In its latest data on the European consumer flexible packaging market, PCI Films Consulting values the sector at around euro 11bn, of which around three quarters ends up as packaging for food and drink.
PCI points to a "feeding frenzy" among private equity and other investment groups eager to build up international businesses with the credibility and critical mass to act as second suppliers. Since its acquisition of Alcan's flexibles business last year, Amcor has been the European and global market leader. Constantia is a fairly distant number two in Europe.
But in the UK, there is no real evidence of new consolidation, even while converters such as Excelsior are demonstrating a willingness to invest in new plant.
Director for flexible packaging at PCI Paul Gaster said: "When Amcor restructured, it bottom-sliced its customer base to weed out unprofitable accounts. In the UK, many of those have been picked up by smaller local converters with lower overheads, which can still make a reasonable margin on this smaller-scale business."
He also pointed out that UK packers had long been less nationalistic than many of those in mainland Europe. "German and Italian companies, for instance, have tended to be far more loyal to their own national suppliers, though this has been changing," said Gaster.
An ability and willingness to invest in research and development is sometimes seen as one advantage of size. But Gaster pointed out: "There are a number of smaller companies, too, usually with a niche focus, that are innovative."
Nor is the innovation potential of the largest supplier always in evidence. At the November ICE show in Germany, Amcor's focus was on Ceramis, a silicon oxide (SiOx) coating technology first developed by Alcan many years ago. Among smaller players, European acquisitions this year have included, in October, private equity group Sun European Partners' addition of Kobusch Sengewald to its portfolio of converters in the UK, Germany, Austria and France. Earlier this year, US-based Ampac acquired Elag, Switzerland, adding to its purchase of Floeter, Germany, four years ago. Both companies specialise in preformed stand-up pouches.