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Packaging Industry Business Outlook and Procurement Survey June-November 2018

Packaging Industry Business Outlook and Procurement Survey June-November 2018

Summary

GlobalData’s Packaging Industry Business Outlook and Procurement Survey June-November 2018, examines executives’ opinions on the business outlook and procurement activities over June-November 2018. Organizations can know about key business priorities, supplier price variations, changes in capital expenditure, and organizations’ digital transformation strategies. Additionally, it provides information categorized by region and company types.

Amid increasing awareness regarding the environment and public health, growing demand for sustainable packaging, improved technology, and rising competition, packaging companies are looking forward to expanding in the current market, developing new products, and improving operational efficiency over the next six months. Moreover, companies are expected to gain significant growth opportunities from emerging markets (such as China, India, and Mexico) and developed markets (such as the US, Germany, and Canada) during June-November 2018. Additionally, 33% of respondents anticipate their companies' global procurement budget to range more than US$1 million during June-November 2018. Respondents are expecting mergers and acquisitions to increase within the packaging industry over the next six months.

Furthermore, survey reveals that Internet of Things (IoT) and APIs and digital platforms are the key emerging technologies that are expected to gain investment in the packaging industry over the next two years.

What else does this report offer?

  • Key business priorities: examines the packaging companies’ important priorities for June-November 2018
  • Emerging and developed markets: provides information about key emerging and developed markets which are expected to offer the significant growth over the next six months
  • Change in M&A activity: analyzes packaging industry executives’ opinions 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 expenditure over June-November 2018
  • Supplier prices outlook: determines the expected change in supplier prices over June-November 2018
  • Organizations’ digital transformation strategies: identifies executives’ perspectives towards the scope, barriers, and essentials of the digital transformation within the packaging industry
  • Prevalence of emerging technology: determines the expected technology to gain investment among packaging companies over the next two years.
Scope
  • Expansion in the current market, new product development, and improving operational efficiency are the top three priorities for the packaging companies over the next six months
  • Cost containment and responding pricing pressure are projected to be the leading concerns for the packaging industry during June-November 2018
  • In total, 66% of respondents expect either an increase or a significant increase in capital expenditure for new product development over the next six months, and 58% expect the same for machinery & equipment purchases over the same period
  • Overall, 75% of respondents who operate in North America anticipate supplier prices will increase somewhat during the coming next six months
  • Survey reveals that 42% of respondents identify insufficient funding, and 39% see lack of specific skills and talents, as the most critical barriers that hinder the digital transformation within the packaging industry.
Reasons to buy
  • Highlights key business priorities thus helping packaging companies to realign business strategy
  • Develop or adjust business expansion plans by using significant growth-offering emerging and developed markets
  • Helps enterprises by providing the insights into the changes in procurement budget allocations through procurement budget projections anticipated by executives for June-November 2018
  • Implement effective price management by viewing supplier price variations highlighted for the next six months
  • Identify the scope, challenges, and essentials for the digital transformation within the packaging industry.


  • Introduction
    • Definitions
    • Methodology and Sample Size
    • Respondent Profile
  • Global Business Outlook in June 2018–November 2018
    • Global Business Outlook: Key Takeouts
    • Expansion in current market and new product development are the foremost priorities for the packaging industry over the next six months
    • Respondents who operate in Asia-Pacific indicate expansion in current market and improving operational efficiency as the key priorities of their company for the next six months
    • Regardless of the region of operation, executives identify expansion in the current market as the top priority of their organization during June–November 2018
    • One-third of the packaging industry executives consider China and India as the top emerging market that is expected to offer significant growth opportunities over the next six months
      • Table Which emerging markets do you expect to offer your industry the most growth over the next six months? (Overall)
    • Overall, 40% of respondents operating in North America anticipate Mexico as the prominent emerging market that is expected to offer significant growth during June–November 2018
      • Table Which emerging markets do you expect to offer your industry the most growth over the next six months? (Analysis of top five responses by region)
    • The majority of respondents who operate in large companies identify India as the emerging market that have highest growth prospects to offer over the next six months
      • Table Which emerging markets do you expect to offer your industry the most growth over the next six months? (Analysis of top five responses by company types)
    • Over the next six months, 59% of respondents foresee the US as the leading developed market to offer significant growth opportunities within the packaging industry
      • Table Which developed markets are expected to offer significant growth opportunities for your industry over the next six months? (Overall)
    • Of executives operating in North America, 84% anticipate the US, and 48% foresee Canada, as the developed market with significant growth prospects during June–November 2018
    • Overall, 71% of respondents operating in medium-sized companies indicate the US, and 35% expect the UK, to offer significant growth opportunities over the next six months
    • The majority of respondents foresee either an increase or a significant increase in the number of mergers and acquisitions in packaging industry over the next six months
    • More than two-thirds of executives with business operations in North America expect an increase in the number of mergers and acquisitions activity during June–November 2018
    • In total, 58% of packaging industry executives operating in medium-sized companies anticipate no change in the mergers and acquisitions activities over the next six months
    • Views and opinions on the mergers and acquisitions activities: In their own words
    • According to the survey, cost containment and responding to the pricing pressure are identified as the chief concerns for the packaging companies over the next six months
    • Executives with business operations in North America anticipate rising competition and retention or recruitment of skilled staff as significant concerns during June–November 2018
      • Table What are the biggest concerns for your organization over the next six months? (Analysis of top five responses by region)
  • Regardless of the company types, respondents indicate cost containment as the biggest concern of the packaging industry over the next six months
    • Table What are the biggest concerns for your organization over the next six months? (Analysis of top five responses by company types)
    • The highest percentage of executives expect capital expenditure to increase or significantly increase on new product development during June 2018–November 2018
  • Procurement Behaviors and Strategies
    • PROCUREMENT ACTIVITIES OUTLOOK: KEY TAKEOUTS
    • The highest percentage of respondents foresee their objectives to change for internal operating cost reduction over the next six months
    • Regardless of the region of operation and type of company, the highest number of executives anticipate their organization to focus on internal operating cost reduction
      • Table In what ways do you expect your procurement resources and objectives to change over the next six months? (Analysis of top six responses by region)
    • Overall, 72% of global packaging industry executives indicate that procurement in MRO activities will experience no changes over the next six months
    • Respondents operating in medium-sized companies anticipate a significant or somewhat increase in technology/ license purchases during June–November 2018
    • Globally, 20% of respondents anticipate their companies' global procurement budget to 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 regional responses) Jun–Nov 2018
    • The highest percentage of executives operating in medium-sized companies expect their company's procurement budget to range between US$100 and US$500 million
      • Table Over the next six months, what is your company's global procurement budget in US dollars? (Analysis of responses by company types)
    • On average, the packaging industry's procurement expenditure is expected to increase by 7.6% over the next six months
      • Table How do you expect your organization's procurement expenditure to change over the next six months and why? (Analysis of overall and regional responses) Jun–Nov 2018
    • In total, 31% of respondents operating in large companies forecast packaging companies' procurement expenditure to increase between 5% to 9.99% during June–November 2018
      • Table How do you expect your organization's procurement expenditure to change over the next six months and why? (Analysis of responses by company types)
    • Views on changes in organizations' procurement expenditure: In their own words
    • Globally, more than two-thirds of packaging industry executives project an increase in the supplier prices over the next six months
      • Table How do you expect supplier prices to change over the course of the next six months? (Overall)
    • The majority of respondents operating in large and medium-sized companies expect supplier prices to increase somewhat during June–November 2018
  • Digital Transformation and Emerging Technology
    • DIGITAL TRANSFORMATION AND EMERGING TECHNOLOGY: KEY TAKEOUTS
    • About one-third of the executives surveyed express that their organization has a digital transformation strategy that is being actively pursued within their business lines
    • Overall, 25% of executives with business operations in Europe indicate that their companies do have an enterprise-wide digital strategy that is actively being pursued
      • Table Do you have a formalized digital transformation strategy that is being actively pursued? (Analysis of responses by region)
    • More than one-third of respondents who operate in medium-sized companies agree that their organization do not have an formalized digital strategy but they're working on one
      • Table Do you have a formalized digital transformation strategy that is being actively pursued? (Analysis of responses by company types)
    • Globally, 63% of respondents identify that the marketing and sales enablement have the highest scope of digital transformation within the packaging industry
    • In total, 88% of packaging industry executives who operate in medium-sized companies state that marketing and sales enablement have the highest scope of digital transformation
      • Table What is the scope of digital transformation at your organization? (Overall)
    • Overall, 42% of executives identify insufficient funding, and 39% see lack of specific skills and talents, as the most critical barriers that hinder the digital transformation
      • Table Which of the following factors hinder digital transformation at your organization? (Overall) Jun–Nov 2018
    • The highest percentage of global packaging industry executives indicate strong leadership as the most prominent factor for the successful digital transformation
    • Respondents who operate in Asia-Pacific indicate strong leadership as the most important factor for completion of the digital transformation
      • Table What do you think is the most important factor for successful digital transformation? (Analysis of responses by region)
    • Regardless of the company type, strong leadership and adequate collaboration between IT and business lines are the most prominent factors for the success of digital transformation
      • Table What do you think is the most important factor for successful digital transformation? (Analysis of responses by company types)
    • Overall, Internet of Things(IoT) and APIs & digital platforms are identified as the most popular emerging technologies that are expected to gain investment over the next two years
      • Table In the next two years, which of the following emerging technologies do you expect your organization to invest in?- (Analysis of overall responses)
    • For next two years, 50% of respondents operating in Asia-Pacific anticipate that Internet of Things (IoT) will be the key emerging technology to drive investment in packaging industry
      • Table In the next two years, which of the following emerging technologies do you expect your organization to invest in?- (Analysis of top five responses by region)
    • Respondents operating in large companies expect that Internet of Things (IoT) and augmented reality will attract investment in the packaging industry over the next two years
      • Table In the next two years, which of the following emerging technologies do you expect your organization to invest in?- (Analysis of top five responses by company types)

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