tecves - review of iran polymer packaging economics

Review of Polymer Packaging Economics

Agenda

2

Tecves –introduction

A Quick history of food packaging

Global packaging market

Iran food production

Food packaging requirements

Raw materials in packaging Iran’s raw materials production

Conclusion & Future perspective

Tecves - Introduction

3

Polymer Industry Solution Provider

ThechnicalTroubleshooting

Research & Development

Consultant

Technical Data

Analysis

Economical Data

Analysis

Market Research

A QUICK HISTORY OF FOOD PACKAGING!

1954 1959 1970s 1988 1996 2000 2010IntrestingSubjects

•Robert W. Vergobbi patented zipper storage bags. Minigrip licensed them, intending to use them as pencil bags. But it soon became apparent the bags had greater utility than that. Ziploc® bags were introduced in 1968 as food storage bags. The first baggies and sandwich bags on a roll were introduced.

4



•Wisconsin manufacturer Geuder, Paeschke and Frey produced the first licensed character lunch box—a lithographed Mickey Mouse on an oval tin with a pull-out tray inside. Plastic was used for the handle and then for the entire box beginning in the 1960s.

5



•two-liter plastic beverage bottles and the one gallon plastic milk jug appeared on the market. By 2007, thanks to lightweighting, they had shed a third of their weight.

6



•the Society of the Plastics Industry introduced a voluntary resin identification coding system, providing a consistent system for identifying plastics resins used in packaging containers.

7



•salad-in-a-bag packaging (metallocene-catalyzed polyolefins) was introduced, helping to reduce food waste and making it easier to purchase fresh produce.

8



•flexible plastic tubes for yogurt became available making it possible to enjoy a tasty Calcium-rich snack on the go.

9



•Metallyte™ films were introduced to help keep sharp contents (coffee beans, grains, noodles and croutons) fresher by reducing packaging tears. The new films are also lighter than foil-based designs.

•That same year, Heinz® Dip & Squeeze, the first new ketchup packaging in 42 years, offered two ways to get at the ketchup—peel back the lid for easy dipping or tear off the tip to squeeze the ketchup onto your food. Another great innovation in fast food!

10



11

Smart Packaging

Intelligent Packaging

MAP

Active



12

Smart Packaging


MAP

Active



13

Smart Packaging


MAP

Active

Oxygen ScavengersCO2 Scavengers and

Emitters

Moisture ControlAntimicrobial

Packaging

Barrier Films

Global Packaging Market

PACKAGING ANNUAL REPORT, WILLIAM BLAIR, 2016 14

thermoplastic resins, 34%

thermoplastic resins other

global packaging industry is worth approximately $700 billion, which about a third, perhaps $250 billion, is plastics.

Indexed Share Price Performance


Acquisition Appetite


Resin Prices


Resin Prices


Last Three Years

Iran’s Resin Prices (Rials)

IRAN MERCANTILE EXCHANGE 21

0

10,000

20,000

30,000

40,000

50,000

60,000

1 2 3 4 1 2 3 4 1 2 3 4

92 93 94

HDPE (film)

LDPE & LLDPE

PP (film)

Investment outlook of Packaging Industry

PLASTIC MARKET WATCH: PLASTICS PACKAGING WRAPS IT UP - 2015 22

2010

$47 billion in total new investments will come online

This includes $25 billion in new

capacity to produce plastic resins

2020

Iran’s Food Production

23

Agriculture

Animal Husbandry

Fishery

Agricultural Production (1000 tons)

CENTRAL BANK OF THE ISLAMIC REPUBLIC OF IRAN 24

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

1358 1359 1360 1361 1362 1363 1364 1365 1366 1367 1368 1369 1370 1371 1372 1373 1374 1375 1376 1377 1378 1379 1380 1381 1382 1383 1384 1385 1386 1387 1388 1389 1390 1391 1392

Agriculture

Production composition


Wheat34%

Barley9%

Rice8%

cotton1%

Sugar beet16%

Saccharum11%

Tea1%

Oil seeds1%

Tobacco0%

Legume2%

Potato11%

Onion5%

Pistachios1%

Wheat Barley Rice cotton Sugar beet Saccharum Tea Oil seeds Tobacco Legume Potato Onion Pistachios

Animal Husbandry Production (1000 tons)


0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

1358 1359 1360 1361 1362 1363 1364 1365 1366 1367 1368 1369 1370 1371 1372 1373 1374 1375 1376 1377 1378 1379 1380 1381 1382 1383 1384 1385 1386 1387 1388 1389 1390 1391 1392

Animal husbandry

Production composition


Red Meat9%

Milk72%

Chiken Meat12%

Egg7%

Honey0%

Red Meat Milk Chiken Meat Egg Honey

Fishery Production (1000 tons)


0

100

200

300

400

500

600

700

800

900

1,000

1373 1374 1375 1376 1377 1378 1379 1380 1381 1382 1383 1384 1385 1386 1387 1388 1389 1390 1391 1392

Fishery

Comparison (MT)


32.752

11.958

0.8850

5

10

15

20

25

30

35

1392

Agriculturre 92

Animal Husbandry 92

Fishery 92

Packaging Requirements

30

Bakery Milk CheeseButter & Spreads

Red Meet Fish

• High moisture barrier properties

• High CO2 and N2 barrier properties in order to keep the packaging atmosphere from inside in MAP

• Keep the aroma and the taste in the products shelf life


31

• Light Protection: It can initiate fat oxidation and change the flavor

• High O2 barrier properties in long shelf life products


Red Meet Fish


32

• Light Protection: It can initiate fat oxidation even in refrigerator condition

• High O2 barrier properties: to reduce fat oxidation and growth of undesirable microorganisms

• High N2 and CO2 barrier properties in MAP packaging

• Low moisture permeability in order to reduce mold growth


Red Meet Fish


33


Red Meet Fish

• High oxygen Barrier property

• Prevent light transmision

• Packaging material is completely impermeable to water vapor

• Material should protect the butter from such odors.


34


Red Meet Fish

• Low oxygen permeability (3 to 15 cc/m2-day-atm OTR)• Low water and vapor transmission rates (3-8 g/m2-day

WVTR)• Prevent Freezer Burn• If the packaging is a shrink film it should shrink in low

temperatures in order to prevent product damage• Seal integrity, critical to maintaining the proper atmosphere

inside the MAP packaging• Optical Properties: High golss & clarity


35


Red Meet Fish

• High moisture barrier properties

• High O2 barrier properties to prevent oxidation and spoilage

• High CO2 and N2 barrier properties in order to keep the packaging atmosphere from inside in MAP

• In vacuum packaging use polymers with a good sealant properties

Polymer Packaging resins

36

Raw materials Production

37

LLDPE

LDPE

HDPE

PP

PET

Import & Export – Weight (Kg)

IRAN CHAMBER OF COMMERCE, INDUSTRIES, MINES AND AGRICULTURE 38

0

100,000,000

200,000,000

300,000,000

400,000,000

500,000,000

600,000,000

700,000,000

800,000,000

900,000,000

1,000,000,000

1392 1393 1394 1392 1393 1394 1392 1393 1394 1392 1393 1394 1392 1393 1394 1392 1393 1394 1392 1393 1394 1392 1393 1394

Export Import Export Import Export Import Export Import

HDPE (film) LDPE & LLDPE PP(film) PET (Bottle)

Total

Export – Countries ($)


0

200,000,000

400,000,000

600,000,000

800,000,000

1,000,000,000

1,200,000,000

1,400,000,000

1,600,000,000

1,800,000,000

2,000,000,000

Ch

ina

Turk

ey

Un

ited

Ara

b E

mir

ates

Ind

ia

Vie

tnam

Ch

ina

Un

ited

Ara

b E

mir

ates

Turk

ey

Ind

ia

Iraq

Iraq

Ind

ia

Un

ited

Ara

b E

mir

ates

.

Turk

men

ista

n

Tajik

ista

n

Turk

ey

Ch

ina

Uzb

ekis

tan

Ind

ia

Pak

ista

n

Export Export Export Export

HDPE (film) LDPE & LLDPE PET (Bottle) PP(film)

Domestic Transactions Weight (Ton)

42

84,648

101,710 102,599

395,828

370,452

404,088

66,72251,238 45,457

221,290

163,467 168,560

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

92 93 94 92 93 94 92 93 94 92 93 94

HDPE (film) LDPE & LLDPE PP (film) PET (Bottle)

Total


NO. (Year 94) Polymer Import (Ton) Export (Ton) Domestic Transactions (Ton)

1 HDPE (film) 222 559,272 102,599

2 LDPE & LLDPE 7,915 900,781 404,088

3 PP (film) 6,719 3,619 45,457

4 PET (Bottle) 41,417 24,594 168,560

ProductionHDPE (film)

• 661,870 Ton

ProductionLDPE & LLDPE

• 1,304,869 Ton

ProductionPP (film)

• 49,076 Ton

ProductionPET (Bottle)

• 193,154 Ton

Conclusion

44

Great production of raw materials in Iran

There is a potential investment opportunity

Lack of diversity in domestic production of packaging raw materials

Supply raw materials that needed in packaging but don’t have domestic production

Future Perspectives

45

For more progress in this market we need to:

Adjustment of food consumption pattern

Using modern technologies

Knowledge base production

Improvement of local packaging products quality

Thank You for Your Attention

Polymer Industry Solution Provider

tecves - review of iran polymer packaging economics

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