The plastic packaging industry is under pressure, according to recent data from ICAP. Two important factors contribute to this; the sector’s exposure to price changes and especially polyethylene, which is the main raw material for the production of plastic packaging items, as well as the course of various customer sectors with which it is inextricably linked.
Especially in 2023 the average selling prices of plastics dropped, a result of the lower prices of raw materials.
As reported by Ioanna Stratoudaki, Consultant of ICAP CRIF’s Economic – Sectoral Studies Department, the domestic plastic packaging market (disposable plastic items are not considered), is estimated to have recorded downward trends in 2023 compared to the previous year by about 5%.
The intense inflationary pressures on the market negatively affected the performance of several customer sectors of plastic packaging products, leading to a decrease in demand for plastic items. Regarding the distribution by product category, the largest share was recorded in the category “Sheets-Films” with a percentage of around 30%, while the categories “Sacks and Bags” and “Bottles” follow with a share of about 21% in 2023.
As part of the study, a financial analysis of plastic packaging companies was carried out in a representative sample of 73 companies for the two-year period 2021-2022. The analysis of the consolidated balance sheet shows that the total sales of the 73 companies increased by 17.3% in 2022 compared to 2021. Similarly, the gross profit rose by 16.1% during the same period. EBITDA also rose 9.2% totaling 141.1 million euros in 2022.
