Energy and raw material prices were already at a high level but surged even further after the beginning of the war in Ukraine. Those increases combined with availability issues have serious financial impacts on the flexible packaging supply chain in Europe, according to a report by FPE (Flexible Packaging Europe, the industry representing interests of 80 companies and manufacturers). All main substrates used for flexible packaging—such as plastics, paper and aluminum—are concerned but also adhesives, lacquers and inks. The industry is confronted with high energy prices in their direct operations manufacturing flexible packaging and logistics.
The cost share for logistics is less than in other packaging sectors due to the low product to packaging ratio of flexible packaging and very efficient transportation (usually on reels) the absolute increase is significant. Reports from forwarder associations even show the risk of reduction of available logistic capacities as companies will have to give up their operational business due to high diesel prices.