Market Trends of Packaging Industry in Italy
This section covers the major market trends shaping the Italy Packaging Market according to our research experts:
Plastic Packaging to Hold Significant Market Share
- The demand for plastic packaging is expected to increase moderately in the region, as there is a slight fluctuation expected in the GDP during the projected time frame. Due to the surging demand for consumer goods, the country is pushing the growth of packaging materials such as glass, paper, metal, and plastic.
- Additionally, the increasing demand for hygiene products since covid -19 has supported the need for plastic packaging products such as plastic. Also, people preferred buying hygiene products from large retailers and other channels. For instance, according to Cosmetica Italia, in 2021, approximately EUR 710 million (~USD 753.91 million) of body hygiene products were purchased in large retail and other channels. In contrast, perfume shops registered the lowest consumption value of body hygiene products, with roughly EUR 25.5 million (~USD 27.07 million).
- Furthermore, the increase in retail and e-commerce sales also drives the need for packaging. In response to this megatrend, flexible packaging solutions are increasingly used that deliver the ultimate protection for these products. This encourages the use of plastics for packaging. It can meet diverse packaging needs, from electronic components to shelf-able packaging for food products, making plastics the preferred form of packaging.
- Additionally, the interest in social commerce was exceptionally high among TikTok users in Italy compared to any other social media platform. Also, the ongoing trend of following social media influencers is expected to influence the consumer's buying behavior, thus positively impacting the demand for packaging in Italy.
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Increasing Demand for Food Industry Expected to Witness Significant Growth
- Italy is the second-largest European manufacturer, with a strong industry in producing machinery, clothing, food, automotive components, and medicines. It is a major exporter of wine, pasta, canned tomatoes, cheese, and olive oil. Organic foods, functional food, and low-fat products have potential demand in the Italian market.
- Additionally, paper packaging companies in Italy are entering into a partnership with various end-user segment companies to offer sustainable packaging solutions to a broader audience. For instance, In April 2021, Seda International Packaging Group, a paper-based packaging company in Italy, announced its partnership with McDonald's and Comiecoto to support the over 600 McDonald's restaurants in Italy to adopt 90% of paper-based packaging. The company aims to drive an initiative that will massively raise customers' awareness of the importance of sustainable packaging.
- Also, according to ISMEA Istituto di Servizi per il Mercato Agricolo Alimentare, ISMEA (Italy), the food spending by people in Italy has increased, especially in Cereal products, Milk and dairy products, Beverages (wine included) which has fueled the demand for packaging in Italy. Also, spending on cereals was the highest and accounted for 13.70 % in 2021.
- Furthermore, The e-commerce rise fuelled by the pandemic has further driven rapid growth in the packaging industry in Italy, with demand for paper packaging in particular also fed by a de-plastification push by the government initiatives. Moreover, to fulfill the growing demand for sustainable packaging solutions, the vendors operating in the market are making significant investments in capacity expansion and product innovation. They are establishing partnerships with leading packaging companies to gain expertise and visibility.
- For instance, In October 2021, Smurfit Kappa Group plc announced that it had completed the acquisition of the Verzuolopaper mill at a purchase price of EUR 360 million (~USD 381.46). The customary closing conditions have now been fulfilled. In the past Verzuolo'sPM9 machine was converted into an advanced recycled fiber-based paper-making machine for corrugated cardboard production, with a capacity of 600,000 tons of paper. It complements Smurfit Kappa Group plc's existing businesses, strategically located near the Port of Savona. It is expected to offer significant benefits to the Group and its customers.
