FLEXIBLE PACKAGING LATEST TRENDS

1. michelman.com
Latest Trends and Regulations
in the Flexible Packaging Industry
Dr. Rick Michelman
Executive Vice President, Chief Growth & Technology Officer
5th Specialty Films & Flexible Packaging, Global Summit – 2016
21-22 September 2016, Mumbai India

2. michelman.com
Global Flexible Packaging Industry Uniqueness of India Market
Your Basic Needs
in the Value Chain
Basic Needs in the Value Chain

3. michelman.com
Global Flexible Packaging Industry
• 4-5% annual growth
• Why Flexible Packaging? – Convenience!
• “Market Drivers”
 Busy lifestyles
 More affluent consumers
 Portion/dosage control
 Variety of choices

4. michelman.com
Uniqueness of
India Market
• High FP market growth – 15% p.a.
• Climate extremes – “packaging proving ground”
• Concentration of world-class film producers
• Diversity of multi-national suppliers
• Industrial Films – market diversification opportunity?
• World renowned creative spirit

5. michelman.com
• For your Business – value added films and structures
• For your Customers – easy to convert
• For your End User – packaging that is
better for business and the environment
Basic Needs in the Value Chain

6. michelman.com
FOR EXPORT
FOR INDIA
Global trends and regulations matter!

7. michelman.com
India as a Global Packaging Innovator
Success Strategies
• Precision quality
• First-mover with new products
• “Breakthrough Innovation”
• Global markets – Europe,
USA, and beyond
• What other strategies
are important to you?

8. michelman.com
Global Packaging
Snacks
7%
Dry Foods
8%
Cheese/Dairy
8%
Baked Goods
9%
Confectionery
10%
Meats, Fish, P
oultry
11%
Other Food
21%
Pharma &
Medical
9%
Personal Care
5% Tobacco
4%
Beverage
3% Pet Food
2% Other non-food
3%
Rigid
Bottles
17%
Metal
Cans
11%
Flexible
Packaging
20%
Paperboard
13%
Corrugated
22%
Glass
3%
Other
14%
Global Sales $450B in 2014
Converted Flexible Packaging by
Packaged Content $90B
Source – Smithers/Pira

9. michelman.com
Source – Smithers/Pira
Flexible Packaging by Region
North
America
23%
Central &
South
America
6%
Western
Europe
25%
Eastern
Europe
4%
Middle East
& Africa
5%
South East
Asia &
Oceania
17%
Central and
East Asia
20%
Remaining
14% Poland
4%
Turkey
5%
Spain
5%
Benelux
6%
Russia
7%
Italy
8%
UK
14%
France
15%
Germany
22%
$90B Global 4-4.5% Growth $33B Asia 8% Growth
USA
74%
Canada
6%
Brazil
7%
Mexico
7%
Argentina
2%
Chile
1%
Columbia
1%
Peru
0%Other
2%
China
27%
India
17%
Japan
24%
South
Korea
12%
Indonesia
8%
Other
12%
China
8%
$26B Europe 2% Growth $26B Americas 4% Growth
Indonesia
8%
Japan
3%
India is very relevant and the export market is huge!

10. michelman.com 10
Opportunities for Technology “Breakthrough” Innovation
Strategies –
• Simplified structures –
fewer steps, source reduction
• Chlorine-free
• Solvent-free
• Aluminum-free
• High performance
• What other opportunities are important to you?

11. michelman.com 11
Simplified Structures
• In-line
 1-2 layers versus 3
 Less pouch weight - more room for shipping
 Convert rapidly without lamination
• But – Solvent odor retention can be a problem
for brand owners
• Film Producer advantage: no solvent odor

12. michelman.com 12
Chlorine-free
PVDC coating (chlorine-based) – proven moisture
barrier, industry “workhorse” solution
• Not specifically regulated, but in general…
• All halogens suffer a degree of “public stigma” by association
with known hazardous halogenated compounds
Alternatives
• Foil and metallization (also “workhorse”, but not transparent)
• Metal oxides (emerging)
• Novel Water-based systems (emerging)
Key to Success:
Convert-ability, and Barrier in tropical climate

13. michelman.com 13
Solvent-free
• Converters widely use Solventborne coating
 Easy wet-out, fast drying
 Air pollution must be effectively
controlled at the factory
 Flammability risk
• But – Solvent odor retention can be a problem
for brand owners
• Range of other options to eliminate solvents,
increase worker safety and achieve
high performance

14. michelman.com 14
Aluminum-free
• Aluminum foil is a robust barrier to moisture and oxygen,
but limited to non-transparent applications
• However, aluminum is a “costly commodity”
 Availability disruptions
 Cost sensitivity
 In Flexible Packaging structures, it is not easily
recycled
• Alternatives
 Aluminum is difficult to emulate!
 But options exist
• Proprietary research is underway

15. michelman.com 15
High Performance Water-based
• Application at Paper Mills, Film Producers and Converters
 Not flammable, safe to use
• Many Functions
 Primer
 Heat Seal Lacquer
 Print receptivity
 Coefficient of Friction control
 Barrier
• Broad Regulatory Compliance
• Low or no volatile organic compounds, wide food contact
and country inventory approval

16. michelman.com 16
Additional Market Opportunities
• Digitization
 Personalized graphic design with Digital Printing
technology
 Value-Added Film with specific ink receptivity
• Existing Regulations
 Food contact regulations – especially FDA, BfR, EU
 India plastic “bans”
 Absolutely key to export business
• Paper and film combinations
 Hybrid structures with novel performance

17. michelman.com 17
Michelman
• Decades of film coating experience
 Low temperature heat seal
 Coefficient of friction control
 Runnability / machinability
 Graphics primers
 Barrier
 Color
• Flexible Packaging application expertise – dedicated team and facilities around
the world, including here in Mumbai
• Deep technology – Your Water-based resource for packaging
and industrial films

18. michelman.com 18
Thank you!