The German Industrial Association for Plastic Packaging (IK) has released data on the production and sales of plastic packaging in the country in 2023. It was a ‘difficult year’ for the industry, the association said.
The statistics show a total decline in production of 10% to 3.8 million tonnes and a decline in sales of 7.7% to €16.8 billion compared to 2022.
Bags, carrier bags, and snack packaging experienced the steepest decline in production, -14.1% to 395 million tonnes. Flexible films was the second most affected category, suffering a production decline of 12.4% to 1,412 million tonnes. Production of barrels, canisters, and buckets declined in 12.2% to 230 million tonnes. Cups, cans, boxes, trays, and pallets were also particularly affected, with a decline of 8.5% to 706 million tonnes. The least affected categories were bottles, with PET bottle production seeing a 3.7% decline and bottles made of other plastics -3.8%.
Changes in sales were also negative across the board, although the declines were not as sharp. Flexible films saw the steepest decline in sales at 14.4% to €5,620 million. The least impacted category was closures with a 0.4% decline to €1,630.
The construction and chemical industries, excluding pharmaceuticals, saw a 11% decline in production, continuing the trend from 2022. Demand for consumer goods overall fell in 2023. Spending on food and beverages was particularly affected, IK said.
IK did not yet published figures on exports and imports in 2023 but the association said its members reported increased imports of plastics packaging into Germany in 2023.
“The reason for this is the significantly worsened competitiveness of German plastic packaging manufacturers, primarily due to increased energy costs,” said Dr. Lorena Fricke, IK economics consultant. Added to this is the ongoing substitution by paper and paper composites,” she explained.
Between 2022 and 2021, imports increased by 14.8% whilst exports rose by 9.3%. Imports of PET and polyester, PP, LDPE, and HDPE rose by 13.4%, 21.6%, 18.0%, and 22.1% respectively.
IK says German companies are burdened by a large number of regulatory measures and reporting requirements, as well as higher transport costs. The introduction of the plastic tax, which was delayed to 2025, is also ‘contributing to market uncertainty’.
Outlook for 2024
Figures for the first quarter of 2024 suggest that the overall economic situation might have hit rock bottom in 2023, providing a ‘glimmer of hope’, IK said. Sales and exports rose sharply in the first months of 2024, and the balance between positive and negative reports has seen a slight improvement, although it is still in negative terrain (see graph below).
“It appears that the low point has been reached and partially overcome in terms of sales development and exports,” Fricke said. “Nevertheless, the outlook for 2024 as a whole remains bleak – especially with regard to the earnings situation,” she continued.
The chemical and construction industries will likely remain critical sales sectors due to weak demand. In the consumer goods sector, too, the reluctance to buy is not expected to end any time soon.
