Small package sizes in high demand

From November 17 to 20, 2015, the FoodPex, International Trade Fair for the Food Processing and Packaging Industries, will take place in Shanghai. FoodPex is one of the four events (China Pharm, PacPro Asia and BulkPex) under the umbrella of SWOP - the Shanghai World of Packaging. On this occasion, the VDMA Packaging Materials Forum interviewed Peter Steindl, managing partner of FAWEMA GmbH in Engelskirchen.

Mr. Steindl, you can briefly explain what exactly it is that FAWEMA produces?

Peter Steindl: FAWEMA's core business is the production of packaging machines for the filling of dry, free-flowing bulk materials into ready-made block bottom bags made of paper or plastic laminates. These are used particularly in the food industry for the filling of staple foods such as sugar, flour, legumes or the like. Furthermore, they are also used for the packaging of processed foods such as pasta and confectionery (hard and soft candies or chocolates).

What are your activities in China?

Steindl: We are still quite new to the Chinese market. Last year we sold some equipment to large Chinese manufacturers. This was equipment for filling flour and special flours. We also sold equipment for filling chemical products of the construction industry. This is a niche market we have been active in for years and in which we have gathered a great deal of experience.

Would you say we are experiencing a change in the packaging of food products?

Steindl: The rising standard of living makes the Chinese consumer ask for increasingly smaller packaging sizes. The global trend towards smaller household sizes is true for China as much as elsewhere. The number of one and two-person households is increasing rapidly. This also affects packing sizes. Currently, the price for packaging in supermarkets hardly seems to play an important role: Plastic bags made of high quality materials are frequently used. The shape of the bag allows only manual filling. This makes the process even more expensive. In principle, we see an opportunity to develop firm, dimensionally stable packaging that would reduce packing material costs and cut down on personnel.

Packaged foods are on the increase in China. How do you rate the chances of German machinery and plant manufacturers to participate in this growth?

Steindl: Where the leading manufacturers of flour and flour products in China are concerned we see a clear trend towards fully automated packaging equipment. More and more fully-automated packaging equipment is used to counteract high costs and the shortage of adequate staff. They also do this to ensure a high product quality. It should be noted that these companies use mainly machinery and equipment manufactured in Europe. In the coming years, the Chinese trend to use fully automated packaging equipment will continue not only in the upper segment. Food safety remains one of the core issues of Chinese food manufacturers. The companies therefore invest in modernizing their plants, and also in automation and hygiene and measurement technology. This gives us and other German manufacturers of packaging machinery a good potential to supply them. Over the next years, the demand for processed and packaged food will continue to increase in China. For here, too, more and more people move to the cities, the middle class is growing and consumers are increasingly adopting Western consumption habits. Even now the Chinese buy a rising amount of high-quality baked goods such as bread, rolls, cakes, cookies or pizza. For these foods flour and flour products are used. In the other food segments, the demand for high quality and durably and attractively packaged products is also rising.

What significance do you attach to the FoodPex?

Steindl: I very much welcome the focus of the FoodPex on the packaging of food. Here the visitors from the food manufacturing industry can effectively find the machinery manufacturer who will solve their special packaging tasks. As the Chinese market is still new to us, we use the FoodPex to showcase our machinery and industry solutions and to better understand the market and its customers.