Market Research Logo

Packaging Industry Business Outlook and Procurement Survey H1 2017

Packaging Industry Business Outlook and Procurement Survey H1 2017

Summary

GlobalData’s Packaging Industry Business Outlook and Procurement Survey H1 2017, report examines executives’ opinion on business outlook and procurement activities over Jun 2017-Nov 2017. It also highlights key business priorities, supplier price variations, changes in capital expenditure, including procurement activities, and organizations’ perspective on e-procurement. In addition, this report presents the future projection of merger and acquisition activities within the packaging industry over the next six months.

Over the next six months, packaging companies are looking to expand their business operations in the existing markets to reap benefits such as diversification, economies of scale, and easy availability of finance, due to which expansion in the current markets and new product development are expected to become major priorities in H1 2017 (Jun 2017-Nov 2017). Packaging industry executives are confident about emerging markets such as China and India, and developed markets, namely the US and Germany, contributing significant growth towards the packaging industry during H1 2017. Although the highest percentage of global packaging industry executives projects an increase in merger and acquisition activity over the next six months, they intend to increase capital expenditure on new product development and IT infrastructure development. Procurement activities will increase on IT services and raw material purchases amid the expectation of a surge in supplier prices over the next six months.

What else does this report offer?

  • Key business priorities: examines packaging organizations’ important priorities for Jun 2017-Nov 2017
  • Emerging and developed markets: provides information about key emerging and developed markets, which will offer the most growth over H1 2017
  • Change in M&A activity: analyzes packaging industry executives’ opinion on changes in merger and acquisition activity globally
  • Business concerns: identifies major business concerns that are likely to impact manufacturers and suppliers
  • Change in capital expenditure: tracks the expected change in capital expenditure both globally and regionally
  • Change in procurement activities: evaluates how procurement activities will change in the packaging industry over the next six months
  • Procurement budget outlook: projects procurement budget allocation along with changes in procurement objectives over Jun 2017-Nov 2017
  • Supplier prices outlook: determines the expected change in supplier prices over Jun 2017-Nov 2017
  • E-procurement: identifies executives’ perspective towards e-procurement implementation and deployment within the global packaging industry
Scope
  • Expansion in current markets and new product development are major priorities for packaging organizations during the next six months (Jun 2017-Nov 2017)
  • The US and Germany are highlighted as prominent growth offering developed markets in H1 2017
  • China and India are highlighted as prominent growth offering developing markets in H1 2017
  • Survey respondents expect an increase in procurement activities on IT services and raw material purchases in the coming six months
  • Overall, 18% of industry executives state limited deployment of e-procurement within their organizations
Reasons to buy
  • Packaging companies can realign business strategies by knowing the business priorities indicated in the report.
  • Organizations can develop or adjust business expansion plans by knowing the significant growth offering emerging and developed markets highlighted in the report.
  • Helps packaging organizations to adjust their procurement budget by providing information about procurement budget projections anticipated by executives for Jun 2017-Nov 2017
  • Organizations can implement effective price management by viewing supplier price variations highlighted for H1 2017.


  • Introduction
    • Definitions
    • Methodology and Sample Size
    • Respondent profile
  • Global Business Outlook in June 2017-November 2017
    • GLOBAL BUSINESS OUTLOOK: KEY TAKEOUTS
    • Expand in current market is expected to become a key priority over the next six months as stated by the majority of respondents from the global packaging industry
    • Irrespective of the region of operation, the highest percentage of respondents consider expand in current market as a top priority over the next six months
    • The majority of respondents from medium-sized and small companies are focused towards new product development over the next six months
    • Over the next six months, the highest percentage of executives expect China to offer more growth in H1 2017
    • Of respondents, 30% each with business operations in North America anticipate China and Brazil to offer significant growth during the next six months
    • Irrespective of company size, the maximum number of respondents are more optimistic about growth prospects offered by China and India in H1 2017
    • The majority of respondents forecast the US to present significant growth prospects for the packaging industry over the next six months
    • The highest number of respondents from Europe and Asia-Pacific expect Germany to offer significant growth opportunities
    • Of respondents, 83% from medium-sized companies indicate the US as the top growth offering developed market in next six months
    • The majority of respondents from the packaging industry project either a significant increase or increase in merger and acquisitions activity
    • Of respondents, 55% who operate in North America foresee an increase in mergers and acquisitions activity in the coming six months
    • The highest percentage of respondents from medium-sized companies project an increase in mergers and acquisitions activity, compared to small companies
    • OPINION ON MERGER AND ACQUISITION ACTIVITY: IN THEIR WORDS
    • Cost containment and market uncertainty is projected to be the major concerns in packaging industry over the next six months
    • Over the next six months, the majority of executives from Europe indicate that responding to pricing pressure is projected to become the key concern
    • The highest percentage of respondents from large companies are apprehensive about responding to pricing pressure during the next six months
    • Capital expenditure on new product development, and IT infrastructure development are expected to increase over the next six months
    • The majority of executives from the Rest of the World anticipate the highest increase in capital expenditure towards machinery and equipment purchase
    • Of respondents, 72% from small companies anticipate to increase their capital expenditure towards new product development in H1 2017
  • Procurement Behaviors and Strategies
    • PROCUREMENT ACTIVITIES OUTLOOK: KEY TAKEOUTS
    • Respondents intend to increase technology usage over the next six months
    • Of respondents, 56% who operate in Asia-Pacific anticipate their organizations will focus on internal operating cost reductions over the next six months
    • Overall, 50% of executives from medium-sized companies highlight plans to locate lower cost sources of supply during the next six months
    • The majority of executives anticipate the procurement of IT services and raw material purchases to increase over the next six months
    • The highest number of respondents who operate in Europe and Asia-Pacific expect procurement activities to increase towards IT services
    • The majority of respondents from large companies express more focus on raw material purchases in the coming six months
    • Overall, 20% of executives anticipate their global procurement budget will range up to US$100,000 over the next six months
      • Table Over the next six months, what is your company's global procurement budget in US dollars? (Analysis of overall and
    • Of respondents, 15% from large companies expect their procurement budget to be US$100 million-US$500 million during the next six months
    • Procurement expenditure for organizations is expected to increase by an average of 7.1% over the next six months
    • Overall, 20% of executives from small companies anticipate procurement expenditure to increase by 20% or more during the next six months
    • In total, 60% of respondents anticipate that supplier prices will increase during the next six months
    • The majority of respondents who operate in North America, Asia-Pacific, and the Rest of the World foresee somewhat of an increase in supplier prices
    • Of respondents, 22% from medium-sized companies expect the supplier prices to reduce somewhat, compared to large and small companies
    • Of industry executives, 18% state limited deployment of e-procurement within their organizations
    • In total, 23% of executives who operate in Europe indicate no intention to implement e-procurement within their organizations
    • Of respondents from large companies, 29% highlight e-procurement within their organizations is in evaluation or pilot use

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook

Share this report