Packaging and Films Association (PAFA) chairman David Read has singled out flexible packaging as the way forward and claimed that the industry is “well positioned to endure the current recession because of the cost-effectiveness of plastic films, thermo-formed trays and flexible packaging”.
The comment was made at the body’s AGM in London on May 20.
Read went on to say that, in spite of the unprecedented rise and fall in oil prices together with dramatic increases in the costs of resin, film, ink, energy and “every item needed to conduct business”, the lightweight, compactness of flexible films offers outstanding advantages.
He argued that flexible plastic packs are “durable and offer excellent product protection”, while “features like re-closable zippers on flexible packages help reduce food waste, which will be increasingly important to cost-conscious consumers”.
Read told delegates that plastic flexible packaging has been considered a “recession-proof” industry, probably due to the close association it has with the food industry. He said: “I think the belief that packaging is ‘recession-proof’ is too simplistic, although our industry is faring much better than many…
“Already in the UK we are experiencing retailers holding inventories to a minimum or ‘de-stocking’ to conserve cash. This has trickled down to our members’ order books in the form of more frequent, smaller orders in many cases. We also expect a renewed emphasis on retailers’ own brands, which generally offer lower cost to the consumer and better margins for the retailers.”
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