Overview
Packaging Overview
2016 Total Packaging Market Size (million units):
73,010
2011-16 Total Packaging Historic CAGR:
-0.3%
2016-21 Total Packaging Forecast CAGR:
0.5%
| Packaging Industry | 2016 Market Size (million units) |
|---|---|
| Beverages Packaging | 20,507 |
| Food Packaging | 44,971 |
| Beauty and Personal Care Packaging | 2,953 |
| Dog and Cat Food Packaging | 2,191 |
| Home Care Packaging | 2,389 |
| Packaging Type | 2016 Market Size (million units) |
|---|---|
| Rigid Plastic | 24,667 |
| Flexible Packaging | 25,267 |
| Metal | 5,773 |
| Paper-based Containers | 7,168 |
| Glass | 6,878 |
| Liquid Cartons | 3,256 |
- The total Italian packaging industry, sized at over 73 bn units in 2016, is expected to continue seeing cautious growth.
- Food and beverage packaging continues to dominate packaging, but niche growth opportunities exist in dog and cat food packaging.
- Flexible packaging continues to lead in size, but rigid plastic ranks a close second.
Key Trends
- Craft beer and artisanal spirits are becoming more popular and the packaging used for these products is often designed to denote higher quality and innovation. In addition, packaging is increasingly being used to tell the brand story in an effort to create higher levels of interest and build consumer loyalty.
- Despite the gradual improvement of the economy, many Italians remain cautious and price-sensitive when shopping for beauty and personal care products, focusing on obtaining the best value for money possible and constantly on the lookout for lower-priced products and, in particular, larger pack sizes.
- Sustainability is becoming increasingly important within food packaging and this means that the leading players in the market are investing in innovation to respond to emerging consumer for products with more sustainable packaging.
- Another industry in which the environmental concerns of consumers are coming to the fore is home care, where manufacturers are meeting rising interest in sustainability by adapting their packaging to make it smaller, lighter and less likely to contribute to household waste.
Packaging Legislation
- New regulation for food packaging: 2016 saw the Italian Government approve a new legislative decree on the sanctions to be applied in case of violation of the laws on materials and objects in contact with food. The decree introduces important measures to increase food safety and the efficiency of official controls. For example, food packaging producers must inform the health authority about their production plants. In addition, new sanctions have been determined in case of violation of the obligations with respect to labelling and traceability of materials and objects in contact with food.
- Clear food labels required: In order to protect consumers, the labels of food products need to be increasingly clear, providing more information such as expiry date, type of vegetable oils/fats used, total proportion of water, the origins of the product and the presence of allergens, as well as adhering to the standards and norms relating to the readability and size of the text of labels.
- Stricter rules for laundry capsules: In order to protect children from poisoning by laundry capsules, the European Commission and the governments of its Member States agreed in December 2014 to urgently introduce new, stronger safety measures for liquid detergents in soluble packaging. All manufactures must ensure that the soluble packaging of capsules available in the EU contains an aversive agent, which makes children spit the capsule out within six seconds, in case they put it in their mouths.
Recycling and the Environment
- Biocide legislation fully implemented: Laying down stricter rules for the use and disposal of biocide products, the European Regulation No528/2012 has set up specific requirements for the procedures of waste management of potentially harmful home insecticides, as well as their packaging. This new set of law is now fully implemented and it has encouraged a new approach among all stakeholders in home insecticides, including pest control workers who use these products.
- Recycled PET continues to develop: The integration of recycled PET (R-PET) in the production processes of new PET bottles continued to develop in 2016. Over the course of the last decade, there has been significant improvements seen in the collection of recycling streams in all the most industrialised countries and this is promising for the future of R-PET. By now, there is no significant difference between the chemical composition of virgin PET and R-PET as both materials allow bottles to be manufactured with the same technical characteristics.
- Recycling is very important for Italian consumers: Italian consumers are very keen on recycling and most people in the country now consider it to be very important. As a result, many of the leading players in the packaging market have responded by increasingly introducing packaging that is able to recycled and/or more easily recyclable.
Packaging Design and Labelling
- Pouches become more popular: Pouches is the main pack type through which companies are demonstrating their commitment to reducing waste. On average, pouches use 70% less plastic than other plastic pack types and consumers are favouring this pack type as way of showing appreciation towards manufacturers for their attention to environmental issues.
- The nostalgia trend drives the rise of vintage-look packaging: Vintage and retro packaging designs have proven able to connect consumers to their childhoods while at the same time providing a sense of uniqueness and originality as well as promoting brand differentiation on retail shelves. This is increasingly important for companies at a time when capturing the interest of Italians is becoming more difficult because of the proliferation of products in different categories.
style-gray
Beverages
Flexible Packaging Landscape
- Total Italian beverage packaging volume is second highest in the world and expected to see moderate 1.0% CAGR growth through 2021.
- Flexible beverage packaging is expected to see faster volume growth through 2021.
Trends
- In soft drinks, packaging increased slightly in 2016. In particular, with total retail packaging increasing by more than 1% and foodservice total packaging by almost 1%. The changing consumption habits of Italian consumers saw, for example, a preference for smaller packaging over the review period.
- In hot drinks, the best-performing category in 2016 was fresh ground coffee pods, as Italian consumers find them convenient and easy to use when preparing good-quality coffee at home.
- In alcoholic drinks, sustainability represented the most important packaging trend in Italy in 2016. Italian consumers are increasingly concerned about the impact of their choices on the environment, and seeking for ways to limit this. Therefore, when choosing alcoholic drinks packaging, they tend to favour formats that are lighter and made with recycled materials, or which are more easily recyclable, as well as seeking certifications such as FSC.
Outlook
- In soft drinks, stand-up pouches are expected to increase over the forecast period in soft drinks packaging in the retail channel, as they are light, easy to transport and allow easy consumption.
- In hot drinks, growth will be driven in large part by fresh ground coffee pods, which is expected to increase by 3% CAGR over the forecast period, and tea with a 3% CAGR, as Italians are increasingly favouring tea as a healthy drink.
- In alcoholic drinks, sustainability is expected to increase in importance for Italian consumers, and therefore players will increasingly use sustainable packaging, made with recycled or easily recyclable materials, saving costs, materials and energy, and having a low impact on the environment.
- The use of cans for wine will likely increase in coming years, as cans are easily portable and allow for single serving sizes for increasingly health-conscious Italian consumers.
style-gray
Dog and Cat Food
Flexible Packaging Landscape
- Total Italian dog and cat food packaging volume is expected to see strong 2.4% CAGR growth through 2022.
- Flexible dog and cat food packaging is expected to see even stronger 4.8% volume CAGR growth through 2022.
Trends
- During 2017, the importance of flexible packaging in dog and cat food was strongly supported by the fact that most companies present in the category are changing their old paper-based packaging for flexible plastic alternatives.
- Pouches and smaller pack types in general continued to gain ground in dog and cat food, as well as in dog and cat treats, due to the rising awareness among Italian pet owners of the problem of pet obesity.
Outlook
- Total dog and cat food packaging is expected to increase in volume at a CAGR of 2% over the forecast period to reach 2.5 billion units in 2022, a rate of growth which is set to be in line with the 2% total volume CAGR recorded in the category over the review period. This consistency of growth is set to be mainly due to increasing maturity in pet food. Nonetheless, volume growth in the category is set to remain robust overall as Italian consumers continue to shift away from feeding their pets leftovers to feeding them with packaged dog and cat food products.
- Plastic pouches is expected to be one of the best performing pack types across dog and cat food packaging over the forecast period, especially in dog treats. The convenience of this packaging format, the use of easy-open closures, the transparency of packs and the versatility of the format in terms of pack sizes and the use of this packaging for different product types are all set to support the rising popularity of plastic pouches during the forecast period.
style-gray
Beauty and Personal Care
Flexible Packaging Landscape
- Total Italian beauty and personal care packaging volume is expected to see limited 0.7% CAGR growth through 2021.
- Flexible beauty and personal care packaging is expected to see a slightly higher 0.9% CAGR growth through 2021.
Trends
- The most important beauty and personal care packaging innovations in 2016 were cushion compacts, which are multi-functional foundations, including a primer and sunscreen, with active hydrating and skin brightening properties. This convenient packaging has proven popular, allowing consumers to apply and re-apply the product easily throughout the day.
- The trend towards larger pack sizes has been strengthened by the growing use of the internet channel offering home-delivery and the expansion of drugstore chains such as Tigota, which offers lower prices.
- Plastic dispensing closures remains the most popular closure type within beauty and personal care in Italy for plastic tubes, HDPE and PET bottles, increasing in importance in 2016 at the expense of plastic screw closures, which are considered to be less convenient.
Outlook
- Italians will keep looking for bigger pack sizes as well as for draught and refill products, which allow consumers to reduce packaging waste and cost.
- Plastic pouches will become more common for liquid soaps and might enter other product areas such a bath foam/gel, shampoo, general purpose body care and baby and child-specific toiletries.
- Lotion pumps are expected to be successful over the forecast period thanks to the attractive new airless technology preserving the product formula.
style-gray
Home Care
Flexible Packaging Landscape
- Total Italian home care packaging volume is expected to see a -1.8% CAGR decline through 2021.
- Flexible home care packaging, however, is expected to see moderate 1.1% CAGR growth through 2021.
Trends
- In 2016, home care manufacturers met consumer demand for eco-friendly products mostly through packaging. Companies focused on re-designing packaging both in materials by choosing more ecologically based components, and in pack types by following the idea of less waste. All major companies increased the use of lighter plastic, PET and lighter packaging types such as pouches.
- Due to the concentration trend in the largest (both in volume and in value) home care categories, smaller pack sizes were growing in 2016.
- Trigger closures were growing in importance in 2016. Reckitt Benckiser launched two new products in its Napisan brand with trigger closures: Napisan Trigger Superfici and Napisan Trigger Toilet.
Outlook
- The trend of home care products becoming more concentrated will continue through 2021, and smaller pack sizes are expected to continue increasing in popularity.
- Italian consumers’ increasing environmental consciousness will continue to drive growth in sustainable home care packaging.
- Trigger closures and child-resistant closures are both projected to perform well during the forecast period.
style-gray
Packaged Food
Flexible Packaging Landscape
- Total Italian packaged food packaging volume is expected to see limited 0.5% CAGR growth through 2022.
- Flexible packaged food packaging is expected to remain largely stagnant with 0.3% CAGR growth through 2022.
Trends
- In sauces, dressings and condiments, primary packaging of oyster sauces and soy sauces perform well due to increasing interest in different cuisines and Italians’ willingness to experiment with new recipes at home. At the same time, the increase in the number of immigrants in Italy favours the consumption of these products
- In processed meat and seafood, smaller pack sizes gained popularity in 2016 as Italian consumers increasingly looked for opportunities to save money and reduce waste.
- In processed fruit and vegetables, smaller and single-serve packaging is becoming increasingly important, as consumers are able to eat these products on the go, while at the same time limiting waste and keeping products fresh in small quantities.
- In confectionery, smaller pack sizes and multipacks of single-serve packaged items are becoming more popular as overall demand for confectionery decreases in light of the health and wellness trend.
- In dairy, packaging of milk alternatives performed well in 2016, with 16% retail volume growth, as Italian consumers increasingly prefer to choose products that are expected to provide benefits to their health or reduce intolerances
- In baby food, overall packaging volume declined in 2016, but liquid milk formula packaging volume grew as Italian consumers increasingly view liquid milk formula as convenient and easy to use.
Outlook
- In sauces, primary packaging growth rates of oyster sauces and soy sauces are expected to be the highest performers with respective CAGRs of 14% and 10% over the forecast period, as Italians increasingly favour international cuisine, as well as due to the increase of the immigrant population in Italy.
- In processed meat and seafood, primary total packaging for meat substitutes is expected to continue to perform well over the forecast period and record an 18% retail volume CAGR, as Italian consumers become interested in increasing their intake of non-animal proteins.
- In processed fruit and vegetables, packaging volume growth will be driven in large part by Italian consumers’ increasing demand for healthy foods and increasingly willingness to try new recipes at home. Sustainability will remain important through 2021, with consumers increasingly opting for packaging that is made of recycled materials or that is easily recycled.
- In confectionery, packaging sales volume is projected to continue to decline through 2021, and pack sizes are expected to continue to become smaller as confectionery consumption declines.
- In dairy, primary packaging of milk alternatives is predicted to continue perform well over the forecast period with a 12% retail volume CAGR, as Italians will look for alternatives to cow’s milk.
- In baby food, packaging volume sales are projected to stagnate along with the birth rate in Italy. In addition, processed baby food will face increased competition from fresh food, as Italian parents are increasingly selecting healthy and natural ingredients for their children.
style-gray