New Trends in European Corrugated RISI International - - PowerPoint PPT Presentation
New Trends in European Corrugated RISI International Containerboard Conference Edwin Goffard, Smurfit Kappa 14 th November 2018 Confidentiality Notice The content of this presentation is proprietary and confidential information of Smurfit Kappa
RISI International Containerboard Conference
Edwin Goffard, Smurfit Kappa 14th November 2018
Confidentiality Notice
1
The content of this presentation is proprietary and confidential information of Smurfit Kappa Group. The recipient may not distribute, copy, print or otherwise use information from this presentation without the written consent of Smurfit Kappa Group.
About Smurfit Kappa
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Smurfit Kappa - Position
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European Corrugated Market
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Prediction?
Source: ICCA, SK Market Research & Intelligence
Year on Year Growth 2000 - 2017
5 Source: ICCA, SK Market Research & Intelligence
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Where will we be in 2023?
My biggest fear as a teenager......
The golden age of the consumer
MORE YOUTUBE VIDEOS WERE WATCHED IN 2017 VS 2016
EVERY MINUTE CONSUMERS ARE WATCHING 4,100,000 VIDEOS ON YOUTUBE
60
TIMES
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WE RECORD AND POST EVERYTHING….
ALSO OUR PACKAGING EXPERIENCES
TODAY THERE ARE AROUND 18,400,000 UNBOXING VIDEOS ON YOUTUBE
18.4
MILLION
14
Consumers are 71% more likely to buy a product based on social media referrals
71%
*Source: Hubspot
The awareness in the world on the size of the problem is growing The increased awareness around plastic ocean is a clear example of the power shift towards consumers
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(2018 Q1 compared to Q1 2017)
Source: Brandwatch online trends April 2018
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Three main challenges for our customers
How to drive sales in the different sales channels? How to deal with the complexity of omni‐channel? How to face the consumer anti‐plastic sentiment?
Opportunities for paper based packaging!
82% of shoppers prefer paper‐based packaging above plastic*
Source: Smurfit Kappa ShelfSmart research with 300 shoppers in Germany
Anti plastic sentiment
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Retailers
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... more Retailers
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... And Customers
"Coca "Coca-Cola announces ne Cola announces new w pack packaging vision, int aging vision, intends t ends to collect collect and recy and recycle cle 100% of its pack 00% of its packaging aging by 2030" y 2030"
19 January 2018 (Business Wire)
"Nestlé announces vision t "Nestlé announces vision to mak make 100% of its pack 0% of its packag aging recy ing recyclable or clable or re-usa re-usable b by 2025" 2025"
10 April 2018 (PRNewswire)
"LEGO Gr "LEGO Group aims f
00% sustainable sustainable pack packaging b aging by 2025" 2025"
22 April 2018 (Press Release)
"Unile "Unilever r and V and Veolia
sign a collaboration agr agreement eement o
ainable Packaging. T
e three- ee- year par ar partner nership will im hip will impr prove w e wast ste collection e collection and recy and recycling infrastructure t cling infrastructure to help creat help create a a circul ular ec ar econom
for pl plast astics w cs wast ste" e"
24 October 2018 (Press Release)
Source: The Guardian, 25 Oct 2018
... And Authorities
The Market Demand for Alternatives
82.3% of Europe/s paper‐
based packaging is recycled, beating all other packaging materials.
A greener alternative
Source: EU report 2014
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Three main challenges for our customers
How to drive sales in the different sales channels? How to deal with the complexity of omni‐channel? How to face the consumer anti‐plastic sentiment?
Opportunities for paper based packaging!
Retailer or Hypermarket Convenience Store Discounter eCommerce Typical reference box
Super/Hypermarket
Expected growth till 2021: <1% p.a.*
E‐commerce
Expected growth till 2021: ca. 20% p.a.*
Discounters
Expected growth till 2021: 3% p.a.*
Impact on paper-based packaging
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paper-based packaging is seen as an growth enabler by all sales channels
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The market for Shelf Ready Packaging is projected to growth 4% annual to 2021
Source: Smithers Pira, 2016
4%
Of the products are in Shelf Ready packaging in discounters
Source: Smurfit Kappa
90% 17‐ 28%
Parcel volume will continue to rise 17‐28% each year between 2017 and 2021
Source: PItnbey Bowes parcel index, 2017 *Source: IGD data, 2017
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Many departments are growing their depth of assortment far faster than they are growing revenue
Source: Shaping the Future of Retail for Consumer Industries, A World Economic Forum project in collaboration with Accenture , January 2017
In Europe discounters generate 22%
30 Source: Nielsen Retail Measurement Service 2018 Source: Nielsen Retail Measurement Service 2018 Source: Nielsen Retail Measurement Service 2018 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
But E-Commerce is the fastest growing global channel
31 Source: IGD data, 2017
Advanced eye tracking technology
Sales increase
Accolade Wines – Shelf Ready Packaging example
IT IS NOT A DIFFERENT CHOICE IT IS A GREATER CHOICE
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Three main challenges for our customers
How to drive sales in the different sales channels? How to deal with the complexity of omni‐channel? How to face the consumer anti‐plastic sentiment?
Opportunities for paper based packaging!
The new reality in the Supply Chain
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Efficiency: Managing the Complexity
Market Place 3PL Producers Merchants Omni‐Channel Pure Players General public Governments & Environmental Agencies
P A C K A G I N G
The new "customer" of packaging
Delivery re‐invented
Delivery re‐invented?
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E-Commerce is a less controlled supply chain
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Driving supply chain performance by packaging
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Paper based packaging for the future
Flexible Ready for omni‐channel Sustainable
Role of the Paper and Corrugated associations to push this message