Packaging in

Emerging

Markets

Latin America and Asia-Pacific

By:

LPC, Inc.

2307 Kinney Road

Austin, TX 78704 512-444-2066

© 2014 PRIMIR/NPES

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PACKAGING IN EMERGING MARKETS Latin America and Asia-Pacific

TABLE OF CONTENTS

LIST OF EXHIBITS ..................................................................................................................... 1

I. EXECUTIVE SUMMARY .................................................................................................. 7 A. KEY FINDINGS AND STUDY TAKEAWAYS ............................................................................ 7

B. STUDY SCOPE AND OVERVIEW ............................................................................................ 9

C. METHODOLOGY................................................................................................................. 10

D. STUDY LIMITATIONS ......................................................................................................... 10

E. THE PACKAGING SECTOR IN EMERGING MARKETS............................................................ 12

F. GROWTH DRIVERS IN EMERGING MARKETS ...................................................................... 16

G. THREATS TO EMERGING MARKET GROWTH ...................................................................... 18

H. OVERVIEW OF PACKAGING TRADE FLOWS & EMERGING MARKET FUNDAMENTALS ....... 19

I. TRADE FLOWS FROM EMERGING MARKETS TO THE UNITED STATES ................................. 23

J. BRAND OWNER INFLUENCE OVER PRINTED PACKAGING TRADE FLOWS ........................... 24

THE PACKAGE PRINTING MARKET IN CHINA ...................................................................... 28

Package Printing Trade Flows: China ................................................................................ 30

K. THE PACKAGE PRINTING MARKET IN INDIA ...................................................................... 32

Package Printing Trade Flows: India ................................................................................. 35

L. THE PACKAGE PRINTING MARKET IN BRAZIL ................................................................... 36

Package Printing Trade Flows: Brazil ................................................................................ 38

M. THE PACKAGE PRINTING MARKET IN MEXICO .................................................................. 40

Package Printing Trade Flows: Mexico ............................................................................... 43

N. SUMMARY OF CONCLUSIONS, IMPLICATIONS AND RECOMMENDATIONS FOR PRIMIR

MEMBERS .......................................................................................................................... 44

II. THE PACKAGING MARKET IN CHINA: TRENDS, PRODUCTION DATA, AND

BENCHMARKING PER PACKAGING SECTOR ........................................................ 49 A. OVERVIEW ........................................................................................................................ 49

Primary Drivers and Trends for the Chinese Printed Packaging Industry .......................... 50

B. PACKAGE PRINTING TRADE FLOWS IN CHINA ................................................................... 51

C. THE EMERGING PRACTICE OF RE-SHORING ....................................................................... 57

Case Study – The Institute for Trend Research .................................................................... 59

D. THE MARKET FOR TAG AND LABEL PRINTING IN CHINA .................................................... 61

E. THE MARKET FOR FLEXIBLE PACKAGING PRINTING IN CHINA .......................................... 68

F. THE MARKET FOR FOLDING CARTON PRINTING IN CHINA ................................................. 73

G. THE MARKET FOR CORRUGATED PRINTING IN CHINA ....................................................... 79

III. THE PACKAGING MARKET IN INDIA: TRENDS, PRODUCTION DATA AND

BENCHMARKING PER PACKAGING SECTOR ........................................................ 87 A. OVERVIEW ........................................................................................................................ 87

Primary Drivers and Trends for the Indian Printed Packaging Industry............................. 89

B. PACKAGE PRINTING TRADE FLOWS: INDIA ..................................................................... 90

C. THE MARKET FOR TAG AND LABEL PRINTING IN INDIA ..................................................... 96

D. THE MARKET FOR FLEXIBLE PACKAGING PRINTING IN INDIA ......................................... 101

E. THE MARKET FOR FOLDING CARTON PRINTING IN INDIA ................................................ 107

F. THE MARKET FOR CORRUGATED PRINTING IN INDIA ...................................................... 112

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IV. THE PACKAGING MARKET IN BRAZIL: TRENDS, PRODUCTION DATA AND

BENCHMARKING PER PACKAGING SECTOR ...................................................... 119 A. OVERVIEW ...................................................................................................................... 119

Primary Drivers and Trends for the Brazilian Printed Packaging Industry ...................... 121

Package Printing Trade Flows: Brazil .............................................................................. 122

B. THE BRAZILIAN MARKET FOR TAG AND LABEL PRINTING .............................................. 128

C. THE MARKET FOR FLEXIBLE PACKAGING PRINTING IN BRAZIL ....................................... 135

D. THE MARKET FOR FOLDING CARTON PRINTING IN BRAZIL.............................................. 139

E. THE MARKET FOR CORRUGATED PRINTING IN BRAZIL .................................................... 144

V. THE PACKAGING MARKET IN MEXICO: TRENDS, PRODUCTION DATA AND

BENCHMARKING PER PACKAGING SECTOR ...................................................... 153 A. OVERVIEW ...................................................................................................................... 153

Primary Drivers and Trends for the Mexican Printed Packaging Industry ....................... 155

B. PACKAGE PRINTING TRADE FLOWS: MEXICO ................................................................ 156

C. THE MEXICAN MARKET FOR TAG AND LABEL PRINTING ................................................. 161

D. THE MARKET FOR FLEXIBLE PACKAGING PRINTING IN MEXICO ...................................... 168

E. THE MARKET FOR FOLDING CARTON PRINTING IN MEXICO ............................................ 174

F. THE MARKET FOR CORRUGATED PRINTING IN MEXICO ................................................... 178

VI. THE FRONTIER MARKETS OF COLOMBIA, INDONESIA AND VIETNAM .... 185 A. OVERVIEW ...................................................................................................................... 185

B. COLUMBIA ...................................................................................................................... 187

C. INDONESIA ...................................................................................................................... 189

D. VIETNAM ......................................................................................................................... 191

VII. BRAND OWNERS & BUYERS OF PACKAGING IN EMERGING MARKETS .. 195 A. HIERARCHY OF SOURCING CRITERIA USED TO DETERMINE WHERE MANUFACTURING

OCCURS ........................................................................................................................... 196

B. SUSTAINABILITY AND BRAND OWNERS IN EMERGING MARKETS .................................... 197

C. SUSTAINABILITY AND BRAND OWNERS IN THE UNITED STATES ..................................... 199

VIII. CONCLUSIONS, IMPLICATIONS & RECOMMENDATIONS FOR PRIMIR

MEMBERS....................................................................................................................... 201 Film, Plate, Prepress Equipment and Supplies Manufacturers .......................................... 202

Paper and Synthetic Substrate Manufacturers ................................................................... 206

Ink, Toner, Coatings and Chemical Manufacturers ........................................................... 218

Traditional Press Manufacturers ....................................................................................... 221

Postpress & Finishing Equipment Manufacturers ............................................................. 225

Digital Press / Output Device Manufacturers .................................................................... 226

Print Firms and Trade Shops ............................................................................................. 231

IX. GLOSSARY ...................................................................................................................... 233

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LIST OF EXHIBITS

Exhibit I-1: Sales Revenues of Global Packaging Sector vs. China, India, Brazil and Mexico: 2012 & 2017 ............................................................................................................................................................................................................. 13 Exhibit I-2: Printed Packaging Revenues of Emerging Markets ................................................................................ 14 2007-2017 ....................................................................................................................................................................................... 14 Exhibit I-3: Printed Packaging Growth in Emerging Markets .................................................................................... 14 2008-2017 ....................................................................................................................................................................................... 14 Exhibit I-4: Printed Packaging Annual Consumption per Capita 2013- Comparison Between Emerging Markets and Mature Markets .................................................................................................................................................. 16 Exhibit I-5: Growth in Value of Imports and Exports 2002-2012- ............................................................................ 20 All Regions ....................................................................................................................................................................................... 20 Exhibit I-6: Emerging Markets Printed Packaging Revenues 2013 .......................................................................... 22 Exhibit I-7: Printed Packaging Trade Flows from Major Emerging Markets to the United States 2013 .. 23 Exhibit I-8: Criteria Regional Brand Owners Use to Determine the Country where Printed Packaging is Produced 2013 ............................................................................................................................................................................... 26 Exhibit I-9: Value Growth Projections for the Chinese Package Printing Market by Packaging Sector 2013-2017 ....................................................................................................................................................................................... 28 Exhibit I-10: China: Number of Printed Packaging Companies by Packaging Sector 2012-2017 ............... 30 Exhibit I-11: Primary Trade Flows for All Packaging Sectors: ................................................................................... 31 China 2013 ...................................................................................................................................................................................... 31 Exhibit I-12: Value Growth Projections for the Indian Package Printing Market by Packaging Sector 2013-2017 ....................................................................................................................................................................................... 32 Exhibit I-13: India: Number of Printed Packaging Companies by Packaging Sector 2012-2017................. 34 Exhibit I-14: Primary Trade Flows for All Packaging Sectors: ................................................................................... 35 India 2013 ....................................................................................................................................................................................... 35 Exhibit I-15: Value Growth Projections for the Brazilian Package Printing Market by Packaging Sector 2013-2017 ....................................................................................................................................................................................... 36 Exhibit I-16: Brazil: Number of Printed Packaging Companies by Packaging Sector 2012-2017 ............... 38 Exhibit I-17: Primary Trade Flows for All Packaging Sectors: ................................................................................... 39 Brazil 2013 ...................................................................................................................................................................................... 39 Exhibit I-18: Value Growth Projections for the Mexican Package Printing Market by Packaging Sector 2013-2017 ....................................................................................................................................................................................... 40 Exhibit I-19: Mexico: Number of Printed Packaging Companies by Packaging Sector 2012-2017 ............. 42 Exhibit I-20: Primary Trade Flows for All Packaging Sectors: ................................................................................... 44 Mexico 2013 .................................................................................................................................................................................... 44 Exhibit I-21: Average Annual Printed Packaging Growth Rates for the Global and Emerging Markets 2013-2017 ....................................................................................................................................................................................... 45 Exhibit I-22: Summary of Conclusions, Implications and Recommendations for PRIMIR Members ........... 46 Exhibit II-1: China: Average Annual Printed Packaging Growth in All Packaging Sectors 2007-2012 .... 49 Exhibit II-2: Annual Growth Rates for the Package Printing Market in China 2008-2012 ............................. 50 Exhibit II-3: China’s Primary Export Markets–Printed Packaging ........................................................................... 52 and Non-Packaging 2013 .......................................................................................................................................................... 52 Exhibit II-4: Converter Participation per Pakcaging Sector: ...................................................................................... 53 China - 2013.................................................................................................................................................................................... 53 Exhibit II-5: Primary Tag & Label Trade Flows in China – Domestic Consumption vs. Exports by Region 2013 ................................................................................................................................................................................................... 54 Exhibit II-6: Primary Flexible Packaging Trade Flows in China – Domestic Consumption vs. Exports by Region 2013 .................................................................................................................................................................................... 55 Exhibit II-7: Primary Folding Carton Trade Flows in China – Domestic Consumption vs. Exports by Region 2013 .................................................................................................................................................................................... 56 Exhibit II-8: Primary Corrugated Trade Flows in China – Domestic Consumption vs. Exports by Region 2013 ................................................................................................................................................................................................... 57

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Exhibit II-9: A Prediction of Price Parity for a Case Study .......................................................................................... 59 Performed by ITR Economics ................................................................................................................................................... 59 Exhibit II-10: Price Point Parity for a Specific Product – U.S. vs. China ................................................................. 61 Exhibit II-11: Total Tag & Label Participant Production by End-Use Sector - China 2013 ............................ 62 Exhibit II-12: Total Tag & Label Participant Production by Print Process - China 2013 ................................ 63 Exhibit II-13: Total Tag & Label Participant Production by Format -China 2013 ............................................. 64 Exhibit II-14: Total Tag & Label Participant Production by Material Type - China 2013............................... 65 Exhibit II-15: Projected Growth Rates per Material Type: ........................................................................................... 66 China 2013 - 2017 ........................................................................................................................................................................ 66 Exhibit II-16: Benchmarking, Growth Segments, and Challenges for Tag & Label Package Printers—China 2013 ...................................................................................................................................................................................... 67 Exhibit II-17: Total Flexible Packaging Participant Production by End-Use Sector - China 2013 ............... 68 Exhibit II-18: Total Flexible Packaging Participant Production by Print Process – China: 2013 ................ 69 Exhibit II-19: Total Flexible Packaging Participant Production by Material Type - China: 2013................ 71 Exhibit II-20: Projected Growth Rates for Flexible Packaging Materials to 2017—China ............................. 72 Exhibit II-21: Benchmarking, Growth Segments and Challenges for Flexible Packaging Printers—China 2013 ................................................................................................................................................................................................... 73 Exhibit II-22: Total Folding Carton Participant Production by End-Use Sector - China 2013 ...................... 74 Exhibit II-23: Total Folding Carton Participant Production by Print Process - China 2013 .......................... 75 Exhibit II-24: Total Folding Carton Participant Production by Material Type - China 2013 ......................... 76 Exhibit II-25: Projected Growth Rates for Folding Carton Materials to 2017 - China ...................................... 77 Exhibit II-26: Benchmarking, Growth Segments and Challenges for Folding Carton Printers - China 2013 ............................................................................................................................................................................................................. 79 Exhibit II-27: Total Corrugated Participant Production by End-Use Sector - China 2013 .............................. 80 Exhibit II-28: Total Corrugated Participant Production by Print Process - China ............................................. 81 Exhibit II-29: Corrugated Participant Production by Format - China 2013 ......................................................... 82 Exhibit II-30: Total Corrugated Participant Production by Material Type - China 2013 ................................ 83 Exhibit II-31: Projected Growth Rates for Corrugated Materials to 2017 - China ............................................. 84 Exhibit II-32: Benchmarking, Growth Segments and Challenges for Corrugated Printers - China 2013 .. 85 Exhibit III-1: India: Average Annual Printed Packaging Growth in all Packaging Sectors 2007-2012 ..... 87 Exhibit III-2: Annual Growth Rates for the Package Printing Market in India 2008-2012 ............................ 88 Exhibit III-3: India’s Primary Export Markets - Printed Packaging ......................................................................... 90 and Non-Packaging 2013 .......................................................................................................................................................... 90 Exhibit III-4: Converter Participation per Pakcaging Sector:..................................................................................... 91 India - 2013 ..................................................................................................................................................................................... 91 Exhibit III-5: Primary Tag & Label Trade Flows in India - Domestic Consumption vs. Exports by Region 2013 ................................................................................................................................................................................................... 92 Exhibit III-6: Primary Flexible Packaging Trade Flows in India - Domestic Consumption vs. Exports by Region 2013 .................................................................................................................................................................................... 93 Exhibit III-7: Primary Folding Carton Trade Flows in India - Domestic Consumption vs. Exports by Region 2013 .................................................................................................................................................................................... 94 Exhibit III-8: Primary Corrugated Trade Flows: India – Domestic Consumption vs. Exports by Region 2013 ................................................................................................................................................................................................... 95 Exhibit III-9: Total Tag & Label Participant Production by End-Use Sector - India 2013 .............................. 96 Exhibit III-10: Total Tag & Label Participant Production by Print Process - India 2013 ................................ 97 Exhibit III-11: Total Tag & Label Participant Production by Format - India 2013 ........................................... 98 Exhibit III-12: Total Tag & Label Participant Production by Material Type - India 2013 .............................. 99 Exhibit III-13: Projected Growth Rates per Material Type: ...................................................................................... 100 India 2013 - 2017 ...................................................................................................................................................................... 100 Exhibit III-14: Benchmarking, Growth Segments and Challenges for Tag & Label Package Printers - India 2013 .................................................................................................................................................................................... 101 Exhibit III-15: Total Flexible Packaging Participant Production by End-Use Sector - India 2013 ........... 102 Exhibit III-16: Total Flexible Packaging Participant Production by Print Process - India ........................... 103 Exhibit III-17: Total Flexible Packaging Participant Production by Material Type - India ......................... 104 Exhibit III-18: Projected Growth Rates for Flexible Packaging Materials to 2017 - India ........................... 105

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Exhibit III-19: Benchmarking, Growth Segments, and Challenges for Flexible Packaging Printers - India 2013 ................................................................................................................................................................................................ 106 Exhibit III-21: Total Folding Carton Participant Production by End-Use Sector - India 2013 ................... 107 Exhibit III-22: Total Folding Carton Participant Production by Print Process - India 2013 ....................... 108 Exhibit III-23: Total Folding Carton Participant Production by Material Type - India 2013 ..................... 109 Exhibit III-24: Projected Growth Rates for Folding Carton Materials to 2017 - India ................................... 110 Exhibit III-25: Benchmarking, Growth Segments and Challenges for Folding Carton Printers - India ... 111 Exhibit III-27: Total Corrugated Participant Production by End-Use Sector - India 2013 .......................... 112 Exhibit III-28: Total Corrugated Participant Production by Print Process - India .......................................... 113 Exhibit III-29: Total Corrugated Participant Production by Format - India 2013 .......................................... 114 Exhibit III-30: Total Corrugated Participant Production by Material Type - India 2013 ............................ 115 Exhibit III-31: Projected Growth Rates for Corrugated Materials to 2017 - India .......................................... 116 Exhibit III-32: Benchmarking, Growth Segments and Challenges for Corrugated Printers - India 2013117 Exhibit IV-1: Brazil: Average Annual Printed Packaging Growth in all Packaging Sectors 2007-2012 . 119 Exhibit IV-2: Annual Growth Rates for the Package Printing Market in Brazil 2008-2012 ........................ 120 Exhibit IV-3: Brazil’s Primary Export Markets - Printed Packaging ..................................................................... 123 and Non-Packaging 2013 ....................................................................................................................................................... 123 Exhibit IV-4: Converter Pariticpation per Packaging Sector: .................................................................................. 123 Brazil - 2013 ................................................................................................................................................................................ 123 Exhibit IV-6: Primary Tag & Label Trade Flows in Brazil – Domestic Consumption vs. Exports by Region 2013 ................................................................................................................................................................................................ 124 Exhibit IV-7: Primary Flexible Packaging Trade Flows in Brazil – Domestic Consumption vs. Exports by Region 2013 ................................................................................................................................................................................. 125 Exhibit IV-8: Primary Folding Carton Trade Flows in Brazil - Domestic Consumption vs. Exports by Region 2013 ................................................................................................................................................................................. 126 Exhibit IV-9: Primary Corrugated Trade Flows in Brazil - Domestic Consumption vs. Exports by Region 2013 ................................................................................................................................................................................................ 127 Exhibit IV-10: Brazilian Companies’ Participation Beyond Traditional Tag & Label Printing 2013 ...... 128 Exhibit IV-11: Total Tag & Label Participant Production by End-Use Sector - Brazil 2013 ........................ 129 Exhibit IV-12: Total Tag & Label Participant Production by Print Process - Brazil 2013............................ 130 Exhibit IV-13: Total Tag & Label Participant Production by Format - Brazil 2013 ....................................... 131 Exhibit IV-14: Total Tag & Label Participant Production by Material Type - Brazil 2013 .......................... 132 Exhibit IV-15: Projected Growth Rates per Material Type: ...................................................................................... 133 Brazil 2013-2017 ....................................................................................................................................................................... 133 Exhibit IV-16: Benchmarking, Growth Segments, and Challenges for Tag & Label Package Printers - Brazil 2013 ................................................................................................................................................................................... 134 Exhibit IV-17: Total Flexible Packaging Participant Production by End-Use Sector - Brazil 2013 .......... 135 Exhibit IV-18: Total Flexible Packaging Participant Production by Print Process - Brazil ......................... 136 Exhibit IV-19: Total Flexible Packaging Participant Production by Material Type - Brazil ....................... 137 Exhibit IV-20: Projected Growth Rates for Flexible Packaging Materials to 2017 - Brazil .......................... 138 Exhibit IV-21: Benchmarking, Growth Segments, and Challenges for Flexible Packaging Printers - Brazil 2013 ................................................................................................................................................................................................ 139 Exhibit IV-22: Total Folding Carton Participant Production by End-Use Sector - Brazil 2013 .................. 140 Exhibit IV-23: Total Folding Carton Participant Production by Print ................................................................. 141 Process - Brazil 2013 ................................................................................................................................................................ 141 Exhibit IV-24: Total Folding Carton Participant Production by Material Type - Brazil 2013 .................... 142 Exhibit IV-25: Projected Growth Rates for Folding Carton Materials to 2017 - Brazil ................................. 143 Exhibit IV-26: Benchmarking, Growth Segments and Challenges for Folding Carton Printers - Brazil 2013 ................................................................................................................................................................................................ 144 Exhibit IV-27: Total Corrugated Participant Production by End-Use Sector - Brazil 2013 ......................... 145 Exhibit IV-28: Total Corrugated Participant Production by Print Process – Brazil 2013 ............................ 146 Exhibit IV-29: Total Corrugated Participant Production by Format - Brazil 2013 ........................................ 147 Exhibit IV-30: Total Corrugated Participant Production by Material Type - Brazil 2013 ........................... 149 Exhibit IV-31: Projected Growth Rates for Corrugated Materials to 2017 - Brazil......................................... 150

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Exhibit IV-32: Benchmarking, Growth Segments and Challenges for Corrugated Printers—Brazil 2013 .......................................................................................................................................................................................................... 151 Exhibit V-1: Mexico: Average Annual Printed Packaging Growth in all Packaging Sectors 2007-2012 153 Exhibit V-2: Annual Growth Rates for the Package Printing Market in Mexico 2008-2012 ........................ 154 Exhibit V-3: Mexico’s Primary Export Markets - Printed Packaging and Non-Packaging 2013................ 157 Exhibit V-4: Converter Participation per Packaging Sector: ................................................................................... 157 Mexico - 2013 .............................................................................................................................................................................. 157 Exhibit V-5: Primary Tag & Label Trade Flows in Mexico - Domestic Consumption vs. Exports by Region 2013 ................................................................................................................................................................................................ 158 Exhibit V-6: Primary Flexible Packaging Trade Flows in Mexico - Domestic Consumption vs. Exports by Region 2013 ................................................................................................................................................................................. 159 Exhibit V-7: Primary Folding Carton Trade Flows in Mexico - Domestic Consumption vs. Exports by Region 2013 ................................................................................................................................................................................. 160 Exhibit V-8: Primary Corrugated Trade Flows in Mexico - Domestic Consumption vs. Exports by Region 2013 ................................................................................................................................................................................................ 161 Exhibit V-9: Total Tag & Label Participant Production by End-Use Sector - Mexico 2013 .......................... 162 Exhibit V-10: Total Tag & Label Participant Production by Print Process - Mexico 2013 ........................... 163 Exhibit V-11: Total Tag & Label Participant Production by Format -Mexico 2013 ........................................ 164 Exhibit V-12: Total Tag & Label Participant Production by Material Type - Mexico 2013 ......................... 165 Exhibit V-13: Projected Growth Rates per Material Type: ........................................................................................ 166 Mexico 2013-2017 ..................................................................................................................................................................... 166 Exhibit V-14: Benchmarking, Growth Segments and Challenges for Tag & Label Package Printers - Mexico 2013 ................................................................................................................................................................................. 167 Exhibit V-15: Total Flexible Packaging Participant Production by End-Use Sector - Mexico 2013 ......... 168 Exhibit V-16: Total Flexible Packaging Participant Production by Print Process – Mexico 2013............. 169 Exhibit V-17: Total Flexible Packaging Participant Production by Material Type - Mexico 2013 ............ 171 Exhibit V-18: Projected Growth Rates for Flexible Packaging Materials to 2013 – 2017: Mexico ........... 172 Exhibit V-19: Benchmarking, Growth Segments and Challenges for Flexible Packaging Printers—Mexico 2013 ................................................................................................................................................................................................ 173 Exhibit V-20: Total Folding Carton Participant Production by End-Use Sector - Mexico 2013 ................. 174 Exhibit V-21: Total Folding Carton Participant Production by Print Process - Mexico 2013 ..................... 175 Exhibit V-22: Total Folding Carton Participant Production by Material Type - Mexico 2013 ................... 176 Exhibit V-23: Projected Growth Rates for Folding Carton Materials to 2017 - Mexico ................................ 177 Exhibit V-24: Benchmarking, Growth Segments and Challenges for Folding Carton Printers - Mexico . 178 Exhibit V-25: Total Corrugated Participant Production by End-Use Sector - Mexico 2013 ........................ 179 Exhibit V-26: Total Corrugated Participant Production by Print Process – Mexico 2013............................ 180 Exhibit V-27: Total Corrugated Participant Production by Format - Mexico 2013 ........................................ 181 Exhibit V-28: Total Corrugated Participant Production by Material Type - Mexico 2013 ........................... 182 Exhibit V-29: Projected Growth Rates for Corrugated Materials 2013 to 2017 - Mexico ............................ 183 Exhibit V-30: Benchmarking, Growth Segments, and Challenges for Corrugated Printers—Mexico 2013 .......................................................................................................................................................................................................... 184 Exhibit VI-1: Comparison of Hourly Labor Rates in Emerging Markets vs. ‘Frontier Markets’ .................. 185 Exhibit VI-2: Printed Packaging Growth Rates for the Frontier Markets of Colombia, Indonesia, and Vietnam 2013-2017 .................................................................................................................................................................. 186 Exhibit VI-3: Breakdown of the Total Colombian Printed Packaging Market by Sector - 2013 ................ 188 Exhibit VI-4: Breakdown of the Total Indonesian Printed Packaging Market by Sector - 2013 ................ 190 Exhibit VI-5: Breakdown of the Total Colombian Printed Packaging Market by Sector - 2013 ................ 192 Exhibit VII-1: Brand Owner Analysis-Sourced Printed Packaging by Type 2013 ............................................ 196 Exhibit VII-2: Brand Owners’ Hierarchy of Sourcing Criteria Used to Determine Where Printed Packaging is Produced - 2013 .............................................................................................................................................. 197 Exhibit VII-3: The Importance of Sustainability Practices to Brand Owners in Emerging Markets - 2013 .......................................................................................................................................................................................................... 199 Exhibit VII-4: The Importance of Sustainability Practices to Brand Owners in The United States........... 200 Exhibit VIII-1: Average Annual Printed Packaging Growth Rates for the Global and Emerging Markets 2013-2017 .................................................................................................................................................................................... 201

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Exhibit VIII-2: Packaging Print Process Utilization by Type for all Survey Participants-2013 ................. 203 Exhibit VIII-3: Material Consumption Breakdown for all Tag & Label Survey Participants—China, India, Brazil & Mexico 2013 ............................................................................................................................................................... 207 Exhibit VIII-4: Growth Rates for Tag & Label Materials in Major Emerging Markets 2013-2017 ........... 208 Exhibit VIII-5: Material Utilization Breakdown for all Flexible Packaging Survey Participants-2013 .. 210 Exhibit VIII-6: Growth Rates for Flexible Packaging Materials in Major Emerging Markets 2013-2017 .......................................................................................................................................................................................................... 211 Exhibit VIII-7: Material Utilization Breakdown for all Folding Carton Survey Participants ...................... 212 Exhibit VIII-8: Growth Rates for Folding Carton Materials in Major Emerging Markets 2013-2017 ..... 213 Exhibit VIII-9: Flute Utilization Breakdown by Type for all Corrugated Survey Participants-2013 ........ 215 Exhibit VIII-10: Participants Corrugated Printing Breakdown by Type: Direct Print and Topsheet-2012 .......................................................................................................................................................................................................... 216 Exhibit VIII-11: Growth Rates for Corrugated Materials in Major Emerging Markets 2013-2017 .......... 217 Exhibit VIII-12: Ink Consumption by Type—Mexico and Brazil: 2012 ................................................................. 219 Exhibit VIII-13: Ink Consumption by Type—China and India: 2012 ..................................................................... 219 Exhibit VIII-14: Total New Press Installations in Primary Emerging Markets by Packaging Application: 2012-2017 .................................................................................................................................................................................... 222 Exhibit VIII-15: New Press Installations Broken Down by Packaging Sector: 2012-2017 .......................... 223 Exhibit VIII-16: New Press Installations as a Percentage - Broken Down by Primary Emerging Market: 2012-2017 .................................................................................................................................................................................... 224 Exhibit VIII-17: Total Packaging Production for Survey Participants—Digital vs. Conventional 2013 in Major Emerging Markets ....................................................................................................................................................... 227 Exhibit VIII-18: Total Participant Digital Production Broken Down by Packaging Sector in Major Emerging Markets - 2013....................................................................................................................................................... 228 Exhibit VIII-19: Average Printed Packaging Run Sizes by Sector-Emerging Markets vs. United States-2013 ................................................................................................................................................................................................ 229 Exhibit VIII-20: Peak Package Printing Acquisition Time Frames for China, India, Brazil, and Mexico: 2003-2022 .................................................................................................................................................................................... 232