Canadian Packaging Machinery Market Research Report - PMMI

EXECUTIVE SUMMARY
i. Introduction
This report was commissioned by PMMI, and was conducted by the SMG/Columbia
Consulting Group, a full service management consulting firm with offices in British
Columbia, Washington State and Oregon. The report overviews the packaging
machinery market in Canada in the food, beverages and pharmaceutical/personal
care products industry sectors.
The report is divided into five sections. The first section provides context for the
market research information as it introduces the economic, political, and market
environment in Canada. The second section describes the packaging machinery
market in detail, including information about imports, exports, domestic production,
and market size. This section also examines consumer behavior, including the main
factors that influence purchase decisions. Sections three to five of the report outline
the structure and size of the food processing, beverage, and pharmaceutical and
personal care industries in Canada. These sections also present detailed profiles of
selected end-users within each industry.
ii. Canadian Market Environment
The economic fundamentals of the Canadian economy are sound, and economic
activity is expected to pick up in the second half of 2003, especially if the U.S.
recovery accelerates as expected and the present uncertainties diminish.
A factor affecting the sale of imported packaging machinery in Canada is the
strengthening Canadian dollar relative to the U.S. dollar. At the time of the writing of
this report, the U.S. – Canadian dollar exchange rate is the most favorable it has
been since the mid-1990s. This reduces the cost of importing U.S. produced
packaging machinery to price sensitive Canadian firms.
iii. Canadian Packaging Machinery Market
The size of the domestic market for packaging machinery is estimated to be worth
approximately CDN$414 million dollars.
The United States is the single largest source of imported packaging machinery in
Canada, as it supplies 49 per cent of the imports by value. Collectively, the
European nations supply 43 per cent of the imports by value. The key European
competing countries are Germany and Italy, which supply, respectively, 14 per cent
and 12 per cent of the imports by value.
iv. Best Prospects for Packaging Machinery Sales
The industries/industry sectors for which demand for packaging machinery is likely to
increase over the next three years are:
• Food products in sectors that are particularly competitive and consumer-sensitive
• Beverages, particularly bottled water and wine
• Pharmaceuticals
SMG/Columbia Consulting Group Page 1