Flexibles are one of the most widely-used forms of packaging material today with a number of obvious advantages for packagers and consumers alike in terms of flexibility, ease-of-use, hygiene and barrier properties.

AMI Consulting, a leading consultancy focused on the global plastics industry, recently carried out a study of 50 of the largest companies operating on the European converted flexible packaging sector. Form this it estimated that the converted flexible packaging industry in Europe consumed nearly 3.6 million tonnes of substrates in 2009 and was worth around €20 billion.

A significant recent event has been the acquisition of Alcan Packaging’s Food Europe, Food Asia, Global Pharmaceuticals and Global Tobacco businesses by Amcor in early 2010. As these had long been the two largest players in Europe in the sector, with over 50 flexible packaging converting plants in 17 countries between them, this merger is set to radically alter the landscape of the European flexibles converting industry, enhancing the gulf between the major players and the rest of the market.

Challenges

Raw material costs continue to represent a major challenge for companies of any size as manufacturers of polymer-based products will always be reliant on fluctuations in oil prices. As polymer producers are continuously forced to raise their prices the flexible packaging industry is feeling the effects, as raw material prices still cover 60 per cent of the overall cost of flexible packaging production.

The Flexible Packaging Association’s ‘2010 FPA State of the Flexible Packaging Industry Report’ has this to say about the challenges facing the industry today: “Raw material costs and availability, and the economy, are major challenges facing flexible packaging converters and suppliers. Specifically, uncertainty/volatility in crude oil and natural gas prices, and the inability to pass through material cost increases. Other concerns focus on the impact raw materials will have on margins and overall profitability levels, and the impact of foreign imports on volumes and margins.” No doubt rising energy, transport and labour costs will also have their part to play in squeezing margins.

News from Brussels

The latest European guidelines for plastic materials include a proposal in the Plastics Implementation Measure (PIM) to affect a change in the law relating to food contact packaging. This would involve the complete overhaul of Plastics Directive 2002/72.

According to the report, amongst other changes, any plastic films which are laminated to non-plastic webs, such as paper and aluminium, will have to comply with the same requirements as other plastics coming into contact with foodstuffs. “However, if a plastic is separated from the food by a functional barrier it can be made from unlisted substances provided their migration into the food or stimulant can be shown to be less than 10ppb.”

It goes on: “Polymer Production Aids (PPAs) are substances used in the manufacture of polymers which are not intended to have a ‘technical effect’ on the finished product. These PPAs are not brought within the scope of the legislation.” (source: www.flexpack-europe.org.)

Innovations

Within the flexible packaging industry we are seeing constant innovation in the use of materials. In particular, the increasing sophistication of barrier properties and modified atmosphere packaging is increasing shelf life and hygiene levels as well as having a positive environmental impact by reducing the amount of packaging needed.

For example, Linpac and Cuki Cofresco, two leading packaging companies in different fields, have developed a complete aluminium tray and film lid solution for oven-ready meals. Linpac’s high barrier films LINtop PP HB and LINtop Alu HB have been specially developed to be compatible with aluminium trays. These films offer a tight robust seal which ensures hygiene and food safety and means there is no need for an additional cardboard sleeve, offering both ease of use and environmental savings.

The growing demand for convenience food has led to the development of films that not only comply with hygiene regulations but also offer additional properties such as heat resistance. UK-based TPL Flexibles has recently developed the HS101 – a heat resistant sealable PET film for applications such as the heating of packaged food, tray lidding and aroma protection with a high chemical resistance.

In the pharmaceutical packaging sector, Klöckner Pentaplast has introduced the next generation of films for blister packs. Its Pentapharm film product line has been extended to include Pentapharm kpVantage polyester films. These can be used as mono films for pharmaceuticals or integrated into barriers structures for products that require more protection from moisture or gas.

Growing demand for BOPP

Despite the challenges relating to polymer supply, BOPP (bi-oriented polypropylene) is one material showing continued strong demand. AMI Consulting has also recently completed an update of its global study of the BOPP film industry. According to this, the year 2009 saw an increase in demand of 300,000 tonnes.

The study also suggested that global BOPP film demand may well continue growing at a rate of 6–7 per cent each year for the next three to four years, driven mainly by growth in Asia and to a lesser extent in eastern Europe, Russia and Brazil. The demand for convenience food and the need to feed the world’s ever-expanding population will also fuel growth in the BOPP film market.

However, this industry does continue to face certain challenges, not least the over-investment from China which, the report states, results in oversupply, weak pricing and poor returns. The growing investment in BOPP production in the Middle East may also impact on western markets as these producers seek to target high cost regions such as Europe as opposed to the lower cost local markets.

Environmental focus

With the pressure resulting from rising oil prices and the resulting impact on the industry, new research and development is also increasingly being focused around the need to find alternative solutions which are sustainable from both an environmental and economic perspective, and biopolymers are increasingly coming to be seen as a viable option.

One such material currently available is Innovia Films’ high barrier compostable material, NatureFlex NK. In addition to biodegradability and compostability, this material offers a moisture barrier approaching that of co-extruded OPP which also means increased shelf life. NatureFlex begins its life as a natural product, wood, and breaks down at the end of the life cycle.

Developers of flexographic inks are also looking to enable flexible packaging producers to reduce their carbon footprint. The Flint Group has introduced a new ink series, PremoFilm SXS, which is a water-based flexo series designed for surface printing on polyolefin films. Alesco, a German based producer of flexible film packaging, has used this solution in the production of a number of its new eco-friendly film packaging solutions, including water-based inks printed on bio-films and compostable shopping bags.