PCI Reports BOPP Demand Is Returning to the West

Published: October 16, 2013

NORTHAMPTONSHIRE, UK | PCI Films Consulting has issued a report entitled European Polypropylene Film Market Trends to 2017, predicting a return to growth for BOPP film usage in Western Europe.

Representing almost 50% of total European PP film demand, the West European BOPP film industry has struggled to gain any upward momentum over recent years due to a number of factors, including the region’s economic weakness, changes in production strategy by multinational food packers, and the maturity of the market. Growth in European markets at 1%/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.

Steve Hillam, the author of these PCI findings, says, “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 polypropylene films.”

The report expect more PP film will be made available in the coming years in response to this growth, with new film extrusion capacity coming onstream and existing suppliers improving their capacity utilization 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.

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