As the region’s developing countries favour cost over environment, consumers are not ready to pay the premium that comes with recyclable materials. In the mature markets, re-using packaging is motivated more by aesthetics than by environmental considerations. Consumers are attached to brands and image. They will readily re-use packaging that displays the brands they associate themselves to. In other cases, packages are disposed of after use.
Food traceability concerns
China is the stage for a long list of food contamination crises, from melamine in baby formula milk to bacteria-laden pork that glows in the dark and repackaged cooking oil siphoned from the gutters outside restaurants.
Asian consumers have become wary of traceability, in particular in regards to China-sourced products. In March of this year, Beijing elevated the political status of the country’s food and drug watchdog, in the hope that consumers would learn to trust the products produced within China.
Overall Southeast Asian countries are export oriented and need to maintain a high level of consumer confidence and make sure that their products meet the standards of their export destination.
Automated versus labour-intensive lines
While automated lines have been prevalent in the mature markets for a while now, hiring local labour is still the rule in developing markets. However labour costs are increasing in China, Malaysia, Vietnam and Thailand, so the manufacturers are gradually integrating modular systems that carry out part of the packaging process automatically.
According to a report by the International Federation of Robots (IFR), Asia Pacific is the most promising market for industrial robots. The combined effects of the harsher competition due to the ASEAN free trade agreement, the volatile raw material prices and increasing consumer demand pave the way for exciting business opportunities for automated packaging equipment manufacturers.
More about Wong Tsz Hin
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