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About NORTH AMERICAN Packaging
The North American packaging market has for some time been one of the vanguards of the packaging industry since the region's rapid colonization and subsequent industrialization commencing just prior to the 19th Century. Led by the economic dominance of the USA, the packaging industry is, and always has been, one of the primary means of obtaining a snapshot of consumer purchase habits - just ask any archaeologist excavating Greek amphorae or Egyptian reed baskets. Myriad advancements in materials, processes, and technology have contributed to ensuring the development of innovative and useful packaging, including (but not limited to) the introduction of metal cans (made of iron, tinned steel, and most recently, aluminum), the use of cardboard and corrugated fiberboard, the incorporation of packaging to the assembly line process, the development of synthetic/chemical materials (plastics and such), the use of pasteurization, the addition of computer-assisted design and production, the use of robots on product lines, the implementation of quality and hygiene testing processes, the use of modern printing techniques, the development of product marketing, switching to biodegradable packaging, etc. North American industry, and by extension the packaging of that industry's products, is an excellent yardstick of the practical technologies we enjoy that stem from scientific advancements.
Packaging provides numerous benefits to the North American consumer, including improved hygiene, better product protection throughout transport and delivery, improved product containment and agglomeration for ease of handling, portion control and dosing, etc. As such, packaging in some form or other is as ubiquitous as it is democratic - it ensures each customer receives the same pristine product (and by extension, value for his money) as his peers. Preferred materials for packaging in the North American market include paper and board (39%), hard plastics (18%), metals (18%), flexible plastics (12%), glass (7%), and others, which include new packaging materials (6%).
The North American packaging market (led by the USA, Canada, and Mexico) currently accounts for 32% of the world's share of total packaging purchases, with Europe and Asia both coming in at 26%. The biggest packaging producer in the North American market is, of course, the USA, producing billions of packaging components yearly to the tune of $113 billion in sales of just about every product imaginable. The amount of packaging used in the USA roughly quadruples when considering imported goods from other markets. Recently, Asia took the lead ($165 billion) over North America ($150 billion ) in the purchase of packaging, thanks to the ongoing perception of China as a viable market, though it remains largely unexploited. With regard to national markets (as distinct from regional/continental markets), the USA is still on top, purchasing an estimated $130 billion of packaging yearly.
In Canada, the 2nd largest North American market for packaging and the world's 9th, statistics on packaging and packaging waste have recently come under fire by corporate reps. Many stats are based on the nation's 1996 National Packaging Survey combined with the biennial WMIS (Waste Management Industry Survey). Companies claim that these documents do not accurately distinguish between the amount of total waste produced and the amount of that waste that comes directly from packaging and as such, provides an unfavourable snapshot of Canadian industry. Needless to say, the Canadian market, being much smaller that the USA, uses less packaging in total. However, because of cultural similarities to US markets, Canadian consumers require the same levels of performance, quality, and sophistication in their packaging as their American brethren.
Mexico, not to be outdone, is North America's fastest growing market with regard to the production of packaging. Until recently, it was nearly impossible to find national firms producing packaging for the Mexican market, with most of the country's packaging coming from north of the border or from overseas. With new investors and forward-thinking entrepreneurs ready to grow the country economically, many new packaging companies there are producing high quality components and solutions, making it easier for Mexican good producers to package their products quickly and inexpensively, giving them the edge they need to compete internationally.
Packaging trends for the region
Consumers want to feel physically capable as long as they can, and the modern cult of aesthetics means folks are making their 60s the new 40s. One of the biggest growth drivers of the packaging industry in North America is the trend to seek health. Water, milk, and juices are on the rise, and spirits and carbonated drinks are on the decline. Bans on smoking in restaurants and bars has hurt the hostelry space but done wonders for neutraceutical firms. Look for new innovations related to healthy and "healthy" products.
- Many people are using their homes as bases of operations rather than as a nest - they're spending more time out of the house at work and at play. Packaging in the pre-made foods market has been on a steady increase for the last decade, and new packaging techniques that offer longer shelf lives for foodstuffs (through increased barrier protection, better and more hygienic packaging processes, materials coated so as not to affect foodstuff composition) are patented weekly. Consumers are willing to pay a small premium on high quality, ready-made foods. Bottled water is a good example, where 90% of the cost to the consumer is due to company costs related to infrastructure, packaging materials, distribution, and marketing.
Contract packaging is on the rise. Companies that are paying more and more for floor space are discovering the advantages of getting their products to a specialist for final treatment and delivery. In many cases, for small to medum companies, outsourcing provides a way to cut down costs in various ways: eliminating salaries for maintenance and operational staff; reducing the amount of rented or purchased floor space; cutting down on raw material costs, as contract packagers (CPs) often receive better deals on volume purchases for several clients; reduction in the usage of utilities such as electricity, water, etc. The list is a long one, but one thing is certain: giving the job to a specialist can result in getting products into packages and on the shelves more quickly and with less expense.
- Households are getting smaller. No longer do we see parents with six kids, unless we're watching a Brady Bunch marathon on TV. Smaller households mean smaller houses, and smaller houses mean leass room for (you guessed it) packaging. Look for smaller pack sizes, words like "concentrated" and "compact", and a tendency to cut down on bulk and weight. On the other hand, for those that live in suburbs, buying in bulk outside of city cores has become a monthly ritual, and tertiary packaging has risen as a result.
- People are more "on the move" than ever, and products that come in packaging dedicated to efficiency and speed of use. Keywords are "easy to open", "instant", "fast" and "anything with "pre-" in it ("pre-cooked" being the biggest).
The environment remains a key issue, with companies spending billions of dollars on research to find viable, eco-friendly packaging solutions. Consumers have become alert to "greenwashing" and have demonstrated that they tend to avoid packaging that makes unbelievable, grandiose claims related to environmental friendliness. Downgauging (making packaging out of more resistant but thinner materials) and lightweighting (using less overall materials) have done more for the environment than seals on labels purporting to represent some environmental agency or other.
- Other trends to watch: new high barrier materials; digital print and Braille for packaging; nanotechnology; smart packaging.
"Mexico ... is North America's fastest growing market with regard to the production of packaging."
"Canadian consumers require the same levels of performance, quality, and sophistication in their packaging as their American brethren."
