Megatrends shape our operating environment
The global population is expected to exceed 8 billion by 2030 with India, China and African countries leading the way. In addition to population growth, food consumption patterns in these areas are changing, creating more demand for packaged food and drink products.
More middle class:
Purchasing power continues to grow and consumers with more income to spend want new, diverse food experiences. Urbanization also increases the availability of different dining and entertaining services, creating demand for new kinds of take-away food packaging.
Today, 55% of the global population lives in cities. By 2030, the expected number of megacities, cities with over 10 million residents, is expected to exceed 40. This calls for more efficient packing and delivery of foods as products are bought in supermarkets rather than as fresh produce. Smaller size and higher purchasing power of urban households compared to rural areas will give rise to new consumption trends.
All natural resources are under pressure with the growing global population. Also, across industries, more and more consumers are showing interest in sustainability.
Food packaging offers good growth opportunities
With the prevailing megatrends, consumer food and drink packaging can be expected to offer following growth opportunities in different markets in average:
- Even twice the GDP growth
- Population 6+ bn
- How we'll grow: Population growth, GDP growth, higher disposable income, advances in modern retail, and away-from-home consumption
- Approx. GDP growth + 2%-points
- Population approx. 1 bn
- How we'll grow: Market share gains, category changes, substitution, and innovation
Huhtamaki growth opportunities
In addition to expected growth opportunities in the consumer food and drink packaging industry, we can benefit from the following business factors:
- Focus on consumer food and drink packaging: Consumer food and drink packaging offers stable growth opportunities over the cycle. Local food contact regulations create a higher barrier of entry.
- Geographic expansion: Today, we have operations in 34 countries in 6 continents. We see opportunities to further expand our footprint especially to countries with a relatively large population and growing disposable income.
- Innovations and broadening of product portfolio: Our ambition is to increase the share of new or renewed products to 25% of net sales. Broader product portfolio offers benefits to our customers.
- Major brand owners with high growth ambitions as customers: Approx. 30% of the Group’s net sales comes from large, global clients whom we serve with our global scale, locally.
Our financial position is solid and allows us to act on growth opportunities when they arise. More on financial ambitions and performance.