The Outlook for Primary Packaging Containers, Closures and Outers

Transcription

1 1. Industry Forecast Latest Trends and Key Issues in the South Korean Retail Packaging Market The Outlook for Primary Packaging Containers, Closures and Outers Reference Code: PK1115MR

2 Table of Contents 1. Executive Summary Overview of South Korea Packaging Market Consumer Drivers Aging population and smaller households to drive demand for smaller packs Aging South Koreans will prefer convenient pack formats Declining household size to spur demand for single-serve packs Positive macro-economic trends are a strong indicator for packaging demand Low unemployment and high disposable incomes to drive premium packaging demand High credit card sales to prompt impulse buying Shopping Behavior High Internet and smartphone penetration to boost secondary packaging demand Busy lifestyles will drive demand for ready-to-eat food products Rising health concerns increase demand for functional food products Growing cosmetics demand to expand packaging market Market Dynamics Overview South Korean Packaging by Material South Korean Packaging by Market South Korean Packaging by Type Flexible Packaging Overall Flexible Packaging Market Number of Flexible Packaging Packs by Market Number of Flexible Packaging Packs by Type Number of Flexible Packaging Packs by Closure Material Number of Flexible Packaging Packs by Closure Type Number of Flexible Packaging Packs by Outer Material Number of Flexible Packaging Packs by Outer Type Paper & Board Overall Paper & Board Packaging Market Number of Paper & Board Packs by Market Number of Paper & Board Packs by Type Number of Paper & Board Packs by Closure Material Number of Paper & Board Packs by Closure Type Number of Paper & Board Packs by Outer Material Number of Paper & Board Packs by Outer Type

3 4.4 Rigid Plastics Overall Rigid Plastic Packaging Market Number of Rigid Plastic Packs by Market Number of Rigid Plastic Packs by Type Number of Rigid Plastic Packs by Closure Material Number of Rigid Plastic Packs by Closure Type Number of Rigid Plastic Packs by Outer Material Number of Rigid Plastic Packs by Outer Type Rigid Metal Overall Rigid Metal Packaging Market Number of Rigid Metal Packs by Market Number of Rigid Metal Packs by Type Number of Rigid Metal Packs by Closure Material Number of Rigid Metal Packs by Closure Type Number of Rigid Metal Packs by Outer Material Number of Rigid Metal Packs by Outer Type Glass Overall Glass Packaging Market Number of Glass Packs by Market Number of Glass Packs by Type Number of Glass Packs by Closure Material Number of Glass Packs by Closure Type Number of Glass Packs by Outer Material Number of Glass Packs by Outer Type Packaging Design and Manufacturing Trends Key Design Trends Innovative design offering convenience is one of the key packaging trends in South Korea Innovation in cosmetic products aimed at gaining product visibility Closures are a key opportunity for light weighting to reduce costs New inventions in labels for improved readability and recyclability Packaging firms need to more closely align themselves with manufacturers needs Key Manufacturing Trends Manufacturing processes adopting latest technological advancements in food packaging Advancement of airless technology improves cosmetic packaging Environmentally-friendly packaging material use on the rise Difficulties in raw material procurement are driving up costs Regulatory Environment

4 6.1 Overview Key Directives and Laws Control on Packaging waste Food labeling standards Recycling targets Competitive Landscape Competitive Landscape by Packaging Material Paper & Board Metal Rigid Plastics Flexible Packaging Glass Key Companies in South Korea Packaging Industry Key Financial Deals Appendix What is this Report About? Time Frame Product Category Coverage Packaging Definitions Primary Packaging Container Primary Packaging Closure Primary Packaging Outer Methodology Overall Research Program Framework About Canadean Disclaimer

5 List of Figures Figure 1: Market share of major packaging materials (%), Figure 2: South Korea s aged population share increasing over the years Figure 3: Increasing life expectancy in South Korea over the years 2000, 2012 and Figure 4: Mean household size is on a decline in South Korea (2000, 2012, 2020) Figure 5: Increase in disposable income of South Koreans, Figure 6: Unemployment rate in South Korea, Figure 7: Online Sales value (KRW Billion) and Online Sales penetration in South Korea has experienced a steady growth Figure 8: Average weekly working hours on the main job for Figure 9: Functional food products Figure 10:Regen s mask introduced as an alternative to V-shaping surgery Figure 11: Cosmetic products for men Figure 12: South Korea Packaging by Material (Number of Packs, Million), Figure 13: Sectors by Packaging Material with the Four Highest Growth Rates (%), Figure 14: Sectors by Packaging Material with the Four Lowest Growth Rates (%), Figure 15: Number of Flexible Packaging Units (Millions) and Annual Growth (%), Figure 16: Sectors with the Largest Market Share Gains and Losses in South Korea Flexible Packaging, Figure 17: Packaging Types with the Largest Market Share Gains and Losses in South Korea Flexible Packaging, Figure 18: Number of Paper & Board Packaging Units (Millions) and Annual Growth (%), Figure 19: Sectors with the Largest Market Share Gains and Losses in South Korea Paper & Board Packaging, Figure 20: Packaging Types with the Largest Market Share Gains and Losses in South Korea Paper & Board Packaging Figure 21: Closure Types with the Largest Market Share Gains and Losses in South Korea Paper & Board Packaging, Figure 22: Outer Types with the Largest Market Share Gains and Losses in South Korea Paper & Board Packaging, Figure 23: Number of Rigid Plastic Packaging Units (Millions) and Annual Growth (%), Figure 24: Sectors with the Largest Market Share Gains and Losses in South Korea Rigid Plastic Packaging, Figure 25: Packaging Types with the Largest Market Share Gains and Losses in South Korea Rigid Plastic Packaging, Figure 26: Closure Types with the Largest Market Share Gains and Losses in South Korea Rigid Plastic Packaging, Figure 27: Outer Types with the Largest Market Share Gains and Losses in South Korea Rigid Plastic Packaging, Figure 28: Number of Rigid Metal Packaging Units (Millions) and Annual Growth (%), Figure 29: Sectors with the Largest Market Share Gains and Losses in South Korea Rigid Metal Packaging, Figure 30: Packaging Types with the Largest Market Share Gains and Losses in South Korea Rigid Metal Packaging, Figure 31: Closure Types with the Largest Market Share Gains and Losses in South Korea Rigid Metal Packaging, Figure 32: Number of Glass Packaging Units (Millions) and Annual Growth (%), Figure 33: Sectors with the Largest Market Share Gains and Losses in South Korea Glass Packaging, Figure 34: Closure Type with the Largest Market Share Gains and Losses in South Korea Glass Packaging, Figure 35: Metallic Can which can be peeled effortlessly Figure 36: Dual chambered juice bottle with two flavors Figure 37: Gooksoo introduced easy-to-carry folding box for noodles Figure 38: Ergonomic designs of large oil bottles for easy pour Figure 39: Pack design that minimizes product wastage Figure 40: Plastics in cosmetic products imitating looks of medical Glass tools Figure 41: Convenient designs in cosmetic applicators Figure 42: Lotte Korean Liquor brand is shifting to 28 mm light weighted closure Figure 43: Pulmuone used PS label to overcome problem of poor barcode readability Figure 44: Wash-off label for easy recyclability

6 Figure 45: Key concerns of consumer goods manufacturers and packaging manufacturers, Figure 46: Laser film perforation technology in bags of bean sprouts for prolonged product freshness Figure 47: Moisture absorption materials built in the packaging Figure 48: Airless technology in various cosmetics pack types Figure 49: Recycled packaging material used by South Korean companies Figure 50: Crude Oil prices have risen sharply since 2003, and are forecast to remain high Figure 51: South Korean Packaging Competitive Landscape Figure 52: Methodology

7 List of Tables Table 1: South Korea population by age groups, 2000,2012 and 2020 (projected) Table 2: Comparison of South Korean GDP growth rate with selected developed nations for Table 3: South Korea online retail sales (KRW Billion) and online retail sales penetration (%), Table 4: South Korea Packaging by Material (Number of Packs, Million), 2010, 2013 and Table 5: South Korea Packaging by Market (Number of Packs, Million), 2010, 2013 and Table 6: South Korea Packaging by Type (Number of Packs, Million), 2010, 2013 and Table 7: Number of Flexible Packaging Units (Millions) and Annual Growth (%), Table 8: South Korea Flexible Packaging by Market (Number of Packs, Million), 2010, 2013 and Table 9: South Korean Flexible Packaging by Type (Number of Packs, Million), 2010, 2013 and Table 10: South Korean Flexible Packaging by Closure Material (Number of Packs, Million), 2010, 2013 and Table 11: South Korean Flexible Packaging by Closure Type (Number of Packs, Million), 2010, 2013 and Table 12: South Korean Flexible Packaging by Outer Material (Number of Packs, Million), 2010, 2013 and Table 13: South Korean Flexible Packaging by Outer Type (Number of Packs, Million), 2010, 2013 and Table 14: Number of Paper & Board Packaging Units (Millions) and Annual Growth (%), Table 15: South Korean Paper & Board Packaging by Market (Number of Packs, Million), 2010, 2013 and Table 16: South Korea Paper & Board Packaging by Type (Number of Packs, Million), 2010, 2013 and Table 17: South Korea Paper & Board Packaging by Closure Material (Number of Packs, Million), 2010, 2013 and Table 18: South Korea Paper & Board Packaging by Closure Type (Number of Packs, Million), 2010, 2013 and Table 19: South Korea Paper & Board Packaging by Outer Material (Number of Packs, Million), 2010, 2013 and Table 20: South Korea Paper & Board Packaging by Outer Type (Number of Packs, Million), 2010, 2013 and Table 21: Number of Rigid Plastic Packaging Units (Millions) and Annual Growth (%), Table 22: South Korea Rigid Plastic Packaging by Market (Number of Packs, Million), 2010, 2013 and Table 23: South Korean Rigid Plastic Packaging by Type (Number of Packs, Million), 2010, 2013 and Table 24: South Korea Rigid Plastic Packaging by Closure Material (Number of Packs, Million), 2010, 2013 and Table 25: South Korea Rigid Plastic Packaging by Closure Type (Number of Packs, Million), 2010, 2013 and Table 26: South Korea Rigid Plastic Packaging by Outer Material (Number of Packs, Million), 2010, 2013 and Table 27: South Korea Rigid Plastic Packaging by Outer Type (Number of Packs, Million), 2010, 2013 and Table 28: Number of Rigid Metal Packaging Units (Millions) and Annual Growth (%), Table 29: South Korea Rigid Metal Packaging by Market (Number of Packs, Million), 2010, 2013 and Table 30: South Korea Rigid Metal Packaging by Type (Number of Packs, Million), 2010, 2013 and Table 31: South Korean Rigid Metal Packaging by Closure Material (Number of Packs, Million), 2010, 2013 and Table 32: South Korea Rigid Metal Packaging by Closure Type (Number of Packs, Million), 2010, 2013 and Table 33: South Korea Rigid Metal Packaging by Outer Material (Number of Packs, Million), 2010, 2013 and Table 34: South Korea Rigid Metal Packaging by Outer Type (Number of Packs, Million), 2010, 2013 and Table 35: Number of Rigid Metal Packaging Units (Millions) and Annual Growth (%), Table 36: South Korea Glass Packaging by Market (Number of Packs, Million), 2010, 2013 and Table 37: South Korea Glass Packaging by Type (Number of Packs, Million), 2010, 2013 and Table 38: South Korea Glass Packaging by Closure Material (Number of Packs, Million), 2010, 2013 and Table 39: South Korea Glass Packaging by Closure Type (Number of Packs, Million), 2010, 2013 and Table 40: South Korea Glass Packaging by Outer Material (Number of Packs, Million), 2010, 2013 and Table 41: South Korea Glass Packaging by Outer Type (Number of Packs, Million), 2010, 2013 and Table 42: Standards for Packaging Space Ratio and Packaging Layers Table 43: Recycling rate and recycling goal by year and product/packaging material Table 44: Standard recycling cost for items in Table 45: Key Financial Deals South Korea Packaging, Table 46: Product Category Coverage Table 47: Primary Packaging Container Materials Table 48: Primary Packaging Container Types Table 49: Primary Packaging Closure Materials Table 50: Primary Packaging Closure Types Table 51: Primary Packaging Outer Materials Table 52: Primary Packaging Outer Types

8 1. Executive Summary The South Korean packaging industry registered a Compound Annual Growth Rate (CAGR) of xx.xx% in terms of number of packs used over the period, and is expected to grow at a CAGR of xx.xx% during A rapidly aging population and declining household sizes drive demand for smaller and more convenient packaging South Korea is experiencing a change in its demographic structure with a rapid increase in the proportion of the older population. The proportion of people aged 65 years and above in South Korea is expected to more than double from of xx.xx % in 2000 to xx.xx % by 2020, indicating greater demand for products meeting the needs of older consumers. This means that convenience in packaging will gain more importance and there will be greater demand for lightweight, easy-to-carry, easy-to-open packs, and packs with clearer labeling. There will also be greater demand for small portion packs due to the smaller appetites of older consumers. In addition, shrinking household sizes and an increase in single-person households will result in increasing demand for smaller and single-serve packs. Busy lifestyles and a surge in online shopping will expand the packaging market South Korean consumers lead busy lifestyles, for two main reasons: the average weekly working hours in the country are much higher compared to other major OECD countries, and South Korea has the highest urban density among the developed nations and has a high one-way commute time. With busier lifestyles, there is expected to be a greater demand for easy-to-prepare and ready-to-eat food products. In addition, people get less time to shop as a result of the long working and travelling hours, which has resulted in increasing sales through online shopping. Packaging and product manufacturers need to keep abreast of the fast-changing dynamics of South Korean consumer markets. For instance, Tesco Homeplus launched a virtual supermarket in South Korea s subway stations in 2011, targeting young and busy Koreans who increasingly rely on their smartphones to take care of their many daily tasks. Convenience drives packaging design trends in South Korea In light of the rapidly aging population and the busier lifestyles of South Korea s working population, there is a greater need for packaging that enhances convenience. Packaging and product manufacturers in South Korea have been increasingly looking at ways to launch new packaging designs that offer enhanced convenience attributes. For instance, SAJO launched a new easy-to-open and lightweight metallic Can for its Premium Tuna brand using an Easy Peel end in 2012, targeted mainly at older consumers. Similarly, the South Korean instant dry noodles brand Gooksoo has introduced a folding box for noodles. For a quick lunch, the cardboard box can be folded open, which creates room to add hot water into the container. 8

9 Expanding cosmetics market drives innovation in Health & Beauty industry The South Korean Beauty and Personal Care products industry has been experiencing strong growth and, according to Canadean, the overall South Korean Health & Beauty market was worth KRWxx billion (US$xx billion) in 2013, growing at a CAGR of xx.xx% during The expanding cosmetics market has provided significant opportunity for cosmetics product manufacturers to launch advanced and innovative products in the South Korean market, such as the introduction of double eyelid tapes, which help achieve a wide-open eye effect without any surgery. Manufacturers have also been emphasizing on providing convenience to consumers, such as the all-in-one cosmetic dispenser-cum-applicator introduced by FS Korea. 9

10 2. Market Dynamics 2.1 Overview Published: December 2013 Growth in demand for packaging in South Korea will accelerate slightly in the future; the number of primary packs used in South Korea increased at a CAGR of xx.xx% between 2010 and 2013 and this will increase to a CAGR of xx.xx% for the period. This section will explore the dynamics of the South Korean packaging market, reviewing change during and forecasting how the market will evolve during This is initially covered at an overall level, after which the market is broken down by material South Korean Packaging by Material The overall South Korean retail packaging market 1 grew at a CAGR of xx.xx% during , reaching a total of xx million packs in Growth will accelerate at a constant rate of xx.xx% over , with Rigid Plastics and Flexible Packaging providing the greatest absolute growth. South Korean customers are forecast to consume over xx million more packs in 2016 than they did in Figure 1: South Korea Packaging by Material (Number of Packs, Million), Includes Food, Alcoholic drinks, Non-Alcoholic drinks, Personal Care, Tobacco and Tobacco products, Pet Care, Home improvement and Household care products 10

11 Published: December 2013 Table 1: South Korea Packaging by Material (Number of Packs, Million), 2010, 2013 and 2016 Material Flexible packaging Glass Other Paper & Board Rigid Metal Rigid Plastics Overall CAGR CAGR Rigid Plastics and Rigid Metal have the largest number of growing sectors Rigid Plastic and Rigid Metal packaging includes the highest number of growth sectors. For Rigid Plastics, the number of packs used in Soft Drinks will record a CAGR of more than xx.xx% during and Soy Products, Male Toiletries, and Meat will grow at a CAGR of xx.xx% to xx.xx%. Similarly, Spirits, Soy Products, Meat, and Seasonings Dressings & Sauces are driving growth of the South Korean Rigid Metal packaging market, growing at a CAGR of xx.xx% to xx.xx%. Notably, Glass packaging for Wines is growing at a CAGR of more than xx.xx%, the highest among South Korean sectors. Of those sectors that are registering negative growth, Flexible Packaging and Rigid Metal are being hit hardest. Demand for Flexible Packaging from the Toilet Care sector is forecast to decline at a CAGR of more than xx.xx%, while Dried Food, Cigars, and Loose Tobacco are set to decline at a CAGR of xx.xx% to xx.xx%. Similarly, Rigid Metal will see lower demand for Cigarillos, which is forecast to decline at a CAGR of xx.xx% in period, while Loose Tobacco, Furniture Polish, and Cigars will decline at a CAGR of xx.xx% to xx.xx%. 11

12 2.2 Flexible Packaging Published: December Overall Flexible Packaging Market The number of Flexible Packaging containers used in South Korea will increase at a steady rate between 2013 and 2016, with annual growth ranging between xx.xx% and xx.xx% during this period, reaching xx million packs in In absolute terms, the Food sector, in particular Bakery & Cereals and Savory Snacks, will drive the growth of Flexible Packaging. Figure 2: Number of Flexible Packaging Units (Millions) and Annual Growth (%), Table 2: Number of Flexible Packaging Units (Millions) and Annual Growth (%), Number of Packs Growth 12

13 2.3 Paper & Board Published: December Number of Paper & Board Packs by Market A decline in the use of Paper & Board packs in Tobacco & Tobacco Products, particularly in Cigarettes, will result in sluggish growth. Falling smoking rates, influenced by growing awareness and public campaigns on the ill-effects of smoking, has led to the decline of Cigarettes and, therefore, use of Paper & Board Boxes. In spite of a decline in other markets such as Pet Care, Paper & Board packaging will register marginal growth owing to greater demand from Food and Health & Beauty. Increasing demand for Paper & Board packs in Food is primarily driven by the growing use of Cartons and Wrappers, most often used in Dairy Food and Confectionery, respectively. Table 3: South Korean Paper & Board Packaging by Market (Number of Packs, Million), 2010, 2013 and 2016 Market Food Health & Beauty Household Care Non-Alcoholic Drinks Pet Care Tobacco & Tobacco Products Overall CAGR CAGR Figure 3: Sectors with the Largest Market Share Gains and Losses in South Korea Paper & Board Packaging,

14 2.4 Rigid Plastics Published: December Number of Rigid Plastic Packs by Closure Type Rising demand for Soft Drinks is driving growth in the use of Screw Top closures, while growth in Dairy Food and Skincare is influencing the demand for Film and Flip/Snap Top closures. Screw Tops will remain the most prominent closure type as the demand from Non-Alcoholic Drinks is forecast to increase at a CAGR of xx.xx% during Table 4: South Korea Rigid Plastic Packaging by Closure Type (Number of Packs, Million), 2010, 2013 and 2016 Closure Type Cap Dispenser Film Flip/Snap Top Foil Lever Closure None Prize Off Screw Top Overall CAGR CAGR Figure 4: Closure Types with the Largest Market Share Gains and Losses in South Korea Rigid Plastic Packaging,

15 2.5 Rigid Metal Published: December Number of Rigid Metal Packs by Outer Type Paper & Board Box and Sleeve will increase at a CAGR of xx.xx% and xx.xx%, respectively, during , driven by the Make-Up and Prepared Meals sectors. Table 5: South Korea Rigid Metal Packaging by Outer Type (Number of Packs, Million), 2010, 2013 and 2016 Outer Type Box None Sleeve Overall CAGR CAGR

16 3. Appendix Published: December What is this Report About? This report is the result of Canadean s extensive market and company research covering the South Korean packaging industry. It provides an analysis of changing packaging trends for eight key Consumer Packaged Goods segments, competitive landscape, and South Korean business environment. Consumption of primary, outer, and closure packaging is analyzed in detail. provides a top-level overview and detailed packaging, and company-specific insights into the operating environment for packaging companies. It is an essential tool for companies active across the South Korean Packaging value chain, and for new companies considering entering the market. As such, this report is aimed at companies supplying to the following retail markets: Alcoholic Drinks Food Health & Beauty Home Improvement Household Care Non-Alcoholic Drinks Pet Care Tobacco & Tobacco Products. 3.2 Time Frame For the purposes of this report, the following timeframes apply: Historic period: * Forecast period: *The 2013 values are the latest estimates as of the publication date 16

17 3.3 About Canadean Published: December 2013 Canadean is a full-service business information provider with in-house market research capabilities. We specialize in analysis across the Consumer Markets Value Chain, covering suppliers, producers, distribution, and consumers. Canadean s dedicated research and analysis teams consist of experienced professionals with an industry background in marketing, market research, consulting, and advanced statistical expertise. We offer valueadded market research, insight, and strategic analysis and our products help companies to make better, more informed, strategic and tactical sales, and marketing decisions. Canadean s areas of expertise include online research, qualitative and quantitative research, industry analysis, custom approaches, and actionable insights. In addition, Canadean has built a network of consultants and specialist researchers across more than 60 countries, each with in-depth industry experience and expertise enabling us to conduct unique and insightful research via our trusted business communities. 3.4 Disclaimer All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Canadean. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that Canadean delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such, Canadean can accept no liability whatsoever for actions taken based on any information that may subsequently prove to be incorrect. 17