PE FILM MARKET
Western Europe: Production 5.5m t / Metallocene share is forecast to rise / Shrink and stretch film biggest market segment / Italy becomes leading producer / Stagnation in Germany
Nearly 30% of plastics consumption in western Europe goes into the production of film. This makes film extrusion the biggest form of plastics processing in volume terms. The production of polyethylene (PE film) accounts for 75% of this market. In 1997, 5.47m (1996: 5.32m) t PE film was produced in western Europe. LDPE and LLDPE made up 88% of this, while HDPE accounted for the other 12% (see diagram). On top of this, another 450,000 t secondary plastics were also processed into film. These figures were published by the British market research institute Applied Market Information Ltd. (AMI, Bristol) in the current edition of "AMI's Guide to the Polyethylene Film Industry in Western Europe".
AMI is expecting drastic changes in the raw materials segment during the next few years. Metallocene-catalyst-based PE grades will open up new fields of application, and will compete increasingly with existing products. The improved physical properties will accelerate the process of reducing film thickness – downgauging – to save material. AMI forecasts that, despite downgauging, increasing environmental requirements and the greater use of recycled materials, PE film production will have an annual growth rate of 1.5% up to the year 2001.
The biggest application for PE film is in shrink and stretch film. With a consumption of more than 1.5m t PE, this segment accounts for more than a quarter of the total market. While stretch film has grown strongly over the past ten years, the use of pallet and shrink film has risen relatively slowly. The agricultural segment has seen growth in hothouse film, but has also recorded falls in silage and covering film. The market for plastic carrier bags remains difficult because of more stringent environmental protection regulations and changes in consumer awareness.
Germany has surrendered its position as the biggest film producing nation in western Europe to Italy. The 274 Italian companies manufactured a total of 1,033m (1996: 1,011) t PE film in 1997, while the 149 German companies produced 970,000 (959,000) t. In 1995, Germany was still the biggest producer with 955,000 t (Italy: 924,000 t). Some distance behind in 1997 came the United Kingdom (760,000 t, 185 companies), France (651,000 t, 129 companies), the Benelux countries, which produced 597,000 t with only 69 companies, the Scandinavian countries (511,000 t, 86 companies) and Spain (506,000 t, 104 companies).
The ever tougher competition will speed up the restructuring process in the European film industry. Over the past few years, large holding companies have already been trying to build up a strong position on the market for flexible packagings by making acquisitions. A number of well-known film suppliers yielded to the strong competition and said good-bye to the market. On the other hand, various new production facilities have also gone on stream. Nevertheless, according to AMI, the number of players declined in most markets. In Parallel to this the market power of the leading 50 players has increased. In addition to the "Economies of scale", these groups profit from the higher technical resources and more favourable opportunities for procuring raw materials. This gives them a competitive advantage over independent, medium-sized companies.
The guide contains comprehensive data on over 1,100 companies in western Europe who manufacture PE film. Details of which plastic raw materials are used, which film grades are produced and what kind of end products are manufactured can be found along with data on film widths, ISO certifications and ownership information. The study also covers the structure of the PE film industry in individual countries, the number of manufacturers and production volumes from 1992 to 1997. In addition, the production of PE film by end use is depicted in graph form for the year 1996.
BOOK SERVICE "AMI's Guide to the Polyethylene Film Industry in Western Europe", 5th, revised edition 1997, in five languages (English / French / German / Italian / Spanish), 354 pages, A4 format, DEM 395 + postage/VAT: PIE-No. B 41922.
AMI is expecting drastic changes in the raw materials segment during the next few years. Metallocene-catalyst-based PE grades will open up new fields of application, and will compete increasingly with existing products. The improved physical properties will accelerate the process of reducing film thickness – downgauging – to save material. AMI forecasts that, despite downgauging, increasing environmental requirements and the greater use of recycled materials, PE film production will have an annual growth rate of 1.5% up to the year 2001.
The biggest application for PE film is in shrink and stretch film. With a consumption of more than 1.5m t PE, this segment accounts for more than a quarter of the total market. While stretch film has grown strongly over the past ten years, the use of pallet and shrink film has risen relatively slowly. The agricultural segment has seen growth in hothouse film, but has also recorded falls in silage and covering film. The market for plastic carrier bags remains difficult because of more stringent environmental protection regulations and changes in consumer awareness.
Germany has surrendered its position as the biggest film producing nation in western Europe to Italy. The 274 Italian companies manufactured a total of 1,033m (1996: 1,011) t PE film in 1997, while the 149 German companies produced 970,000 (959,000) t. In 1995, Germany was still the biggest producer with 955,000 t (Italy: 924,000 t). Some distance behind in 1997 came the United Kingdom (760,000 t, 185 companies), France (651,000 t, 129 companies), the Benelux countries, which produced 597,000 t with only 69 companies, the Scandinavian countries (511,000 t, 86 companies) and Spain (506,000 t, 104 companies).
The ever tougher competition will speed up the restructuring process in the European film industry. Over the past few years, large holding companies have already been trying to build up a strong position on the market for flexible packagings by making acquisitions. A number of well-known film suppliers yielded to the strong competition and said good-bye to the market. On the other hand, various new production facilities have also gone on stream. Nevertheless, according to AMI, the number of players declined in most markets. In Parallel to this the market power of the leading 50 players has increased. In addition to the "Economies of scale", these groups profit from the higher technical resources and more favourable opportunities for procuring raw materials. This gives them a competitive advantage over independent, medium-sized companies.
The guide contains comprehensive data on over 1,100 companies in western Europe who manufacture PE film. Details of which plastic raw materials are used, which film grades are produced and what kind of end products are manufactured can be found along with data on film widths, ISO certifications and ownership information. The study also covers the structure of the PE film industry in individual countries, the number of manufacturers and production volumes from 1992 to 1997. In addition, the production of PE film by end use is depicted in graph form for the year 1996.
BOOK SERVICE "AMI's Guide to the Polyethylene Film Industry in Western Europe", 5th, revised edition 1997, in five languages (English / French / German / Italian / Spanish), 354 pages, A4 format, DEM 395 + postage/VAT: PIE-No. B 41922.
30.04.1998 Plasteurope.com [18720]
Published on 30.04.1998