Competitive horizon
Article Type: Competitive horizon From: Strategic Direction, Volume 28, Issue 1
Rising global demand predicted for flexible packaging
Annual growth of over 4 percent will mean that flexible packaging will be worth more than $71 billion by 2016. A report issued by Pira International predicts that consumption of flexible packaging will reach around 22.5 million tons by this time. Around three-quarters of consumption will involve food and drink, with meat, poultry, fish and confectionary particularly significant end-user markets. The report points out that growth in the industry has increased through initiatives to use flexible packaging instead of metal cans,glass, ceramics, plastic bottles and other traditional materials. Demand from retailers to increase product protection and shelf-life has also fuelled demand for a product considered versatile, relatively low priced and potentially innovative. Strongest scope for growth is in Asia, where sales are forecast to leap by 6.1 percent each year. The region is set to account for 55 percent of global growth. An increase in sales by $500 million is forecast for Central and Eastern Europe. But in more mature markets like Western Europe and North America, the potential for expansion is weaker. For instance, sales in North America are predicted to rise by 2.4 percent. As reported by www.foodproductiondaily.com,demand for flexible packaging will remain highest in the US. During this period,China will exchange places with Japan to become the world’s second largest consumer.
Economy in Poland to further benefit from internet growth
Data released by the Boston Consulting Group predicts growth in Poland’s internet economy will average around 14 percent by 2015. This means that internet trade will account for 4.1 percent of the country’s gross domestic product (GDP). In 2009, the figure was 2.9 percent. Growth in Poland is expected to be among the strongest in Europe, although internet sectors in the Czech Republic and Germany are anticipated to increase by 12 percent and 8 percent respectively. The report, as published by Warsaw Business Journal (www.wbj.pl), points out that e-commerce is the main driver of the internet economy. That each market is also influenced by different characteristics is also acknowledged. Scope for growth in Poland is heightened by the fact that only a small percentage of Polish companies buy and sell via the internet. Online sales and purchasing activity is well established in many other markets. Consequently, individual consumers are most responsible for e-commerce growth in Poland and this has led to significant increases in trade on such as auction websites.
UK firms failing to exploit social media
Small companies in the UK appear to be ignoring the potential offered by social media, according to a study conducted by Talk Talk Business. When it comes to using social media platforms like Twitter and LinkedIn, as many as 43 percent of small businesses reveal some hesitation. Confidence is highest in the north-east of the country, where comfort in using social media was indicated by 69 percent of firms. This contrasts with businesses in the southwest, where uncertainty is more evident. Similar findings were produced with regard to importance. Whereas only 9 percent of firms in the two largest Scottish cities perceived social media as a key businesses communication channel, the opposite view was expressed by 44 percent of small operators in Norwich. Talk Talk Business also reports that only 1 percent of small firms in the UK are using social media to generate new business. As reported by My Business (www.mybusiness.co.uk),the organization believes that education is necessary in order for such companies to understand the value of social media as a business tool. It points out benefits that include better understanding of customer needs, more profound market insight and greater awareness of how the organization is perceived.
Advanced materials set to grow in China
A report published by www.china.org.cn points out China’s plans to boost its advanced materials industry. By increasing investment and providing tax incentives, the country’s government is aiming to increase annual output in the sector to $313 billion by 2015. A five-year plan for the industry will be announced soon as part of China’s intention to boost advanced materials and other emerging industries through innovation and industry upgrades. This will help achieve low-carbon, sustainable growth driven by key technologies. During this period, the advanced materials industry in China is expected to supply 50 percent of products needed by the country. Looking further ahead to 2020, the government anticipates that the sector will make an even greater contribution to China’s economy.
