Suppressed consumer spending and rising operating expenditures hindered demand.
New York, NY (PRWEB) June 27, 2014
The Packaging and Labelling Services industry primarily packages and labels client materials on a contract or outsource basis. Recent environmental concerns have helped shed light on the importance of using green and sustainable inputs in packaging products. Consequently, the Canadian federal government has implemented regulations to promote the use of sustainable materials, thereby driving growth in demand for industry services by encouraging manufacturers to embrace new packaging solutions. “Many packaging product manufacturers have received tax incentives for purchasing more environmentally friendly technology and machinery,” according to IBISWorld Industry Analyst Jocelyn Phillips. Additionally, the promotion of informative labelling practices has further benefited service providers. For example, “best before” labels on food are required for packages and must indicate product expiration dates regarding the freshness, taste and other manufacturer claims, but do not guarantee safety.
Over the past five years, suppressed domestic and export demand, coupled with rising operating expenditures, created a difficult environment for the industry. Nonetheless, the recessionary depths of 2009 provided a low base for recovery growth, and, as a result, industry revenue is expected to grow an annualized 2.3% to $425.6 million over the five years to 2014. In 2014, demand from manufacturing is anticipated to decline due to a contraction in federal government spending and product demand uncertainty abroad. Nonetheless, the strengthening demand environment during the five years to 2014 has encouraged modest growth in industry profitability.
Over the five years to 2019, revenue is anticipated to continue increasing, albeit without the low recessionary base. “The industry is set to benefit from the increased level of exports, spurred by new trade agreements and recovering economies abroad,” says Phillips. Additionally, stronger sentiment toward green and sustainable packaging products will further push up demand.
For more information, visit IBISWorld’s Packaging and Labelling Services in Canada industry report page.
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IBISWorld industry Report Key Topics
Establishments in this industry primarily package client-owned materials on a contract or outsource basis. The industry also provides labelling and imprinting package services. This industry excludes warehouse services, packing and crating incidental to transportation and retail of packaging or labelling products.
Industry Performance
Executive Summary
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Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
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Globalization & Trade
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Market Share Concentration
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Cost Structure Benchmarks
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Major Companies
Operating Conditions
Capital Intensity
Key Statistics
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Annual Change
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