2016 Total Packaging Market Size (million units):

144,016

2011-16 Total Packaging Historic CAGR:

0.3%

2016-21 Total Packaging Forecast CAGR:

0.4%

• The total German packaging industry, sized at over 144 bn units in 2016, experienced stagnation at only 0.3% growth, with a scant 0.4% expected over the forecast period.
• Food packaging overwhelmingly dominates all packaging, with drinks packaging only half of food packaging.
• Rigid and flexible plastic share the lead in size and growth rate.

• Many areas of packaged food see a shift towards smaller pack sizes as households shrink, older consumers eat less, and healthy portion control gains popularity.
• Alcohol consumption declined as health-consciousness went up among consumers. The on-trade channel was hit particularly hard, with foodservice packaging falling at a slightly stronger rate than retail packaging sales over the review period.

• A March 2017 packaging law (Verpackungsgesetz) will come into effect in 2019 to prevent packaging waste by extending deposit obligations to carbonated fruit/vegetable nectars and beverages containing with 50% milk, and encouraging the use of returnable packaging, with a target reusability rate of 70%, among other measures
• Verpackungsgesetz encourages recycling through the Grüne Punkt ("Green Dot) system, indicating manufacturer contribution to cost of recovery and recycling. Significantly higher recycling rates will be implemented from 2019 onwards, with a target rate for plastic packaging increasing to 63% by 2022 and metal packaging and glass set to rise to 90% by 2022.
• The Closed Substance Cycle and Waste Management Act of 1996 in which producers of goods responsible for materials' reuse, recycling or environmentally-sound disposal.
• The city of Hamburg banned coffee pods from government-run buildings, on the grounds that they cause resource consumption and generate waste while containing polluting aluminum.

• Players face growing pressure to offer environmentally-friendly packaging with higher recycling rates. Consumers increasingly scrutinize packaging's environmental credentials.
• Many feel that the beauty and personal care industry has not reached adequate standards of recyclable, environmentally-friendly packaging.
• Germany has impressive recycling rates and continued to reach the highest recycling rates in Europe in 2015, with over 66% recycling rate for municipal waste in 2015.

• Aging society creates challenges and opportunities for labelling and packaging Germany had a high median age of 46 and over 21% of the population over age 65 in 2016. Many older consumers reduce food consumption, resulting in smaller pack sizes within packaged food, in processed fruit and vegetables and sauces, dressings and condiments. There is thus likely to be a focus on clear and legible fonts.  New printing technologies point to future of packaging design
• The focus on differentiation results in a growing number of bottles that can only be reused by one brewery. The more non-standard bottles launched by large breweries, the bigger the problem becomes for small breweries, with many facing higher costs for standard reusable beer bottles as the supply of this packaging diminishes.