Import Summary Report - Packaging Asia

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1 Import Summary Report Packaging Asia October 06

2 Contents. Global Imports. Imports in ASIA. Focus Packaging Categories Established Export Destinations. Pakistan. India. Malaysia. Philippines. Potential Export Destinations 6. Sri Lanka 6. Hong Kong 7. South Korea 8 Appendix Disclaimer The Industry Import Summary Report has been prepared by Saudi Export Development Authority SAUDI EXPORTS as a part of its continuous publication on industries. The purpose of this study is to provide a highlevel view of the other countries import from the Kingdom based on available public information. Its analysis, perception and anticipation are subject to personal judgment. SAUDI EXPORTS is not liable for any consequences caused by the understanding and interpretation of any part of this report. The report has been prepared by the data from the public sources as of date 0st October 06.

3 Summary Imports of Packaging products in the Asia region witnessed a slightly steeper decline as compared to the decline in global imports of the industry. Tax reforms, change in raw material prices coupled with lower income levels and global slow down lead to fall in the demand of Packaging products which led to decline in its imports. The Kingdom witnessed a reduction in demand for its products as a result, the import of Packaging from KSA has decreased over the last five years, and were the major constituent of the Packaging imports This report looks into the overall imports of Packaging in Asia visàvis the Kingdom s share in the imports. It also outlines the import potentials in Packaging product categories such as, Caps & lids, Cans, tanks & drums, and boxes & cartons. Saudi Exporters are encouraged to carry out indepth analysis for better insight into import potential of any of these product categories. For comments and queries please contact with Intelligence Management: Telephone: Fax: Kingdom of Saudi Arabia P.O. Box 76, Riyadh 78 Saudi Export Development Authority

4 . Global Imports The dependency of the industry on commodity raw materials such as polymers, board or paper puts it in position driven by global energy prices and supply capacity changing every week. Between the raw material price fluctuations and skillful management of input raw material cost stability by packaging manufacturers, the global imports fell marginally by % in the last years. % The figure shows imports of Packaging products across the world. The world imports decreased by % per year from 0 and stood at close to 7 billion SAR in 0. European countries are the major importers of Packaging products. Imports to Europe accounted for almost 0% of the total imports in 0 and also the imports to this region have decreased by % per year Europe Asia North America MENA *include SubSaharan Africa, Australia & Oceania, and South America Figure : Global imports of Packaging. Imports in ASIA Being a mix of developed, fast paced and still developing economies, Asia comes up as a high potential market for the consumption of packaging products. With the duty free trade of common polymers like polyolefin and the advantage of low labor and manufacturing costs, a big share of the demand created by the Asian market is fulfilled by producers within the region. The produced packaging products are even traded outside the region making Asia a net exporter in this industry. Figure shows Asia region has been a net exporter of Packaging products in the past years Asia Import Asia Export Trade Balance Figure : Trade Balance in Packaging in Asia As shown in figure imports of Packaging in the ASIA region has witnessed a decline of % in last years. Over this period, imports to East Asia have declined which contributed the most to the overall imports of the region. East Asia s imports declined by % per year over the last years.

5 % Exploring 0 imports into product categories % % 6% 60 Bn SAR 6% % % Others East Asia South Asia South East Asia Central Asia Figure : Region wise distribution of Packaging imports in Asia Figure also shows the distribution of Packaging products in following main categories,, Boxes & Cartons, Cans, tanks & drums, and others. In 0, Plastic sheets & films accounted for 6% of the total imports in ASIA while Caps & lids and accounted for and respectively. Figure displays the distribution of Packaging imports in Asia by product categories. While were the biggest contributors to overall imports in 0, it has witnessed the decline in the period of 0 to 0 along with the other major products. % The figure shows the imports of Packaging to Asia by product categories. Among the major categories, imports of Plastic Sheets & Films which contributed 6% of the total imports in 0 decreased by % annually from 0 to 0. Imports of all other major product categories to the Asia region stayed almost steady with slight decline * include foils, sacks, and cargo containers etc. Figure : Product wise distribution of Packaging imports in Asia Figure displays the imports of Packaging from the Kingdom to the Asia region. In 0, imports from KSA accounted for a total of 8 million SAR.

6 in million SAR The figure shows the exports of Packaging from KSA to the Asia region. Exports of Packaging products decreased significantly by from 0 to 0. contributed % of total imports and total value in this category stood at million riyals. The decline in total imports of Asia is supported by the adequacy of local production and the competitive prices available. * include foils, sacks, and cargo containers etc. Figure : Imports of Packaging from KSA to the ASIA region. Focus Packaging Categories. include plates, sheets, films, foils, and strips of plastic, etc. Figure 6 shows the region wise distribution of Plastic Sheets & Films imports to Asia. It also shows the distribution of major exporters to the Asia region in 0. % % % Japan Exploring exporters distribution in 0 % % % % 8 Bn SAR % 6% % % % % % South Korea China U.S.A Germany Malaysia KSA % 6% % Others East Asia South Asia South East Asia Central Asia Figure 6: imports in Asia Between 0 and 0, imports in plastic sheets & films witnessed a decline of %. Imports in East Asian countries, which contribute around 80% of the regional imports, have been declining in last years, while that of South and South East Asia grew steadily. Among major exporters, Japan, South Korea, and China supplied %, 6%, and % respectively of the total imports in 0. Other major exporters include United States, Germany, and Malaysia combined contributing 0% of the total imports.

7 Figure 7 shows the imports of from KSA to Asia. in million SAR 7 % The figure highlights the distribution of from KSA to Asia. Between 0 and 0, imports from KSA have witnessed an annual growth of % South Asia and South East Asian countries have maintained a steady share of ~% of total imports while East Asia came into attention only during 0 with a sudden rise in imports to 7 million SAR. South East Asia imports have been rising at a growth rate pf 60% contributing to the overall % growth rate. East Asia South East Asia South Asia Figure 7: Imports of from KSA to Asia Figure 8 shows major importing countries in the Asia region. It includes markets like China, South Korea, Japan which are undergoing a major decline in packaging imports and other countries like Malaysia and India with a slight increase. China South Korea Hong Kong Japan 8 8 Thailand Malaysia India Singapore Figure 8: Major importing countries in Asia Table in Appendix shows the top imported products in category. 6

8 . products include corks (natural or agglomerated), stoppers, caps & lids made of metal and plastic. Figure shows the region wise distribution of imports to Asia. It also shows the distribution of exporters in the Asia region in 0. % % China Exploring exporters distribution in 0 % % 6% 8 Bn SAR % % 6% % Japan South Korea Malaysia U.S.A Thailand KSA % % Others East Asia South Asia South East Asia Central Asia Figure : imports in Asia Between 0 and 0, imports in caps & lids stayed steady at around 8 billion SAR. East Asia being the largest contributor to region s imports held a share of 6 in 0 and has reduced slightly by % per annum from its value in 0. Among the major exporters, the top two exporters alone hold 0% share with China having supplied % and Japan % of the total imports in 0. U.S.A, South Korea and Malaysia each contributed of the imports in 0. Figure 0 shows the imports of from KSA to Asia. It displays the imports across East Asia, South East Asia, and South Asia. 0 The figure highlights the distribution of from KSA to Asia. Between 0 and 0, imports from KSA have witnessed an annual decline of. South Asian countries contribution to total imports from KSA in the Asia region has been more than 7% in 0 except 0. Exports to all sub regions have declined in the past years with East Asia & South Asia declining by 6% and % respectively East Asia South East Asia South Asia Figure 0: Major importing countries in Asia Figure shows major importing countries in the ASIA region. It includes countries such as Japan, China, South Korea, etc. Except South Korea and Malaysia, every major importer has experienced a decline in demand last year. 7

9 Japan 8 China South Korea Hong Kong Thailand Singapore Malaysia India Figure : Major importing countries in Asia Table in Appendix shows the top imported products in products category.. include packaging material made of paper, paper board, wood, wadding made of cellulose, paper, postcards, and envelopes etc. Figure shows the region wise distribution of imports to Asia. It also shows the distribution of exporters in the ASIA region in 0. % Exploring exporters distribution in 0 % % % 6% 0% Bn SAR % % China Japan Malaysia 6% U.S.A % Thailand % South Korea % KSA 0% Others East Asia South Asia South East Asia Central Asia Figure : imports in Asia 8

10 Between 0 and 0, imports in witnessed almost no growth or decline. In 0, East Asia and South East Asia contributed 6% and % respectively to the imports where East Asia witnessed a % decline and South East Asia observed a % inclination in imports over the last five years. Imports of South Asian countries increased by % per annum between this period. Among the major exporters, China held a major share of % followed by Japan, Malaysia, U.S.A, Thailand and South Korea with a share of,, 6%, %, and % respectively of the total imports in in 0. The kingdom held a minority share of less than % out of the total. Figure shows the imports of from KSA to Asia. The figure also displays the imports across the subregions across Asia. in million SAR 6% The figure highlights the distribution of from KSA to Asia. Between 0 and 0, imports from KSA have witnessed an annual increase of 6% due to a sudden jump in exports of South Asian countries imported more than 70% of the total imports from KSA to Asia between 0 and 0 except 0, and were also responsible for the sudden jump in 0 exports. The imports of South Asian and South East Asian countries have grown by 60% and respectively in the last years. East Asia South Asia South East Asia Central Asia Figure : Imports of from KSA to Asia Figure shows major importing countries in the Asia region. It includes Japan, Hong Kong, Singapore, China, South Korea, and Thailand. All countries experienced a YoY growth in 0 except Japan and Thailand. Japan.6.8. Hong Kong... Singapore...6 China... South Korea... Thailand Figure : Major importing countries in Asia Table in Appendix shows the top imported products in products category.

11 . products include bottles, casks, drums, and containers made of glass, iron or steel etc. Figure shows the region wise distribution of products imports to Asia. It also shows the distribution of exporters in the Asia region in 0. % 0% China Exploring exporters distribution in 0 0% % % 6% Bn SAR % 0% % Thailand U.S.A Japan 6% South Korea % Malaysia % KSA 0% Others East Asia South Asia South East Asia Central Asia Figure : products Imports in Asia Between 0 and 0, imports in witnessed a marginal annual drop of less than %. In 0, East Asian countries contributed close to 0% of the total imports while South East Asia and South Asia contributed to and % respectively in the Asia region. All three of the above major importers witnessed a slow positive growth over the last years. Among major suppliers to the region, China contributed 0% of the total imports in 0 followed by Thailand, U.S.A and Japan with a share of %,, and respectively. KSA holds a marginal 0.% share in the total imports to the region. Figure 6 shows the imports of from KSA to Asia. It also showcases the distribution of imports across the different subregions. in million SAR The figure highlights the distribution of from KSA to Asia. Between 0 and 0, imports from KSA have witnessed an annual decline of Imports of Cans, tanks & drums products to South East Asian countries is decreasing at % per annum and it contributed only 6% to the total imports from the Kingdom to the region in 0 while compared to 7% in 0. Imports of have witnessed a growth of % per year in South Asian countries. East Asia South Asia South East Asia Central Asia Figure 6: Imports of from KSA to Asia 0

12 Figure 7 shows major importing countries in Asia. It includes countries like Thailand, South Korea, and China which have witnessed a rise in YoY exports in 0 while other countries like Japan, Hong Kong, India etc. which went through a decline in demand. Thailand..6.7 South Korea...6 China Japan 0. India Hong Kong Malaysia Singapore Figure 7: Major importing countries in Asia Table in Appendix shows the top imported products in category.

13 . Established Export Destinations. Pakistan Pakistan has a national GDP of 87 billion SAR with a population of 8 million. Figure 8 shows the imports of Packaging in Pakistan from 0 to 0. Imports have declined by % in past five years. category is the largest contributor to the total imports in 0 with a share of more than 0%. All major product categories have witnessed a decrease in the period 0 except. Among the supplying countries, China is the major supplier of Packaging products to Pakistan. It constituted % of the total imports to the country in % Exploring exporters distribution in 0 % % %. Bn SAR % % China UAE % Thailand % Turkey % Malaysia % U.S.A % KSA % % % % Others Figure 8: Imports of Packaging in Pakistan Figure shows the imports of Packaging from KSA to Pakistan. In 0, imports of Packaging products from the Kingdom stood at more than 8 million SAR. in thousand SAR 7,7,88, 7,8 7,0 6,6 %,076,07 8,00,88,7 8, ,,6 The figure shows the distribution of imports of Packaging from KSA to Pakistan. Between 0 and 0, imports from KSA have increased by % per year. Among product categories, Cans, tanks & drums, plastic sheets & films, and boxes and cartons comprised of more than % of the market, with boxes & cartons imports grown drastically becoming times of its value in 0. 8,00,,,77 6,8,8,07 0, Figure : Imports of Packaging from KSA to Pakistan

14 . India India a population of.07 Billion people and a GDP of 7 trillion SAR. Figure 0 shows the imports of Packaging in India from 0 to 0. Imports have grown by % in past five years. All the major product categories have witnessed steady growth. Among the supplying countries, China supplied of the total imports to the country in 0. China was followed by USA supplying % of the imports 0. % Exploring exporters distribution in 0 % % 7 Bn SAR % % China % U.S.A Germany South Korea % Thailand % Japan % KSA Others Figure 0: Imports of Packaging in India Figure shows the imports of Packaging from KSA to India. The total imports stood at 8 million SAR with contributing 6% of the total in 0. in thousand SAR 6,0, ,7, 0,6,60 8 8,8 0, 6% 7,6 8 66,87 6,,7, 6,088 8,8 0,87 7,7 8, The figure shows the distribution of imports of Packaging from KSA to India. Between 0 and 0, imports from KSA have decreased by 6% per year. Imports of Caps & lids saw a decline of per annum for the last years, it contributes 6% of the total imports in 0. All other major categories saw a decline in imports. Figure : Imports of Packaging from KSA to India

15 . Malaysia Malaysia is a newly industrialized market economy with a GDP of. trillion SAR and a population of 0 million. Moreover, it is also the fourth largest economy in South East Asia. Figure shows the imports of Packaging in Malaysia from 0 to 0. Imports have almost remained same (grown at less than % in past five years). Among the supplying countries, China supplied of the total imports to the country in 0. It was followed by Japan, Thailand, and South Korea with a share of %, 0% and % respectively of the total imports of 0. in million SAR % China Exploring exporters distribution in 0 % % 7.7 Bn SAR % % 0% % % Japan Thailand South Korea U.S.A Singapore KSA % 0% % Others Figure : Imports of Packaging in Malaysia Figure shows the imports of Packaging from KSA to Malaysia. accounted for almost 0% of the total imports in 0. in thousand SAR,,0,6,6 6, 8,0,7 %, ,0,,0, 8,70,6 6, The figure shows the distribution of imports of Packaging from KSA to Malaysia. Between 0 and 0, imports from KSA fell by 0% then witnessed a sudden rise to reach the current value of 8 million SAR. Among product categories, represents 8% of the total imports which is the reason behind the trend. Caps & Lids also experienced a steady increase of % per year. Figure : Imports of Packaging from KSA to Malaysia

16 . Philippines Philippines is one of the emerging markets in the ASEAN which has a GDP of trillion SAR and a population of 8 million. Figure shows the imports of Packaging in Philippines from 0 to 0. The imports grew steadily by with all the major product categories experiencing steady growth. Among the supplying countries in 0, China had the largest share of % of the total imports followed by Japan with a share of %. % China Exploring exporters distribution in 0 % %.6 Bn SAR % % % Japan 0% Thailand Malaysia Indonesia South Korea % KSA % % Others Figure : Imports of Packaging in Philippines Figure shows the imports of Packaging from KSA to Philippines. in thousand SAR 8,7 6 8,0 7,08,,7 6%, 7 7 6,8 6,,76,68, The figure shows the distribution of imports of Packaging from KSA to Philippines. Between 0 and 0, imports from KSA have decreased phenomenally by 6% per annum. Among product categories the entire contribution can be attributed to Cans, tanks & drums which accounted for more than % of the total imports in all the years. No sub category has witnessed any growth whatsoever in the last five years. Figure : Imports of Packaging from KSA to Philippines

17 . Potential Export Destinations. Sri Lanka Sri Lanka has witnessed a robust growth over the past years with a current GDP of 0 billion SAR with a population of 0. million. Figure 6 shows the imports of Packaging products from 0 to 0 to the country. Imports have grown by 6% in the past five years mainly driven by the growth in imports of cans, tanks & drums. Other major product categories have also witnessed steady growth. in million SAR 6% 6% China , , Exploring exporters distribution in 0 0% % 6%, Mn SAR 6% 0% 0% India Thailand Hong Kong 6% Malaysia % Germany 0% KSA Others Figure 6: Imports of Packaging in Sri Lanka Figure 7 shows the imports of Packaging from KSA to Sri Lanka. in thousand SAR The figure shows the distribution of imports of Packaging products from KSA to Sri Lanka. Between 0 and 0, imports from KSA have increased by an average growth rate of Among product categories, has been the driver behind this humongous growth as it became times of its values in 0. It accounts for 6 of the total imports by Philippines in 0. All other major sub categories witnessed a decline in imports Figure 7: Imports of Packaging from KSA to Sri Lanka 6

18 . Hong Kong As one of the world s leading international financial centers, Hong Kong s serviceoriented economy is characterized by its low taxation, almost free port trade and well established international financial market. Hong Kong has a population of 7. million and a GDP of trillion SAR. Figure 8 shows the import of Packaging in Hong Kong from 0 to 0. All major product categories witnessed a slight decline in the imports. Among the supplying countries, China has % share, followed by Japan and South Korea with % and 0% respectively. KSA has less than % share. 0 0 % 0 7 Exploring exporters distribution in 0 0% % % % % % China 7 Bn SAR % % Japan 0% South Korea % % % U.S.A Singapore Malaysia KSA % % Others Figure 8: Imports of Packaging in Hong Kong in thousand SAR % Figure shows the imports of Packaging from KSA to Hong Kong The figure shows the distribution of imports of Packaging from KSA to Hong Kong. Between 0 and 0, imports from KSA declined by % per year Among product categories, all sub categories have experienced frequent fluctuations from year to year and an overall declining trend., and together accounted for more than 0% of the total imports in the last years. Figure : Imports of Packaging from KSA to Hong Kong 7

19 . South Korea South Korea is one of the fastest growing developed countries in the world following the Great Recession with a GDP of. trillion SAR with a population of 0. million. Figure 0 shows the imports of Packaging products from 0 to 0 to the country. Imports have fell by 6% per annum in the past five years mainly driven by the imports of contributing 6% of the total imports in % Exploring exporters distribution in 0 % % % 6% % 6% % Japan Bn SAR % 6% China 6% % % % % U.S.A Vietnam Malaysia Thailand KSA % 6% Others Figure 0: Imports of Packaging in South Korea Figure shows the imports of Packaging from KSA to South Korea. in thousand SAR 0%,66 8,08 8,6 8 The figure shows the distribution of imports of Packaging products from KSA to South Korea. Between 0 and 0, imports from KSA have increased by an average growth rate of 0% per annum. Among product categories, have contributed ~0% of total imports value for all years except 0. This category has also witnessed a sharp increase in imports, i.e. times of its value in ,06, 60 7, Figure : Imports of Packaging from KSA to South Korea 8

20 Appendix Table : Distribution of Asian countries* Central Asia East Asia South Asia South East Asia Kazakhstan China Afghanistan Brunei Darussalam Kyrgyzstan Japan Bangladesh Myanmar Tajikistan Mongolia Bhutan Cambodia Turkmenistan Macao Sri Lanka Indonesia Uzbekistan Hong Kong Maldives Malaysia North Korea Nepal Philippines South Korea Pakistan Timor Leste India British Indian Ocean Territory Singapore Thailand Vietnam * It should be noted that in some cases not all countries report trade statistics or do not trade in specific products, therefore, regional coverage could possibly reflect selective countries though not all of them. Table : Focus Packaging product categories in ASIA (In million SAR) HS Product Label Product Category Selfadhesive plants, sheets, film etc of plasic w/n in rolls. 0,,7 8,0 7,7, 0 Other plates, sheets, film, foil, tape, strip of plastics etc. 78,006 76,0 7,7 78,7 7,7 Plates, sheets, film, foil, tape, strip of plastic, nes.,7,0,,68, Plastic packing goods or closures stoppers, lids, caps, closures, plas. 6,86,0,,60, 0 Natural cork roughly squared or in rectang ular blocks or strips. 87 Card, env, letter /corre, plain posttcard, stat of paper, box, wallet..., pap.,067,8,7,,6 8 Packing containers, of paper, paperboard, cellulose wadding, webs.,0 7,7,07 0,00,0 8 Other paper, paperboard, cellulose wedding cut to size & adhesive pape,8 0,70 0,7,67, 700 Carboy, bottles & other container of glass.,6,878 6,7 6, 7, Iron & steel tank, cask, deum can, box (cap <= 00l),0,70 6,00,676 6,6 76 aluminum container (cap <= 00l),,0,06,,0 80 Stopper, caps & lid, of best metal.,,678,0,66,

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