.

CEPI represents 95% of the European pulp and paper industry in terms of production.

Through its member associations, CEPI also represents some 550 pulp, paper and board producing companies across Europe, ranging from small and medium-sized enterprises, to multinationals.

Members of CEPI in 2010 included Austria, Belgium, Czech Republic, Finland, France, Germany, Hungary, Italy, Norway, Poland, Portugal, Romania, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, The Netherlands, United Kingdom.

.

Source: Key Statistics 2010, published by CEPI – Confederation of European Paper Industries

30 June 2011

The European paper recycling rate reached an impressive 68.9% as announced by the ERPC (European Recovered Paper Council) in their final monitoring report. The report shows that since 2004 the recycling rate has increased by 10% points due in part to the excellent work of the ERPC.

The 2010 European paper recycling rate of 68.9% is higher than the target set by the European paper industry for the ERPC commitment period of the 2nd European Paper Recycling Declaration 2006-2010. The council is proud to report on impressive work completed, following the pledge it first made in 2000 to increase paper recycling in Europe. In the mean time, a new ambitious commitment for 2011-2015 is being prepared, keeping the industry on its path to meet ambitious targets of recycling paper at a steadily increasing rate in Europe.

For the commitment period of 2006 to 2010, PricewaterhouseCoopers has independently verified the calculation of the recycling rate using the International Standard on assurance Engagements ISAE 3000. In addition to the quantitative progress, a lot of qualitative work was done to establish an eco-design towards improved recyclability and in the area of waste prevention. The past five years gave the ERPC an opportunity to learn how to work better together, growing stronger as a value chain.

The results include pioneering work to give recycling a solid and scientific support, such as the adoption of the deinkability scorecard. The efforts of the ERPC also complement EU policy, for instance the new Waste Directive adopted in 2008.

8 June, 2011

Folding cartons will see an average annual growth rate of 7.9% in BRIC (Brazil, India, China, Russia) between 2010 and 2016, according to the latest research from Pira International.

According to Pira, overall actual consumption of cartonboard as measured by converter sales will grow by an average of 4.4% annually from 2010 to 2016, with Asia showing the strongest growth at 6.5% over the period. Total actual consumption (conversion net of trade) of cartonboard amounted to 40 million tonnes in 2010, worth $78 billion.

A new study from Pira – The Future of Folding Cartons: Market forecasts to 2016 – shows how global production has increased by an average of almost 2.5% a year since 2005 and totaled over 43 million tonnes in 2010. Asia accounted for 45% of the total volume, followed by America and Europe with a combined total of 52%.

The major end-use markets for folding cartons exhibit their own micro-demographic trends that are affecting demand. In the health care market, good growth is anticipated in product lines such as analgesics, sleep therapies, tranquilisers & other calming products, as well as new products such as nicotine replacements, contraceptives, vitamins, diet supplements and nutraceuticals in general, many of which are packed in folding cartons.

Liberalisation of the over-the-counter (OTC) market will see increased sales of products through non-traditional outlets, and technological advances such as interactive packs may provide further stimulation in the long term.

The tobacco industry is facing bans on smoking in public places, bans on advertising, higher age limits, reduced brand imaging and higher taxes, which Pira expects will eventually result in a decline in demand. In the dry food market, modernising of retail systems in developing regions will boost overall product consumption and an increase in demand for higher-quality graphics, coupled with demand for smaller packs, may boost folding carton consumption. Pira also sees further potential for growth from barrier coating technology and the ‘bagless box’.

According to the study, rising disposable incomes in developing markets will boost growth in white goods sales. This will in turn increase demand for the household chemicals used in their operation, although the folding carton sector faces a continuous threat from liquid products packed in plastics and ongoing product concentration resulting in ever smaller packs.

In the hardware and electrical sector, ‘i-Products’ alone have probably accounted for more than 25,000 tonnes of cartonboard since the launch of the first iPod in 2001 and this phenomenon is likely to continue for some time to come. Elsewhere, the car parts and DIY markets, major users of folding cartons, are receiving a huge boost from the economic downturn.

According to Pira, limited retail infrastructure in the developing regions is likely to be the most significant hindrance to higher growth in folding carton demand in both frozen foods and ready meals. Nevertheless, increased use of refrigeration by consumers in developing countries, plus a gradual improvement in infrastructure, is expected to boost folding cartons in both markets, as well as in dairy product packaging. Consumers are increasingly environmentally aware, and demanding products that combine natural ingredients and eco-friendly packaging in the personal care market.

Although consumers are becoming increasingly aware of the need for healthier alternatives to the traditional bakery product line-up, and cartons face stiff competition from flexible packaging in this sector, the ‘bagless box’ may provide opportunities for development.

At end-user level, demand for folding cartons will show average annual growth of 4.4% during 2010 – 16. The highest growth sectors in percentage terms will be spirits, health care, confectionery, tobacco, hardware and chilled food. The lowest growth will be in pet food, soft drinks, savoury snacks and baked products, all of which face growing competition from flexible packaging.

SOURCE: Pira International

It is estimated that the production of pulp has increased by between 8.5% and 9%, after a decline of 13.5% the previous year, with total output of approximately 38 million tonnes. Output of mechanical pulp is believed to have increased by over 10% and production of chemical pulp rose by around 8% over the 2009 level. The average quarterly production of pulp in 2010 was 9.6 million tonnes. This compares with a quarterly average production of around 10.6 million tonnes in 2006 and 2007.

Production increases across all grades when compared to 2009

With the recovery evident throughout the industry, all grades are expected to show higher annual production levels in comparison to 2009, but with some differences by grade. In graphic grades overall production is likely to have risen by around 7.5%. Output of newsprint recorded an increase of approximately 5%. Production of uncoated graphic grades is expected to show an increase of between 4% and 5%. Coated mechanical grades recorded a rise in production of about 16% and the output of coated wood free grades increased by about 9%. The result is that coated paper production is expected to show the largest increase in production of any grade of between 12% and 13% over 2009, having suffered the largest decline in production in 2009 over 2008 (-20%).

The production of packaging grades is estimated to have increased by approximately 9% when compared with 2009. Within the grades, case materials recorded an increase in production of between 9.5% and 10% and output of wrappings increased by a similar level. The output of carton board plus all other packaging is estimated to have increased by about 8%. Because only tonnage variations are being measured it should be noted that these volumes are affected by the continuing trend towards light weighting.

Hygienic paper manufacturers are estimated to have seen a more restricted rise in output of between 2% and 3% when compared with 2009, which mi r ror s the fal l in product ion experienced in 2009 and thus returns volumes to more or less the 2008 level. This is mainly due to the more stable developments in the retailing sector and the fast moving consumer goods industry. Production of all other grades of paper and board – mainly for industrial and special purposes increased by around 11%.

Overall paper consumption rises by between 5% and 6%

It appears that the overall consumption of paper and board in CEPI countries in 2010 will increase by 5% to 6% when compared to 2009, based on the latest data from the third quarter. According to Eurostat the GDP growth rate for EU27 in 2010 will have increased by 1.8% on 2009, with GDP growth forecast to increase by 1.7% in 2011.

The Macro situation

• The overall economic condition still remains very uncertain.

• GDP growth rates are extremely low with few of the countries in the Euro Zone expected to record zero growth.

• Private debt in northern Europe and Public debt in Southern Europe remain very high.

Effects on Paper Industry

• These are adversely affecting the paper industry in Europe and the US.

• ROI of US & European paper mills is heading southward.

• Graphic paper demand likely to get reduced from 45.1% in 2008 to 42% in 2020.

• Reduction in Newspaper ads from 31% to 21% and increase of E-ad from 3% to 14%, slowing down Newsprint industry growth.

• Paper export, especially coated woodfree from Europe reduced to nil.

• Import of packaging grades from non Euro Zone getting increased.

• Necessitating shutting down of additional paper capacities in Europe to restore the demand supply equilibrium.

Effects on Recovered Paper Market

• Demand supply mismatch, has led to lesser generation of recovered paper. (Currently Europe collects about 60 million tonnes of recovered paper)

• Lesser generation is forcing Europe into higher recovery of paper (present recovery being 72.2%, against target of 66% for the period 2006- 2010).

• However, higher recovery in its turn is leading to higher cost, pushing up recovered paper prices.

• Less generation, higher cost of collection, are also leading to:

a. elimination of single street collection (single street collection has decreased from 70% to 45-55%),

b. increase of co-mingled collection (UK has highest co-mingled collection),

c. lesser fibre yield,

d. higher contamination,

e. quality differences, arising out of different methods of collection in different countries of the Euro zone,

f. return of large paper mills in setting up of mill owned recovered paper depot facilities increasing pressure on independent suppliers.

• However, South European countries like Spain, Italy, Greece etc would still have surplus recovered paper available

Challenges for Recovered Paper Users

• Consequent upon lesser generation and higher cost of collection, base prices for all grades of recovered paper will get pitched at higher levels. Earlier historical price bands will no longer be valid.

• Multi-street, co-mingled collection will require better deinking facility for processing the recovered paper.

• Will also require ability on the part of the paper mills to handle recovered paper with newer packaging material and novel kinds of barriers.

• Examples like presence of more brown grades in mixed paper and presence of more OCC in news & pams; will be more frequent.

• In addition to better deinking; mills will require improved equipment support for sorting the higher contaminants in the incoming recovered paper.

• Mills will need to look for alternatives, non-traditional grades of recovered paper; for conversion into finished paper (Kimberley Clarke looking at kraft/news & pams for making tissue paper).

In the coming days, fight for limited fibre can only become more intense and survival will rest upon innovation in terms of sources of supplies, identification of grades, usage of technology and practical approach. One can no longer look at recovered paper for recycling as ‘Waste Paper’ as this will be the main source of fibre for large number of mills in the northern hemisphere.

Few other trends worth noting:

In order to get a feel of the market trend and the direction it is likely to take; it may be interesting to note few features, as follows :-

•Germany has turned into a nett importer of recovered paper (import 300,000 MT) in 2010, from nett exporter (export 600,000 MT) in 2009.

• Consequent upon increased demand for recovered paper in the Euro Zone and in the US; aggregate export of recovered paper from Europe and the US to Far East, Oceania & others have fallen in the Jan-Jun 2010.

– from 927,000MTto 683,000MTex Europe

-from 1,313,000MTto 1,169,000MTex US

• According to RISI, OCC will remain on the upward track, till 2012, as demand will continue to be stronger than generation.

• The price of mixed paper will overtake the 2008 level by 2011.

• ONPwill reach the peak in 2012.

• The price forecast upto 2012 from the US and Europe also show a rising trend:-

– from US 12% – 19% increase depending upon the grade

– from Europe 16% – 35% depending upon the grade and the country of origin within the Euro Zone.

Dr. Hans Peter Sollinger-President, Voith Paper

On the panel: five distinguished, highly skilled professionals, with five different points of view. Yet in the end, the consensus was: “Paper is a medium with a future”. The panel discussion hosted by Voith Paper as part of the “Literature Days” festival in Heidenheim was entertaining, enjoyable and a complete success for all those taking part.

A quick glance at the podium was enough to show a very exciting evening event to come at the packed Heidenheim Congress Center. This is where Voith Paper president Dr. Hans-Peter Sollinger took his place alongside Greenpeace Germany campaign manager Dr. Thomas Henningsen to discuss the future of paper. And with no time lost, the two of them embarked on the first dialogue of the evening – about the endeavors and successes of the paper industry in using increasingly less virgin fiber for paper production.

More recycling, less paper consumption

“The question in the future will be: Despite increasing demand for paper in countries such as India and China, how do we deal responsibly with the re-sources of energy, water and fibers,” said Dr. Sollinger. In his view, for example, part of this process is using even more recovered paper for new paper products. And the Greenpeace manager agreed that a higher recycling quota was exactly what he kept on demanding: “More recycling and less paper consumption; that is the solution for ecologically responsible conduct in the paper industry.”

“But aren’t we already using less and less paper thanks to the Internet etc?” asked Angela Elis, TV editor, author and panel facilitator. The answer to this question was provided by Thomas Brackvogel, Managing Director of the Neue Pressegesellschaft publishing company. “On the contrary, in our editorial offices we still use and print at least as much paper as before the growth of electronic media.” He had been listening closely to Dr. Sollinger’s opening speech and was surprised by one thing above all: the rise in demand for tissue paper. However, tonguein- cheek, he right away provided his own explanation: “Perhaps the global financial situation is bringing more tears to our eyes that then need to be wiped dry with something soft and fluffy.”

Increasing demand for packaging material

Returning to the serious issue of the future of paper, the discussion then turned to the significance of printed information in the form of daily and weekly newspapers, magazines and trade journals. “Naturally these media continue to have their place, but I don’t see them having much of a future,” interjected Sebastian Moleski. He was on the panel as president of Wikimedia Germany, whose best-known project is the online encyclopedia Wikipedia. Just take the example of the Brockhaus encyclopedia. In a direct comparison the currency of the entries in Wikipedia – which incidentally is used by journalists worldwide as a research tool – could not be bettered or replaced by the printed book. “We also shouldn’t forget that in one way electronic media even increases paper consumption: namely, for packaging material.“ Those ordering from the Internet want to have their goods delivered well packed. Board continues to be the packaging material of choice.

Preserve the book as a cultural asset

Dr. Michael Knoche offered a quite different perspective on the significance of paper. The Director of the Herzogin Anna Amalia Library in Weimar, Germany, made the point yet again that paper, in the form of books, is an important cultural asset which needs to be preserved and cultivated. “For centuries, knowledge has been imparted through books, and I am convinced that this will remain the case in the future too. What about the school textbook, or the children’s book? Do you really want to read out a bedtime story from an iPad?”

Admittedly, he added, there is no doubt that certain types of publication will disappear in the relentless trend towards using electronic media. “However, the figures from the Frankfurt Book Fair, for example, where around 300,000 new releases were showcased, speak for themselves, even if individual print run sizes are on the decline. Ambitious, well-written literature will always be read in book form.” This view was challenged by Wikimedia head Sebastian Moleski, who had on several occasions experimented with reading books on a tablet computer and found it easy.

Regardless of whether the works of the great philosophers are read in digital or printed form, or we actually need around 350 different daily newspapers in Germany alone, or paper consumption will actually rise as drastically as expected in the next 20 years – “Paper will always have a certain value and importance in society.” These were Dr. Sollinger’s concluding remarks, which got to the heart of the matter.

]]> http://papermart.in/2010/11/30/%e2%80%9cpaper-is-a-medium-with-a-future%e2%80%9d/feed/ 0 http://papermart.in/2010/11/30/paper-substrates-in-self-adhesive-labels/ http://papermart.in/2010/11/30/paper-substrates-in-self-adhesive-labels/#comments Tue, 30 Nov 2010 09:34:10 +0000 papermart http://papermart.mediologysoftware.com/?p=3245 Mr. Harveer Singh Sahni, is the MD of Weldon Celloplast Limited, producers of self adhesive label stocks, tapes & security label materials. He has widely travelled and has visited number of paper mills in Switzerland, Finland & Italy including 100’s of label printing companies around the globe. Mr. Sahni has to his credit several presentations and articles on the label industry. His company continues to develop products as strategic move to restructure due to intense competition in the label stock market. As a member of the FINAT membership committee, he is the only Asian on the FINAT committees.

Self adhesive labels originated in India around 1965 when a screen printer in Mumbai used a PVC film as face paper and a polyethylene film as the release liner. The hard to wet polyethylene or PE film performed as a release liner because the pressure sensitive adhesives available at that time were not designed to anchor on to PE. The label or sticker so produced would open with a crackling sound as it would be a little difficult to peel it from the PE backing liner. For the same reason paper could not be used on face as it did not have the adequate strength and would tear off while separating from the PE liner. The force required to peel was too high and thus the usage of PVC film was justified. That was the beginning! Soon special base papers and silicon release coatings were available in India. Siliconised glassine or “Silicon Paper” as it came to be known became the preferred backing liner for all self adhesive label materials. This also made it possible for paper to be used as face material. Silicone coating on these base papers provided for an “Easy Release” making it possible to peel off these self adhesive labels effortlessly from their backing release papers. Adhesive chemistries developed such that adhesives could permanently bond even to PE and silicon chemistries also experienced continuous development, such that they can now be applied to PE film for achieving excellent release properties. Since the silicone and adhesive chemistries are beyond the purview of this article, we shall dwell primarily on the various papers used in this industry.

Labelstock essentially consists of three main components, Release paper, Pressure sensitive adhesive (PSA) and Face paper. We will dwell on the various types of papers used to form the release paper and the face paper. It will be appropriate to mention here that the self adhesive labelstock technology has technologically advanced to a level whereby a substantial portion of the output has seen a definite shift to filmic substrates both as face papers and as  release liner. Paper however remains the major and important part of the labelstock production. We discuss the two components separately.

Release papers: These papers are highly calendered, non-absorbent and with a smooth surface so that silicone can be coated on it for imparting release properties. The papers need to be densified and have uniform caliper for good die-cutting. The various types of papers used in production of release papers are as follows;

1. Glassine

2. SCK or Super Calendered Paper

3. CCK or Clay coated paper using bleached Kraft as base paper.

4. Polycoated papers.

5. Saturated papers

Filmic liners have also steadily found acceptability due to their uniform caliper, smoothness and specific character, still paper based liners constitute almost 90% of all the release liner used. While SCK was the preferred substrates in North America due to lower price yet the European market was always largely using Glassine due to  performance and aesthetic reasons in auto dispensed labels. India for long years followed the European model. Labelstock producers and label printers opted for labels with glassine as release paper. To have a good die-cut label, that would dispense with ease and speed on an automatic labeler, it is necessary to have a good release liner. Any variations in caliper of the liner may result in nicks in the release paper that would result in web breaks at the end user level. While die-cutting is done by the label printer, the end user of labels is the one who is dispensing them. The two processes are complimentary to each other. The functionality of the self adhesive label is highly dependent on the liner. Any web breaks would lead to increase in downtime and create problems for the users. Auto dispensed labels and barcode labels drove the demand for glassine liners. This is due to the transparency of the paper through which the label is sensed by the sensor and dispensed or printed by a barcode printer. Things started to change but very slowly such that in the last decade, SCK which has very similar construction and properties to glassine started to be used sparingly. Since the bulk of the demand was for glassine, Indian stock manufacturers stayed away from promoting other varieties of paper. However in small manner some stock manufacturers were experimenting with SCK, CCK and Polycoated papers. The effort was extremely limited until stock lots of laminates and base papers from North America started to land in India in large quantities. Some printers under extreme pressure for cost reduction from customers started to use these stock lots. It was only a matter of time that the larger printers also started to consider these materials for customers who were not very fussy or rigid about the liners. This exercise created a definite segment of labelstocks with different release liners. While the auto-dispensed labels and barcode label segment partially started to accept SCK which had similarities to glassine, it was the sheeted product market that went in for a paradigm shift to CCK as liner. This is so because the laminate produced with CCK as backing and sheeted for Offset printing would have excellent lay flat nature. This would enable it to be printed on offset presses with speed, as curl in sheets was a printer’s nightmare. The siliconising operation involves taking the paper through high heat for thermal curing. This process depletes the moisture content of the paper and makes it unstable. Due to the highly calendered construction of glassine the paper cannot regain moisture quickly and evenly despite being subjected to rehumidification process. The uneven absorption of moisture when the labelstock is sheeted and exposed to atmosphere tends to make the release liner to expand and make the sheets to curl. CCK or clay coated paper has one side coated for imparting a good silicon hold out and the other side is left as it is, so that it can breath and regain moisture during the gumming process when emulsion adhesive are used and the heating chamber has high moisture content that helps the paper to rehumidify to a level of stability. Other segments of label printers who were now richer in their experience from using imported stocklots of labelstocks started accepting the stocks from local manufacturers with these non glassine liners for cost reasons.

Polycoated papers have also found usage in a limited quantity for the past two decades. These consists of normal  maplitho variety of paper over which a layer of polyethylene or polypropylene has been extruded. Due to frequent defects in polycoating and lack of consistency in the earlier years, the growth of these papers was restricted. However in recent times imports from China and other East Asian countries with polycoated release papers made many people in the industry to rethink and improve upon the technology. So much so, that these papers have also found continued and specific usage in the computer label segment. Another paper that has started to find foothold in some segments is the saturated paper. This is very similar to polycoated paper, the only difference being that the plastic (PE or PP) is replaced by a proprietary chemical coating which provides a good silicon hold out.

Going by personal knowledge of the market over the years and assessment, I have tried to estimate the tonnage of paper used for release liners in all the labelstock consumed in India. The basis of my estimate are made on figures of total consumption of labelstock that I mention in the last Para of this article. I estimate that 45000 to 50000 tons of base papers form a part of all the labelstock sold in India solely for the purpose of self adhesive labels. The demand for other applications like tapes, Hygiene, medical, food, etc. is all separate and extra. The way this industry has evolved and due to cost pressures most of the base papers for labels are silicon coated captively by the labelstock manufacturers.

Face Papers: Face paper in labelstock is what actually and finally becomes the label. It carries the branding, product information and decoration along with the adhesive. The release paper only protects the adhesive so long as the label is not used. As soon as the label finds its application, the release paper comes to the end of its limited lifespan and ends up in a waste bin or a landfill or incinerated to dispose off. Efforts are being made to recycle them. Demand for face papers  are according to the application they are needed for. The list is exhaustive and keeps on extending as per the imagination of the designers. Some of the commonly used papers are listed below:

1. C1S or Semi-gloss paper & commonly known as Chromo Art Paper.

2. Uncoated Matt or Maplitho Paper

3. Cast coated or Mirror Coated Paper

4. Thermal Transfer Paper

5. Direct Thermal Paper

6. Fluorescent Paper

7. Colored Papers

8. Metalized Paper

9. Foil Laminated paper

10. Textured paper

11. Security Papers

12. Papers for Digital Printing

The semi gloss or chromo art paper and maplitho paper together account for the biggest chunk of labelstocks sold in India. According to my assessment between the two, they account for nearly 70% of the total stock used, over 15% is filmic and 15% is others. Filmic should have been more but the shrink sleeve has taken away substantial market share. This would amount to about 55000 tons of paper used annually, both chromo and maplitho put together for self adhesive labels. The chromo art paper labels are mostly used for pharma labels, cosmetic/product labels, lube oil labels, and also barcode label. Maplitho finds extensive application in price marking labels for handheld labelers, computer labels, logistic and other EDP labels. Cast coated paper, popularly known as mirror coated paper is used for high-end retail labels with lot of decoration on them. These have lost much of market since printers have started to use semi gloss paper with UV Varnish to get high Gloss. Moreover labels for smaller diameter pharma bottles faced problem with cast coated paper as due to their stiff nature they would get an edge lift leading to rejection of labels. Thermal transfer paper is a special matt finish smooth paper used for producing barcode labels in barcode printers with thermal transfer ribbons. The heated print head presses the ribbon against the paper to neatly transfer the image on to the paper resulting in a barcode. Barcodes help in retail selling, inventory control, logistics, accounting and a host of other applications. The volumes of this paper which is mostly imported, grew at a fast pace due to widespread usage of barcodes. However due to rising cost and availability problems much of this business has shifted to chromo art paper which has found a high level of acceptability from label printers and users. Everyone recognizes direct thermal paper popularly known as fax paper. It changes color when a heated print head touches it. With the advent of internet connectivity, emails becoming the mode of communication and faxes being phased out, this paper was heading towards a slow death. It suddenly got a new lease of life with new applications arising in labels with a shorter lifespan. It can print barcode without the need of a thermal transfer ribbon. Barcode labels for grocery in malls, petrol pump sale bills, toll tickets, retail vends, courier co’s, etc. started to be made on direct t h e rma l p a p e r . T h e p r o d u c t consumption is now growing at a fast pace prompting many companies to initiate manufacturing this product locally. Colored papers, fluorescent papers, metalized paper and foil aminated paper are used for their eye Catchin g appearance and for attracting the consumer attention. With growth of packaged foods, gourmet foods and wines, the need for textured and designer paper for label applications has become imperative. At this time these papers are not produced in India. They are supplied by specialized paper producing companies like Fedrigoni of Spain. These papers are not produced in India and smaller volumes along with the diverse nature of designs, makes importing these, a costly proposition. Some innovative printers have started to indulge in getting the embossed effect on papers by using special flexible dies supplied by companies like Lartec of Spain. These dies actually do not emboss but deboss and yet produce a textured effect on the paper. I am sure this will create market for textured papers in India. With increased incidents of p i l f e r a g e , c o u n t e r f e i t i n g a n d duplication, there is a growing need for tamper evident and security labels. Some mills even in India have started to offer papers with UV fibres that glow in dark when exposed to UV light for verification. Others offer papers with water mark. There is also need for paper that would be weak and fragment into pieces on tried to be removed but this proper ty i s agains t the target specification of the mills who try to achieve high strength in the papers they produce.

As the digital printing industry continues to evolve and pose threat to the conventional printing, the paper mills in India cannot ignore this segment which is growing at a very fast pace. As quality and speeds pickup in digital printing, I am sure that it will be difficult to match the versatility of this technology even for label printing. Tambola tickets, lottery tickets, short run product labels, security and sequentially numbered labels are some of the applications that have already shifted over to digital printing. At this point of time special papers with top coating are required and some label printers do a primer coating on labelstocks themselves to achieve perfecting standards in digital printing. Label stock manufacturers also offer stocks top coated by them. It may just be a matter of time that paper mills offer precoated papers. The possibility of the technology upgrading further cannot be ruled out when all digital printers will print normal papers that are available without any additional primer coat.

India with its 1.12 billion strong population is fast becoming a global economic powerhouse. It is estimated that this year the country will have the highest number of English speaking people in the world. Almost 30 percent of the country’s population is between the ages of 10-24 years, while the average age is 26 years. 70% of these young people are literate. A Young and literate workforce are growing up to work more, earn more and spend more. With higher disposable income they are becoming a part of a bulging middle class, larger then the entire population of United States. For this reason the world’s largest retailers are making a beeline to India to be a part of this growth. If the number of mobile connections is an indicator, it is interesting to note that in July 2010 alone 17 million subscribers were added taking the total number of mobile users in the country to over 652 million. The demand for consumer p r o d u c t s , p a c k a g e d f o o d s , pharmaceuticals and all packaged products is slated to see a quantum jump. With this will also increase the demand of labels. The self adhesive label industry is presently estimated to be growing by excess of 15% per annum. According topublished data, 16 billion square meters of self adhesive labelstock is converted into labels in the world every year. By my own estimate total annual consumption of self adhesive labelstock in India is about 750 million square meters. This translates into a per capita consumption of almost 0.75 square meters. Compare this almost 3 square meters in China, between 13-15 square meters in Europe and a little more in the US. Based on the above estimation of total consumption of labelstock, I calculated the quantity of paper used for release paper and that of face paper for label stock consumed in India. I conclude that over 1,00,000 tons of paper is used for the entire quantity of self adhesive labels used in India!

The Indian packaging industry is currently USD 14 billion (Rs. 63,000 crores) and is growing at more than 12% pa and is expected to cross a turnover of USD 19 billion (Rs. 85,000 crores) by 2015. India’s per capita packaging consumption offers mammoth business opportunity to companies.

The huge and fast increasing Indian middle class population and the ever expanding organized retail sector are the catalysts for the growth of packaging industry. According to McKinsey Report, the Indian middle class population is above 100 million and is expected to reach 583 million by 2025.

With fast pace of the economy, real income of the populace has also increased. Life style and aspirations of people have also changed. This is leading to greater demand for goods and also for better packaged goods. This double benefit is driving the corrugated packaging industry to newer heights. At the same time intense competition and cost pressures are putting up newer and greater challenges for productions and costs. There is more globalization of Indian economy which till recently was insulated from the rough and tumble of the global situations.

The Indian retail market is the 5th largest globally and has been ranked the second most attractive emerging market for investments. According to CB Richard Ellis’ findings India’s retail market is valued at USD 511 billion in the year 2008. Further it is expected to rise to USD 1.3 trillion by 2018.

The Indian food market is estimated to total about Rs. USD 195 billion according to the “India Food Report 2008” published by Research and Markets. Food retail turnover is expected to grow from the current USD 75 billion mark to USD 162 billion by 2025. Packaging is essential for marketing products like food, beverage, milk, horticulture, food grains and hence packaging industry possess good growth from the food industry too.

Indian Corrugated Industry

Almost 93.5 million tonnes of containerboard was produced in 2009, with a value approaching USD 45 billion. Asia represented over 43% of the total volume. India, China, Russia, Poland and Brazil exhibit the most compelling medium term growth opportunities. They account for 62% of the incremental 20 million tones anticipated in the market between 2010 and 2015. Indian containerboard market is about 3 million tonnes with a growth rate of over 12% per annum. With the Indian economy slated to grow at more than 9% and industrial growth at more than 15% the demand for boxes will be very robust in India, making India the fastest growing market.

Indian Corrugated industry is undergoing a metamorphosis from very old technology based on large scale manual operations to fully automatic plants at a rapid pace. The key drivers for change and growth are huge growth in demand for boxes, customer insisting on consistent quality just in time, labour availability shrinking and costs increasing. Investments in modern plants will grow at a very rapid pace of more than 30% per annum from the current level of more than USD 200 millions.

The last decade has been a tumultuous one for the entire business and particularly for packaging industry in India and also globally. World has undergone perhaps the most severe downturn in last century. Luckily India was spared much of the problems as it is still quite insulated. However, the situation is undergoing rapid and vast changes. India, as it grows to become a global powerhouse in business will become part of the global ups and downs in future. Global, National and Regional issues of corrugation industry are leading to new & evolving business paradigm which will govern the way corrugated business will be done over the next decade.

The Price Challenge

Inflation and high input prices are eating in to the margins of packaging companies . Ma n y packaging manufacturers are experiencing difficulties relating to the rise in the cost of paper as well as other inputs during the recent years. The rising costs of paper reduced the margins of industry players. The government supported the industry by announcing certain duty/tax reductions, yet this was not sufficient saving for the industry that was badly reeling from the high production costs.

FCBM to Organize Grand Event for Corrugators

APCMA is organizing the 39 Annual Conference of FCBM – Corrupack Summit 2010 and also I-Pack 2010; the parallel international corrugated exhibition to be held from 10 to 12 December 2010 in Hyderabad, Andhra Pradesh.

According to Mr. M.L. Agarwal, Chairman – Corrupack 2010: “The event is drawing huge response globally from all business circles, more particularly Corrugated packaging. This is evident from the confirmed participation of top managers of Smurfit, International Paper, and delegations from Europe/ USA etc. Asian Corrugated Case Association is having its Managing committee meeting on 9th December 2010 at Hyderabad and more than 50 delegates are expected from Asian countries”.

For first time in India operating machines producing boxes will be on exhibit. A wide spectrum of machinery and ancillary suppliers from India, China, Taiwan, Japan, Europe, and USA are on exhibit. Galaxy of globally eminent Gurus is empanelled to educate the participants on the Evolving Business Paradigm over the next decade on Technical, Financial, Commercial, Government Regulations, etc that will impact the Corrugated Box industry in India and its role in world business. The I-Pack 2010 exhibition, which is to be held at the same venue, will provide international quality and scale of facilities and opportunities for a new level of trade among exhibitors, visitors and buyers.

FCBM: The Federation of Corrugated Box Manufacturers (FCBM) of India is the apex body of India’s corrugated packaging industry with a membership of over 2000 corrugated box manufacturers. FCBM is regarded as one of the most active and well organized trade bodies in the country.