Future global growth of bi-oriented polypropylene (Bopp) is expected to more than match its historic GDP growth-busting trend, according to new data.

According to PCI Films Consulting the last five years have seen the compound annual growth rate (CAGR) in global consumption of Bopp average 6.2%, almost twice the average global GDP growth.

And PCI said it expected this trend to continue, with higher sales of packaged and convenience foods, the substitution of other flexible packaging materials and investment in new converting equipment.

Simon King, PCI’s managing director, said: “While demand growth in mature Bopp markets such as Western Europe, North America and Japan has been lackluster, demand in emerging markets such as China and India continues to grow strongly.

“Meanwhile new markets, such as Vietnam and Myanmar have seen a rapid expansion in their domestic flexible packaging industries.”

While there have been a number of mergers and acquisitions in recent times, PCI said the big story of the last five years had been the expansion of China’s Bopp industry.

"The numbers often beggar belief, and despite numerous conferences held in China to slow investment and inform prospective investors of the threat of oversupply, rapid growth continues,” it added.

PCI said China’s Bopp sector has expanded 10-fold since 2000 – four million tonnes of capacity, accounting for 57% of all installations of new film extrusion capacity around the world in that time.

It is little wonder then that the industry is suffering from low margins and underutilised capacity,” the firm said.

Source: http://www.prw.com/article/20150522/PRW/305229954/bopp-market-to-continue-outperforming-gdp-growth

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