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Raw Material prices for flexible packaging in Q3 remain high

Following two quarters of surging prices in the first half of 2022, flexible packaging raw material prices stabilised in Q3, although energy prices have increased significantly across the region. According to Flexible Packaging Europe (FPE) growing economic uncertainty has affected demand from both converters and end users as consumers are being more cautious due to high inflationary pressures across a range of packaged goods.

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Record price levels for flexible materials as trend continues into 2022

The cost of plastics, aluminium, paper and liquids materials used in flexible packaging reached new, record levels in the first quarter of 2022, maintaining the strong upward surge in prices seen throughout 2021, according to Flexible Packaging Europe (FPE). Continued pressure from soaring energy costs, as well as other external factors, means the dramatic increases seen in the last half of 2021 have now been exceeded.

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Soaring energy costs add more pressure on flexible material prices

The prices of materials often used for flexible packaging continued to accelerate in the final quarter of 2021, due mainly to the spike in energy costs, which began to increase dramatically after August, according to Flexible Packaging Europe (FPE). On-going shortages of some raw materials and supply chain disruption also continue to have an impact on availability and costs.

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Disrupted supply chains and increasing costs continue to challenge flexible packaging production

Raw material price inflation continues to have a major impact for the flexible packaging industry, although the rate of increase eased slightly in Q3 compared with the unprecedented levels seen in the previous three months.

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Continuous raw material supply difficulties of great concern to European Flexible Packaging manufacturers

The continuous difficulties of raw materials supply are creating a potential risk to the stable supply of food, pharmaceuticals, and medicals, which worries the members of Flexible Packaging Europe (FPE).

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