European film market set for growth

The biaxially-oriented polypropylene (BOPP) film market in Western Europe is expected to return to growth after several years of negligible increases, according to a new study by PCI Films Consulting.

PCI Films’ latest report, European Polypropylene Film Market Trends to 2017, outlines the factors currently affecting capacity, production and demand in the European polypropylene (PP) films market.

Representing almost half of total European PP film demand, the film industry in West Europe has struggled to gain any upward momentum over recent years due to factors including the region’s economic weakness, changes in production strategy by multinational food packers and the maturity of the market, PCI Films said.

Growth in European markets at one percent per annum, and offsetting declines in West European BOPP film demand, has come from the greater use of cast polypropylene (CPP) film in Western Europe and strong PP film market growth in Eastern Europe.

In the coming years, more PP film will become available through new film extrusion capacity coming on stream and existing suppliers improving their capacity utilisation rates. 

While a majority of the new capacity is expected to be for BOPP film and will be installed in Eastern Europe, predominantly Russia, a new line is also being planned for Portugal. This new capacity is expected to increase competition in the European PP film market by targeting imported volume but is also expected to be directed at export markets.

Report author Steve Hillam said: ‘Demand in the European PP film market has undoubtedly been hindered by the weakness in the BOPP film sector in Western Europe. However, with demand returning, plus continued economic recovery, strong GDP growth driving East European flexible packaging consumption, and a continued switch from rigid to flexible packaging formats, I believe the future looks very positive for European PP films.’

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