IK: German plastic packaging industry with positive economic outlook amid rising costs

The German plastic packaging industry is looking ahead with confidence to the coming year, as shown by the results of the IK economic forecast for the first quarter of 2016. This suggests that 70 per cent of member companies judge the economic situation to be good; a year ago, this figure stood at a little over a third, at just 37 percent.

According to the association, the key parameter driving this trend is the overall robust economic situation in Germany, based on record levels of employment and the resulting strong domestic demand. The continuing low price of oil in particular boosts the purchasing power of consumers in Germany and important import countries.

In addition, the plastic packaging industry also sees great opportunities in 2016 for innovative packaging solutions in a range of different markets. As in the food sector, protection of goods against spoilage or damage will also take even higher priority in other product segments. Thanks to its diverse protective properties, plastic packaging offers optimum solutions in such areas.

Almost one third of companies surveyed expects an increase in sales prices in the first quarter. The highly volatile raw material prices are one main reason for this. The majority of IK members therefore assumes there will be an increase in raw material costs in the first quarter of 2016. Electricity costs in Germany, still excessively high compared with other countries, will force many packaging manufacturers to make price adjustments.

Consequently, at the start of this year, the IK forecast sees a rather unsatisfactory trend in terms of profits, despite positive turnover expectations.

With over 300 member companies, the IK Industrievereinigung Kunststoffverpackungen e.V. is the largest association in the plastic packaging sector in Europe.

The IK is a supporting member of the German Association of Plastics Converters (GKV) and therefore involved in matters concerning the entire plastics processing industry.

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