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“The acceleration in e-commerce will double the consumption of packaging compared to last year.”
“The acceleration in e-commerce will double the consumption of packaging compared to last year.”
01.12.2020
GENERAL
ECONOMY

Turkey had a great opportunity to export in many sectors based on production with the pandemic. Exports of the packaging sector, which has become attractive, increased by 11% in the first half of the year. Especially in addition to the acceleration in e-commerce, there is expected to be a significant increase in the need for the use of disposable paper, cardboard and packaging.


*** This release is originally published in Turkish.
Google Translate Application translates the content you see on this page.***


ISTANBUL (TR) - The coronavirus pandemic, which the world has been fighting since the first months of 2020, has caused critical recessions in some sectors, while creating new opportunities for others. At the beginning of these came the packaging sector. In this process, where contact is also minimized in shopping due to the risk of transmission, the acceleration experienced in e-commerce has increased packaging consumption. According to the data of the Association of Packaging Industrialists, the total exports of the packaging sector also increased by 11 percent in the first half of 2020 compared to the same period of the previous year, reaching $2 billion 414 million 219 thousand. The sector has turned not only the coronavirus into an opportunity, but also the recent rate increases.

Altuğ Akça, CEO of ProjePack, who evaluated the issue, said: “Turkey has become an important resource for corrugated cardboard consumers in Europe, especially during this period thanks to its cost advantage. An increase in the exchange rate and curfew have greatly increased the pizza box trade, especially in Europe. With its quality, technology and production capacity in packaging production, it began to receive more than the share of manufacturers in China. As the cost advantage continues, producers in Turkey will get a greater share of Europe's consumption pie. It will be one step ahead of manufacturers like China. But it is important to note that the cost advantage can be temporary. Because the sector, which is suffering from raw material shortages with the breaking of the waste chain in scrap collection and paper production, may face the risk of not being able to fully use the acceleration it has captured. The important thing is to be able to make our production quality and technology our main preferred reason.”

Acceleration in e-commerce could double consumption of paper cardboard packaging

Drawing attention to the share of paper and cardboard packaging exports in Turkey's packaging industry Altuğ Akça said, “According to the General Directorate of Turkey Export data, paper, cardboard and corrugated products are among the most important branches of the packaging industry and the majority of the production is seen as belonging to this area. Paper and cardboard packaging products stand out with an export share of 24.4%. We expect paper and cardboard packaging exports, which reached $1.2 billion last year, to reach $2 billion with the effect of e-commerce. As ProjePack, we have served intensively in the heavy industry and automotive sector so far. After the impact of the pandemic, the spread of online trade and the acceleration in cargo services brought packaging consumption to a considerable level. Our predictions of 6% share in Turkey with online trading, reaching as high as 12% in the coming days will show 100% growth and consumption of paper and cardboard packaging will be 2 times that direction. We also want to get our share at the maximum level.”

Uncertainties have not disappeared

Stating that variables such as personal hygiene, e-commerce and sustainability sensitivity bring uncertainties along with positive predictions, Akça said, “The way of stocking many hygiene products such as masks, gloves, cleaning papers and disinfectants may change depending on the rules of countries and consumer behavior. What the acceleration in e-commerce brings to the sector is very valuable. However, it is not yet known to what extent consumers will return to their old habits when the pandemic is over. Another point is the sustainability sensitivity of both citizens and companies. Before the epidemic, many issues such as protection of nature, reduction of plastic pollution, and the goal of zero waste were on the agenda, but hygiene concerns increased the use of disposable plastic products. Although the aim now is to reduce the amount of plastic in these products and combine it with paper/corrugated paper, the extent to which it will be implemented depends on how sustainability expectations will be shaped.”

The sector needs project-based competition, not price

Stating that the potential in the packaging sector should be used correctly and the acceleration achieved should be made sustainable, Altuğ Akça said, “As ProjePack, we have been operating since 2013, and we serve in our facility with a closed area of 5,000 m2 with our team of 50 people. We have been growing by doubling our sales every year for the last 4 years. What we see in the light of our experience is that we need to go beyond the factories that can produce in the industry. In other words, there is a need for structures that both produce and provide services. In this way, a project-based competition may come to the sector, not price. We can both use our potential efficiently and ensure that the momentum we have gained is permanent.”

Preparing to bring in something new in Turkey

Stating that the acceleration in the sector carried the activities they carry out as a company one step further, Altuğ Akça said, “As ProjePack, we have broken our own records by increasing our sales in the domestic market with our export figures and the service we provide to exporters. We also refreshed the record in the last September and October. We predicted the developments awaiting us in the sector in July and made new investment decisions. In this context, to be established in January latex with our 8 point gluing machines we plan to dispose of its kind in Turkey. We will increase our capacity by 40% from January 2021. With this innovative project with serial and automatic installation, patented by our company, we plan to bring innovative products to the sector, sensitive to the environment.”

Contact: Tülay Genç | [email protected] | +31 30 799 6022

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