the Asia plastics bag and pouch market during 2012-2016.

Figure 17 Asia-Pacific Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions)

5,000.0

4,500.0

4,000.0

3,500.0

3,000.0

2,500.0

$ Millions $ 2,000.0

1,500.0

1,000.0

500.0

- 2012 2013 2014 2015 2016

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 15 Asia-Pacific Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions)

2012 2013 2014 2015 2016 Historic CAGR% 2012-2016 Asia-Pacific Plastics Bag and Pouch 4,005.8 4,177.0 4,299.5 4,501.2 4,690.5 4.0 Market Size ($ Millions)

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Asia-Pacific plastics bag and pouch market grew from $4.0 billion in 2012 to $4.7 billion in 2016 at a compound annual growth rate (CAGR) of 4.0%.

Asia-Pacific Plastics Bag and Pouch Forecast Market, 2016-2020 The chart and table below shows the year-on-year growth of the Asia plastics bag and pouch market during 2016–2020.

Figure 18 Asia-Pacific Plastics Bag and Pouch Market, Forecast Market Size, 2016-2020 ($ Millions)

7,000.0

6,000.0

5,000.0

4,000.0

$ Millions $ 3,000.0

2,000.0

1,000.0

0.0 2016 2017 2018 2019 2020

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 16 Asia-Pacific Plastics Bag and Pouch Market, Forecast Market Size, Through 2020 ($ Millions)

Year 2016 2017 2018 2019 2020 Forecast CAGR% 2016-2020 Asia-Pacific Plastics Bag and Pouch 4,690.5 4,961.6 5,247.7 5,549.6 5,867.9 5.8 Market Size ($ Millions)

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Asia-Pacific plastics bag and pouch market is expected to grow from $4.7 billion in 2016 to $5.9 billion in 2020 at a compound annual growth rate (CAGR) of 5.8%.

Asia-Pacific Plastics Bag and Pouch Market, 2016, By Segment The chart and table below shows the split of the plastics bag and pouch market in 2016.

Figure 19 Asia-Pacific Plastics Bag and Pouch Market Share, By Segments, 2016 (%)

Plastic Pouches 43.7%

Plastic Bags 56.3%

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 17 Asia-Pacific Plastics Bag and Pouch Market, By Segments, 2016 (%/$ Millions)

Segment Market Share Market Value (%) ($ Millions) Plastic Bags 56.3 2,642.3

Plastic Pouches 43.7 2,048.2

Total 100.0 4,690.5

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Plastic Bags was the largest segment in the global plastics bag and pouch market with a 56.3% share of the market, worth $2.6 billion.

Plastic Pouches was the second largest segment with a 43.7% share of the plastics bag and pouch market.

Asia-Pacific Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Segment The chart and table below shows the plastics bag and pouch market historic and forecast growth rates by segment 2012-2020.

Figure 20 Asia-Pacific Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020

8.0%

7.0% Plastic Pouches 6.0%

5.0% Plastic Bags 4.0%

3.0% Forecast Forecast CAGR

2.0%

1.0%

0.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% Historic CAGR

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 18 Asia-Pacific Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020

Segment Historic CAGR% Forecast CAGR% 2012-2016 2016-2020 Plastic Pouches 5.1 7.2

Plastic Bags 3.2 4.6

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Plastic Pouches had the highest CAGR of 5.1% during 2012-2016; this segment is expected to grow at a CAGR of 7.2% during 2016-2020.

Plastic Bags had the second highest CAGR (compound annual growth rate) of 3.2% during 2012-2016; this segment is expected to grow at a CAGR of 4.6% during 2016-2020.

Asia-Pacific Plastics Bag and Pouch Market, 2016, By Type of Material The chart and table below shows the split of the plastics bag and pouch market by type of material in 2016.

Figure 21 Asia-Pacific Plastics Bag and Pouch Market Share, By Type of Material, 2016 (%)

Biodegradable 6.4%

Non-biodegradable 93.6%

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 19 Asia-Pacific Plastics Bag and Pouch Market, By Type of Material, 2016 (%/$ Millions)

Market Share Market Value (%) ($ Millions) Non-biodegradable 93.2 4,373.0 Biodegradable 6.8 317.5 Total 100.0 4,690.5

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Non-biodegradable was the largest segment in the global plastics bag and pouch market by type of material with a 93.2% share of the market, worth $4.4 billion.

Biodegradable was the second largest segment with a 6.8% share of the plastics bag and pouch market by type of material.

Asia-Pacific Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Type of Material The chart and table below shows the plastics bag and pouch market historic and forecast growth rates by 2012-2020.

Figure 22 Asia-Pacific Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020

9.0%

8.0% Biodegradable 7.0%

6.0% Non-biodegradable

5.0%

4.0%

Forecast Forecast CAGR 3.0%

2.0%

1.0%

0.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% Historic CAGR

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 20 Asia-Pacific Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020

Historic CAGR% Forecast CAGR% 2012-2016 2016-2020 Biodegradable 8.1 8.1 Non-biodegradable 3.8 5.6

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Biodegradable had the highest CAGR of 8.1% during 2012-2016; this segment is expected to grow at a CAGR of 8.1% during 2016-2020.

Non-biodegradable had the second highest CAGR (compound annual growth rate) of 3.8% during 2012- 2016; this segment is expected to grow at a CAGR of 5.6% during 2016-2020.

Chapter 11

Asia-Pacific Plastics Bag and Pouch Market: Country Analysis

Chapter 11: Asia-Pacific Plastics Bag and Pouch Market: Country Analysis

China Plastics Bag and Pouch Market China Plastics Bag and Pouch Market Overview Country Information China had the second highest GDP in the world worth about $11.4 trillion accounting for 15.3% in 74 trillion global GDP in 2016.lxiii China is the most populated country in the world with a population of 1.4 billion that accounts for 18.9% of the global population.lxiv

Market Information China’s plastics bag and pouch market is the second largest in the world. It currently has about 10.4% share of the global plastics bag and pouch market. The market grew at a CAGR of 5.15% in the historic period and is expected to grow at a CAGR of 4.8% in the forecast period.

Background Information China consumes more than 1 trillion plastic bags per year. Free plastic bags available at retail stores have encouraged Chinese customers to request for or take extra plastic bags for domestic use, increasing consumption. In 2014, China exported plastic sacks and bags worth $2.9 billion.lxv lxvi

Major End User Industries Plastic bags and pouches are utilized primarily for food storage and by the retail industry in China. Plastic bags and pouches are also utilized by industrial packaging industry.

Investments in Plastic Bags and Pouches Manufacturing Market Major investments in China plastic bag and pouches market include • In July 2013, Amcor acquired Jiangsu Shenda Group’s flexible packaging business in China for RMB350 million ($50 million). The acquisition intends to make Amcor a leading film manufacturer and converter in East China.lxvii • In December 2014, Amcor acquired China’s Zhongshan Tian Cai Packaging Company for RMB 211 million ($ 32 million.) Tian Cai produces flexible packaging products for food & beverage and pharmaceutical industries.lxviii

Regulations Governing the Plastic Bags and Pouches Industry In January 2008, China’s government imposed a ban on production, sales or use of plastic bags less than 25 microns thick. China has also made it mandatory for shops to stop issuing free plastic bags to consumers.lxixlxx

The Food Safety Law of the People's Republic of China governs the use of plastic bags in the food and beverage industry. The law prohibits use of plastic bags/pouched that do not comply with Chinese Food Safety Standard enacted by the Chinese Ministry of Health.lxxi

Regulatory Bodies Major regulatory bodies governing the plastic bags and pouches industry in China include the Ministry of Environmental Protection of the People's Republic of China.

Taxes and Duties A 17% tax is levied on plastic bags and pouches in China.lxxii

Plastic Bags and Pouches Machinery Manufacturers Associations Major associations that represent China’s plastic bags and pouches manufacturers include China Plastics Processing Industry Association.

Major Plastic Bags and Pouches Manufacturers Major companies in the Chinese plastic bags and pouches market include Universal Plastic & Metal Manufacturing Ltd., Hangzhou Dingsheng Packing Co., Rally Plastics Co Ltd., Tianjin Plastic Products Co., Shenzhen Asuwant Plastic Packaging. Shenzhen Zhengwang Plastic Products Co, and Dongguan Xinhai.

China Plastics Bag and Pouch Historic Market, 2012–2016 The chart and table below shows the year-on-year growth of the China plastics bag and pouch market during 2012-2016.

Figure 23 China Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions)

2,500.0

2,000.0

1,500.0

$ Millions $ 1,000.0

500.0

0.0 2012 2013 2014 2015 2016

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 21 China Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions)

2012 2013 2014 2015 2016 Historic CAGR% 2012-2016 China Plastics Bag and Pouch Market 1,615.3 1,730.2 1,804.6 1,923.2 1,974.9 5.2 Size ($ Millions)

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

China plastics bag and pouch market grew from $1.6 billion in 2012 to $2 billion in 2016 at a compound annual growth rate (CAGR) of 5.2%. This growth rate can be attributed to the increased per capita consumption of plastic in China due to the rise in spending. Moreover, rise of e-commerce and delivery services has also contributed for this growth.lxxiii

China Plastics Bag and Pouch Forecast Market, 2016-2020 The chart and table below shows the year-on-year growth of the China plastics bag and pouch market during 2016-2020.

Figure 24 China Plastics Bag and Pouch Market, Forecast Market Size, 2016-2020 ($ Millions)

3,000.0

2,500.0

2,000.0

1,500.0 $ Millions $

1,000.0

500.0

0.0 2016 2017 2018 2019 2020

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 22 China Plastics Bag and Pouch Market, Forecast Market Size, Through 2020 ($ Millions)

2016 2017 2018 2019 2020 Forecast CAGR% 2016-2020 China Plastics Bag and Pouch Market 1,974.9 2,059.3 2,161.3 2,267.3 2,382.0 4.8 Size ($ Millions)

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

China plastics bag and pouch market is expected to grow from $2 billion in 2016 to $2.4 billion in 2020 at a compound annual growth rate (CAGR) of 4.8%. This slight growth rate can be attributed to the expected increase in the demand of plastic bags in China due to changing lifestyle and increasing per capita income.lxxiv Moreover, manufacturers also investing in new technologies to satisfy the demand for convenience.lxxv

China Market Size, By Segment The chart and table below shows the split of the plastics bag and pouch market in 2016.

Figure 25 China Plastics Bag and Pouch Market Share, By Segments, 2016 (%)

Plastic Pouches 40.9%

Plastic Bags 59.1%

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 23 China Plastics Bag and Pouch Market, By Segments, 2016 (%/$ Millions)

Segment Market Share Market Value (%) ($ Millions) Plastic Bags 59.1 1,168.0

Plastic Pouches 40.9 806.9

Total 100.0 1,974.9

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Plastic Bags was the largest segment in the plastics bag and pouch market with a 59.1% share of the market, worth $1.2 billion.

Plastic Pouches was the second largest segment with a 40.9% share of the plastics bag and pouch market.

China Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Segment The chart and table below shows the plastics bag and pouch market historic and forecast growth rates by segment 2012-2020.

Figure 26 China Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020

8% Plastic Pouches 7%

Forecast Forecast CAGR 3% Plastic Bags 2%

0% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% Historic CAGR

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 24 China Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020 (%)

Segment Historic CAGR% Forecast CAGR% 2012-2016 2016-2020 Plastic Pouches 7.9 7.9

Plastic Bags 3.5 2.4

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Plastic Pouches had the highest CAGR (compound annual growth rate) of 7.9% during 2012-2016; this segment is expected to grow at a CAGR of 7.9% during 2016-2020.

Plastic Bags had a decline of 3.5% CAGR during 2012-2016; this segment is expected to grow at the fastest CAGR of 2.4% during 2016-2020.

China Plastics Bag and Pouch Market, 2016, By Type of Material The chart and table below shows the split of the plastics bag and pouch market by type of material in 2016.

Figure 27 China Plastics Bag and Pouch Market, By Type of Material, 2016 ($ Millions)

Biodegradable 5.6%

Non-biodegradable 94.4%

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 25 China Plastics Bag and Pouch Market, By Type of Material, 2016 (%/$ Millions)

Market Share Market Value (%) ($ Millions) Non-biodegradable 94.4 1,864.1 Biodegradable 5.6 110.8 Total 100 1,974.9

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Non-biodegradable was the largest segment in the global plastics bag and pouch market by type of material with a 94.4% share of the market, worth $1.9 billion.

Biodegradable was the second largest segment with a 5.6% share of the plastics bag and pouch market by type of material.

China Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Type of Material The chart and table below shows the plastics bag and pouch market historic and forecast growth rates by 2012-2020.

Figure 28 China Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020

7% Bio Degradable

4% Non-bio Degradable

Forecast Forecast CAGR 3%

0% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% Historic CAGR

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 26 China Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020

Historic CAGR% Forecast CAGR% 2012-2016 2016-2020 Biodegradable 8.3 7.8 Non-biodegradable 5.0 4.6 Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Biodegradable had the highest CAGR of 8.3% during 2012-2016; this segment is expected to grow at a CAGR of 7.8% during 2016-2020.

Non-biodegradable had the second highest CAGR (compound annual growth rate) of 5% during 2012- 2016; this segment is expected to grow at a CAGR of 4.6% during 2016-2020.

India Plastics Bag and Pouch Market India Plastics Bag and Pouch Market Overview Country Information India is the second most populated country in the world with a population of 1.3 billion that accounts for 18% of the global population in 2016.lxxvi According to the IMF and the World Bank, India is the third largest economy in Asia and the world’s third largest economy in terms of purchasing power parity.lxxvii In 2016, India had the seventh highest GDP in the world worth about $2.2 trillion and accounting for 3% of global GDP.lxxviii

Market Information India’s plastics bag and pouch market is the sixth largest in the world. It currently has about 3.9% share of the global plastics bag and pouch market. The market grew at a CAGR of 5.56% in the historic period and is expected to grow at a CAGR of 6.95% in the forecast period.

The plastic bag and pouch manufacturing market in India is expected to grow due to growing research into new product development and increase in domestic manufacturing. This is mainly due to the rising number of orders from the local market due to growing FMCG, retail, and food processing industries. However, fragmentation of the market by small and medium sized companies is likely to slightly hamper the growth of the market.

“We have developed several new projects and expanded our manufacturing footprints at strategic nodes to maintain proximity with our customers and offering just-in-time deliveries. Right now, one of our key strategies is to consolidate these assets and start going from a project-based thinking to a product-based approach. Uflex is now going through a shift wherein we are not looking to expand on a commodity

volume play. This is a paradigm shift and we would rather focus on expanding on the basis of the products and associated specialties.”

Anantshree Chaturvedi, Vice Chairman and Chief Executive Officer, Flex Films International, as quoted in company news release

India is the second most populous country but still characterized by a low penetration of plastic packaging. Almost 90% of consumer goods, including food products are sold unpackaged or loose. According to a report by FICCI and Tata Strategic Management Group, the per capita consumption of packaging in India is as low as 4.3kgs. The same is around 42kgs in developed countries like Germany and 71kgs in the USA. There is a huge scope for growth in the country’s untapped plastic packaging market. The report also forecasts that the flexible packaging industry is expected to grow at a CAGR of 25% in India. Growth in organized retail and boom in e-commerce, are expected to offer huge potential for future growth of plastics bag and pouch manufacturing market.lxxix lxxx

Major End User Industries Plastic bags and pouches are utilized primarily for food storage and by the retail industry in India. Plastic bag and pouches are also utilized by industrial and agricultural packaging industry.

Investments in Plastic Bags and Pouches Manufacturing Market Major investments in India plastic bag and pouches market include • In October 2013, UFLEX, an Indian plastic products manufacturer invested $400 million for expanding its manufacturing in new domestic and foreign locations.lxxxi • In October 2015, Uflex, a major flexible packaging company, invested Rs 15 billion ($230 million) for a new plant in Ahmedabad, India. The new plant will be built on 72 acres, and employ about 3,000 people. lxxxii • In March 2016, Emmbi Industries, a leading woven polyethylene and polypropylene manufacturer, invested Rs 100 million ($1.5 million) for a new plant at Silvassa to produce food and pharmaceutical grade FIBC (flexible intermediate bulk containers).lxxxiii • In December 2016, Scholle IPN invested in a 6,000 square meter modern production facility in Palghar, India to manufacture bag-in-box packaging products.lxxxiv

Advancements in Plastics Bag and Pouch Manufacturing Market • In June 2017, India’s largest flexible packaging materials company, Uflex Limited, developed and launched an Easy-Scoop-Lock-Tight Pitcher Bag. The plastic bag comes with 4 panels, reinforced handles, and a block bottom, allowing the bag to stand up without support. The bag is expected to have packaging applications for rice, sugar, pulses and pet foods. The company claims that the reinforced handle will increase manufacturing efficiency and cut costs, as compared to assembles/pasted handles.lxxxv

“These are medium to large sized bags capable of accommodating 3; 5 and 10 kilograms of the product. We have provided a laser perforated easy to tear opening on the side at the top of the bag which peels open to form a perfectly versatile pitcher mouth-opening that is re-closable by a special press to close (PTC) zipper. The end user can easily pour / scoop out desired quantity of the product by holding the bag with the reinforced side gusset handle without actually inserting hands inside the pack. This makes the

handling more convenient and hygienic. Further owing to the dispensing mouth that forms in the pouch there is no apprehension of any spillage while pouring out unlike other pillow and conventional pouches.

Mr. Jeevaraj Pillai, Joint President, Packaging and New Product Development, Uflex Limited, as quoted in Plastemartlxxxvi

Regulations Governing the Plastic Bags and Pouches Industry Major regulations governing the plastic bags and pouches industry in India include a government ban on use of coloring agents in virgin plastics bags, and a ban on manufacturing and selling of plastic bags less than 30 x 45 cm in size or less than 40 microns thick.lxxxvii

The Food Safety and Standards Act of 2006 governs the plastic food packaging materials market. Ten standards are set for various types of plastic materials used for packing foods and each should comply with the set standards.lxxxviii

Regulatory Bodies Major regulatory bodies governing the plastic bags and pouches industry in India are Food Safety and Standards Authority of India, Bureau of Indian Standards, and Central Pollution Control Board.

Taxes and Duties Taxes levied on plastic bags and pouches in India is 18%.lxxxix

Plastic Bags and Pouches Machinery Manufacturers Associations Major associations that represent India plastic bags and pouches manufacturers include Plastic Bag Manufacturers Association of India, All India Plastics Industries Association, and The All India Plastic Manufacturers' Association.

Major Plastic Bags and Pouches Manufacturers Major companies in the India plastic bags and pouches market include Arihant Packaging, Mayur Plastic Industries, Uflex and Emmbi Industries.

India Plastics Bag and Pouch Historic Market, 2012–2016 The chart and table below shows the year-on-year growth of the India plastics bag and pouch market during 2012-2016.

Figure 29 India Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions)

800.0

700.0

600.0

500.0

400.0 $ Millions $ 300.0

200.0

100.0

- 2012 2013 2014 2015 2016

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 27 India Plastics Bag and Pouch Market, Historic Market Size, Through 2016 ($ Millions)

2012 2013 2014 2015 2016 Historic CAGR% 2012-2016 India Plastics Bag and Pouch Market 601.1 633.7 664.5 705.6 746.3 5.6 Size ($ Millions)

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

India plastics bag and pouch market grew from $601.1 million in 2012 to $746.3 million in 2016 at a compound annual growth rate (CAGR) of 5.6%. Key factors contributing to the growth of the Indian plastic bags and pouches market were the economic reforms by the Indian Government to boost the

industry through investments, rising disposable income of people and consumer preference for packaged goods.xcxci

India Plastics Bag and Pouch Forecast Market, 2016–2020 The chart and table below shows the year-on-year growth of the India plastics bag and pouch market during 2016-2020.

Figure 30 India Plastics Bag and Pouch Market, Forecast Market Size, 2016-2020 ($ Millions)

1,200.0

1,000.0

800.0

600.0 $ Millions $

400.0

200.0

0.0 2016 2017 2018 2019 2020

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Office

Table 28 India Plastics Bag and Pouch Market, Forecast Market Size, Through 2020 ($ Millions)

2016 2017 2018 2019 2020 Forecast CAGR% 2016-2020 India Plastics Bag and Pouch Market 746.3 796.7 852.0 912.1 976.3 6.9 Size ($ Millions)

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

India plastics bag and pouch market is expected to grow from $746.3 million in 2016 to $976.3 million in 2020 at a compound annual growth rate (CAGR) of 6.9%. The Indian market for plastic bags and pouches is expected to see a growth during the forecasted period. Main attributors of the growth are most likely to be continued demand from end user industries such as food and beverages, retail and pharmaceuticals among many. Rising concerns about the use of non-biodegradable plastics and awareness about the benefits of using biodegradable plastics will further support the growth of the market during the forecasted period.

India Market Size, By Segment The chart and table below shows the split of the plastics bag and pouch market in 2016.

Figure 31 India Plastics Bag and Pouch Market Share, By Segments, 2016 (%)

Plastic Pouches 43.5%

Plastic Bags 56.5%

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 29 India Plastics Bag and Pouch Market, By Segments, 2016 ($ Millions)

Segment Market Value Market Share ($ Millions) (%) Plastic Bags 421.8 56.5

Plastic Pouches 324.5 43.5

Total 746.3 100.0

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Plastic Bags was the largest segment in the plastics bag and pouch market with a 56.5% share of the market, worth $421.8 million.

Plastic Pouches was the second largest segment with a 43.5% share of the plastics bag and pouch market.

India Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Segment The chart and table below shows the plastics bag and pouch market historic and forecast growth rates by segment 2012-2020.

Figure 32 India Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020

9.0%

8.0% Plastic Pouches 7.0% Plastic Bags 6.0%

5.0%

4.0%

Forecast Forecast CAGR 3.0%

2.0%

1.0%

0.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% Historic CAGR

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 30 India Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020

Segment Historic CAGR% Forecast CAGR% 2012-2016 2016-2020 Plastic Pouches 6.7 8.3

Plastic Bags 4.8 5.9

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Plastic Pouches had the highest CAGR (compound annual growth rate) of 6.7% during 2012-2016; this segment is expected to grow at a CAGR of 8.3% during 2016-2020.

Plastic Bags had the second highest CAGR of 4.8% during 2012-2016; this segment is expected to grow at a CAGR of 5.9% during 2016-2020.

India Plastics Bag and Pouch Market, 2016, By Type of Material The chart and table below shows the split of the plastics bag and pouch market by type of material in 2016.

Figure 33 India Plastics Bag and Pouch Market Share, By Type of Material, 2016 (%)

Biodegradable 12.5%

Non-biodegradable 87.5%

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 31 India Plastics Bag and Pouch Market, by Type of Material, 2016 (%/$ Millions)

Segment Market Share Market Value (%) ($ Millions) Non-biodegradable 91.3 681.3 Biodegradable 8.7 65.0 Total 100.0 746.3

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Non-biodegradable was the largest segment in the global plastics bag and pouch market by type of material with a 91.3% share of the market, worth $681.3 million.

Biodegradable was the second largest segment with 8.7% share of the plastics bag and pouch market by type of material.

India Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Type of Material The chart and table below shows the plastics bag and pouch market historic and forecast growth rates by 2012-2020.

Figure 34 India Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020

10.0%

9.0%

8.0% Biodegradable

7.0% Non-biodegradable 6.0%

5.0%

4.0% Forecast Forecast CAGR 3.0%

2.0%

1.0%

0.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% Historic CAGR

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 32 India Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020

Historic CAGR% Forecast CAGR% 2012-2016 2016-2020 Biodegradable 9.1 8.9 Non-biodegradable 5.2 6.8

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Biodegradable had the highest CAGR of 9.1% during 2012-2016; this segment is expected to grow at a CAGR of 8.9% during 2016-2020.

Non-biodegradable had the second highest CAGR (compound annual growth rate) of 5.2% during 2012- 2016; this segment is expected to grow at a CAGR of 6.8% during 2016-2020.

Japan Plastics Bag and Pouch Market Japan Plastics Bag and Pouch Market Overview Country Information Japan had the third highest GDP worth about $4.7 trillion accounting for 6.3% in $74 trillion global GDP in 2016. Japan’s major industries include manufacturing, construction, services and distribution and the economy is heavily reliant on manufacturing particularly automobiles and electronicsxcii.

Market Information Japan’s plastics bag and pouch market is the tenth largest in the world. It currently has about 2.6% share of the global plastics bag and pouch market. The market grew at a CAGR of 1.36% in the historic period and is expected to grow at a CAGR of 1.6% in the forecast period.

Background Information Japan’s high retail consumption of plastic bags is driven by typical use of separate plastic bags for various different food products. In 2016, Japan produced and consumed more than 1.1 million tons of soft plastic films and sheets for packaging, including plastic bags and pouches. After the Containers and Packaging Recycling Act of 2006, some retailers have begun charging for retail plastic bags, thereby reducing the plastic bag consumption. Japan’s online retailers are adopting online to offline integration model for merchandize purchased on e-stores to be delivered or picked up at a later time.xciii xcivxcv xcvi xcvii

Major End User Industries Plastic bags and pouches are utilized primarily for food storage and by the retail industry in Japan. Plastic bags and pouches are also utilized by industrial packaging industry. In 2015, Japan’s retail market other than food and beverage was 24 trillion yen ($196 billion).xcviii

Regulations Governing the Plastic Bags And Pouches Industry The Containers and Packaging Recycling Law of 1995, revision of 2006, requires large plastic waste producing retailers to restrict their plastic bag consumption. Shops are required to report to the government annually on the efforts undertaken by them to reduce plastic bag consumption. The shops are imposed fines if no steps are taken.xcixc

The plastic bags used for packaging food are governed by the Food Sanitation Law of 1947. The plastic bags that are to be used for food packaging must be non-toxic.ci

Regulatory Bodies Major regulatory bodies governing the plastic bags and pouches industry in Japan include the Ministry of the Environment, Government of Japan and The Japanese Ministry of Health, Labor, and Welfare (MHLW)—under the Pharmaceutical and Food Safety Bureau, Department of Food Safety, Standards and Evaluation Division.

Taxes and Duties An 8% tax is levied on plastic bags and pouches in Japan. cii

Plastic Bags and Pouches Machinery Manufacturers Associations Major associations that represent Japan’s plastic bags and pouches manufacturers include The Japan Plastics Industry Federation.

Major Plastic Bags and Pouches Manufacturers Major companies in the Japan plastic bags and pouches market include, Nihon Matai Co., Ohishi Sangyo Co., Sun A.Kaken Co., Superbag Co., (Japan,) Takigawa Corporation, Nagai Plastic Group and Okura Industrial Co.

Japan Plastics Bag and Pouch Historic Market, 2012–2016 The chart and table below shows the year-on-year growth of the Japan plastics bag and pouch market during 2012-2016.

Figure 35 Japan Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions)

600.0

500.0

400.0

300.0 $ Millions $

200.0

100.0

- 2012 2013 2014 2015 2016

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 33 Japan Plastics Bag and Pouch Market, Historic Market Size, Through 2016 ($ Millions)

2012 2013 2014 2015 2016 Historic CAGR% 2012-2016 Japan Plastics Bag and Pouch 457.1 483.5 455.5 438.1 482.5 1.4 Market Size ($ Millions)

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Japan plastics bag and pouch market grown from $457.1 million in 2012 to $482.5 million in 2016 at a compound annual growth rate (CAGR) of 1.4%. This stable growth rate can be attributed to the increased demand for quality and aesthetically pleasing type of packaging. Moreover, plastic has been replacing glass in packaging of food and beverages and beauty products.ciii

Japan Plastics Bag and Pouch Forecast Market, 2016–2020 The chart and table below shows the year-on-year growth of the Japan plastics bag and pouch market during 2016-2020.

Figure 36 Japan Plastics Bag and Pouch Market, Forecast Market Size, 2016-2020 ($ Millions)

520.0

515.0

510.0

505.0

500.0

495.0

490.0 $ Millions $ 485.0

480.0

475.0

470.0

465.0 2016 2017 2018 2019 2020

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 34 Japan Plastics Bag and Pouch Market, Forecast Market Size, Through 2020 ($ Millions)

2016 2017 2018 2019 2020 Forecast CAGR% 2016-2020 Japan Plastics Bag and Pouch 482.5 500.9 507.4 512.9 514.0 1.6 Market Size ($ Millions)

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Japan plastics bag and pouch market is expected to grow from $482.5 million in 2016 to $514.0 million in 2020 at a compound annual growth rate (CAGR) of 1.6%. Japan is expected to grow a stable rate during the forecasted period. The demand from skin care and make up sector is expected to drive the market in Japan due to the aging population. civ

Japan Market Size, By Segment The chart and table below shows the split of the plastics bag and pouch market in 2016.

Figure 37 Japan Plastics Bag and Pouch Market Share, By Segments, 2016 (%)

Plastic Pouches 33.1%

Plastic Bags 66.9%

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 35 Japan Plastics Bag and Pouch Market, By Segments, 2016 ($ Millions/%)

Segment Market Value Segment Share ($ Millions) (%) Plastic Bags 323.0 66.9

Plastic Pouches 159.5 33.1

Total 482.5 100.0

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Plastic Bags was the largest segment in the plastics bag and pouch market with a 66.9% share of the market, worth $323 million.

Plastic Pouches was the second largest segment with a 33.1% share of the plastics bag and pouch market.

Japan Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Segment The chart and table below shows the plastics bag and pouch market historic and forecast growth rates by segment 2012-2020.

Figure 38 Japan Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020

4% Plastic Pouches 4%

Forecast Forecast CAGR 2%

1% Plastic Bags 1%

0% 0% 1% 1% 2% 2% 3% Historic CAGR

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 36 Japan Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020

Segment Historic CAGR% Forecast CAGR% 2012-2016 2016-2020 Plastic Pouches 1.9 3.9

Plastic Bags 1.1 0.4

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Plastic Pouches had the highest CAGR (compound annual growth rate) of 1.9% during 2012-2016; this segment is expected to grow at a CAGR of 3.9% during 2016-2020.

Plastic Bags had the second highest CAGR of 1.1% during 2012-2016; this segment is expected to grow at a CAGR of 0.4% during 2016-2020.

Japan Plastic Bag and Pouch Market, 2016, By Type of Material The chart and table below shows the split of the plastics bag and pouch market by type of material in 2016.

Figure 39 Japan Plastic Bag and Pouch Market Share, by Type of Material, 2016 (%)

Biodegradable 5.1%

Non-biodegradable 94.9%

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 37 Japan Plastic Bag and Pouch Market, by Type of Material, 2016 (%/$ Millions)

Market Share Market Value (%) ($ Millions) Non-biodegradable 94.9 457.7 Biodegradable 5.1 24.8 Total 100.0 482.5

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Non-biodegradable was the largest segment in the global plastics bag and pouch market by type of material with a 94.9% share of the market, worth $457.7 million.

Biodegradable was the second largest segment with a 5.1% share of the plastics bag and pouch market by type of material.

Japan Plastic Bag and Pouch Market, 2012-2020, Historic and Forecast, By Type of Material The chart and table below shows the plastics bag and pouch market historic and forecast growth rates by 2012-2020.

Figure 40 Japan Plastic Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020

6.0%

5.0%

Biodegradable 4.0%

3.0%

Forecast Forecast CAGR 2.0%

Non-biodegradable 1.0%

0.0% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% 1.80% 2.00% Historic CAGR

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 38 Japan Plastic Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020

Historic CAGR% Forecast CAGR% 2012-2016 2016-2020 Biodegradable 1.7 4.8 Non-biodegradable 1.3 1.4

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Biodegradable had the highest CAGR of 1.7% during 2012-2016; this segment is expected to grow at a CAGR of 4.8% during 2016-2020.

Non-biodegradable had the second highest CAGR (compound annual growth rate) of 1.3% during 2012- 2016; this segment is expected to grow at a CAGR of 1.4% during 2016-2020.

Australia Plastics Bag and Pouch Market Australia Plastics Bag and Pouch Historic Market, 2012–2016 The chart and table below shows the year-on-year growth of the Australia plastics bag and pouch market during 2012-2016.

Figure 41 Australia Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions)

160

140

120

100

80 $ Millions $ 60

0 2012 2013 2014 2015 2016

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 39 Australia Plastics Bag and Pouch Market, Historic Market Size, Through 2016 ($ Millions)

2012 2013 2014 2015 2016 Historic CAGR% 2012-2016 Australia Plastics Bag and 122.7 146.9 140.5 127.7 131.9 1.8 Pouch Market Size ($ Millions)

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Australia plastics bag and pouch market declined from $122.7 billion in 2012 to $131.9 billion in 2016 at a compound annual growth rate (CAGR) of 1.8%. The plastic bags and pouches market grew at a stable

rate during the historic period. The key attributors for the growth was the demand from end user industries such as retail and food packaging.

Australia Plastics Bag and Pouch Forecast Market, 2016–2020 The chart and table below shows the year-on-year growth of the Australia plastics bag and pouch market during 2016-2020.

Figure 42 Australia Plastics Bag and Pouch Market, Forecast Market Size, 2016-2020 ($ Millions)

180

160

140

120

100

80 $ Millions $

0 2016 2017 2018 2019 2020

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 40 Australia Plastics Bag and Pouch Market, Forecast Market Size, Through 2020 ($ Millions)

2016 2017 2018 2019 2020 Forecast CAGR% 2016-2020 Australia Plastics Bag and 131.9 138.2 143.5 149 154.3 4.0 Pouch Market Size ($ Millions)

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Australia plastics bag and pouch market is expected to grow from $131.9 billion in 2016 to $154.3 million in 2020 at a compound annual growth rate (CAGR) of 4%. The slight growth in the plastic bags and pouches market in Australia will be attributed by factors such as high demand for stand up pouches in applications such as baby food, yogurt, wet dog food packaging and demand for smaller sized packaged products.cv

Australia Market Size, By Segment The chart and table below shows the split of the plastics bag and pouch market in 2016.

Figure 43 Australia Plastics Bag and Pouch Market Share, By Segments, 2016 (%)

Plastic Pouches 43.2%

Plastic Bags 56.8%

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 41 Australia Plastics Bag and Pouch Market, By Segments, 2016 (%/$ Millions)

Segment Market Value Market Share ($ Millions) (%) Plastic Bags 74.9 56.8

Plastic Pouches 57 43.2

Total 131.9 100.0

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Plastic Bags was the largest segment in the plastics bag and pouch market with a 56.8% share of the market, worth $74.9 million.

Plastic Pouches was the second largest segment with a 43.2% share of the plastics bag and pouch market.

Australia Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Segment The chart and table below shows the plastics bag and pouch market historic and forecast growth rates by segment 2012-2020.

Figure 44 Australia Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020

6.0%

Plastic Pouches 5.0%

4.0%

3.0% Plastic Bags

Forecast Forecast CAGR 2.0%

1.0%

0.0% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% Historic CAGR

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 42 Australia Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020

Segment Historic CAGR% Forecast CAGR% 2012-2016 2016-2020 Plastic Pouches 3.0 5.4

Plastic Bags 1.0 2.9

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Plastic Pouches had the highest CAGR (compound annual growth rate) of 3% during 2012-2016; this segment is expected to grow at a CAGR of 5.4% during 2016-2020.

Plastic Bags had the second highest CAGR of 1% during 2012-2016; this segment is expected to grow at a CAGR of 2.9% during 2016-2020.

Australia Plastics Bag and Pouch Market, 2016, By Type of Material The chart and table below shows the split of the plastics bag and pouch market by type of material in 2016.

Figure 45 Australia Plastics Bag and Pouch Market Share, by Type of Material, 2016 (%)

Biodegradable 7.7%

Non-biodegradable 92.3%

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 43 Australia Plastics Bag and Pouch Market, by Type of Material, 2016 (%/$ Millions)

Market Share Market Value (%) ($ Millions) Non-biodegradable 92.3 121.7 Biodegradable 7.7 10.2 Total 100 131.9

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Non-biodegradable was the largest segment in the global plastics bag and pouch market by type of material with a 92.3% share of the market, worth $121.7 million.

Biodegradable was the second largest segment with a 7.7% share of the plastics bag and pouch market by type of material.

Australia Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Type of Material The chart and table below shows the plastics bag and pouch market historic and forecast growth rates by 2012-2020.

Figure 46 Australia Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020

7.0%

6.0% Biodegradable

5.0%

4.0% Non-biodegradable

3.0% Forecast Forecast CAGR 2.0%

1.0%

0.0% 0% 1% 2% 3% 4% 5% 6% Historic CAGR

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 44 Australia Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020

Historic CAGR% Forecast CAGR% 2012-2016 2016-2020 Biodegradable 4.9 6.2 Non-biodegradable 1.6 3.8

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Biodegradable had the highest CAGR of 4.9% during 2012-2016; this segment is expected to grow at a CAGR of 6.2% during 2016-2020.

Non-biodegradable had the second highest CAGR (compound annual growth rate) of 1.6% during 2012- 2016; this segment is expected to grow at a CAGR of 3.8% during 2016-2020.

Chapter 12

Western Europe Plastics Bag and Pouch Market

Chapter 12: Western Europe Plastics Bag and Pouch Market

Western Europe Plastics Bag and Pouch Market Overview Region Information Western Europe’s total GDP was $16 trillion accounting for 22% of $74 trillion global GDP in 2016, according to IMF. The region’s GDP is expected to grow at a CAGR of 3.2% during 2016-2020. Western Europe had a population of around 419 million in 2016. Major countries in Western Europe include the UK, Germany, France, Italy and Spain.

Market Information Western Europe’s plastics bag and pouch market was the largest in the world. It currently has about 31.9% share of the global plastics bag and pouch market. The market in Western Europe grew at a CAGR of 2.94% in the historic period and is expected to grow at a CAGR of 2.7% in the forecast period.

Western Europe accounts for the largest regions in global vacuum packaging market, totaling around 32.4%cvi. This is mainly due to increasing regulations to minimize plastic waste, because vacuum packaging requires significantly lower amount of plastic material. Moreover, growing concern over pharmaceutical, healthcare supplies, and quality of food and beverages is driving the market in Western Europe. Increasing research into modified atmosphere plastic packaging will further drive the market in the region. This allows the removal of air from inside a package and replacement of it with a mixture of gases that function as protective agents, thereby also helping in increasing the shelf-life and maintaining product quality.cvii

Changing lifestyles, rising health concerns, and growing urbanization observed across all European countries is expected to trigger an increase in use of garbage bags. According to Future Market Insights’, Europe consumed garbage bags worth $ 1.5 billion in 2016. This is estimated to rise at a CAGR of 5%, reaching $2.5 billion by 2026. Biodegradable HDPE garbage bags is likely to drive the demand for garbage bags across the region. This is partially due to the rising waste management policies in Europe, high disposable income, and increasing demand for convenient and cost-effective garbage bags. UK, Germany, France, and Italy are expected to be the main drivers of the garbage bags segment in the region.cviii

However, saturation in the plastic bags and pouches market in terms of research and technology will result in slight slowdown in the industry. Growing environmental protection regulations and laws will further hamper the growth of the market.

Background Information According to the EU Commission, around 200 plastic bags are used per person annually in the region.cix

In Germany, average consumption is around 70 bags per person each year.cx

According to France’s Environment Ministry, approximately 17 billion plastic bags are used every year and nearly 5 billion of these bags are handed out at check-outs and 12 billion are from fruit and vegetables groceries.cxi

Belgium’s consumers use more than 1 billion plastic bags or about 98 bags per person every year.cxii

In 2014, nearly 930 million plastic bags were consumed in Norway. It is around 180 plastic bags per person.cxiii

Major End User Industries Plastic bag and pouches are mainly used in Western Europe by end user industries such as, retail and food & beverages industries.

Investments in Plastic Bag and Pouch Manufacturing Market Major investments in Western European plastic bag and pouch manufacturing market will likely drive the market in the forecast period. • In 2016, Constantia Flexibles invested EUR 4 million to increase production capacity at its manufacturing site in Weiden, Germany. The investment is aimed to increase supply for confectionary customers in Europe.cxiv • In December 2015, Sonoco invested $7.1 million, this investment was to increase production capacity and environmental capacity at consumer packaging plant near Leipzig, Germany.cxv • In Dec 2015, Bischof + Klein, Packaging and film manufacturer invested EUR 35 million in its German plants. The company is installing a new extrusion coating line at its headquarters in Lengerich, Germany.cxvi • In July 2017, Albis Plastic GmbH, a Germany-based plastic packaging manufacturer, expanded its healthcare product portfolio with a number of new products particularly suited for use in medical devices, pharmaceuticals, and laboratories.cxvii

Regulations Governing the Plastic Bag and Pouch Manufacturing Industry Major regulations governing the plastic bag and pouch manufacturing industry Western Europe include:

• In November 2014, the European Union (EU) member states agreed to reduce consumption of lightweight plastic bags to 40 bags per person, per year, by 2025. National governments are looking at two alternatives, either reduce average lightweight plastic bags consumption to 90 bags by 2019 and 40 by 2025, or charge a price per bag per person by 2018.cxviii

• The EU Chemicals Policy, known as REACH (Registration, Evaluation and Authorization of Chemicals) 2007 (EC1907/2006). The law applies to all chemical companies doing business in or exporting to Europe. The purpose of this regulation is to ensure a high level of protection of human health and the environment.cxix

• Regulation (EC) No 1935/2004, the regulation was passed by the European Parliament and the Council of the European Union on 27th October 2004. The law prohibits hazardous materials to come in contact with food or to bring about an unacceptable change in the composition of the food or a deterioration in its organoleptic properties.cxx

• Regulation (EU) No 10/2011, the European Union passed this regulation on 14th January 2011. This regulation measures the specific rules for plastic materials and articles to be applied for their safe use and repeal that come into contact with foodstuff.cxxi

• According to the French law, bags with a capacity “smaller than 10 liters and with a thickness less than 50 microns” are banned.cxxii

• The Government of Germany has not initiated any economic measures to reduce production or consumption of plastic bags. The government signed an agreement with retail stores to curb the usage of plastic bags. Most grocery stores charge consumers up to EUR 25 cents per bag to cover supply. cxxiii

• The Swiss Food Contact Materials (FCM) Law was drafted in 2016 and encompasses the regulation of all materials, including plastics, intended to come into contact with food.cxxiv

• The European Commission enacted many measures to reduce plastic bag usage and limit its negative impacts on the environment. The European Parliament passed a law on 28th April 2015 to drastically cut down on single-use plastic bags. The EU consumption of thin plastic bags, defined as having a thickness of below 50 microns (0.05 millimeters). cxxv cxxvi

• In 2012, the Swiss Parliament prohibited the distribution of single-use plastic bags. The Switzerland’s main supermarkets to charge CHF0.05 ($0.05) per plastic bag has led to demand plummeting by around 80%. Switzerland’s major retail and wholesale company, Coop says it has been able to save 850 tons of plastic a year.cxxvii

Regulatory Bodies Major regulatory bodies governing the plastic bag and pouch manufacturing market in Western Europe include the European Food Safety Authority (EFSA), Department of Communications, Climate Action and Environment (Ireland) and the German Federal Environment Agency (UBA).

Taxes and Duties The UK imposes a five pence tax on plastic bags, France charges between 2 pence and 42 pence for reusable bags. Ireland imposes a tax of EUR 0.22 and Spain levies a tax of 10% per plastic bag.

The government of Belgium imposes a combination of tax on disposable plastic bags charged on both producers and retailers at €3 per kg of plastic bags.cxxviii

The Norway government has not imposed any tax on plastic bags, but environmental tax of .5 krone is charged per plastic bag.cxxix

Plastic Bag and Pouch Manufacturers Associations Major associations that govern Western European’s plastic bag and pouch manufacturers include the Association of Plastics Manufacturers in Europe (APME), Plastics Ireland, and UK’s British Plastics Federation (BPF).

Major Plastic Bag and Pouch Manufacturers Major companies in the Western European plastic bag and pouch manufacturing market include DaklaPacks Group, Mondi, Plaset S.L., Bischof + Klein SE & Co. KG, and Goglio S.p.A.

Western Europe Plastics Bag and Pouch Historic Market, 2012–2016 The chart and table below shows the year-on-year growth of the Western Europe plastics bag and pouch market during 2012-2016.

Figure 47 Western Europe Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions)

7,000.0

6,000.0

5,000.0

4,000.0

$ Millions $ 3,000.0

2,000.0

1,000.0

0.0 2012 2013 2014 2015 2016

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 45 Western Europe Plastics Bag and Pouch Market, Historic Market Size, through 2016 ($ Millions)

2012 2013 2014 2015 2016 Historic CAGR% 2012-2016 Western Europe Plastics Bag 5,362.8 5,492.9 5,781.4 5,871.6 6,020.8 2.9 and Pouch Market Size ($ Millions)

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Western Europe plastics bag and pouch market grew from $5.4 billion in 2012 to $6 billion in 2016 at a compound annual growth rate (CAGR) of 2.9%.

Western Europe Plastics Bag and Pouch Forecast Market, 2016–2020 The chart and table below shows the year-on-year growth of the Western Europe plastics bag and pouch market during 2016-2020.

Figure 48 Western Europe Plastics Bag and Pouch Market, Forecast Market Size, 2016-2020 ($ Millions)

6,800.0

6,600.0

6,400.0

6,200.0 $ Millions $

6,000.0

5,800.0

5,600.0 2016 2017 2018 2019 2020

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 46 Western Europe Plastics Bag and Pouch Market, Forecast Market Size, through 2020 ($ Millions)

2016 2017 2018 2019 2020 Forecast CAGR% 2016-2020 Western Europe Plastics Bag 6,020.8 6,186.7 6,356.3 6,529.6 6,706.8 2.7 and Pouch Market Size ($ Millions)

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Western Europe plastics bag and pouch market is expected to grow from $6 billion in 2016 to $6.7 billion in 2020 at a compound annual growth rate (CAGR) of 2.7%.

Western Europe Market Size, By Segment The chart and table below shows the split of the plastics bag and pouch market in 2016.

Figure 49 Western Europe Plastics Bag and Pouch Market Share, By Segments, 2016 (%)

Plastic Pouches 32.4%

Plastic Bags 67.6%

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 47 Western Europe Plastics Bag and Pouch Market, By Segments, 2016 ($ Millions/%)

Segment Market Value Market Share ($ Millions) (%) Plastic Bags 4,071.4 67.6

Plastic Pouches 1,949.4 32.4

Total 6,020.8 100.0

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Plastic Bags was the largest segment in the plastics bag and pouch market with a 67.6% share of the market, worth $4.1 billion.

Plastic Pouches was the second largest segment with a 32.4% share of the plastics bag and pouch market.

Western Europe Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Segment The chart and table below shows the plastics bag and pouch market historic and forecast growth rates by segment 2012-2020.

Figure 50 Western Europe Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020

3.0%

3.0% Plastic Pouches 2.9%

2.9%

2.8%

2.8% Forecast Forecast CAGR

2.7%

2.7% Plastic Bags

2.6% 2.8% 2.8% 2.9% 2.9% 3.0% 3.0% 3.1% Historic CAGR

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 48 Western Europe Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020

Segment Historic CAGR% Forecast CAGR% 2012-2016 2016-2020 Plastic Pouches 2.8 3.0

Plastic Bags 3.0 2.6

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Plastic Bags had the highest CAGR (compound annual growth rate) of 3% during 2012-2016; this segment is expected to grow at a CAGR of 2.6% during 2016-2020.

Plastic Pouches had a second highest CAGR of 2.8% during 2012-2016; this segment is expected to grow at the CAGR of 3% during 2016-2020.

Western Europe Plastics Bag and Pouch Market, 2016, By Type of Material The chart and table below shows the split of the plastics bag and pouch market by type of material in 2016.

Figure 51 Western Europe Plastics Bag and Pouch Market Share, by Type of Material, 2016 (%)

Biodegradable 6.1%

Non-biodegradable 93.9%

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 49 Western Europe Plastics Bag and Pouch Market, by Type of Material, 2016 (%/$ Millions)

Market Share Market Value (%) ($ Millions) Non-biodegradable 93.9 5,654.1 Biodegradable 6.1 366.7 Total 100.0 6,020.8

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Non-biodegradable was the largest segment in the global plastics bag and pouch market by type of material with a 93.9% share of the market, worth $5.7 billion.

Biodegradable was the second largest segment with a 6.1% share of the plastics bag and pouch market by type of material.

Western Europe Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Type of Material The chart and table below shows the plastics bag and pouch market historic and forecast growth rates by 2012-2020.

Figure 52 Western Europe Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020

4.5%

4.0% Biodegradable 3.5%

3.0%

2.5% Non-biodegradable

2.0%

Forecast Forecast CAGR 1.5%

1.0%

0.5%

0.0% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% Historic CAGR

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 50 Western Europe Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020

Historic CAGR% Forecast CAGR% 2012-2016 2016-2020 Biodegradable 3.8 4.0 Non-biodegradable 2.9 2.7

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Biodegradable had the highest CAGR of 3.8% during 2012-2016; this segment is expected to grow at a CAGR of 4% during 2016-2020.

Non-biodegradable had the second highest CAGR (compound annual growth rate) of 2.9% during 2012- 2016; this segment is expected to grow at a CAGR of 2.7% during 2016-2020.

Chapter 13

Western Europe Plastics Bag and Pouch Market: Country Analysis

Chapter 13: Western Europe Plastics Bag and Pouch Market: Country Analysis

UK Plastics Bag and Pouch Market UK Plastics Bag and Pouch Market Overview Country Information The UK had the fifth highest GDP in the world worth about $2.6 trillion accounting for 3.5% of global GDP in 2016.cxxx The UK is the twenty second most populated country with a population of 65 million that accounts for 0.8% of the global population.cxxxi About 18% of the UK’s population were senior citizens (above 65 years old)cxxxii and the average life expectancy rate was 81 years.cxxxiii

Market Information The UK plastics bag and pouch market was the third largest in the world. It currently has about 6.2% share of the global plastics bag and pouch market. The market in the UK grew at a CAGR of 4.16% in the historic period and is expected to grow at a CAGR of 3.63% in the forecast period.

The market is expected to experience some volatility as a result of the BREXIT. While local manufacturing is expected to grow, the falling power of the British Pound will result in costlier imports of raw materials.cxxxiv

“The fallout from Brexit – including a weak pound and potential disruption to supply chains – means that many UK companies are starting to think about reversing the offshoring trend and bringing manufacturing back to the UK. By moving production to the UK, it eliminates the need to pay rising costs required by overseas suppliers and we’re starting to see this move bring new business opportunities in the print and packaging industry.”

Paul Neath, Director, Skymark, as quoted in Skymark press release

Background Information Every year over 7.6 billion plastic bags are handed out by supermarkets in the UKcxxxv. Large retailers in England sold 2.1 billion single-use plastic carrier bags during the year from 7 April 2016 to 6 April 2017. Out of the total, the 7 main retailers (Asda, Marks and Spencer’s, Sainsbury, Tesco, The Co-operative Group, Waitrose and Morrisons) sold around 1 .3 billion single-use plastic carrier bags. cxxxvi

Major End User Industries Plastic bags and pouches are majorly utilized by the packaging industry, retail stores, food manufacturing and processing industry, frozen food in UK.

According to the British Independent Retailers Association (Bira), the retail stores grew by 414 shops in the first three months of 2017, or around four new stores per day. This figure is compared to a net increase of just four shops in the first half of 2016 and a decline of 194 shops in the first half of 2015.cxxxvii

Investments in Plastic Bags and Pouches Industry • In January 2016, the French-based flexible packaging manufacturer, UNI Packaging, invested GBP 1.5 million ($2.03 million) to open a new manufacturing facility at Lancashire. The investment is expected to boost UK’s market share in the high quality flexible packaging market.cxxxviii • In February 2016, the UK based, Clifton Packaging Group, invested GBP 3 million ($4.06 million) to acquire new machinery to boost its production.cxxxix

Regulations Governing the Plastic Bag and Pouch Manufacturing Industry • Major regulations governing the plastic bags and pouches industry in the UK include Directive on Packaging and Packaging Waste (94/62/EC), Packaging (Essential Requirements) Regulations, Producer Responsibility Obligations. cxl cxli • The UK’s Department for Environment Food & Rural Affairs passed the 5P legislation. Under the law, large shops and businesses will charge £5 from customers for every plastic bag. It was passed 2011 in Wales, in 2013 in Northern Ireland, 2014 in Scotland, and in October 2015 in England. Under the legislation, retailers with more than 250 full time equivalent employees need to charge 5 pence on single use plastic carrier bags. The amount collected by applying this law will be used for good cause, litter cleanup cost and carbon savings. The use of the plastic carrier bags has been reduced by 80% this year. cxlii • According to the Producer Responsibility Obligations (Packaging Waste) Regulations 2007, manufacturers of packaging are required to pay for the recycling of waste packaging by purchasing Packaging Waste Recovery Notes (PRN) or Packaging Waste Export Recovery Notes (PERN) from recyclers and re-processors. Manufacturers are required to meet recycling targets set by the government each year.cxliii • The Packaging (Essential Requirements) Regulations (1998) govern the manufacture and composition of packaging along with the reusable and recoverable nature of the packaging. The Essential Requirements mandate that the packaging must be reusable or recoverable through recycling, incineration with energy recovery, composting or biodegradation.cxliv • Every manufacturer of plastic bags and pouches should follow the Commission Regulation (EU) No 10/2011 of 14 January 2011 (plastic materials and articles intended to come into contact with food) during production.cxlv

Regulatory Bodies Major regulatory bodies governing the plastic bag and pouch manufacturing industry in the UK include BPF Product Safety Committee: REACH and Regulatory Issues and Department for Environmental Food and Rural Affairs.

Taxes and Duties The UK levies standard VAT rates of 20% on plastic bags and pouches.cxlvi

Plastic Bag and Pouch Manufacturers Associations The British Plastic Federation (BPF), the Plastics Industry Association(PIA), Oxo-Biodegradable Plastics Association are major associations that represent UK’s plastic bag and pouch manufacturers.

Major Plastic Bag and Pouch Manufacturers Major companies in the UK plastic bags and pouches manufacturing market include Xtex Polythene Ltd., AbbeyPolythene, polybags, Polythene UK Ltd, Shirlplass, Cransford Polythene Ltd., Plasmech Packing and oversolve.

UK Plastics Bag and Pouch Historic Market, 2012 – 2016 The chart and table below shows the year-on-year growth of the UK plastics bag and pouch market during 2012-2016.

Figure 53 UK Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions)

1,400.0

1,200.0

1,000.0

800.0

$ Millions $ 600.0

400.0

200.0

0.0 2012 2013 2014 2015 2016

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 51 UK Plastics Bag and Pouch Market, Historic Market Size, Through 2016 ($ Millions)

2012 2013 2014 2015 2016 Historic CAGR% 2012-2016 UK Plastics Bag and Pouch 993.7 1,073.7 1,200.5 1,128.6 1,169.5 4.2 Market Size ($ Millions)

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

The UK plastics bag and pouch market grew from $993.7 million in 2012 to $1.2 billion in 2016 at a compound annual growth rate (CAGR) of 4.2%. Lower rates of recycling and growing demand from end user industries such as pharmaceuticals, food and beverage and cosmetics were some of the main factors that attributed to the slight growth of the market. cxlvii

UK Plastics Bag and Pouch Forecast Market, 2016–2020 The chart and table below shows the year-on-year growth of the UK plastics bag and pouch market during 2016-2020.

Figure 54 UK Plastics Bag and Pouch Market, Forecast Market Size, 2016-2020 ($ Millions)

1,600.0

1,400.0

1,200.0

1,000.0

800.0 $ Millions $ 600.0

400.0

200.0

0.0 2016 2017 2018 2019 2020

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 52 UK Plastics Bag and Pouch Market, Forecast Market Size, Through 2020 ($ Millions)

2016 2017 2018 2019 2020 Forecast CAGR% 2016-2020 UK Plastics Bag and Pouch 1,169.5 1,212.0 1,256.0 1,301.6 1,348.8 3.6 Market Size ($ Millions)

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

The UK plastics bag and pouch market is expected to grow from $1.2 billion in 2016 to $1.3 billion in 2020 at a compound annual growth rate (CAGR) of 3.6%. The slight growth of the plastic bags and pouches market during the forecasted period will be attributed from factors such as growing demand from the food products industry and innovations in the industry such as the use of composite and biodegradable plastics.cxlviii

UK Market Size, By Segment The chart and table below shows the split of the plastics bag and pouch market in 2016.

Figure 55 UK Plastics Bag and Pouch Market Share, By Segments, 2016 (%)

Plastic Pouches 26.6%

Plastic Bags 73.4%

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 53 UK Plastics Bag and Pouch Market, By Segments, 2016 ($ Millions/%)

Segment Market Value Market Share ($ Millions) (%) Plastic Bags 858.3 73.4

Plastic Pouches 311.2 26.6

Total 1,169.5 100.0

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Plastic Bags was the largest segment in the plastics bag and pouch market with a 73.4% share of the market, worth $858.3 million.

Plastic Pouches was the second largest segment with a 26.6% share of the plastics bag and pouch market.

UK Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Segment The chart and table below shows the plastics bag and pouch market historic and forecast growth rates by segment 2012-2020.

Figure 56 UK Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020

4% Plastic Bags

3% Plastic Pouches

Forecast Forecast CAGR 2%

0% 0% 1% 1% 2% 2% 3% 3% 4% 4% 5% 5% Historic CAGR

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 54 UK Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020

Segment Historic CAGR% Forecast CAGR% 2012-2016 2016-2020 Plastic Pouches 3.5 2.7

Plastic Bags 4.4 4.0

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Plastic Bags had the highest CAGR (compound annual growth rate) of 4.4% during 2012-2016; this segment is expected to grow at a CAGR of 4% during 2016-2020.

Plastic Pouches had the second highest CAGR of 3.5% during 2012-2016; this segment is expected to grow at the highest CAGR of 2.7% during 2016-2020.

UK Plastics Bag and Pouch Market, 2016, By Type of Material The chart and table below shows the split of the plastics bag and pouch market by type of material in 2016.

Figure 57 UK Plastics Bag and Pouch Market Share, by Type of Material, 2016 (%)

Biodegradable 5.0%

Non-biodegradable 95.0%

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 55 UK Plastics Bag and Pouch Market, by Type of Material, 2016 (%/$ Millions)

Market Share Market Value (%) ($ Millions) Non-biodegradable 95.0 1,111.0 Biodegradable 5.0 58.5 Total 100 1,169.5

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Non-biodegradable was the largest segment in the global plastics bag and pouch market by type of material with a 95% share of the market, worth $1.1 billion.

Biodegradable was the second largest segment with a 5% share of the plastics bag and pouch market by type of material.

UK Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Type of Material The chart and table below shows the plastics bag and pouch market historic and forecast growth rates by 2012-2020.

Figure 58 UK Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020

4% Biodegradable

4% Forecast Forecast CAGR 4%

4% Non-biodegradable

4% 4.10% 4.15% 4.20% 4.25% 4.30% 4.35% 4.40% 4.45% 4.50% 4.55% Historic CAGR

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 56 UK Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020

Historic CAGR% Forecast CAGR% 2012-2016 2016-2020 Biodegradable 4.5 3.7 Non-biodegradable 4.1 3.6

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Biodegradable had the highest CAGR of 4.5% during 2012-2016; this segment is expected to grow at a CAGR of 3.7% during 2016-2020.

Non-biodegradable had the second highest CAGR (compound annual growth rate) of 4.1% during 2012- 2016; this segment is expected to grow at a CAGR of 3.6% during 2016-2020.

Germany Plastics Bag and Pouch Market Germany Plastics Bag and Pouch Historic Market, 2012–2016 The chart and table below shows the year-on-year growth of the Germany plastics bag and pouch market during 2012-2016.

Figure 59 Germany Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions)

1,400.0

1,200.0

1,000.0

800.0

$ Millions $ 600.0

400.0

200.0

0.0 2012 2013 2014 2015 2016

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 57 Germany Plastics Bag and Pouch Market, Historic Market Size, Through 2016 ($ Millions)

2012 2013 2014 2015 2016 Historic CAGR% 2012-2016 Germany Plastics Bag and 974.7 990.2 1,054.9 1,126.0 1,152.9 4.3 Pouch Market Size ($ Millions)

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Germany plastics bag and pouch market grew from $974.7 million in 2012 to $1.2 billion in 2016 at a compound annual growth rate (CAGR) of 4.3%. Germany’s market for plastic bags and pouches grew slightly during the historic period. The factors contributing to this were demand from end user industries such as food and beverages and clothing and apparel.

Germany Plastics Bag and Pouch Forecast Market, 2016–2020 The chart and table below shows the year-on-year growth of the Germany plastics bag and pouch market during 2016-2020.

Figure 60 Germany Plastics Bag and Pouch Market, Forecast Market Size, 2016-2020 ($ Millions)

1,400.0

1,200.0

1,000.0

800.0

$ Millions $ 600.0

400.0

200.0

0.0 2016 2017 2018 2019 2020

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 58 Germany Plastics Bag and Pouch Market, Forecast Market Size, Through 2020 ($ Millions)

2016 2017 2018 2019 2020 Forecast CAGR% 2016-2020 Germany Plastics Bag and 1,152.9 1,186.4 1,220.0 1,253.4 1,286.3 2.8 Pouch Market Size ($ Millions)

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Germany plastics bag and pouch market is expected to grow from $1.2 billion in 2016 to $1.3 billion in 2020 at a compound annual growth rate (CAGR) of 2.8%. The market is most likely to grow at a stable rate during the forecast period due to the rising demand for lightweight packaging and product innovations. Deals signed by the government to reduce the usage of plastic bags, however, is likely to slow down the growth of the Plastic bags and pouches market.cxlixcl

Germany Market Size, By Segment The chart and table below shows the split of the plastics bag and pouch market in 2016.

Figure 61 Germany Plastics Bag and Pouch Market Share, By Segments, 2016 (%)

Plastic Pouches 34.8%

Plastic Bags 65.2%

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 59 Germany Plastics Bag and Pouch Market, By Segments, 2016 ($ Millions/%)

Segment Market Value Market Share ($ Millions) (%) Plastic Bags 751.6 65.2

Plastic Pouches 401.3 34.8

Total 1,152.9 100.0

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Plastic Bags was the largest segment in the plastics bag and pouch market with a 65.2% share of the market, worth $751.6 million.

Plastic Pouches was the second largest segment with a 34.8% share of the plastics bag and pouch market.

Germany Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Segment The chart and table below shows the plastics bag and pouch market historic and forecast growth rates by segment 2012-2020.

Figure 62 Germany Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020

3% Plastic Pouches

3% Forecast Forecast CAGR 3%

3% Plastic Bags

3% 0% 1% 2% 3% 4% 5% 6% Historic CAGR

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 60 Germany Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020

Segment Historic CAGR% Forecast CAGR% 2012-2016 2016-2020 Plastic Pouches 3.3 3.0

Plastic Bags 4.8 2.7

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Plastic Bags had the highest CAGR (compound annual growth rate) of 4.8% during 2012-2016; this segment is expected to grow at a CAGR of 2.7% during 2016-2020.

Plastic Pouches had the second highest CAGR of 3.3% during 2012-2016; this segment is expected to grow at a CAGR of 3% during 2016-2020.

Germany Plastics Bag and Pouch Market, 2016, By Type of Material The chart and table below shows the split of the plastics bag and pouch market by type of material in 2016.

Figure 63 Germany Plastics Bag and Pouch Market Share, By Type of Material, 2016 (%)

Biodegradable 6.5%

Non-biodegradable 93.5%

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 61 Germany Plastics Bag and Pouch Market, By Type of Material, 2016 (%/$ Millions)

Market Share Market Value (%) ($ Millions) Non-biodegradable 93.5 1,077.4 Biodegradable 6.5 75.5 Total 100.0 1,152.9

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Non-biodegradable was the largest segment in the global plastics bag and pouch market by type of material with a 93.5% share of the market, worth $1.1 billion.

Biodegradable was the second largest segment with a 6.5% share of the plastics bag and pouch market by type of material.

Germany Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Type of Material The table below shows the plastics bag and pouch market historic and forecast growth rates by 2012- 2020.

Figure 64 Germany Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020

4.5%

4.0% Biodegradable 3.5%

3.0%

2.5% Non-biodegradable 2.0%

Forecast Forecast CAGR 1.5%

1.0%

0.5%

0.0% 4.3% 4.3% 4.3% 4.3% 4.3% 4.3% 4.3% 4.3% 4.3% Historic CAGR

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 62 Germany Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020

Historic CAGR% Forecast CAGR% 2012-2016 2016-2020 Biodegradable 4.3 4.0 Non-biodegradable 4.3 2.7

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Biodegradable had the highest CAGR of 4.3% during 2012-2016; this segment is expected to grow at a CAGR of 4% during 2016-2020.

Non-biodegradable had the second highest CAGR (compound annual growth rate) of 4.3% during 2012- 2016; this segment is expected to grow at a CAGR of 2.7% during 2016-2020.

France Plastics Bag and Pouch Market France Plastics Bag and Pouch Historic Market, 2012–2016 The chart and table below shows the year-on-year growth of the France plastics bag and pouch market during 2012-2016.

Figure 65 France Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions)

1,400.0

1,200.0

1,000.0

800.0

$ Millions $ 600.0

400.0

200.0

0.0 2012 2013 2014 2015 2016

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 63 France Plastics Bag and Pouch Market, Historic Market Size, Through 2016 ($ Millions)

2012 2013 2014 2015 2016 Historic CAGR% 2012-2016 France Plastics Bag and Pouch 1,103.9 1,110.5 1,170.5 1,124.5 1,156.1 1.2 Market Size ($ Millions)

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

France plastics bag and pouch market declined from $1.1 billion in 2012 to $1.2 billion in 2016 at a compound annual growth rate (CAGR) of 1.2%. This stable growth rate is attributed to the increased usage of paper bags and re-usable plastic bags by retail super markets.cli

France Plastics Bag and Pouch Forecast Market, 2016–2020 The chart and table below shows the year-on-year growth of the France plastics bag and pouch market during 2016-2020.

Figure 66 France Plastics Bag and Pouch Market, Forecast Market Size, 2016-2020 ($ Millions)

1,400.0

1,200.0

1,000.0

800.0

$ Millions $ 600.0

400.0

200.0

0.0 2016 2017 2018 2019 2020

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 64 France Plastics Bag and Pouch Market, Forecast Market Size, Through 2020 ($ Millions)

2016 2017 2018 2019 2020 Forecast CAGR% 2016-2020 France Plastics Bag and Pouch 1,156.1 1,188.6 1,222.0 1,256.4 1,291.7 2.8 Market Size ($ Millions)

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

France plastics bag and pouch market is expected to grow from $1.2 billion in 2016 to $1.3 billion in 2020 at a compound annual growth rate (CAGR) of 2.8%. This slight growth is expected in the forecast period due to factors such as recovering economy, rising consumers demand for organic and environmentally-sustaining packaging and strong demand for stand-up pouches.

France Market Size, By Segment The chart and table below shows the split of the plastics bag and pouch market in 2016.

Figure 67 France Plastics Bag and Pouch Market Share, By Segments, 2016 (%)

Plastic Pouches 25.9%

Plastic Bags 74.1%

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 65 France Plastics Bag and Pouch Market, By Segments, 2016 ($ Millions/%)

Segment Market Value Market Share ($ Millions) (%) Plastic Bags 856.9 74.1

Plastic Pouches 299.2 25.9

Total 1,156.1 100.0

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Plastic Bags was the largest segment in the plastics bag and pouch market with a 74.1% share of the market, worth $856.9 million.

Plastic Pouches was the second largest segment with a 25.9% share of the plastics bag and pouch market.

France Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Segment The chart and table below shows the plastics bag and pouch market historic and forecast growth rates by segment 2012-2020.

Figure 68 France Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020

3.1% Plastic Pouches 3.1%

3.0%

2.9%

2.9% Forecast Forecast CAGR

2.8%

2.8% Plastic Bags

2.7% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% Historic CAGR

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 66 France Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020

Segment Historic CAGR% Forecast CAGR% 2012-2016 2016-2020 Plastic Pouches 2.5 3.1

Plastic Bags 0.7 2.7

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Plastic Pouches had the highest CAGR (compound annual growth rate) of 2.5% during 2012-2016; this segment is expected to grow at a CAGR of 3.1% during 2016-2020.

Plastic Bags had the second highest CAGR of 0.7% during 2012-2016; this segment is expected to grow at the CAGR of 2.7% during 2016-2020.

France Plastics Bag and Pouch Market, 2016, By Type of Material The chart and table below shows the split of the plastics bag and pouch market by type of material in 2016.

Figure 69 France Plastics Bag and Pouch Market Share, By Type of Material, 2016 (%)

Bio Degradable 4.9%

Non-bio Degradable 95.1%

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 67 France Plastics Bag and Pouch Market, By Type of Material, 2016 (%/$ Millions)

Market Share Market Value (%) ($ Millions) Non-biodegradable 95.1 1,099.8 Biodegradable 4.9 56.3 Total 100.0 1,156.1

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Non-biodegradable was the largest segment in the global plastics bag and pouch market by type of material with a 95.1% share of the market, worth $1.1 billion.

Biodegradable was the second largest segment with a 4.9% share of the plastics bag and pouch market by type of material.

France Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Type of Material The chart and table below shows the plastics bag and pouch market historic and forecast growth rates by 2012-2020.

Figure 70 France Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020

4.5%

4.0% Non-biodegradable 3.5%

3.0%

2.5% Biodegradable

2.0%

Forecast Forecast CAGR 1.5%

1.0%

0.5%

0.0% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% Historic CAGR

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 68 France Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020

Historic CAGR% Forecast CAGR% 2012-2016 2016-2020 Biodegradable 3.4 4.1 Non-biodegradable 1.1 2.7 Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Biodegradable had the highest CAGR of 3.4% during 2012-2016; this segment is expected to grow at a CAGR of 4.1% during 2016-2020.

Non-biodegradable had the second highest CAGR (compound annual growth rate) of 1.1% during 2012- 2016; this segment is expected to grow at a CAGR of 2.7% during 2016-2020.

Italy Plastics Bag and Pouch Market Italy Plastics Bag and Pouch Historic Market, 2012–2016 The chart and table below shows the year-on-year growth of the Italy plastics bag and pouch market during 2012-2016.

Figure 71 Italy Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions)

800.0

700.0

600.0

500.0

400.0 $ Millions $ 300.0

200.0

100.0

- 2012 2013 2014 2015 2016

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 69 Italy Plastics Bag and Pouch Market, Historic Market Size, Through 2016 ($ Millions)

2012 2013 2014 2015 2016 Historic CAGR% 2012-2016 Italy Plastics Bag and Pouch 597.8 631.9 659.0 716.4 725.7 5.0 Market Size ($ Millions)

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Italy plastics bag and pouch market grew from $597.8 million in 2012 to $725.7 million in 2016 at a compound annual growth rate (CAGR) of 5.0%. Rising awareness and demand for plastic bags and pouches, by consumers, that were both environment and health friendly such as compostable bags was a major attributor to the slight growth of the plastic bags and pouches market during the historic period.

Italy Plastics Bag and Pouch Forecast Market, 2016–2020 The chart and table below shows the year-on-year growth of the Italy plastics bag and pouch market during 2016-2020.

Figure 72 Italy Plastics Bag and Pouch Market, Forecast Market Size, 2016-2020 ($ Millions)

900.0

800.0

700.0

600.0

500.0

400.0 $ Millions $

300.0

200.0

100.0

- 2016 2017 2018 2019 2020

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 70 Italy Plastics Bag and Pouch Market, Forecast Market Size, Through 2020 ($ Millions)

2016 2017 2018 2019 2020 Forecast CAGR% 2016-2020 Italy Plastics Bag and Pouch 725.7 748.3 771.6 795.7 820.5 3.1 Market Size ($ Millions)

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Italy plastics bag and pouch market is expected to grow from $725.7 million in 2016 to $820.5 million in 2020 at a compound annual growth rate (CAGR) of 3.1%. Initiatives by the government to decrease the consumption of conventional plastic bags and constant efforts to encourage the use of biodegradable plastic bags will be a key factor contributing to the slight growth in the plastic bags and pouches market during the forecasted period.clii

Italy Market Size, By Segment The chart and table below shows the split of the plastics bag and pouch market in 2016.

Figure 73 Italy Plastics Bag and Pouch Market Share, By Segments, 2016 (%)

Plastic Pouches 38.7%

Plastic Bags 61.3%

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 71 Italy Plastics Bag and Pouch Market, By Segments, 2016 ($ Millions/%)

Segment Market Value Market Share ($ Millions) (%) Plastic Bags 444.5 61.3

Plastic Pouches 281.2 38.7

Total 725.7 100.0

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Plastic Bags was the largest segment in the plastics bag and pouch market with a 61.3% share of the market, worth $444.5 million.

Plastic Pouches was the second largest segment with a 38.7% share of the plastics bag and pouch market.

Italy Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Segment The chart and table below shows the plastics bag and pouch market historic and forecast growth rates by segment 2012-2020.

Figure 74 Italy Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020

3.4%

3.3% Plastic Bags 3.3% 3.2% 3.2% 3.1% 3.1%

Forecast Forecast CAGR 3.0% 3.0% 2.9% 2.9% Plastic Pouches 2.8% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% Historic CAGR

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 72 Italy Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020

Segment Historic CAGR% Forecast CAGR% 2012-2016 2016-2020 Plastic Pouches 3.0 2.9

Plastic Bags 6.3 3.3

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Plastic Bags had the highest CAGR of 6.3% during 2012-2016; this segment is expected to grow at a CAGR of 3.3% during 2016-2020.

Plastic Pouches had a CAGR (compound annual growth rate) of 3% during 2012-2016; this segment is expected to grow at the highest CAGR of 2.9% during 2016-2020.

Italy Plastics Bag and Pouch Market, 2016, By Type of Material The chart and table below shows the split of the plastics bag and pouch market by type of material in 2016.

Figure 75 Italy Plastics Bag and Pouch Market Share, by Type of Material, 2016 (%)

Biodegradable 6.6%

Non-biodegradable 93.4%

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 73 Italy Plastics Bag and Pouch Market, by Type of Material, 2016 (%/$ Millions)

Segment Market Share Market Value (%) ($ Millions) Non-biodegradable 93.4 678.0 Biodegradable 6.6 47.7 Total 100.0 725.7

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Non-biodegradable was the largest segment in the global plastics bag and pouch market by type of material with a 93.4% share of the market, worth $678.0 million.

Biodegradable was the second largest segment with a 6.6% share of the plastics bag and pouch market by type of material.

Italy Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Type of Material The chart and table below shows the plastics bag and pouch market historic and forecast growth rates by 2012-2020.

Figure 76 Italy Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020

3.7%

3.6% Biodegradable 3.5%

3.4%

3.3% Forecast Forecast CAGR 3.2%

3.1% Non-biodegradable 3.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% Historic CAGR

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 74 Italy Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020

Historic CAGR% Forecast CAGR% 2012-2016 2016-2020 Biodegradable 3.2 3.6 Non-biodegradable 5.1 3.1

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Non-biodegradable had the highest CAGR of 5.1% during 2012-2016; this segment is expected to grow at a CAGR of 3.6% during 2016-2020.

Biodegradable had the second highest CAGR (compound annual growth rate) of 3.2% during 2012-2016; this segment is expected to grow at a CAGR of 3.6% during 2016-2020.

Spain Plastics Bag and Pouch Market Spain Plastics Bag and Pouch Historic Market, 2012–2016 The chart and table below shows the year-on-year growth of the Spain plastics bag and pouch market during 2012-2016.

Figure 77 Spain Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions)

700.0

600.0

500.0

400.0

$ Millions $ 300.0

200.0

100.0

- 2012 2013 2014 2015 2016

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 75 Spain Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions)

2012 2013 2014 2015 2016 Historic CAGR% 2012-2016 Spain Plastics Bag and Pouch 537.1 512.8 550.1 610.8 623.7 3.8 Market Size ($ Millions)

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Spain plastics bag and pouch market grew from $537.1 million in 2012 to $623.7 million in 2016 at a compound annual growth rate (CAGR) of 3.8%. This slight growth rate is attributed to the increased demand for more sophisticated packaging products. Many companies increased their investment in research and development to introduce lighter and recyclable packaging products due to the increasing awareness about the environment.cliii

Spain Plastics Bag and Pouch Forecast Market, 2016–2020 The chart and table below shows the year-on-year growth of the Spain plastics bag and pouch market during 2016-2020.

Figure 78 Spain Plastics Bag and Pouch Market, Forecast Market Size, 2016-2020 ($ Millions)

800.0

700.0

600.0

500.0

400.0 $ Millions $ 300.0

200.0

100.0

- 2016 2017 2018 2019 2020

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 76 Spain Plastics Bag and Pouch Market, Forecast Market Size, Through 2020 ($ Millions)

2016 2017 2018 2019 2020 Forecast CAGR% 2016-2020 Spain Plastics Bag and Pouch 623.7 637.0 650.5 664.3 678.4 2.1 Market Size ($ Millions)

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Spain plastics bag and pouch market is expected to grow from $623.7 million in 2016 to $678.4 million in 2020 at a compound annual growth rate (CAGR) of 2.1%. The slight growth in the market for plastic bags and pouches during the forecasted period will mainly be driven by key factors such as consumers demanding for smaller, lightweight and high-quality packaging and increasing awareness among people about sustainability and environment.

Spain Market Size, By Segment The chart and table below shows the split of the plastics bag and pouch market in 2016.

Figure 79 Spain Plastics Bag and Pouch Market Share, By Segments, 2016 (%)

Plastic Pouches 29.3%

Plastic Bags 70.7%

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 77 Spain Plastics Bag and Pouch Market, By Segments, 2016 (%/$ Millions)

Segment Segment Share Market Value (%) ($ Millions) Plastic Bags 70.7 441.0

Plastic Pouches 29.3 182.7

Total 100 623.7

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Plastic Bags was the largest segment in the plastics bag and pouch market with a 70.7% share of the market, worth $441.0 mllion.

Plastic Pouches was the second largest segment with a 29.3% share of the plastics bag and pouch market.

Spain Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Segment The chart and table below shows the plastics bag and pouch market historic and forecast growth rates by segment 2012-2020.

Figure 80 Spain Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020

3.0%

Plastic Pouches 2.5%

2.0% Plastic Bags

1.5%

Forecast Forecast CAGR 1.0%

0.5%

0.0% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% Historic CAGR

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 78 Spain Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020

Segment Historic CAGR% Forecast CAGR% 2012-2016 2016-2020 Plastic Pouches 2.2 2.9

Plastic Bags 4.5 1.8

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Plastic Bags had the highest CAGR (compound annual growth rate) of 4.5% during 2012-2016; this segment is expected to grow at a CAGR of 1.8% during 2016-2020.

Plastic Pouches had a CAGR of 2.2% during 2012-2016; this segment is expected to grow at the highest CAGR of 2.9% during 2016-2020.

Spain Plastics Bag and Pouch Market, 2016, By Type of Material The chart and table below shows the split of the plastics bag and pouch market by type of material in 2016.

Figure 81 Spain Plastics Bag and Pouch Market Share, By Type of Material, 2016 (%)

Biodegradable 5.5%

Non-biodegradable 94.5%

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 79 Spain Plastics Bag and Pouch Market, By Type of Material, 2016 (%/$ Millions)

Segment Segment Share Market Value (%) ($ Millions) Non-biodegradable 94.5 589.4 Biodegradable 5.5 34.3 Total 100.0 623.7

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Non-biodegradable was the largest segment in the global plastics bag and pouch market by type of material with a 94.5% share of the market, worth $589.4 million.

Biodegradable was the second largest segment with a 5.5% share of the plastics bag and pouch market by type of material.

Spain Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Type of Material The chart and table below shows the plastics bag and pouch market historic and forecast growth rates by 2012-2020.

Figure 82 Spain Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020

4.5%

4.0%

3.5% Biodegradable

3.0%

2.5%

2.0% Non-biodegradable Forecast Forecast CAGR 1.5%

1.0%

0.5%

0.0% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% Historic CAGR

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 80 Spain Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020

Segment Historic CAGR% Forecast CAGR% 2012-2016 2016-2020 Biodegradable 3.1 3.9 Non-biodegradable 3.9 2.0

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Non-biodegradable had the highest CAGR of 3.9% during 2012-2016; this segment is expected to grow at a CAGR of 2% during 2016-2020.

Biodegradable had the second highest CAGR (compound annual growth rate) of 3.1% during 2012-2016; this segment is expected to grow at a CAGR of 3.9% during 2016-2020.

Chapter 14

Eastern Europe Plastics Bag and Pouch Market

Chapter 14: Eastern Europe Plastics Bag and Pouch Market

Eastern Europe Plastics Bag and Pouch Market Overview Region Information Eastern Europe’s total GDP was $2.8 trillion in 2016, accounting for 4% of the global GDP, according to the IMF. The region’s GDP is expected to grow at a CAGR of 6% during 2016-2020. Eastern Europe had a population of around 335 million in 2016. Russia was the largest industrial gas market in Eastern Europe, followed by Ukraine, Latvia, Estonia, Belarus and Lithuania.

Market Information Eastern Europe’s plastics bag and pouch manufacturing market is the fourth largest in the world. It currently has about 6.4% share of the global plastics bag and pouch market. The market grew at a CAGR of 2.26% in the historic period and is expected to grow at a CAGR of 4.92% in the forecast period.

The region’s plastics bag and pouch manufacturing market will be mainly driven by Russia, Poland, and Czech Republic. Countries in Eastern Europe are expected to increase international trade of processed food, wheat, and cereals, which will increase the demand for flexible plastic packaging. Moreover, forecast stability in the region’s oil and gas industry will increase purchasing power and domestic manufacturing of plastic products, thereby increasing the market for plastic bags and pouches, especially for retail and food packaging applications. Lack of stringent laws and regulations against the use of plastics will further help the plastic bags and pouches market. cliv clv

Background Information Russia consumes about 100,000 tons of plastic bags annually. Annual consumption of plastic bags in Czech Republic is about 300 per person. Poland exported $288 million worth Plastic retail bags in 2014.clvi clvii clviii

Major End User Industries Plastic bags and pouches are utilized primarily for food storage and by the retail industry in Eastern Europe. Plastic bags and pouches are also utilized by industrial and agricultural packaging industry.

Investments in Plastic Bags and Pouches Manufacturing Market Major investments in Eastern Europe plastic bag and pouches market include

• In April 2016, Wilk Group, a Polish plastics processor invested €9 million ($10 million) for a new plastic packaging factory in Euro-Park Mielec SEZ. The company intends to launch plastic packaging production.clix • In December 2015, Romcarbon Buzău, a Romanian plastic packaging company invested €6.8 million ($7.5 million) for its plant in Buzău.clx • In March 2012, Re-Plast a Slovak films extruder and bag converter invested €3.15 million ($3.4 million) for expanding its processing capability at ZvonÃ from 3,500 tons per annum to 20,000 tons per annum.clxi • In June 2016, Mondi, a major Eastern European plastics company, invested €41.5 million ($46 million) for its manufacturing facility in Békéscsaba, Hungary. The investment is expected to create about 220 jobs. clxii • In March 2017, Neo-Kom, a Russian company, invested €4.6 million ($ 5 million) for a new factory to manufacture PP 'big bags' in Siberia. The 5000 square meter plant can produce a variety of containers with up to 2-ton capacity.clxiii • In January 2016, Huhtamaki Oyj, leading Finnish flexible packaging company acquired FIOMO, a manufacturer of flexible packaging based in Czech Republic. Huhtamaki aims to expands its flexible packaging manufacturing footprint in Eastern Europe and offer high quality printing capabilities.clxiv

Regulations Governing the Plastic Bags and Pouches Industry • European Regulation (EU) no 10/2011 regulates the plastic materials that come in contact with food (food packaging material.) The regulations cover the materials to be utilized and conditions of testing methods for plastic bags/pouches.clxv • Starting 2018, Ministry of Environment and Natural Resources in Georgia issued a ban on plastic bags less than 15-microns thick. clxvi • In 2017, Czech Republic passed a legislation to ban plastic bags with thickness between 15 and 50 microns from being issued to consumers free of charge. clxvii • Starting from 2018, Poland will impose a fee of PLN 1($0.25) on disposable plastic bags. clxviii

Regulatory Bodies Major regulatory bodies governing the plastic bags and pouches industry in Eastern Europe include The Ministry of Natural Resources and Environment of the Russian Federation, Slovak Environmental Agency, and Ministry of the Environment of the Czech Republic.

Taxes and Duties Taxes levied on plastic bags and pouches in Eastern Europe range from 18% in Russia, 20% in Slovak Republic and Ukraine, 21% in Czech Republic, to 23% in Poland. Bulgaria imposes a special tax of 55 stotinki on each retail plastic bag. According to the order of the Minister of Environment and Forests no.1032 / 2011, Romania imposes a special eco-tax of 0.1 RON ($0.025) on plastic bags.clxix clxx

Plastic Bags and Pouches Machinery Manufacturers Associations Major associations that represent Eastern European plastic bags and pouches manufacturers include Polish Union of Plastics Converters, Association of Plastic Processors of Russian Federation and Ukraine Rubber & Plastics Manufacturers.

Major Plastic Bags and Pouches Manufacturers Major companies in Eastern Europe’s plastic bags and pouches manufacturing market include Mondi group, POLYPLASTIC Group, and Romcarbon Buzău.

Eastern Europe Plastics Bag and Pouch Historic Market, 2012– 2016 The chart and table below shows the year-on-year growth of the Eastern Europe plastics bag and pouch market during 2012-2016.

Figure 83 Eastern Europe Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions)

1,400.0

1,200.0

1,000.0

800.0

$ Millions $ 600.0

400.0

200.0

0.0 2012 2013 2014 2015 2016

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 81 Eastern Europe Plastics Bag and Pouch Market, Historic Market Size, Through 2016 ($ Millions)

2012 2013 2014 2015 2016 Historic CAGR% 2012-2016 Eastern Europe Plastics Bag 1,101.0 1,128.6 1,142.1 1,175.4 1,204.1 2.3 and Pouch Market Size ($ Millions)

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Eastern Europe plastics bag and pouch market grew from $1.1 billion in 2012 to $1.2 billion in 2016 at a compound annual growth rate (CAGR) of 2.3%.

Eastern Europe Plastics Bag and Pouch Forecast Market, 2016– 2020 The chart and table below shows the year-on-year growth of the Eastern Europe plastics bag and pouch market during 2016-2020.

Figure 84 Eastern Europe Plastics Bag and Pouch Market, Forecast Market Size, 2016-2020 ($ Millions)

1,600.0

1,400.0

1,200.0

1,000.0

800.0 $ Millions $ 600.0

400.0

200.0

0.0 2016 2017 2018 2019 2020

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 82 Eastern Europe Plastics Bag and Pouch Market, Forecast Market Size, Through 2020 ($ Millions)

2016 2017 2018 2019 2020 Forecast CAGR% 2016-2020 Eastern Europe Plastics Bag 1,204.1 1,263.5 1,325.7 1,390.8 1,458.9 4.9 and Pouch Market Size ($ Millions)

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Eastern Europe plastics bag and pouch market is expected to grow from $1.2 billion in 2016 to $1.5 billion in 2020 at a compound annual growth rate (CAGR) of 4.9%.

Eastern Europe Market Size, By Segment The chart and table below shows the split of the plastics bag and pouch market in 2016.

Figure 85 Eastern Europe Plastics Bag and Pouch Market, By Segments, 2016 (%)

Plastic Pouches 35.4%

Plastic Bags 64.6%

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 83 Eastern Europe Plastics Bag and Pouch Market, By Segments, 2016 (%/$ Millions)

Segment Segment Share Market Value (%) ($ Millions) Plastic Bags 64.6 777.6

Plastic Pouches 35.4 426.5

Total 100.0 1,204.1

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Plastic Bags was the largest segment in the plastics bag and pouch market with a 64.6% share of the market, worth $777.6 million.

Plastic Pouches was the second highest segment with a 35.4% share of the plastics bag and pouch market.

Eastern Europe Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Segment The chart and table below shows the plastics bag and pouch market historic and forecast growth rates by segment 2012-2020.

Figure 86 Eastern Europe Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020

6.0%

Plastic Pouches 5.0% Plastic Bags

4.0%

3.0%

Forecast Forecast CAGR 2.0%

1.0%

0.0% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% Historic CAGR

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 84 Eastern Europe Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020

Segment Historic CAGR% Forecast CAGR% 2012-2016 2016-2020 Plastic Pouches 4.0 5.6

Plastic Bags 1.4 4.6

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Plastic Pouches had the highest CAGR (compound annual growth rate) of 4% during 2012-2016; this segment is expected to grow at a CAGR of 5.6% during 2016-2020.

Plastic bags had a CAGR of 1.4% during 2012-2016; this segment is expected to grow at the highest CAGR of 4.6% during 2016-2020.

Eastern Europe Plastics Bag and Pouch Market, 2016, By Type of Material The chart and table below shows the split of the plastics bag and pouch market by type of material in 2016.

Figure 87 Eastern Plastics Europe Bag and Pouch Market, By Type of Material, 2016 (%)

Biodegradable 6.7%

Non-biodegradable 93.3%

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 85 Eastern Plastics Europe Bag and Pouch Market, By Type of Material, 2016 (%/$ Millions)

Segment Segment Share Market Value (%) ($ Millions) Non-biodegradable 93.3 1,123.8 Biodegradable 6.7 80.3 Total 100.0 1,204.1

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Non-biodegradable was the largest segment in the global plastics bag and pouch market by type of material with a 93.3% share of the market, worth $1.1 billion.

Biodegradable was the second largest segment with a 6.7% share of the plastics bag and pouch market by type of material.

Eastern Europe Bag and Pouch Market, 2012-2020, Historic and Forecast, By Type of Material The chart and table below shows the plastics bag and pouch market historic and forecast growth rates by 2012-2020.

Figure 88 Eastern Europe Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020

8.0%

7.0% Bio Degradable

6.0%

5.0% Non-bio Degradable 4.0%

3.0% Forecast Forecast CAGR

2.0%

1.0%

0.0% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% Historic CAGR

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 86 Eastern Europe Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020

Segment Historic CAGR% Forecast CAGR% 2012-2016 2016-2020 Biodegradable 4.2 7.5 Non-biodegradable 2.1 4.7

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Biodegradable had the highest CAGR of 4.2% during 2012-2016; this segment is expected to grow at a CAGR of 7.5% during 2016-2020.

Non-biodegradable had the second highest CAGR (compound annual growth rate) of 2.1% during 2012- 2016; this segment is expected to grow at a CAGR of 4.7% during 2016-2020.

Chapter 15

Eastern Europe Plastics Bag and Pouch Market: Country Analysis

Chapter 15: Eastern Europe Plastics Bag and Pouch Market: Country Analysis

Russia Plastics Bag and Pouch Market Russia Plastics Bag and Pouch Historic Market, 2012–2016 The chart and table below shows the year-on-year growth of the Russia plastics bag and pouch market during 2012-2016.

Figure 89 Russia Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions)

600.0

500.0

400.0

300.0 $ Millions $

200.0

100.0

- 2012 2013 2014 2015 2016

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 87 Russia Plastics Bag and Pouch Market, Historic Market Size, Through 2016 ($ Millions)

2012 2013 2014 2015 2016 Historic CAGR% 2012-2016 Russia Plastics Bag and Pouch 472.6 484.7 492.8 503.5 515.5 2.2 Market Size ($ Millions)

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Russia plastics bag and pouch market grew from $472.6 million in 2012 to $515.5 million in 2016 at a compound annual growth rate (CAGR) of 2.2%. The market for plastic bags and pouches in Russia grew at a stable rate during the historic period. The factors that mainly contributed to this growth were the high demand for beauty and personal care products and demand for cheaper home care packaging.

Russia Plastics Bag and Pouch Forecast Market, 2016–2020 The chart and table below shows the year-on-year growth of the Russia plastics bag and pouch market during 2016-2020.

Figure 90 Russia Plastics Bag and Pouch Market, Forecast Market Size, 2016-2020 ($ Millions)

700.0

600.0

500.0

400.0

$ Millions $ 300.0

200.0

100.0

- 2016 2017 2018 2019 2020

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 88 Russia Plastics Bag and Pouch Market, Forecast Market Size, Through 2020 ($ Millions)

2016 2017 2018 2019 2020 Forecast CAGR% 2016-2020 Russia Plastics Bag and Pouch 515.5 542.7 569.6 597.5 626.6 5.0 Market Size ($ Millions)

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Russia plastics bag and pouch market is expected to grow from $515.5 million in 2016 to $626.6 million in 2020 at a compound annual growth rate (CAGR) of 5.0%. The market is expected to see a slight growth during the forecasted period mainly due to the continued demand for high quality and low cost packaging across various sectors such as food and beverages, homecare and personal care. Recovering economy is another factor that will support the growth of the market during the forecasted period.

Russia Market Size, By Segment The chart and table below shows the split of the plastics bag and pouch market in 2016.

Figure 91 Russia Plastics Bag and Pouch Market Share, By Segments, 2016 (%)

Plastic Pouches 35.4%

Plastic Bags 64.6%

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 89 Russia Plastics Bag and Pouch Market, By Segments, 2016 (%/$ Millions)

Segment Segment Share Market Value (%) ($ Millions) Plastic Bags 64.6 333.0

Plastic Pouches 35.4 182.5

Total 100.0 515.5

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Plastic Bags was the largest segment in the plastics bag and pouch market with a 64.6% share of the market, worth $333 million.

Plastic Pouches was the second largest segment with a 35.4% share of the plastics bag and pouch market.

Russia Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Segment The chart and table below shows the plastics bag and pouch market historic and forecast growth rates by segment 2012-2020.

Figure 92 Russia Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020

6.0%

Plastic Bags 5.0% Plastic Pouches

4.0%

3.0%

Forecast Forecast CAGR 2.0%

1.0%

0.0% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% Historic CAGR

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 90 Russia Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020

Segment Historic CAGR% Forecast CAGR% 2012-2016 2016-2020 Plastic Pouches 4.0 5.6

Plastic Bags 1.3 4.6

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Plastic Pouches had the highest CAGR (compound annual growth rate) of 4% during 2012-2016; this segment is expected to grow at a CAGR of 5.6% during 2016-2020.

Plastic Bags had a CAGR of 1.3% during 2012-2016; this segment is expected to grow at the highest CAGR of 4.6% during 2016-2020.

Russia Plastics Bag and Pouch Market, 2016, By Type of Material The chart and table below shows the split of the plastics bag and pouch market by type of material in 2016.

Figure 93 Russia Plastics Bag and Pouch Market Share, By Type of Material, 2016 (%)

Biodegradable 6.8%

Non-biodegradable 93.2%

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 91 Russia Plastics Bag and Pouch Market, By Type of Material, 2016 (%/$ Millions)

Segment Segment Share Market Value (%) ($ Millions) Non-biodegradable 93.2 480.7 Biodegradable 6.8 34.8 Total 100.0 515.5

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Non-biodegradable was the largest segment in the global plastics bag and pouch market by type of material with a 93.2% share of the market, worth $480.7 million.

Biodegradable was the second largest segment with a 6.8% share of the plastics bag and pouch market by type of material.

Russia Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Type of Material The chart and table below shows the plastics bag and pouch market historic and forecast growth rates by 2012-2020.

Figure 94 Russia Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020

9.0%

8.0% Biodegradable 7.0%

6.0%

5.0% Non-biodegradable 4.0%

Forecast Forecast CAGR 3.0%

2.0%

1.0%

0.0% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% Historic CAGR

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 92 Russia Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020

Historic CAGR% Forecast CAGR% 2012-2016 2016-2020 Biodegradable 1.4 8.2 Non-biodegradable 2.3 4.8

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Non-biodegradable had the highest CAGR of 2.3 during 2012-2016; this segment is expected to grow at a CAGR of 4.8% during 2016-2020.

Biodegradable had the second highest CAGR (compound annual growth rate) of 1.4% during 2012-2016; this segment is expected to grow at a CAGR of 8.2% during 2016-2020.

Chapter 16

North America Plastics Bag and Pouch Market

Chapter 16: North America Plastics Bag and Pouch Market

North America Plastics Bag and Pouch Market Overview Region Information North America’s total GDP was $21 trillion in 2016 accounting for 28% of $74 trillion global GDP, according to the IMF. The region’s GDP is expected to grow at a CAGR of 4.28% during 2016-2020. North America had a population of around 482 million in 2016. Major countries in North America include the USA, Canada and Mexico.

Market Information North America’s plastics bag and pouch market is the second largest in the world. It currently has about 25.9% share of the global plastics bag and pouch market. The market grew at a CAGR of 2.9% in the historic period and is expected to grow at a CAGR of 3.61% in the forecast period.

The plastics bag and pouch manufacturing market in North America is expected grow at a steady pace. The industry has achieved a large degree of saturation in the region in terms of technology and innovation. By the end of 2020, the region is expected to have been overtaken by Asia Pacific. However, increasing research and development in the field biodegradable plastics will continue to drive the market ahead. Also, the growing exploration and production of shale oil and gas will further boost the economy of North America, thereby increasing domestic manufacturing of plastic bags and pouches due to fall in price of raw materials.

Background Information According to the Wall Street Journal, the U.S uses around 100 billion plastic bags annually, which adds a cost of $4 billion to retailers. 80% of the grocery bags in the US are made up of plastic. An average family in the country accumulates 60 plastic bags in four trips to the store. clxxi Mexico City uses around 20 million plastic bags per day.clxxii

Major End User Industries In North America, plastic bag and pouches are mainly used by the retail and food & beverages industries.

Investments in Plastic Bag and Pouch Manufacturing Market Major investments in North American plastic bag and pouch manufacturing market driving the market in the forcast period.

• In June 2017, flexible packaging manufacturer, American Packaging Corp., announced a $170 million investment to build new facility in Monroe County, New York. The investment is in order to expand its production and workforce.clxxiii The project will boost the local manufacturing sector and provide job opportunities to more than 260 residents. • In May 2016, Pregis announced plans to invest $17 million in its Grand Rapids, Michigan facility. The investment is aimed at increasing production capacity and purchase of new flexible packaging manufacturing and converting equipment.clxxiv • In September 2017, Charter NEX Films, Inc. invested $85 million to build a new operation plant in Blythewood, Richland County.clxxv This project is expected to create more than 110 jobs. Located in the Carolina Pines Industrial Park on Farrow Road in Blythewood, S.C., the company will be constructing a new 140,000-square-foot facility. • In March 2017, Lebanese plastic manufacturer, INDEVCO Group announced $20 million investment in its first U.S. plastics packaging plant at Texas.clxxvi The company is adding a fifth blown film extrusion line at the facility this year from German equipment maker Windmöller & Hölscher KG, along with more bag making machinery and a printing press. • In June 2017, Sonoco Products Company, a leading flexible plastic packaging manufacturer, announced its acquisition of Clear Lam Packaging, Inc., a US-based manufacturer of plastic packaging for approximately $170 million. The company focuses on technological research in the field of high barrier flexible used to package various products, especially perishable foods.clxxvii

"What attracted us to Clear Lam was its reputation for driving high-barrier film packaging innovations to meet changing consumer needs. We're especially interested in opportunities to leverage their expertise in modified atmosphere packaging, which comes from a strong base of material science knowledge. Additionally, in recent years, Clear Lam has developed new portion control condiment packaging, peel- reseal films for fresh fruits and vegetables, special drinking pouch films and several new packaging that expand shelf life."

Rob Tiede, Executive Vice President and Chief Operating Officer, Sonoco Executive Vice President and Chief Operating Officer, as quoted in Plastemartclxxviii

Regulations Governing the Plastic Bag and Pouch Manufacturing Industry Major regulations governing the plastic bag and pouch manufacturing industry in North America include the US Plastic Bag Reduction Act of 2009 and the Mexican plastic bag law 2012.

In Nov 2016, California has become the first city in the USA to impose ban on single-use plastic bags. This applies to the large food retailers, pharmacies and liquor stores. Restaurants and departmental stores are excluded. This regulation also required a minimum charge of 10 cents on paper and thicker plastic bagsclxxix. Coral Gables, in May 2017, a city in Florida also banned plastic bags and imposes a fine of $50 to $500clxxx.

In 2009, Mexico passed a law to ban businesses from giving out plastic bags that are not biodegradable. The government gave a period of twelve months for businesses to adapt., and now supermarkets and shops that give away free plastic bags could face fines from $4,500 all the way up to $90,500.clxxxi

City of Montreal, Canada passed a law banning stores from selling single-use plastic bags, with the rule into effect in January 2018.clxxxii

Regulatory Bodies • Major regulatory bodies governing the plastic bag and pouch manufacturing market in North America include the US Food and Drug Administration (FDA), Natural Resources Defense Council (NRDC) and Mexico City’s Department of the Environment (SMADF). • As of 2017, some states and cities across the USA either have bans in place or are pending on plastic bags. New York City has announced it plans on imposing a five-cent fee on plastic bags, Chicago enacted seven cents fees, while California recently approved a statewide ban on carry- out plastic bags. Since 2010 Mexico banned plastic bags. • The Food and Drug Act also prohibits the sale of any food in a package that has been manufactured from a polyvinyl chloride formulation containing an octyltin chemical.clxxxiii • The United States Environmental Protection Agency (EPA) requires antimicrobial technology to be built into plastic and textiles used in food packaging to prevent the growth of bacteria, mold, mildew, fungi, discoloration and odor.clxxxiv clxxxv

Taxes and Duties The United States does not impose a national-level sales or VAT. Sales taxes are imposed and administered at the state level. California has the highest state-level sales tax rate, at 7.25 percent.clxxxviclxxxvii

Plastic Bag and Pouch Manufacturers Associations The American Progressive Bag Alliance (APBA), the US Flexible Packaging Association (FPA), National Association of Manufacturers (NAM), and The National Association of Plastic Industrialists (ANIPAC) are some major associations that represent North America’s plastic bag and pouch manufacturers.

Major Plastic Bag and Pouch Manufacturers Major companies in the North American plastic bag and pouch manufacturing market include Inteplast Group Corporation, Berry Plastics Inc., ProAmpac, Alpha Poly Corporation, International Plastics Inc, Novolex, Dana Poly Inc., Universal Plasticclxxxviii, PolyPak America Inc., and Reynolds Group Holdings Limited.

North America Plastics Bag and Pouch Historic Market, 2012– 2016 The chart and table below shows the year-on-year growth of the North America plastics bag and pouch market during 2012-2016.

Figure 95 North America Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions)

6,000.0

5,000.0

4,000.0

3,000.0 $ Millions $

2,000.0

1,000.0

0.0 2012 2013 2014 2015 2016

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 93 North America Plastics Bag and Pouch Market, Historic Market Size, Through 2016 ($ Millions)

2012 2013 2014 2015 2016 Historic CAGR% 2012-2016 North America Plastics Bag 4,361.0 4,498.4 4,580.6 4,743.9 4,890.2 2.9 and Pouch Market Size ($ Millions)

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

North America plastics bag and pouch market increased from $4.4 billion in 2012 to $4.9 billion in 2016 at a compound annual growth rate (CAGR) of 2.9%.

North America Plastics Bag and Pouch Forecast Market, 2016– 2020 The chart and table below shows the year-on-year growth of the North America plastics bag and pouch market during 2016-2020.

Figure 96 North America Plastics Bag and Pouch Market, Forecast Market Size, 2016-2020 ($ Millions)

5,800.0

5,600.0

5,400.0

5,200.0

$ Millions $ 5,000.0

4,800.0

4,600.0

4,400.0 2016 2017 2018 2019 2020

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 94 North America Plastics Bag and Pouch Market, Forecast Market Size, Through 2020 ($ Millions)

2016 2017 2018 2019 2020 Forecast CAGR% 2016-2020 North America Plastics Bag 4.9 5.1 5.3 5.4 5.6 3.6 and Pouch Market Size ($ Millions)

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

North America plastics bag and pouch market is expected to grow from $4.9 billion in 2016 to $5.6 billion in 2020 at a compound annual growth rate (CAGR) of 3.6%.

North America Market Size, By Segment The chart and table below shows the split of the plastics bag and pouch market in 2016.

Figure 97 North America Plastics Bag and Pouch Market Share, By Segments, 2016 (%)

Plastic Bags 44.7%

Plastic Pouches 55.3%

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 95 North America Plastics Bag and Pouch Market, By Segments, 2016 (%/$ Millions)

Segment Segment Share Market Value (%) ($ Millions) Plastic Pouches 55.3 2,704.4

Plastic Bags 44.7 2,185.8

Total 100.0 4,890.2

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Plastic Pouches was the largest segment in the plastics bag and pouch market with a 55.3% share of the market, worth $2.7 billion.

Plastic Bags was the second largest segment with a 44.7% share of the plastics bag and pouch market.

North America Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Segment The chart and table below shows the plastics bag and pouch market historic and forecast growth rates by segment 2012-2020.

Figure 98 North America Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020

4.5%

4.0% Plastic Pouches 3.5% Plastic Bags 3.0%

2.5%

2.0%

Forecast Forecast CAGR 1.5%

1.0%

0.5%

0.0% 2.6% 2.7% 2.8% 2.9% 3.0% 3.1% 3.2% Historic CAGR

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 96 North America Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020

Segment Historic CAGR% Forecast CAGR% 2012-2016 2016-2020 Plastic Pouches 3.1 3.9

Plastic Bags 2.6 3.2

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Plastic Pouches had the highest CAGR (compound annual growth rate) of 3.1% during 2012-2016; this segment is expected to grow at a CAGR of 3.9% during 2016-2020.

Plastic Bags had the second highest CAGR of 2.6% during 2012-2016; this segment is expected to grow at a CAGR of 3.2% during 2016-2020.

North America Plastics Bag and Pouch Market, 2016, By Type of Material The chart and table below shows the split of the plastics bag and pouch market by type of material in 2016.

Figure 99 North America Plastics Bag and Pouch Market, By Type of Material, 2016 (%)

Biodegradable 8.6%

Non-biodegradable 91.4%

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 97 North America Plastics Bag and Pouch Market, By Type of Material, 2016 (%/$ Millions)

Segment Share Market Value (%) ($ Millions) Non-biodegradable 91.4 4,471.7 Biodegradable 8.6 418.5 Total 100.0 4,890.2

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Non-biodegradable was the largest segment in the global plastics bag and pouch market by type of material with a 91.4% share of the market, worth $4.5 billion.

Biodegradable was the second largest segment with 8.6% share of the plastics bag and pouch market by type of material.

North America Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Type of Material The chart and table below shows the plastics bag and pouch market historic and forecast growth rates by 2012-2020.

Figure 100 North America Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020

7.0%

6.0%

Biodegradable 5.0%

4.0%

3.0% Non-biodegradable Forecast Forecast CAGR 2.0%

1.0%

0.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% Historic CAGR

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 98 North America Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020

Historic CAGR% Forecast CAGR% 2012-2016 2016-2020 Biodegradable 5.2 5.9 Non-biodegradable 2.7 3.4

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Biodegradable had the highest CAGR of 5.2% during 2012-2016; this segment is expected to grow at a CAGR of 5.9% during 2016-2020.

Non-biodegradable had the second highest CAGR (compound annual growth rate) of 2.7% during 2012- 2016; this segment is expected to grow at a CAGR of 3.4% during 2016-2020.

Chapter 12

North America Plastics Bag and Pouch Market: Country Analysis

Chapter 17: North America Plastics Bag and Pouch Market: Country Analysis

USA Plastics Bag and Pouch Market USA Plastics Bag and Pouch Historic Market, 2012–2016 The chart and table below shows the year-on-year growth of the USA plastics bag and pouch market during 2012-2016.

Figure 101 USA Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions)

3,500.0

3,000.0

2,500.0

2,000.0

$ Millions $ 1,500.0

1,000.0

500.0

0.0 2012 2013 2014 2015 2016

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 99 USA Plastics Bag and Pouch Market, Historic Market Size, Through 2016 ($ Millions)

2012 2013 2014 2015 2016 Historic CAGR% 2012-2016 USA Plastics Bag and Pouch 2,951.7 3,044.1 3,101.0 3,220.0 3,319.3 3.0 Market Size ($ Millions)

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

USA plastics bag and pouch market grew from $3 billion in 2012 to $3.3 billion in 2016 at a compound annual growth rate (CAGR) of 3%. The factors attributing to the slight growth in the bags and pouches market were the rising exports and demand for plastic bags from end user applications such as food and beverages.clxxxix cxc

USA Plastics Bag and Pouch Forecast Market, 2016–2020 The chart and table below shows the year-on-year growth of the USA plastics bag and pouch market during 2016-2020.

Figure 102 USA Plastics Bag and Pouch Market, Forecast Market Size, 2016-2020 ($ Millions)

3,900.0

3,800.0

3,700.0

3,600.0

3,500.0

3,400.0 $ Millions $

3,300.0

3,200.0

3,100.0

3,000.0 2016 2017 2018 2019 2020

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 100 USA Plastics Bag and Pouch Market, Forecast Market Size, Through 2020 ($ Millions)

2016 2017 2018 2019 2020 Forecast CAGR% 2016-2020 USA Plastics Bag and Pouch 3,319.3 3,435.7 3,556.5 3,681.2 3,810.0 3.5 Market Size ($ Millions)

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

USA plastics bag and pouch market is expected to grow from $3.3 billion in 2016 to $3.8 billion in 2020 at a compound annual growth rate (CAGR) of 3.5%. Key factors contributing to the slight growth of the market for plastic bags and pouches in USA would be the increasing demand for lightweight packaging and awareness among consumers about the use of sustainable packaging such as bioplastics.cxci

USA Market Size, By Segment The chart and table below shows the split of the plastics bag and pouch market in 2016.

Figure 103 USA Plastics Bag and Pouch Market Share, By Segments, 2016 (%)

Plastic Bags 36.9%

Plastic Pouches 63.1%

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 101 USA Plastics Bag and Pouch Market, By Segments, 2016 (%/$ Millions)

Segment Segment Share Market Value (%) ($ Millions) Plastic Pouches 63.1 2,094.3

Plastic Bags 36.9 1,225.0

Total 100.0 3,319.3

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Plastic Pouches was the largest segment in the plastics bag and pouch market with a 63.1% share of the market, worth $2.1 billion.

Plastic Bags was the second largest segment with a 36.9% share of the plastics bag and pouch market.

USA Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Segment The chart and table below shows the plastics bag and pouch market historic and forecast growth rates by segment 2012-2020.

Figure 104 USA Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020

4.5%

4.0%

3.5% Plastic Pouches Plastic Bags 3.0%

2.5%

2.0%

Forecast Forecast CAGR 1.5%

1.0%

0.5%

0.0% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% Historic CAGR

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 102 USA Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020

Segment Historic CAGR% Forecast CAGR% 2012-2016 2016-2020 Plastic Pouches 3.7 3.8

Plastic Bags 1.9 3.0

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Plastic Pouches had the highest CAGR (compound annual growth rate) of 3.7% during 2012-2016; this segment is expected to grow at a CAGR of 3.8% during 2016-2020.

Plastic Bags had the second highest CAGR of 1.9% during 2012-2016; this segment is expected to grow at a CAGR of 3% during 2016-2020.

USA Plastics Bag and Pouch Market, 2016, By Type of Material The chart and table below shows the split of the plastics bag and pouch market by type of material in 2016.

Figure 105 USA Plastics Bag and Pouch Market Share, By Type of Material, 2016 (%)

Biodegradable 9.8%

Non-biodegradable 90.2%

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 103 USA Plastics Bag and Pouch Market, By Type of Material, 2016 (%/$ Millions)

Segment Segment Share Market Value (%) ($ Millions) Non-biodegradable 90.2 2,995.2 Biodegradable 9.8 324.1 Total 100.0 3,319.3

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Non-biodegradable was the largest segment in the global plastics bag and pouch market by type of material with a 90.2% share of the market, worth $3 billion.

Biodegradable was the second largest segment with a 9.8% share of the plastics bag and pouch market by type of material.

USA Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Type of Material The chart and table below shows the plastics bag and pouch market historic and forecast growth rates by 2012-2020.

Figure 106 USA Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020

7.0%

6.0%

Bio Degradable 5.0%

4.0%

3.0%

Non-bio Degradable Forecast Forecast CAGR 2.0%

1.0%

0.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% Historic CAGR

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 104 USA Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020

Historic CAGR% Forecast CAGR% 2012-2016 2016-2020 Biodegradable 5.7 5.7 Non-biodegradable 2.7 3.3

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Biodegradable had the highest CAGR of 5.7% during 2012-2016; this segment is expected to grow at a CAGR of 5.7% during 2016-2020.

Non-biodegradable had the second highest CAGR (compound annual growth rate) of 2.7% during 2012- 2016; this segment is expected to grow at a CAGR of 3.3% during 2016-2020.

Chapter 18

South America Plastics Bag and Pouch Market

Chapter 18: South America Plastics Bag and Pouch Market

South America Plastics Bag and Pouch Market Overview Region Information South America’s total GDP was $4 trillion in 2016 accounting for 5% of $74 trillion global GDP, according to IMF. The region’s GDP is expected to grow at a CAGR of 5.12% during 2016-2020. South America had a population of around 494 million in 2016. Major countries in South America include Brazil, Argentina, Venezuela and Peru.

Market Information South America’s plastics bag and pouch market was the fifth largest in the world. It currently has about 4.8% share of the global plastics bag and pouch market. The market in South America grew at a CAGR of 3.2% in the historic period and is expected to grow at a CAGR of 4.22% in the forecast period.

The plastics bag and pouch manufacturing market in South America is expected to be driven by the growing demand for food packaging. Flexible plastic food packaging has a large growth opportunity in the region, especially in the field of technology and food supply chain management. Changing food habits due to urbanization and growing purchasing power in countries like Brazil, Argentina, Venezuela, and Colombia, has increased preference for processed and packaged food. Moreover, Brazil’s large exports of meat, oil seed, soyabeans, sugar, and rice, will demand plastic packaging as it is lightweight and easy to handle, as compared to glass and paper.cxcii

Background Information According to Colombian Government statistics and World Wildlife Fund figures, the annual average consumption in the country is about 288 plastic bags per person.cxciii

In Ecuador, 1,500 million plastic bags are used annually. According to data from the Ministry of Environment National Program for Integral Solid Waste Management in Ecuador the average person consumes 253 plastic bags per year.cxciv

According to the Environment Ministry of Chile, the country uses more than 3.4 billion plastic bags per year.cxcv

Sao Paolo, the most populous state in Brazil, uses more than 2.4 billion plastic bags each monthcxcvi.

Major End User Industries The plastic bag and pouches are mainly used by the end user industries such as, retail and food & beverages industries in South America.

Investments in Plastic Bag and Pouch Manufacturing Market Major investments in South American plastic bag and pouch manufacturing market are coming in the region by mergers and acquisitions, which are expected to drive the market in the forecast period. • In August 2014, Australia-based plastic material and resins manufacturer, Cardia Bioplastics invested AUD 750,000 ($697,253) to setup film and bag manufacturing facility in São Paulo, Brazil.cxcvii • In April 2016, Australian-based packaging company, Amcor acquired Alusa, South America for $435 million. The company was the largest flexible packaging company in the region.cxcviii • In July 2015, Bemis Company Inc. acquired Brazil based, Emplal Participações S.A. which recorded annual net sales of approximately US$75 million in 2014. The acquisition is in sync with Bemis growth policy to expand in markets that are optimally suited to its strengths and capabilities.cxcix

Regulations Governing the Plastic Bag and Pouch Manufacturing Industry Major regulations governing the plastic bag and pouch manufacturing industry in South America include, • Solid Waste Law (No. 1278) (Peru) came into existence from 23rd December, 2016. This law is applicable to all the productive sectors and includes activities related to internment, storage, treatment, transport and export of solid waste.cc • The Rational Use of Plastic Bags (Resolution No. 0668/2016) (Colombia) law was approved on 28th April, 2016. This new policy was a part of the Soy ECOlombiano project, a collaboration between the Colombian government and WWF Colombia. The policy demands distributors to present an annual plan on the sustainable use of plastic bags and asks them to publish their advances on the platform which was created especially for this project. • As of 1 January 2017, the government of Colombia banned single-use plastic bags smaller than 30x30 cm and introduced alternatives with an eco-friendly and higher load-carrying capacity.cci ccii • The Organic Code of the Environment (Ecuador) came into existence from 12th April, 2017. The policy states the right of people to live in a healthy and ecologically balanced environment, as well as to protect the “rights of nature” recognized in the Constitution of Ecuador.cciii • National Solid Waste Policy (Law No. 12.305/2010) (Brazil) was enacted on 2nd August. 2010. The law has a set of principles, objectives, instruments, guidelines, goals and actions to be adopted by national government itself or by partnership with states, municipalities and private actors of the society aiming the integrated and environmentally sound management of solid waste. • In South America several countries including Argentina, Brazil, Chile, and Colombia have banned the usage of plastic bag and use only biodegradable bags. The countries are also increasingly implementing recycling programs.

• Brazil had banned plastic bags in 2007. Retail chains can only offer bags made from plant based products, and those bags must be color-coded green or grey for use with recycling or trash.cciv Brazil implemented the new rule from April, 2015. Stores that continue distributing non- biodegradable plastic bags will face a fine of up to 2 million Real. Citizens must use green bags at home just for recyclables or face fines of 50 – 500 Real.ccv ccvi

Regulatory Bodies Major regulatory bodies governing the plastic bag and pouch manufacturing market in South America include, the Ministry of Environment (Brazil) and Ministry of Environment, Housing and Territorial Development (Minambiente) (Colombia).

Taxes and Duties Under the plastic bag tax, Chile imposes a 20 pesos fine per bag per user. This is expected to rise to 50 pesos per bag over the next four years.ccvii Colombia impose 20 pesos for single-use plastic bags. In Brazil retailers are charging 0.08 Real ($0.03) per bag.ccviii

Plastic Bag and Pouch Manufacturers Associations The major associations embody South American plastic bag and pouch manufacturers include, Brazilian Association of Flexible Plastic Packaging Industry (ABIEF) and Brazilian Packaging Association (ABRE).

Major Plastic Bag and Pouch Manufacturers Major companies in the South America plastic bag and pouch manufacturing market include Amcor, Embaquim, Spiltag, Val-Bags and Zaraplast.

South America Plastics Bag and Pouch Historic Market, 2012– 2016 The chart and table below shows the year-on-year growth of the South America plastics bag and pouch market during 2012-2016.

Figure 107 South America Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions)

920.0

900.0

880.0

860.0

840.0

820.0

$ Millions $ 800.0

780.0

760.0

740.0

720.0 2012 2013 2014 2015 2016

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 105 South America Plastics Bag and Pouch Market, Historic Market Size, Through 2016 ($ Millions)

2012 2013 2014 2015 2016 Historic CAGR% 2012-2016 South America Plastics Bag 793.1 820.4 837.7 870.1 899.4 3.2 and Pouch Market Size ($ Millions)

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

South America plastics bag and pouch market grew from $793.1 million in 2012 to $899.4 million in 2016 at a compound annual growth rate (CAGR) of 3.2%.

South America Plastics Bag and Pouch Forecast Market, 2016- 2020 The chart and table below shows the year-on-year growth of the South America plastics bag and pouch market during 2016-2020.

Figure 108 South America Plastics Bag and Pouch Market, Forecast Market Size, 2016-2020 ($ Millions)

1,200.0

1,000.0

800.0

600.0 $ Millions $

400.0

200.0

0.0 2016 2017 2018 2019 2020

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 106 South America Plastics Bag and Pouch Market, Forecast Market Size, Through 2020 ($ Millions)

2016 2017 2018 2019 2020 Forecast CAGR% 2016-2020 South America Plastics Bag 899.4 937.6 977.3 1,018.5 1,061.2 4.2 and Pouch Market Size ($ Millions)

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

South America plastics bag and pouch market is expected to grow from $899.4 million in 2016 to $1.1 billion in 2020 at a compound annual growth rate (CAGR) of 4.2%.

South America Market Size, By Segment The chart and table below shows the split of the plastics bag and pouch market in 2016.

Figure 109 South America Plastics Bag and Pouch Market, By Segments, 2016 (%)

Plastic Bags 27.2%

Plastic Pouches 72.8%

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 107 South America Plastics Bag and Pouch Market, By Segments, 2016 (%/$ Millions)

Segment Segment Share Market Value (%) ($ Millions) Plastic Pouches 72.8 654.7

Plastic Bags 27.2 244.7

Total 100.0 899.4

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Plastic Pouches was the largest segment in the plastics bag and pouch market with 72.8% share of the market, worth $654.7 million.

Plastic Bags was the second largest segment with a 27.2% share of the plastics bag and pouch market.

South America Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Segment The chart and table below shows the plastics bag and pouch market historic and forecast growth rates by segment 2012-2020.

Figure 110 South America Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020

6.0%

5.0% Plastic Bags

4.0% Plastic Pouches

3.0%

Forecast Forecast CAGR 2.0%

1.0%

0.0% 3.1% 3.2% 3.2% 3.3% 3.3% 3.4% 3.4% Historic CAGR

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 108 South America Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020

Segment Historic CAGR% Forecast CAGR% 2012-2016 2016-2020 Plastic Pouches 3.1 3.9

Plastic Bags 3.4 5.0

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Plastic Bags had the highest CAGR (compound annual growth rate) of 3.4% during 2012-2016; this segment is expected to grow at a CAGR of 5% during 2016-2020.

Plastic Pouches had the second highest CAGR of 3.1% during 2012-2016; this segment is expected to grow at a CAGR of 3.9% during 2016-2020.

South America Plastics Bag and Pouch Market, 2016, By Type of Material The chart and table below shows the split of the plastics bag and pouch market by type of material in 2016.

Figure 111 South America Plastics Bag and Pouch Market Share, By Type of Material, 2016 (%)

Biodegradable 11.3%

Non-biodegradable 88.7%

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 109 South America Plastics Bag and Pouch Market, By Type of Material, 2016 (%/$ Millions)

Segment Segment Share Market Value (%) ($ Millions) Non-biodegradable 88.7 798.1 Biodegradable 11.3 101.3 Total 100 899.4

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Non-biodegradable was the largest segment in the global plastics bag and pouch market by type of material with 88.7% share of the market, worth $798.1 million.

Biodegradable was the second largest segment with a 11.3% share of the plastics bag and pouch market by type of material.

South America Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Type of Material The chart and table below shows the plastics bag and pouch market historic and forecast growth rates by 2012-2020.

Figure 112 South America Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020

7.0%

6.0% Biodegradable

5.0%

4.0% Non-biodegradable

3.0% Forecast Forecast CAGR 2.0%

1.0%

0.0% 3.1% 3.2% 3.2% 3.3% 3.3% 3.4% 3.4% 3.5% 3.5% Historic CAGR

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 110 South America Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020

Historic CAGR% Forecast CAGR% 2012-2016 2016-2020 Biodegradable 3.5 6.3 Non-biodegradable 3.2 3.9 Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Biodegradable had the highest CAGR of 3.5% during 2012-2016; this segment is expected to grow at a CAGR of 6.3% during 2016-2020.

Non-biodegradable had the second highest CAGR (compound annual growth rate) of 3.2% during 2012- 2016; this segment is expected to grow at a CAGR of 3.9% during 2016-2020.

Chapter 19

South America Plastics Bag and Pouch Market: Country Analysis

Chapter 19: South America Plastics Bag and Pouch Market: Country Analysis

Brazil Plastics Bag and Pouch Market Brazil Plastics Bag and Pouch Historic Market, 2012–2016 The chart and table below shows the year-on-year growth of the Brazil plastics bag and pouch market during 2012-2016.

Figure 113 Brazil Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions)

390.0

380.0

370.0

360.0

$ Millions $ 350.0

340.0

330.0

320.0 2012 2013 2014 2015 2016

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 111 Brazil Plastics Bag and Pouch Market, Historic Market Size, through 2016 ($ Millions)

2012 2013 2014 2015 2016 Historic CAGR% 2012-2016 Brazil Plastics Bag and Pouch 344.8 356.3 363.4 373.6 385.3 2.8 Market Size ($ Millions)

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Brazil plastics bag and pouch market grew from $344.8 million in 2012 to $385.3 million in 2016 at a compound annual growth rate (CAGR) of 2.8%. Rising disposable income and living standards of people, growing urbanization and demand from end user sectors such as healthcare, food and cosmetics were the key contributors for the stable growth of the market during the historic period.

Brazil Plastics Bag and Pouch Forecast Market, 2016–2020 The chart and table below shows the year-on-year growth of the Brazil plastics bag and pouch market during 2016-2020.

Figure 114 Brazil Plastics Bag and Pouch Market, Forecast Market Size, 2016-2020 ($ Millions)

500.0

450.0

400.0

350.0

300.0

250.0

$ Millions $ 200.0

150.0

100.0

50.0

- 2016 2017 2018 2019 2020

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 112 Brazil Plastics Bag and Pouch Market, Forecast Market Size, Through 2020 ($ Millions)

2016 2017 2018 2019 2020 Forecast CAGR% 2016-2020 Brazil Plastics Bag and Pouch 385.3 401.3 417.6 434.0 450.9 4.0 Market Size ($ Millions)

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Brazil plastics bag and pouch market is expected to grow from $385.3 million in 2016 to $450.9 million in 2020 at a compound annual growth rate (CAGR) of 4%. The market for plastic bags and pouches in expected to see a slight growth. The factors attributing to this are recovering economy and increasing consumer demand for biodegradable packaging solutions.ccixccx

Brazil Market Size, By Segment The chart and table below shows the split of the plastics bag and pouch market in 2016.

Figure 115 Brazil Plastics Bag and Pouch Market Share, By Segments, 2016 (%)

Plastic Bags 29.0%

Plastic Pouches 71.0%

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 113 Brazil Plastics Bag and Pouch Market, By Segments, 2016 (%/$ Millions)

Segment Segment Share Market Value (%) ($ Millions) Plastic Pouches 71.0 273.5

Plastic Bags 29.0 111.8

Total 100.0 385.3

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Plastic Pouches was the largest segment in the plastics bag and pouch market with a 71% share of the market, worth $273.5 million.

Plastic Bags was the second largest segment with a 29% share of the plastics bag and pouch market.

Brazil Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Segment The chart and table below shows the plastics bag and pouch market historic and forecast growth rates by segment 2012-2020.

Figure 116 Brazil Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020

6.0%

5.0%

Plastic Bags 4.0%

Plastic Pouches 3.0%

Forecast Forecast CAGR 2.0%

1.0%

0.0% 2.7% 2.7% 2.8% 2.8% 2.9% 2.9% 3.0% 3.0% 3.1% 3.1% 3.2% Historic CAGR

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 114 Brazil Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020

Segment Historic CAGR% Forecast CAGR% 2012-2016 2016-2020 Plastic Pouches 2.7 3.7

Plastic Bags 3.1 4.8

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Plastic Bags had the decline of 3.1% CAGR during 2012-2016; this segment is expected to grow at a CAGR of 4.8% during 2016-2020.

Plastic Pouches had the decline of 2.7% CAGR during 2012-2016; this segment is expected to grow at a CAGR of 3.7% during 2016-2020.

Brazil Plastics Bag and Pouch Market, 2016, By Type of Material The chart and table below shows the split of the plastics bag and pouch market by type of material in 2016.

Figure 117 Brazil Plastics Bag and Pouch Market, By Type of Material, 2016 (%)

Biodegradable 11.0%

Non-biodegradable 89.0%

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 115 Brazil Plastics Bag and Pouch Market, By Type of Material, 2016 (%/$ Millions)

Segment Segment Share Market Value (%) ($ Millions) Non-biodegradable 89.0 343.0 Biodegradable 11.0 42.3 Total 100.0 385.3

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Non-biodegradable was the largest segment in the global plastics bag and pouch market by type of material with 89% share of the market, worth $343.0 billion.

Biodegradable was the second largest segment with a 11% share of the plastics bag and pouch market by type of material.

Brazil Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Type of Material The chart and table below shows the plastics bag and pouch market historic and forecast growth rates by 2012-2020.

Figure 118 Brazil Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020

7.0%

6.0% Biodegradable 5.0%

4.0%

Non-biodegradable

3.0% Forecast Forecast CAGR 2.0%

1.0%

0.0% 2.8% 2.8% 2.9% 2.9% 3.0% 3.0% 3.1% Historic CAGR

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 116 Brazil Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020

Historic CAGR% Forecast CAGR% 2012-2016 2016-2020 Biodegradable 3.0 6.1 Non-biodegradable 2.8 3.7

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Biodegradable had the highest CAGR of 3% during 2012-2016; this segment is expected to grow at a CAGR of 6.1% during 2016-2020.

Non-biodegradable had the second highest CAGR (compound annual growth rate) of 2.8% during 2012- 2016; this segment is expected to grow at a CAGR of 3.7% during 2016-2020.

Chapter 20

Middle East Plastics Bag and Pouch Market

Chapter 20: Middle East Plastics Bag and Pouch Market

Middle East Plastics Bag and Pouch Market Overview Region Information Middle East’s total GDP was $3 trillion in 2016 accounting for 4% of $74 trillion global GDP, according to IMF. The region’s GDP is expected to grow at a CAGR of 6.37% during 2016-2020. The Middle East had a population of around 299 million in 2016. Major countries in the Middle East include Saudi Arabia, UAE and Qatar.

Countries in the Middle East are diverse and are at different stages of economic development. The economies of most of the countries in the region are highly reliant on oil production. Currently, most of the Middle Eastern countries are focusing on generating revenues beyond the oil industry.

Market Information The Middle East’s plastics bag and pouch market is the sixth largest in the world. It currently has about 3.5% share of the global plastics bag and pouch market. The market in the Middle East grew at a CAGR of 2.31% in the historic period and is expected to grow at a CAGR of 5.15% in the forecast period.

The market is expected to grow partially due to increasing trade of goods, forecasted stability of the oil and gas industry, rising consumerism, expanding economies, and growing investments in SEZs and infrastructure in the region. The growth of the market is expected to be mainly driven by increasing demand from Turkey, Iran, and UAE. Countries in the region are increasingly looking to diversify their manufacturing industry to reduce dependence on oil and gas revenues. The Middle Eastern producers of plastic bags and pouches are anticipated to have access to lower cost feedstock and raw materials, including crude oil and polypropylene, thereby driving local manufacturing of plastic bags and pouches.ccxi However, political uncertainty and public unrest in many countries in the Middle East, including Yemen, Qatar, and Lebanon, will hamper the growth of the market and its end use industries.

Background Information Saudi Arabia consumes 40 Kgs of plastic bags per person annually. UAE consumes about 13 billion plastic bags annually.ccxii Iran’s daily consumption is about 45 million bags, or 16 billion plastic bags a year. Egypt’s annual consumption of plastic bags is about 12 billion. Starting in 2018, Turkish Retailers’ Federation will stop issuing free plastic bags to consumers in Turkey. ccxiii ccxiv ccxv ccxvi

Major End User Industries Plastic bags and pouches are utilized primarily for food storage and by the retail industry in the Middle East. Plastic bags and pouches are also utilized by industrial packaging industry.

Regulations Governing the Plastic Bags and Pouches Industry • In June 2017, Turkey proposed to adopt Food Codex draft regulations on food contact materials from WTO, (WTO document number 17-2904.) The regulation has rules on plastic materials to be used for food packaging.ccxvii • Saudi Arabia issued a regulation for companies to produce or import plastic bags/pouches from approved oxo-biodegradable material only starting from December 2017.ccxviii • In 2016, Iran issued new regulations that mandates plastic bag manufactures to reduce production by 10% annually and replace them with eco-friendly production capacity.ccxix

Regulatory Bodies Major regulatory bodies governing the plastic bags and pouches industry in Middle East include Republic of Turkey Ministry of Environment And Urbanization, UAE Ministry of Climate Change and Environment, the Presidency of Meteorology and Environment of Saudi Arabia and Department of Environment (Iran).

Taxes and Duties Taxes levied on plastic bags and pouches in Middle East range as thus: Iran levies 1.5% Goods and Services Taxes, In UAE and Saudi Arabia, starting from January 1, 2018 VAT levied is 5%, and Turkey levies 18% VAT .ccxxccxxiccxxiiccxxiii

Plastic Bags and Pouches Machinery Manufacturers Associations Major associations that represent Middle East plastic bags and pouches manufacturers include Packaging Manufacturers Association in Turkey, Plastics Industry Association, and GPCA- Gulf Petrochemicals and Chemicals Association.

Major Plastic Bags and Pouches Manufacturers Major companies in the Middle East plastic bags and pouches market include Ispak Ambalaj, Aalmir Plastic Industries, Super Plast, Fujairah Plastic Factory, and Mondi group.

Middle East Plastics Bag and Pouch Historic Market, 2012–2016 The chart and table below shows the year-on-year growth of the Middle East plastics bag and pouch market during 2012-2016.

Figure 119 Middle East Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions)

800.0

700.0

600.0

500.0

400.0 $ Millions $ 300.0

200.0

100.0

- 2012 2013 2014 2015 2016

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 117 Middle East Plastics Bag and Pouch Market, Historic Market Size, Through 2016 ($ Millions)

2012 2013 2014 2015 2016 Historic CAGR% 2012-2016 Middle East Plastics Bag and 609.8 625.4 633.1 651.9 668.1 2.3 Pouch Market Size ($ Millions)

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Middle East plastics bag and pouch market grew from $609.8 million in 2012 to $668.1 million in 2016 at a compound annual growth rate (CAGR) of 2.3%.

Middle East Plastics Bag and Pouch Forecast Market, 2016 – 2020 The chart and table below shows the year-on-year growth of the Middle East plastics bag and pouch market during 2016-2020.

Figure 120 Middle East Plastics Bag and Pouch Market, Forecast Market Size, 2016-2020 ($ Millions)

900.0

800.0

700.0

600.0

500.0

400.0 $ Millions $

300.0

200.0

100.0

- 2016 2017 2018 2019 2020

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 118 Middle East Plastics Bag and Pouch Market, Forecast Market Size, Through 2020 ($ Millions)

2016 2017 2018 2019 2020 Forecast CAGR% 2016-2020 Middle East Plastics Bag and 668.1 702.7 738.9 777.0 816.8 5.2 Pouch Market Size ($ Millions)

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Middle East plastics bag and pouch market is expected to grow from $668.1 million in 2016 to $816.8 million in 2020 at a compound annual growth rate (CAGR) of 5.2%.

Middle East Market Size, By Segment The chart and table below shows the split of the plastics bag and pouch market in 2016.

Figure 121 Middle East Plastics Bag and Pouch Market Share, By Segments, 2016 (%)

Plastic Pouches 33.2%

Plastic Bags 66.8%

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 119 Middle East Plastics Bag and Pouch Market, By Segments, 2016 (%/$ Millions)

Segment Segment Share Market Value (%) ($ Millions) Plastic Bags 66.8 446.0

Plastic Pouches 33.2 222.1

Total 100.0 668.1

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Plastic Bags was the largest segment in the plastics bag and pouch market with a 66.8% share of the market, worth $446 million.

Plastic Pouches was the second largest segment with a 33.2% share of the plastics bag and pouch market.

Middle East Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Segment The chart and table below shows the plastics bag and pouch market historic and forecast growth rates by segment 2012-2020.

Figure 122 Middle East Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020

6% Plastic Pouches 5% Plastic Bags 4%

3% Forecast Forecast CAGR 2%

0% 2.2% 2.2% 2.2% 2.2% 2.3% 2.3% 2.3% 2.3% 2.3% 2.4% 2.4% Historic CAGR

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 120 Middle East Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020

Segment Historic CAGR% Forecast CAGR% 2012-2016 2016-2020 Plastic Pouches 2.2 5.9

Plastic Bags 2.4 4.8

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Plastic Bags had the highest CAGR (compound annual growth rate) of 2.4% during 2012-2016; this segment is expected to grow at a CAGR of 4.8% during 2016-2020.

Plastic Pouches had the second highest CAGR of 2.2% during 2012-2016; this segment is expected to grow at the highest CAGR of 5.9% during 2016-2020.

Middle East Plastics Bag and Pouch Market, 2016, By Type of Material The chart and table below shows the split of the plastics bag and pouch market by type of material in 2016.

Figure 123 Middle East Plastics Bag and Pouch Market Share, By Type of Material, 2016 (%)

Biodegradable 7.3%

Non-biodegradable 92.7%

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 121 Middle East Plastics Bag and Pouch Market, By Type of Material, 2016 (%/$ Millions)

Segment Share Market Value (%) ($ Millions) Non-biodegradable 92.7 446.0 Biodegradable 7.3 222.1 Total 100.0 668.1

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Non-biodegradable was the largest segment in the global plastics bag and pouch market by type of material with a 92.7% share of the market, worth $446.0 million.

Biodegradable was the second largest segment with a 7.3% share of the plastics bag and pouch market by type of material.

Middle East Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Type of Material The chart and table below shows the plastics bag and pouch market historic and forecast growth rates by 2012-2020.

Figure 124 Middle East Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020

9.0%

8.0%

7.0% Biodegradable

6.0%

5.0% Non-biodegradable 4.0%

Forecast Forecast CAGR 3.0%

2.0%

1.0%

0.0% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% Historic CAGR

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 122 Middle East Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020

Segment Historic CAGR% Forecast CAGR% 2012-2016 2016-2020 Biodegradable 4.0 7.9 Non-biodegradable 2.2 4.9

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Biodegradable had the highest CAGR of 4% during 2012-2016; this segment is expected to grow at a CAGR of 7.9% during 2016-2020.

Non-biodegradable had the second highest CAGR (compound annual growth rate) of 2.2% during 2012- 2016; this segment is expected to grow at a CAGR of 4.9% during 2016-2020.

Chapter 21

Africa Plastics Bag and Pouch Market

Chapter 21: Africa Plastics Bag and Pouch Market

Africa Plastics Bag and Pouch Market Overview Region Information Africa is the second largest and the second most populous continent in the world. It has a population of about 1.1 billion and accounts for 15% of the world’s human population. Africa had a GDP of $1.8 trillion in 2016. It has 54 countries including countries such as Nigeria, South Africa, Ghana, and Sudan. Most African countries are republics that operate under a presidential system, although some are governed by military dictators.

Market Information Africa’s plastics bag and pouch market is the smallest in the world. It currently has about 2.8% share of the global plastics bag and pouch market. The market in India grew at a CAGR of 2.22% in the historic period and is expected to grow at a CAGR of 5.36% in the forecast period.

The plastics bag and pouch manufacturing in Africa is expected to be driven by increasing number of investments in the region’s infrastructure, retail industry, food manufacturing and processing, and plastics and packaging operations. Africa currently imports most of the plastic bags and pouches it consumes. According to Applied Market Information Ltd, Africa is one of the most exciting regions for the polymer and plastic processing industry. However, vast difference between the development and market conditions between the North and South of Africa will hamper growth of the market. Nigeria, Egypt, and South Africa account for nearly half of the plastic bag and pouch demand in the continent. Other factors that will drive the plastics bags and pouches manufacturing market include the development of duty free and SEZ zones, growing middle-class population, rising disposable incomes, and growing urbanization.ccxxiv

Background Information South Africa and Egypt, together, consume around 20 billion plastic bags annually.ccxxv ccxxvi

Prior to the plastic ban in Kenya, 24 million plastic bags were used in the country every month and alone in Nairobi nearly 86,000 plastic bags were being handed out every day.ccxxvii

Major End User Industries In Africa, plastic bag and pouches are mainly used by the retail and food manufacturing and processing industries.

Investments in Plastic Bag and Pouch Manufacturing Market Major investments in African plastic bag and pouch manufacturing market are coming in the region by mergers and acquisitions, which are expected to drive the market in the forecast period. • In April 2017, the Department of Environmental Affairs (DEA), South Africa allocated ZAR 155 million ($10.55 Million) fund over the next three years. The fund to be spent on the regulation of the thickness of the bags and towards financial support of various recycling initiatives.ccxxviii • In June 2015, Australian-based packaging company, Amcor acquired South African Nampak Flexibles for ZAR 250 million ($22 million). The acquisition includes four manufacturing sites and one sales office located across South Africa.ccxxix

Regulations Governing the Plastic Bag and Pouch Manufacturing Industry Major regulations governing the plastic bag and pouch manufacturing industry in Africa include the Tanzanian Environment Act, the Mauritius Standards Bureau Act 1993 and South African Plastic Bag Regulations 2000.

Most of the African countries have imposed a ban on the use of plastic bags or charge a tax on them. Here are some of the countries in Africa that have enacted ban on plastic bags – Kenya, South Africa, Uganda, Ethiopia, Malawi, Mali, Cameroon, Tanzania, Morocco, Rwanda and Botswana.ccxxx ccxxxi

Kenya has banned plastic bags and if anyone found selling, manufacturing and using plastic bags will have to bear $38000 fine and a four years imprisonment.ccxxxii Travelers coming into Kenya with duty-free plastic shop bags will be required to leave them at the airport under the new rules.ccxxxiii

Senegal’s new plastic bag law went into effect in 2016. The law prohibits the production, import, possession, distribution, or use of plastic bags that are thinner than 30 microns. Violations of this new law carry stiff penalties: up to two years in jail and fines up to 20,000,000CFA.ccxxxiv

Regulatory Bodies Major regulatory bodies governing the plastic bag and pouch manufacturing market in Africa include the Tanzinia's National Environment Management Council (NEMC), Tanzanian Ministry of Industry, Commerce and Consumer Protection and South African Department of Environmental Affairs and Tourism and Kenyan National Environment Management Authority (NEMA).

Taxes and Duties In South Africa, a tax of 3 cents per bag is payable by plastic bag manufacturers and importers.ccxxxv In 2007, Uganda introduced legislation to ban the sale of lightweight plastic bags under 30µm thick and taxed thicker bags at a rate of 120%.ccxxxvi

Most of Kenyan supermarkets charge their customers between $0.05 and $0.3 per bag.ccxxxvii

Plastic Bag and Pouch Manufacturers Associations Major associations of the African plastic bag and pouch manufacturers include, Plastics Federation of South Africa (PFSA) and the Kenya Association of Manufacturers (KAM).

Major Plastic Bag and Pouch Manufacturers Major companies in the Africa plastic bag and pouch manufacturing market include A- One Plastics Ltd, Mpact Limited, Nampak, Transpaco Limited and ITB Manufacturing (Pty) Ltd.

Africa Plastics Bag and Pouch Historic Market, 2012–2016 The chart and table below shows the year-on-year growth of the Africa plastics bag and pouch market during 2012-2016.

Figure 125 Africa Plastics Bag and Pouch Market, Historic Market Size, 2012-2016 ($ Millions)

600.0

500.0

400.0

300.0 $ Millions $

200.0

100.0

- 2012 2013 2014 2015 2016

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 123 Africa Plastics Bag and Pouch Market, Historic Market Size, Through 2016 ($ Millions)

2012 2013 2014 2015 2016 Historic CAGR% 2012-2016 Africa Plastics Bag and Pouch 482.9 494.8 500.4 514.8 527.0 2.2 Market Size ($ Millions)

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Africa plastics bag and pouch market declined from $482.9 million in 2012 to $527.0 million in 2016 at a compound annual growth rate (CAGR) of 2.2%.

Africa Plastics Bag and Pouch Forecast Market, 2016–2020 The chart and table below shows the year-on-year growth of the Africa plastics bag and pouch market during 2016-2020.

Figure 126 Africa Plastics Bag and Pouch Market, Forecast Market Size, 2016-2020 ($ Millions)

700.0

600.0

500.0

400.0

$ Millions $ 300.0

200.0

100.0

- 2016 2017 2018 2019 2020

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 124 Africa Plastics Bag and Pouch Market, Forecast Market Size, Through 2020 ($ Millions)

2016 2017 2018 2019 2020 Forecast CAGR% 2016-2020 Africa Plastics Bag and Pouch 527.0 555.6 585.4 616.7 649.6 5.4 Market Size ($ Millions)

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Africa plastics bag and pouch market is expected to grow from $527.0 million in 2016 to $649.6 million in 2020 at a compound annual growth rate (CAGR) of 5.4%.

Africa Market Size, By Segment The chart and table below shows the split of the plastics bag and pouch market in 2016.

Figure 127 Africa Plastics Bag and Pouch Market Share, By Segments, 2016 (%)

Plastic Pouches 32.3%

Plastic Bags 67.7%

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 125 Africa Plastics Bag and Pouch Market, By Segments, 2016 (%/$ Millions)

Segment Segment Share Market Value (%) ($ Millions) Plastic Bags 67.7 357.0

Plastic Pouches 32.3 170.0

Total 100.0 527.0

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Plastic Bags was the largest segment in the plastics bag and pouch market with a 67.7% share of the market, worth $357 million.

Plastic Pouches was the second largest segment with a 32.3% share of the plastics bag and pouch market.

Africa Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Segment The chart and table below shows the plastics bag and pouch market historic and forecast growth rates by segment 2012-2020.

Figure 128 Africa Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020

7.0%

6.0% Plastic Pouches Plastic Bags 5.0%

4.0%

3.0% Forecast Forecast CAGR 2.0%

1.0%

0.0% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% Historic CAGR

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 126 Africa Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Segments, 2012-2020

Segment Historic CAGR% Forecast CAGR% 2012-2016 2016-2020 Plastic Pouches 2.6 6.1

Plastic Bags 2.0 5.0

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Plastic Pouches had the highest CAGR of 2.6% during 2012-2016; this segment is expected to grow at a CAGR of 6.1% during 2016-2020.

Plastic Bags had a second highest CAGR of 2% during 2012-2016; this segment is expected to grow at a CAGR of 5% during 2016-2020.

Africa Plastics Bag and Pouch Market, 2016, By Type of Material The chart and table below shows the split of the plastics bag and pouch market by type of material in 2016.

Figure 129 Africa Plastics Bag and Pouch Market Share, By Type of Material, 2016 (%)

Biodegradable 7.8%

Non-biodegradable 92.2%

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 127 Africa Plastics Bag and Pouch Market, by Type of Material, 2016 (%/$ Millions)

Segment Share Market Value (%) ($ Millions) Non-biodegradable 92.2 486.0 Biodegradable 7.8 41.0 Total 100.0 527.0

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Non-biodegradable was the largest segment in the global plastics bag and pouch market by type of material with a 92.2% share of the market, worth $486 million.

Biodegradable was the second largest segment with a 7.8% share of the plastics bag and pouch market by type of material.

Africa Plastics Bag and Pouch Market, 2012-2020, Historic and Forecast, By Type of Material The chart and table below shows the plastics bag and pouch market historic and forecast growth rates by 2012-2020.

Figure 130 Africa Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020

9.0%

8.0% Biodegradable 7.0%

6.0%

5.0% Non-biodegradable 4.0%

Forecast Forecast CAGR 3.0%

2.0%

1.0%

0.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% Historic CAGR

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Table 128 Africa Plastics Bag and Pouch Market, Historic and Forecast Growth Rate, By Type of Material, 2012-2020

Segment Historic CAGR% Forecast CAGR% 2012-2016 2016-2020 Biodegradable 6.0 8.3 Non-biodegradable 1.9 5.1

Source: BCC Research, Metso, Smart Pouches, Plastics Today, EY, IMF, Comtrade, National Statistics Offices

Biodegradable had the highest CAGR of 6% during 2012-2016; this segment is expected to grow at a CAGR of 8.3% during 2016-2020.

Non-biodegradable had the second highest CAGR (compound annual growth rate) of 1.9% during 2012- 2016; this segment is expected to grow at a CAGR of 5.1% during 2016-2020.

Chapter 22

Plastics Bag and Pouch Market Competitive Landscape

Chapter 22: Plastics Bag and Pouch Market Competitive Landscape

The figure below displays competitor shares of the top companies in the plastics bag and pouch industry. The market is fairly concentrated, with a few global players controlling a large part of the market by value, with around 30% of the market controlled by the top 5 players.

Figure 131 Global Market Shares for Plastics Bag and Pouch, By Key Competitor, 2016 (%)

Amcor Limited

Sealed Air Corporation

Bemis Company Inc.

44.1% 11.5% Novolex Holding Inc.

8.5% Inteplast Group 8.5% Constantia Flexibles Group 55.9% 6.1% GmbH 5.7% Mondi Group 3.4% 3.2% ProAMPAC Holdings, LLC 3.2% 3.1% Da Nang Plastic Joint Stock 2.7% Company Berry Plastics Inc.

Others

Source: BCC Research, Annual Reportsccxxxviii

Table 129 Global Market Shares for Plastics Bag and Pouch, By Key Competitor, 2016 ($ Millions/%)

Revenue Market Share Competitor ($ Millions) (%) Amcor Limited 2,179.5 11.5

Sealed Air Corporation 1,611.1 8.5

Bemis Company Inc. 1,601.8 8.5

Novolex Holding Inc. 1,150.0 6.1

Inteplast Group 1,080.0 5.7

Constantia Flexibles Group 646.7 3.4 Mondi Group 605.0 3.2

ProAMPAC Holdings, LLC 600.0 3.2

Da Nang Plastic Joint Stock Company 587.8 3.1

Berry Plastics Inc 511.6 2.7

Others 8,326.6 44.1 Total 18,900.1 100.0

Source: BCC Research, Annual Reportsccxxxix

Company Profiles

AMCOR 109 Burwood Road Hawthorn, Victoria 3122 Tel: +61 3 9226 9000 www.amcor.com

Overview Amcor Limited was the largest competitor in the plastics bag and pouch manufacturing market in 2016 with 11.5% share of the market. Amcor is involved in the manufacture and supply of packaging products for industries such as food, beverage, healthcare, home, personal care and tobacco. Amcor was founded in 1860 and is headquartered in Melbourne, Australia.ccxlAmcor has more than 31,000 employees.ccxli

Products and Services It operates through following divisions -

• The Rigid Plastics division produces rigid plastic containers for carbonated soft drinks, water, spreads, spirits and beer, sport drinks, juices, dressings, milk-based beverages, sauces, plastic caps, and personal care items.

• The Flexibles division provides packaging solutions for confectionery, fresh food and dairy, coffee, wine, pet food, medical, champagne and tobacco products. ccxlii

Strategy The company’s expansion strategy aims at increasing its market share in the developing markets by acquiring companies in similar industries. Amcor acquired Hebei Qite Packing Co. Ltd., a Chinese flexible packaging products manufacturer and Alusa, Chile's largest flexible packaging company. These deals will provide access to Amcore to expand in the Asian and South American markets though the new company's subsidiaries.ccxliii

Financial Performance The chart and table below show the financial performance of Amcor Limited during 2012 – 2016.

Figure 132 Amcor Limited Financial Performance, 2012–2016 ($ Billions)

10.2 1.2

10.0 1.0 9.8 0.8 9.6

9.4 0.6

$ Billions $ Billions $ 9.2 0.4 9.0 0.2 8.8

8.6 0.0 2012 2013 2014 2015 2016

Net sales Profit From Operations Profit For The Financial Period

Source: BCC Research, Annual Reportsccxliv

Table 130 Amcor Limited Financial Performance, 2012–2016 ($ Billions)

2012 2013 2014 2015 2016 Net sales 9.5 10.0 9.6 9.4 9.1

Profit from Operations 1.0 1.1 1.1 0.6 1.0

Profit 0.6 0.7 0.7 0.3 0.6

Source: BCC Research, Annual Reportsccxlv

Amcor Limited had net sales of $9.5 billion for the financial year 2012, and $9.1 billion in 2016.

Amcor Limited had profit from operations of $1 billion for the financial year 2012, and $1 billion in 2016.

Amcor Limited had profit of $0.6 billion for the financial year 2012, and $0.6 billion in 2016.

Amcor’s Flexibles division generated revenues of $9.4 billion for the financial year 2016, a 2.7% decrease from the previous yearccxlvi. The company had a market capitalization of AUD 17.3billion ($12.9 billion) as of November 2017. ccxlvii

BEMIS COMPANY, INC. One Neenah Center, 4th Floor Neenah, WI 54957-0669 Tel: 920-527-5000 www.bemis.com

Overview Bemis Company, Inc. was the third largest competitor of plastics bag and pouch manufacturing market in 2016 with 8.5% share of the market. Bemis is a USA based packaging products manufacturing company. The company was established in 1858 and is headquartered in Neenah, Wisconsin. Its product range includes multilayer polymer, blown and cast films and pouches for various industries. Bemis operates 59 manufacturing plants across 13 countries and employs more than 17,000 people globally. ccxlviii

Products and Services The company operates through the following divisions –

The U.S. Packaging division manufactures food, consumer, and industrial products packaging-related products in the USA.

The Global Packaging division manufactures food, consumer, industrial products, medical device and pharmaceutical packaging outside of the USA.

Strategy Bemis’s growth strategy aims at reducing its production cost to increase profit and save $60 million every year. In 2017, the company closed two plastic bag manufacturing plants in the USA and reduced the manpower by 300. ccxlix

Financial Performance The chart and table below show the financial performance of Bemis Company, Inc. during 2012 – 2016.

Figure 133 Bemis Company, Inc. Financial Performance, 2012–2016 ($ Billions) 4.7 1.0

4.6 0.9

4.5 0.8

4.4 0.7

4.3 0.6

4.2 0.5 $ Billions $ 4.1 0.4 Billions $

4.0 0.3

3.9 0.2

3.8 0.1

3.7 0.0 2012 2013 2014 2015 2016

Net sales Gross profit Net incom

Source: BCC Research, Annual Reportsccl

Table 131 Bemis Company, Inc. Financial Performance, 2012–2016 ($ Billions)

2012 2013 2014 2015 2016 Net Sales 4.6 4.5 4.3 4.1 4.0

Gross Profit 0.9 0.9 0.9 0.9 0.9

Net Income 0.2 0.2 0.2 0.2 0.2

Source: BCC Research, Annual Reportsccli

Bemis generated estimated revenues of $1.6 billion for the financial year 2016, a 1.6% decrease from the previous year. The company had a market capitalization of $4 billion as of November 2017. cclii

Bemis had net sales of $4.6 billion for the financial year 2012, and $4 billion in 2016.

Bemis had gross profit of $0.85 billion for the financial year 2012, and $0.87 billion in 2016.

Bemis had gross profit of the year of $0.17 billion for the financial year 2012, and $0.24 billion in 2016.

INTEPLAST GROUP 101 Inteplast Boulevard, Lolita, Texas 77971 Tel: (800) 426-8677 www.inteplast.com

Overview Inteplast Group was the second largest competitor of plastics bag and pouch manufacturing market in 2016 with 5.7% share of the market. Inteplast was founded in 1991 and is headquartered in Livingston, New Jersey, US.

Products and Services The company operates through the following divisions –

The AmTopp division manufactures biaxially oriented polypropylene (BOPP) film, stretch wrap, and plastic concentrates and compounds.ccliii

The Integrated Bagging Systems division manufactures plastic bags, can liners, poly food bags, ice bags, retail merchandise bags, garment bags, grocery bags, and janitorial and industrial supplies.ccliv

The World-Pak division manufactures innovative and varied products, including corrugated plastic sheets, solid and expanded PVC sheets, and cross-laminated heavy-duty XF film and bags.cclv

Strategy The company's growth strategy aims at expanding its market shares by acquiring companies in similar industries and optimizing its production. In 2015, Inteplast acquired Canadian-based El-En Packaging Company Ltd, a manufacturer and supplier of consumer retail garbage bags in North America. The company has also invested $15 million to expand Charlotte and Phoenix Manufacturing Centers in the USA. cclvi

Financial Performance Inteplast Group’s AmTopp, Integrated Bagging Systems, and World-Pak divisions, generated estimated revenues of $1.08 billion in 2015. Inteplast Group is a private company; therefore, no market capitalization is available.

NOVOLEX HOLDINGS, INC. 101 E Carolina Ave, Hartsville, South Carolina 29550 Tel: (843) 857-4800 www.novolex.com

Overview Novolex was the third largest competitor of plastics bag and pouch manufacturing market in 2016 with 6.1% share of the market. The company was founded in 2003 and is headquartered in Hartsville, South Carolina, US.cclvii It employs around 7,000 people globally.cclviii In 2016, The Carlyle Group acquired Novolex from Wind Point Partners, and TPG Growth. cclix

The company operates through its locations in Europe, Americas, and Asia regions.

Products and Services The company operates through the following divisions –

The Hilex Poly division manufactures plastic retail bags, produce bags and other customer experience focused systems.

The Duro Bag division manufactures paper bags and sacks in North America.

The Bagcraft Packaging division manufactures paper based food packaging products which include specialty bags, sandwich wraps, and other specialty sheet and roll products.

The De Luxe Packaging division manufactures paper based lamination specialty bag, sheet and roll- converting capabilities.

The General Packaging Products division manufactures flexible packaging and foodservice papers in US.

The International Converter division manufactures foil laminates, multi-web lamination, and specialty barrier and sealant coatings for high barrier consumers and industrial applications.

The Custom Film and Bag division manufactures custom flexible packaging for industrial and consumer product markets.

The Heritage Bag Company division manufactures plastic trash bags, can liners and food bags for institutional and commercial customers.

The Burrows Packaging division manufactures paper-based products which include clamshells and cartons, wraps and basket liners, napkins, and paper bags. cclx

Strategy The company's growth strategy aims at expanding its market shares by acquiring companies in similar industries. In 2016, Novolex acquired Heritage Bag Company, a US-based plastic bags and can liners manufacturer. In 2015, the company acquired US-based Wisconsin Film & Bag, a custom polyethylene bags and films manufacturer. cclxi cclxii

Financial Performance Novolex generated revenues of $2.3 billion in 2015. Novolex is a private company, therefore, no market capitalization is available.

SEALED AIR 2415 Cascade Pointe Boulevard Charlotte, NC 28208 Tel: (980) 221-3235 www. sealedair.com

Overview Sealed Air Corporation was the second largest competitor in the plastics bag and pouch manufacturing market in 2016 with 8.52% share of the market. Sealed Air is a provider of food safety and security, facility hygiene, and product protection solutions. The company was founded in 1960 and is headquartered in Charlotte, North Carolina, US. It employs around 23,000 people globally. cclxiii

The company operates through its locations in Europe, Americas, Africa, Middle East, Asia and Oceania regions.

Products and Services The company operates through the following divisions -

• The Food Care division provides packaging products, hygiene solutions and equipment to food processors, retailers and food service operators. It serves perishable food and beverage processors, especially in fresh red meat, smoked and processed meats, beverages, poultry and dairy markets globally.

• The Product Care division manufactures protective and specialty packaging materials for cushioning, void fill, positioning/block-and-bracing, surface protection, retail display, containment, and dunnage needs.

• The Diversey Care division provides products and services for facility hygiene, fabric care, food safety and security, building care and consulting and infection control solution. Its products are developed for health care, food service, retail, hospitality and facility services.

• The Other Business division includes medical applications business involved in medical packaging and new ventures business involved in core and non-core technologies development.cclxiv

Strategy The company's growth strategy aims at concentrating and developing its food, product and medical packaging business by divesting the non-core business. In 2017, Sealed Air sold its Diversey Care division and the food hygiene and cleaning business within its Food Care division. cclxv

Financial Performance The chart and table below show the financial performance of Sealed Air Corporation during 2012 – 2016.

Figure 134 Sealed Air Corporation Financial Performance, 2012–2016 ($ Billions)

8.0 3.0

7.8 2.5

7.6 2.0 1.5 7.4 1.0 7.2 0.5

7.0 $ Billions $ 0.0 Billions $ 6.8 -0.5

6.6 -1.0

6.4 -1.5

6.2 -2.0 2012 2013 2014 2015 2016

Net sales Gross profit Operating profit (Loss)

Source: BCC Research, Annual Reportscclxvi

Table 132 Sealed Air Corporation Financial Performance, 2012–2016 ($ Billions)

2012 2013 2014 2015 2016 Net sales 7.6 7.7 7.8 7.0 6.8

Gross profit 2.5 2.6 2.7 2.6 2.5

Operating profit (Loss) -1.4 0.6 0.7 0.8 0.8

Source: BCC Research, Annual Reportscclxvii

Sealed Air Corporation’s Food Care division generated estimated revenues of $1.6 billion for the financial year 2016, a 5.4% decrease from the previous year. The company had a market capitalization of $10.2 billion as of December 2016.cclxviii

Sealed Air had total net salesof $7.6 billion for the financial year 2012, and $6.8 billion in 2016.

Sealed Air had gross profit of $2.5 billion for the financial year 2012, and $2.5 billion in 2016.

Sealed Air had operating loss of the year of $1.4 billion for the financial year 2012, and operating income of $0.8 billion in 2016.

Chapter 23

The Plastics Bag and Pouch Market Customer Information

Chapter 23: The Plastics Bag and Pouch Market Customer Information

Incentives Lead to An Increase in Reusable Bags According to a 2015 survey conducted by Ask Your Target Market, an online market research firm, internationally 76% of shoppers usually reused their plastic shopping bags, 30% recycled their plastic bags and 8% threw them away. About 55% of respondents agreed to use reusable bags if the grocery store offered incentive such as a discount or cashback.cclxix

Biggest Challenges and Trends in Bags Or Pouch Manufacturing According to a 2017 Bag and Pouch Making eBook Study, brand owner and manufacturers reported leakage and seals as the biggest challenge for bags or pouches, while some of them reported cost as the biggest challenge. Non-CPG respondents consider sustainability to be the biggest trend in bag or pouch- specific packaging, while CPGs are driven by customer demand.cclxx

Gusseted Bags Are the Most Preferred Type of Plastic Bags The 2017 Bag and Pouch Making eBook Study reported that among the types of bags or pouch that companies plan to manufacture in the next year, gusseted bags were at the top with 65%, followed by standup pouches (60%), flat-bottom (51%), spouted pouch (29%), and retort (25%).cclxxi

A Majority of People Oppose Plastic Bag Ban According to a public opinion survey by Reason-Rupe in the US, about 60% of respondents opposed a ban on plastic bags. About 17% were in favor of a complete ban on plastics and 13% favor a tax on plastic bags without banning them. The poll also reported that 25% of Americans primarily use reusable shopping bags to carry their groceries. This poll was conducted on 1003 adults, with a margin of error of +\- 3.7%.cclxxii

Overwhelming Support for EU Plastic Bag Ban According to the European Commission Plastic Bag Survey, over 70% of respondents voted in favor of a ban on the distribution of plastic bags, with only 12% agreeing that current requirements on compostability and biodegradability in the Packaging Directive were appropriate. This survey was intended to explore options to reduce the use of plastic bags and options to improve the requirements of biodegradability under EU law. Over 15,500 responses were collected by the Commission, with over 15,000 responses from EU citizens.cclxxiii

Chapter 24

Key Mergers and Acquisitions in The Plastics Bag and Pouch Market

Chapter 24: Key Mergers and Acquisitions in The Plastics Bag and Pouch Market

Merger and acquisition activity in the plastics bag and pouch manufacturing market has been at a medium level in the last four years. Key deals include those done by Berry Plastics Group Inc., ProAmpac, NEX Films, Sonoco, Pritzker Group, Carlyle Group, and Lindsay Goldberg.

Berry Plastics Group Inc. Acquired, AEP Industries Inc. In August 2016, Berry Plastics Group, Inc. acquired AEP Industries Inc. for $765 million. As per the deal, AEP shareholders will receive either $110 in cash or 2.5011 shares of Berry common stock per AEP share. This deal will help Berry Plastics to expand in North American market. AEP Industries Inc. manufactures and markets a diverse line of flexible plastic packaging products for consumer, industrial, and agricultural applications. The company was founded in 1970 and is based in Montvale, New Jersey. cclxxiv cclxxv cclxxvi

ProAmpac Acquired PolyFirst Packaging In September 2017, ProAmpac acquired PolyFirst Packaging for an undisclosed amount. This acquisition enables ProAmpac to better serve their customers by adding cold seal capabilities and various new bag and pouch formats to its portfolio. PolyFirst was founded in 1998 and is based in Hartford, Wisconsin. It specializes in printed/customized roll stock and various types of plastic pouches and bags.cclxxvii

ProAmpac Acquired Clondalkin Flexible Packaging In August 2017, ProAmpac acquired Clondalkin Flexible Packaging Orlando for an undisclosed amount. This deal helps ProAmpac to offer customers an integrated and comprehensive capability to meet their increasing demands for daisy chain portion-pack lidding with enhanced offerings. Based in Philadelphia, Pennsylvania, Clondalkin Group operates across Europe and North America. Clondalkin Group develop, manufacture and market various packaging for different consumer goods and industrial applications. It is specialized in extrusion, printing, laminating and finishing.cclxxviii

ProAmpac Acquired Trinity Packaging Corporation In April 2017, ProAmpac acquired Trinity Packaging Corporation for an undisclosed amount. Post- acquisition, Trinity Packaging retained its name and became a separate division within ProAmpac. Trinity Packaging Corporation is a flexible packaging company specializing in large format packaging for the lawn and garden, food and specialty industrial markets. It was founded in 1917 and is based in Armonk, New York.cclxxix

Sonoco Acquired Plastic Packaging Inc. In November 2016, Sonoco acquired Plastic Packaging Inc. (PPI), a North Carolina based flexible packaging company for an undisclosed amount. This acquisition grows Sonoco’s flexible packaging assets in the southeast U.S., adding short-run capabilities that allow them to offer specialty and customization capabilities to their current customers while expanding their customer base. Established in 1957, PPI manufactures and markets flexible plastic packaging products to manufacturers in consumer and commercial markets including confection, food products, pet products, health and personal care.cclxxx

Pritzker Group Acquired ProAmpac LLC In November 2016, Pritzker Group Private Capital acquired ProAmpac for an undisclosed amount. ProAmpac was established in 1971 and headquartered in Cincinnati, Ohio. ProAmpac operates under the Prolamina, Ampac and Tulsack brands and has more than 2,400 employees across 18 manufacturing locations in Asia, North America and Europe.cclxxxi

Carlyle Group Acquired Novolex In November 2016, Carlyle Group acquired Novolex for an undisclosed amount. The deal is expected to close by the end of 2017. Novolex is a plastic bag manufacturer and recycler from Wind Point Partners and TPG Growth. It has 7,000 employees and 49 manufacturing plants globally. The company was established in 2003 and headquartered in South Carolina, USA.cclxxxii

Lindsay Goldberg Acquired Schur Flexibles Group In July 2016, Lindsay Goldberg acquired Schur Flexibles Group, an Austria based flexible packaging company for an undisclosed amount. Through this acquisition Lindsay Goldberg continues to grow successfully by manufacturing flexible packaging products in Europe across a range of end markets including pharmaceuticals, food and tobacco. Schur Flexibles was established in 1962 and is based in Flensburg, Germany. It produces flexo-printing, mono and co extruded polypropylene films and lamination.cclxxxiii

Appendix

NAICS Definitions of Industry Covered in This Report 326111 – Plastics Bag and Pouch Manufacturing This industry comprises establishments primarily engaged in: (1) converting plastics resins into plastics bags or pouches; and/or (2) forming, coating, or laminating plastics film or sheet into single web or multi-web plastics bags or pouches. Establishments in this industry may print on the bags or pouches they manufacture.

Research Methodology Methodology The report is based on the methodology below.

Data Our datasets are created using a wide range of proprietary and public sources including leading government bodies, associations, trade journals, market intelligence reports and trade magazines. Data is modelled based on hard data, extrapolation, regression analysis based on known macro data inputs, interpolation between hard figures, comparisons with other geographies and markets, price estimations, and qualitative inputs. Data is triangulated within our unique market data model covering an exhaustive list of 200+ markets across 12 countries and 5 regions. Comparable data is used for sanity check and trend analysis. For example, our global market value data is compared to unit sales and price data for the relevant market as well as relevant macro-economic datasets in order to establish validity.

Market Numbers Market value is defined as the revenues earned by organizations for products and services within the specified market. The break down by geography is revenue generated within the specific industry by organizations in the specified geography, irrespective of where they are produced.

Competitor Market Share Data The competitor market share data is intended to represent the companies that gain the most revenues from the given market and the percentage share of the market that they hold. If a company derives most of its revenues from the market, its revenues are given in full. If a large part of the company's revenues come from other markets, only the division of the company which operates in this market is included. Where accurate information is not available on the revenues a company generates from the market its market share is not included, however a profile of the company may still be included if it is a significant competitor in the market.

Analysis Analysis is drawn from our Consultants’ wide range of industry and research experience as well as public and proprietary sources. Consultants are trained in research techniques and ethics by the Market Research Society.

Verification Through Expert Interviews Every year we carry out thousands of interviews with senior executives and industry experts across hundreds of markets. Through these interviews we develop our internal understanding of markets and geographies and cross reference our understanding of global markets with expert feedback utilizing ‘Delphic’ research methodologies.

Market Data Sources Table 133 Market Data Sources

Source URL

http://www.metso.com/corporation/ir_eng.nsf/WebWID/WTB-111122- Metso 2256F-C703E/$File/4_CMD_2011_MAC.pdf https://www.smartpouches.com/flexible-plastic-pouches-sales-predicted- Smart Pouches top-10-billion https://www.plasticstoday.com/packaging/flexible-packaging-market- Plastics Today projected-exceed-250-billion-2024/151616418952531 http://www.ey.com/Publication/vwLUAssets/Unwrapping_the_packaging_i ndustry_%E2%80%93_seven_factors_for_success/$FILE/EY_Unwrapping_th e_packaging_industry_-_seven_success_factors.pdf https://www.transparencymarketresearch.com/pressrelease/global-plastic- bag-sack-industry.htm EY http://www.satprnews.com/2017/11/03/global-biodegradable-plastic-bags- sacks-market-hold-dominant-shares-in-reinventing-eco-friendly- environment/ http://www.businesswire.com/news/home/20170131006185/en/Global- Plastic-Products-Manufacturing-Market-Briefing-2017 http://www.imf.org/external/index.htm IMF

Comtrade https://comtrade.un.org/data/ USA:https://www.bea.gov/national/index.htm#gdp Russia:http://www.gks.ru/free_doc/doc_2016/rusfig/rus16e.pdf Japan:http://www.stat.go.jp/english/data/nenkan/66nenkan/1431-09.htm China:http://data.stats.gov.cn/english/easyquery.htm?cn=C01 India:http://mospi.nic.in/publication/national-accounts-statistics-2017 Australia:http://www.abs.gov.au/AUSSTATS/[email protected]/DetailsPage/8155.02 015-16?OpenDocument Brazil:http://downloads.ibge.gov.br/downloads_estatisticas.htm National Statistics European Union: Offices http://appsso.eurostat.ec.europa.eu/nui/show.do?query=BOOKMARK_DS- 120933_QID_7751073C_UID_- 3F171EB0&layout=TIME,C,X,0;GEO,L,Y,0;NACE_R2,L,Z,0;INDIC_SB,L,Z,1;INDI CATORS,C,Z,2;&zSelection=DS-120933INDICATORS,OBS_FLAG;DS- 120933NACE_R2,C2573;DS- 120933INDIC_SB,V12110;&rankName1=INDICATORS_1_2_- 1_2&rankName2=INDIC-SB_1_2_-1_2&rankName3=NACE-R2_1_2_- 1_2&rankName4=TIME_1_0_0_0&rankName5=GEO_1_0_0_1&sortR=ASC_- 1_FIRST&sortC=ASC_-

1_FIRST&rStp=&cStp=&rDCh=&cDCh=&rDM=true&cDM=true&footnes=false &empty=false&wai=false&time_mode=NONE&time_most_recent=false&lan g=EN&cfo=%23%23%23%2C%23%23%23.%23%23%23

Source: BCC Research

Referencing We pride ourself on the quality and validity of its data and analysis. Our unique ‘end noted’ referencing approach allows the user to trace our market numbers and analysis back to the specific data sources they were derived from.

Note on Currency Conversions All currency conversions are done on the basis of 2016 change rates.

Abbreviations Currencies $ stands for US Dollar € stands for Euro All other currencies are given with ISO currency codes.

About BCC Research

About BCC Research With our unparalleled 45-year history, BCC Research provides comprehensive analysis of global market sizing, forecasting and industry intelligence, covering markets where advances in science and technology are improving the quality, standard and sustainability of businesses, economies and lives.

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BCC Custom Research Our experts provide custom research projects to those working to identify new markets, introduce new products, validate existing market share, analyze competition and assess the potential for products to impact existing markets. With impressive academic credentials and broad and deep knowledge of global industrial markets, our independent analysts and consultants develop the facts, figures, analysis and assessments to inform the decisions that will move your company ahead. Confidential inquiries to: [email protected] or 781-205-2429.

DISCLAIMER The information developed in this report is intended to be as reliable as possible at the time of publication and is of a professional nature. This information does not constitute managerial, legal or accounting advice, nor should it be considered as a corporate policy guide, laboratory manual or an endorsement of any product, as much of the information is speculative in nature. BCC Research and the author assume no responsibility for any loss or damage that might result from reliance on the reported information or from its use.

ISBN: 978-62296-612-7 January 2018

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