Even though the figures are only available for the first three quarters of 2023, the Folding Carton Industry Association (FFI) can identify a clear trend. Last year, the production volume of the industry association’s members fell by 6.2% to just under 520,000 tons. At the same time, the production value increased by 2.3 percent to 1.47 billion euros and the value per ton by 8.3 percent to 2,828 euros. According to Andreas Helbig at the presentation of the industry balance sheet for the past year, the reasons for the drop in volume were the reduction of corona-related accumulated stocks and inventories along the value chain, restrained consumption due to inflation, and slowing economic growth. According to the FFI board spokesman, the increase in production value is due to the passing on of higher basic costs for raw materials, energy, and freight.
Extrapolated to the industry as a whole, growth in volume and value amounted to minus 5 percent and plus 2 percent respectively. For the current year, Helbig and FFI Managing Director Christian Schiffers anticipate a "sideways movement", i.e. a development of the performance figures with rather minor fluctuations.
On behalf of the FFI as a member of the "Forum Serviceverpackungen" (FSV), they have once again pointed out the negative consequences of possible regulations in the EU Packaging Ordinance, reports the Lebensmittelzeitung. Many of the measures proposed by the EU Council at the end of 2023 are "practically impossible to implement, economically unsustainable, and environmentally ineffective". Helbig and Schiffers warn against banning single-use packaging for food and drinks to be consumed on site in restaurants and thus imposing further burdens. The industry has already suffered particularly badly during the coronavirus pandemic. Mandatory reusable packaging quotas for takeaway products were also rejected. With regard to the latter, the FFI cites a study by the consulting firm Ramboll. This attests that "fiber-based, fundamentally recyclable" food service packaging, which is used in fast food restaurants, snack bars, bakeries, butchers, or at to-go counters in food retail, for example, has a significantly better environmental footprint than reusable solutions.
Danger of Artificial Trade Barriers
The FFI is therefore calling on the trilogue bodies to exempt from bans all single-use packaging that outperforms reusable alternatives in terms of environmental performance, and on top of that achieves high recycling rates in the EU member states. It is argued that being able to choose the most sustainable solution depending on the application would, on the one hand, allow the economy flexibility and, on the other hand, contribute to the regulation's goal of reducing the amount of packaging waste. Should the EU trialogue result in packaging bans and/or blanket reusable quotas after all, the FFI also sees the risk of artificial trade barriers being created. This is because the Union Council's proposal allows member states to exceed the requirements.
The folding carton manufacturers are now betting that the European Parliament's position on bans and fixed quotas will prevail in the trilogue, which – from the FFI's point of view in a much more business-friendly manner – "takes environmental and climate aspects into account and at the same time protects and strengthens Europe as an industrial location".
The association is also concerned about proposals from all three trilogue institutions to minimize the packaging material used and empty space in finished product casings. It is also doubtful that the EU standardization bodies responsible would be in a position "to specify adequate maximum weights, volume limits or wall thicknesses as well as the maximum empty space for the most common packaging types and formats by means of technical standards".
Since 1948, the FFI – Fachverband Faltschachtel-Industrie e.V. has represented the interests of more than 60 companies with over 80 production sites in this industry, which produces around 943,000 tons of folding cartons annually, corresponding to a production value of around 2.218 billion euros. FFI members represent around two thirds of the industry's turnover.
