While the price of some flexible packaging materials dropped in the fourth quarter of 2022, demand stabilized despite ongoing uncertainties about the global economic outlook and energy costs.
After peaking in mid-2022, most substrate prices fell by single digits, according to figures recently published by Flexible Packaging Europe (FPE). Only one-side coated paper (60 g) resisted the downward trend, as it did in the third quarter: from October to December, the price rose by 10% and was 42% higher in 2022 than in the previous year. According to FPE, the only material to see a two-digit price decline was 20 µ BOPP film, down 15% from the previous quarter.
"Sluggish demand and high levels of uncertainty pushed most substrate costs down in Q4. Each stage of the value chain sought to run down their inventories, but this process is being lengthened by weak consumer demand," said David Buckby, senior analyst at Wood Mackenzie when commenting on the new figures.
⇒ This is an excerpt from an article which will be published in EUWID Packaging Markets 4/2023
