Market Trends of Italy Flexible Plastic Packaging Industry
An Increase in Consumer Living Standards and Disposable Incomes is Expected to Drive the Market
- The Italian flexible plastic packaging market is projected to expand, driven by various factors such as rising living standards, increased disposable income, and consumer demand for different goods. Adopting lightweight packaging materials, particularly plastics, also contributes to the growth.
- According to the Bank of Italy, the country's GDP is projected to increase by 0.6% in 2024, 0.9% in 2025, and 1.1% in 2026; without adjusting for calendar effects, GDP growth would be 0.8% in 2024, 2025, and 1.2% in 2026, respectively. Economic activity is anticipated to benefit from the acceleration in foreign demand and the recovery in disposable income. This might change consumer preferences when purchasing packaged products.
- Further, according to the Italian National Institute of Statistics (ISTAT), in January 2024, Italian families saw growth in disposable income, purchasing power, and savings in the third quarter of 2023. The National Statistics Institute's quarterly non-financial General Government (GG) account revealed that household gross disposable income and final consumption expenditure increased by 1.8% and 1.2%, respectively, compared to the second quarter of 2023. In real terms, the purchasing power of Italian consumer households increased by 1.3% from the previous quarter, outpacing a 0.5% rise in prices. Therefore, increased incomes might lead to a surge in consumer spending, driving the demand for a flexible plastic packaging market.
- The market share of the leading grocery retailers in Italy as of October 2023 includes Conad, Selex, and Coop Italia. In 2023, Conad claimed the top spot as Italy's premier food retailer, commanding a 15% market share. Following closely behind was Selex Gruppo Commerciale, securing a 14.7% share. Noteworthy, among the top ten retailers were prominent supermarket chains like Coop Italia, Esselunga, Carrefour, and Lidl.
- The country also witnessed a rise in the expansion of international and domestic supermarkets. In April 2023, DESPAR Italia's partners have recently inaugurated four new stores and undertook extensive modernization efforts on six existing ones across Italy. These actions underscore the ongoing commitment of the retail consortium to bolster its presence in the Italian market. The rise in supermarkets across the country, owing to demand for consumer demand for shopping, is expected to drive the market's growth.
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The Food Segment is Expected to Witness Growth
- The Italian low-calorie food market is growing, driven by shifting consumption habits and a growing preference for healthier food choices. Consumers seek convenient, budget-friendly snacks that satisfy their daily nutritional requirements and satisfy their cravings. The food industry swiftly adapts, embracing advanced raw material sourcing, processing, and preservation methods alongside innovative packaging solutions.
- According to a study by Rome Business School in July 2023, demographic and lifestyle shifts fuel a rising interest in healthy eating. Post-COVID, there's a heightened awareness of how diet impacts health and the environment, spurring an appreciation for traditional food experiences. According to Eurostat, the wholesale of meat and meat products witnessed growth. In 2020, the revenue was USD 12.74 billion, reaching USD 13.30 billion in 2023. A rise in meat consumption is expected to raise the demand for flexible plastic packaging products in the country.
- Further, Italy, a top 3 favorite for European tourists in 2023, stands out as the global frontrunner in food and wine tourism. A remarkable 67% of Italian tourists recently indulged in at least five culinary experiences, with Sicily, Emilia-Romagna, and Campania emerging as the most alluring regions. This marked a significant uptick from 2021, with a 25% surge, fueled by 94% of tourists exploring culinary delights in restaurants and 74% venturing to production sites.
- In April 2024, Eatable Adventures and the Italia del Gusto food consortium revealed six pioneering projects through their packaging challenge; these range from industrial packaging crafted with alternative materials to innovative proposals that streamline production processes. The challenge's core pillars are recycling, reducing, exploring alternative materials, and enhancing process efficiency. Launched in December, this initiative is a joint effort by Italia del Gusto, a private consortium of prominent Italian food and wine producers, and Eatable Adventures, a key player in global food acceleration. Such initiatives might further encourage biodegradable plastic packaging in the country.
