The east could be a potential goldmine for international packaging companies, according to speakers at an assembly of industry representatives.
With western countries reaching, or even exceeding, production capacity, speakers urged companies to recognise the investment opportunities presented elsewhere.
According to Tim Rothwell, senior vice president of investment banker Lansdowne Capital, development in the packaging market has long been associated with overall GDP growth but this trend is becoming less noticeable.
He said: “India has the lowest per capita spend on packaging and very low labour cost, making it a prime opportunity for development. China also has a very low per capita spend, and low labour costs and is seeing high growth. It also has a cost advantage in terms of plastic resins.”
However both companies have drawbacks, with India reaching overcapacity in film and strict government regulations, and China oversupplied with plastics and burdened with low profit margins, he said.
Meanwhile, the growing presence of major retailers in eastern Europe is paving the way for large-scale packaging development, said Paul Sudnik, business unit director of Amcor PET Packaging Europe.
He said with supermarkets having their own specifications all along the chain, packaging companies were having to benchmark their quality standards and eastern European producers were improving at an impressive rate.
But he urged companies to recognise the individualism of CEE countries, and approach them armed with an understanding of local concerns, rather than attempting to conquer the continent in one fell swoop.
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