Packaging Gateway explores how the landscape of the packaging industry has changed since 2020 and identifies the top packaging companies to watch in 2023.
ESG remains a hot topic in the packaging industry, which along with Covid has presented the packaging industry with many challenges over the past two years.
During this period, Westrock Co overtook International Paper to become the largest packaging organization by total annual revenue, according to GlobalData, the parent company of Packaging Gateway.
As a result of pressure from consumers, board members and environmental groups, packaging companies continue to share their ESG goals and are encouraged to build green investments and partnerships and overcome operational challenges quickly.
By 2022, most of the world has emerged from the pandemic, replaced by new global issues such as rising prices and the war in Ukraine, which have affected the income streams of many organizations, including packaging companies. Sustainability and digitalization remain top topics in the packaging industry in the new year if businesses want to turn a profit, but which of the top 10 companies should be keeping an eye on in 2023?
Using data from the GlobalData Packaging Analytics Center, Packaging Gateway’s Ryan Ellington has identified the top 10 packaging companies to watch in 2023 based on company activity in 2021 and 2022.
In 2022, American paper and packaging company Westrock Co reported annual net sales of $21.3 billion for the fiscal year ending September 2022 (FY 2022), up 13.4% from US$18.75 billion in the previous year.
Westrock’s net sales ($17.58 billion) declined slightly in FY20 amid the global pandemic, but reached a record $4.8 billion in net sales and a 40 percent increase in net income in Q3 FY21.
The $12.35 billion corrugated packaging company reported sales of $5.4 billion in the fourth quarter of fiscal 2022, up 6.1% ($312 million) from a year earlier.
Westrock was able to increase profits with a $47 million investment in expanding its manufacturing facility in North Carolina and partnerships with Heinz and US fluid packaging and dispensing solutions provider Liquibox, among other businesses. At the end of the first quarter of fiscal year 2022, which ends in December 2021, the corrugated packaging company posted record first quarter sales of $4.95 billion, kicking off the fiscal year on a strong footing.
“I am pleased with our strong performance in the first quarter of fiscal 2022 as our team delivered record first quarter sales and double digits per share, driven by the current and unpredictable macroeconomic earnings growth (EPS) environment,” Westrock CEO David Sewell said at the time. .
“As we implement our overall transformation plan, our teams remain focused on partnering with our customers to help them meet their needs for sustainable paper and packaging solutions,” Sewall continued. “As we head into fiscal year 2023, we will continue to strengthen our business by innovating across our entire product portfolio.”
Previously topping the list, International Paper dropped to number two after sales rose 10.2% in the fiscal year ended December 2021 (FY2021). The manufacturer of renewable fiber packaging and pulp products has a market capitalization of $16.85 billion and annual sales of $19.36 billion.
The first half of the year was the most profitable, with the company recording net sales of $10.98 billion ($5.36 billion in the first quarter and $5.61 billion in the second quarter), coinciding with the easing of quarantine measures around the world. International Paper operates through three business segments – Industrial Packaging, World Cellulose Fiber and Printing Paper – and generates most of its net income from sales ($16.3 billion).
In 2021, the packaging company successfully completed the acquisition of two corrugated packaging companies Cartonatges Trilla SA and La Gaviota, SL, molded fiber packaging company Berkley MF and two corrugated packaging plants in Spain.
A new corrugated packaging plant in Atgren, Pennsylvania will open in 2023 to meet growing customer demand in the area.
According to data compiled by GlobalData, Tetra Laval International’s cumulative net sales revenue for fiscal year 2020 was $14.48 billion. This figure is 6% lower than in 2019, when it was $15.42 billion, which is no doubt a consequence of the pandemic.
This Swiss-based provider of complete processing and packaging solutions generates net sales revenue through transactions between its three business groups Tetra Pak, Sidel and DeLaval. In fiscal 2020, DeLaval generated $1.22 billion and Sidel $1.44 billion in revenue, with flagship brand Tetra Pak generating the bulk of the revenue at $11.94 billion.
To continue to generate profits and promote sustainability, Tetra Pak invested US$110.5 million in June 2021 to expand its plant in Chateaubriand, France. It is the first company in the food and beverage packaging industry to receive extended product certification from the Sustainable Biomaterials Roundtable (RSB) following the introduction of certified recycled polymers.
Industry experts say there is a direct link between increased profits and companies’ aggressive attitudes towards protecting the environment. In December 2021, Tetra Pak was recognized as a leader in corporate sustainability, becoming the only company in the carton packaging industry to be included in CDP’s CDP Transparency Guidelines for six consecutive years.
In 2022, Tetra Pak, Tetra Laval’s largest subsidiary, will partner for the first time with the food technology incubator Fresh Start, an initiative to improve the sustainability of the food system.
Packaging solution provider Amcor Plc posted a 3.2% sales growth in the fiscal year ending June 2021. Amcor, which has a market capitalization of $17.33 billion, reported total sales of $12.86 billion for fiscal year 2021.
The packaging company’s revenue grew compared to fiscal 2017, with fiscal 2020 seeing the largest increase of $3.01 billion versus fiscal 2019. Its full-year net revenue also rose 53% (from $327 million to $939 million) at the end of fiscal 2021, with a net income of 7.3%.
The pandemic has affected many businesses, but Amcor has managed to maintain year-over-year growth since fiscal 2018. The British company has made notable progress in the industry during the 2021 financial year. In April 2021, he invested nearly $15 million in US-based packaging company ePac Flexible Packaging and US-based consulting firm McKinsey to develop recycling and waste management solutions for use in Latin America.
In 2022, Amcor will invest nearly $100 million to open a state-of-the-art manufacturing facility in Huizhou, China. The facility will employ more than 550 employees and increase productivity in the region by producing flexible packaging for food and personal care products.
To further increase profits and provide sustainable packaging options, Amcor has developed AmFiber, a sustainable alternative to plastic.
“We have a multi-generation plan. We see it as a global platform for our business. We are building multiple plants, we are investing,” Amcor Chief Technology Officer William Jackson said in an exclusive interview with Packaging Gateway. “The next step for Amcor is to launch a global rollout and investment program as we develop a multi-generational plan.”
Berry Global, a specialist manufacturer of plastic packaging for consumer products, has announced growth of 18.3% for the fiscal year ending October 2021 (FY2021). The $8.04 billion packaging company posted total revenue of $13.85 billion for the fiscal year.
Berry Global, headquartered in Evansville, Indiana, USA, has more than doubled its total annual revenue compared to FY2016 ($6.49 billion) and is consistently maintaining strong year-over-year growth. Initiatives such as the launch of a new polyethylene terephthalate (PET) liquor bottle for the e-commerce market have helped the packaging specialist increase revenue.
The plastics company reported a 22% increase in net sales in the fourth quarter of fiscal 2021 compared to the same period in fiscal 2020. The company’s sales in consumer packaging rose 12% in the quarter, led by a $109 million increase in prices due to inflation.
By innovating, collaborating and addressing sustainability issues, Berry Global is poised for financial success in 2023. The plastic packaging maker has partnered with brands such as personal care brand Ingreendients, US Foods Inc. Mars and US Foods Inc. McCormick to produce recycled content for various products in packaging materials.
For the fiscal year ending December 2021 (FY2021), Ball Corp’s revenue grew by 17%. The $30.06 billion metal packaging solution provider had a total revenue of $13.81 billion.
Ball Corp, a metal packaging solutions provider, has posted solid annual revenue growth since 2017, but total revenue fell $161 million in 2019. Ball Corp’s net income also increased year-over-year, reaching an all-time high of $8.78 million in 2021. Net income margin for FY 2021 was 6.4%, up 28% from FY 2020.
Ball Corp strengthens its position in the metal packaging industry through investment, expansion and innovation in 2021. In May 2021, Ball Corp re-entered the B2C market with the launch of “Ball Aluminum Cup” retail across the US, and in October 2021, subsidiary Ball Aerospace opened a new state-of-the-art payload development center (PDF) in Colorado.
In 2022, the metal packaging company will continue to move towards its goal of creating a sustainable future through initiatives such as an expanded partnership with event planner Sodexo Live. The partnership aims to help reduce the environmental impact of iconic locations in Canada and North America through the use of aluminum Ball cups.
Paper maker Oji Holdings Corp (Oji Holdings) reported a 9.86% drop in total sales revenue for the fiscal year ending March 2021 (FY2021), leading to its second loss in two years. The Japanese company, which operates in Asia, Oceania and the Americas, has a market cap of $5.15 billion and FY21 revenue of $12.82 billion.
The company, which operates four business segments, made most of its profits from household and industrial materials ($5.47 billion), down 5.6 percent from the previous year. Its forest resources and environmental marketing generated $2.07 billion in revenue, $2.06 billion in print and communications sales, and $1.54 billion in functional materials sales.
Like most businesses, Oji Holdings has been hit hard by the outbreak. Speaking of which, there are several profitable ventures such as Nestlé, which uses Oji Group paper as the wrapper for its popular KitKat chocolate bars in Japan, helping it boost its revenue stream. The Japanese company is also building a new corrugated box plant in Dong Nai province in southern Vietnam.
In October 2022, the papermaker announced a partnership with the Japanese food company Bourbon Corporation, which has chosen paper packaging as the material for its “Luxary Lumonde” premium biscuits. In October, the company also announced the release of its innovative product “CellArray”, a nanostructured cell culture substrate for regenerative medicine and drug development.
Total revenue for the fiscal year ending December 2021 rose 18.8%, according to data released by Finnish paper and packaging company Stora Enso. The paper and biomaterials maker has a market capitalization of $15.35 billion and total revenue of $12.02 billion in fiscal 2021. The company’s sales in the third quarter of fiscal 2021 were ($2.9 billion) compared to the same period in fiscal 2020. 23.9%.
Stora Enso operates six segments including Packaging Solutions ($25M), Wood Products ($399M) and Biomaterials ($557M). The top three profitable operating segments last year were packaging materials ($607 million) and forestry ($684 million), but its paper division lost $465 million.
The Finnish company is one of the largest private forest owners in the world, owning or leasing a total of 2.01 million hectares, according to GlobalData. Investment in innovation and sustainability is key this year, with Stora Enso investing $70.23 million in 2021 for future growth.
To move into the future through innovation, Stora Enso announced in December 2022 the opening of a new lignin pelleting and packaging plant at biomaterials company Sunila’s plant in Finland. The use of granular lignin will further drive Stora Enso’s development of Lignode, a solid carbon biomaterial for batteries made from lignin.
In addition, in October 2022, a Finnish packaging company announced a partnership with reusable product supplier Dizzie to offer consumers packaging made from biocomposites, which will help reduce packaging waste.
Paper packaging solution provider Smurfit Kappa Group Plc (Smurfit Kappa) recorded an increase in total sales revenue of 18.49% for the fiscal year ended December 2021. The Irish company, with a market capitalization of $12.18 billion, posted total sales revenue of $11.09 billion for its fiscal year 2021.
The company, which operates paper mills, recycled fiber processing plants and recycling plants in Europe and America, has invested during 2021. Smurfit Kappa has invested its money in numerous investments, including four major investments in the Czech Republic and Slovakia, and a $13.2 million investment in Spain. flexible packaging plant and spent $28.7 million to expand a corrugated board plant in France.
Edwin Goffard, COO of Smurfit Kappa Europe Corrugated and Converting, said at the time: “This investment will enable us to further develop and improve the quality of our services to the food and industrial markets.”
In the first six months of fiscal year 2021, Ripple Smurfit Kappa’s growth rate exceeded 10% and 9%, respectively, compared to 2020 and 2019. Revenue also rose 11% over the period.
2022 In May, the Irish company announced a €7 million investment in the Smurfit Kappa LithoPac plant in Nybro, Sweden, and then closed a €20 million investment in its Central and Eastern European operations in November.
UPM-Kymmene Corp (UPM-Kymmene), a Finnish developer of thinner and lighter materials, reported a 14.4% increase in revenue for the fiscal year ended December 2021. The multi-industry company has a market cap of $18.19 billion and total sales of $11.61 billion.
Post time: Mar-14-2023
