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The French market for packaging machinery increased by just 1 percent in real terms in 1996, reflecting the first stabilisation in the market for several years. This followed a severe decline in demand through 1992 and 1993 as companies reduced investment in plant and machinery. Indeed, the strength of investment in packaging machinery through the 1980s has allowed many companies to continue using the machines which were purchased new at that time.
Case packing and wrapping machinery is the largest single category of packaging machinery, accounting for some 41 percent of the market. However, sales of case packing and wrapping machinery have fallen more than other types of equipment, and this is reflected in their loss of market share since 1992 when this class of machine accounted for 49 percent of packaging machinery sales.
New investment in packaging machinery is being driven by the need for machinery to be more reliable and flexible, allowing faster change-over times, and running at higher speeds. Attempts are also being made to reduce the amount of packaging material used, reducing the amount of packaging waste generated.
A recovery in the French packaging machinery market is expected to develop only slowly as confidence returns to the end user sectors. In particular, the widespread existence of packaging machinery which was purchased in the 1980s will allow some companies to delay new investment until a stronger recovery is in place.
The food and drink industry is believed to be the largest single purchaser of packaging machinery in France, accounting for an estimated 55 percent of total demand in 1996. This is followed by the toiletries and cosmetics industry, the chemicals and detergents industry, and the pharmaceuticals industry which together account for the majority of the remaining demand.
Through the recession, French production of packaging machinery held up somewhat better than the overall market, helped by continuing demand from France's widely dispersed export sales.
Import penetration of the French packaging machinery market has increased, rising to an estimated 81 percent in 1996. Indeed, the strength of the French franc has helped some importers to gain a price advantage, and this has placed significant pressure on domestic French manufacturers.
The French packaging machinery industry is highly fragmented, and there are reported to be fewer than ten packaging machinery manufacturers with more than 100 employees.
Text © 1998 MSI
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Last updated by Duncan Nottage 23rd June 1998