Members of Flexible Packaging Europe (FPE) have voiced concerns regarding recent changes in polymer markets across the continent.
Large numbers of ‘force majeure’ declarations or ‘maintenance’ announcements by leading polymer manufacturers in Europe have created sudden and significant shortages and price increases in the supply chain, the group claimed.
Sudden Changes
Members of FPE are now facing difficulties supplying products to customers as a result of the sudden changes, particularly in the food and beverage sector.
These changes come at a time when the sector is under immense pressure to meet consumer demand, which has increased as a result of restaurant and other hospitality sector closures. More and more people are working and studying from home, as well as cooking for themselves, is leading to increased stress on food and beverage supply chains.
Concerns within the flexible packaging industry are extremely relevant, as almost half of fast-moving consumer goods (FMCG) excluding beverages in the EU are packed with flexible packaging, including packaged foods, pet food, and personal and household care products.
Market Power
Guido Aufdemkamp, FPE’s executive director, was critical of the alleged actions of polymer manufacturers, saying that "the shortening of production capacity with different reasons and arguments in such a short period seems either the test or use of market power."
The FPE makes up over 85% of Europe's flexible packaging turnover. Small and medium-sized manufacturers and multinational companies of flexible packaging are all suffering as polymer shortages affect the production chains of companies, the group added.
© 2021 European Supermarket Magazine – your source for the latest retail news. Article by Conor Farrelly. Click subscribe to sign up to ESM: The European Supermarket Magazine.
