Report examines key drivers for packaging material costs

In its newest forecast for packaging materials--Packaging Procurement Trends for 2011—PackTrax identifies the sharp increase in cost for packaging raw material inputs was identified as the most significant issue facing packaging buyers. The report examines other key issues impacting packaging material costs, including direct impact of high energy feedstock costs; supply and inventory management; tightening conditions throughout the packaging supply chain; economic growth and packaging demand; the effect of Chinese demand; exchange rates; and other direct and indirect influences.

PackTrax warns readers that 2011 could be a challenging year for packaging end-users, noting that several distinct factors are driving raw material inputs costs for different packaging categories. It notes that the most obvious issue is $90-plus average cost of a barrel of oil but states that oil costs are not the most important issue driving plastic resins. Instead, PackTrax researches note that supply management, through plant outages etc. is the more important factor.

More information about the other factors affecting raw materials costs and the other key costs drivers can be found on the researchers’ website and in the study.

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