TURKISH PACKAGING INDUSTRY AND MARKET in 2007
1.Introduction

Packaging is becoming extremely important in purpose-oriented marketing of various agricultural and food products and other non-food products made in the existing and emerging industrial sectors in Turkey. Although a limited number of packaging, which is not to be confused with carrying bags, is produced for being sold in the market shelves, Turkish Packaging Industry generally manufactures in line with the demands from production industries that make industrial or agricultural products. Therefore, sector development in terms of quality and quantity depends on the development and ex-pansion of industries that make these products in our country. The Packaging Industry in Turkey is affected by the developments in commercial sector as well as the developments in sectors that make various commodities. Sector has been developed by the packaging needs of the products that are imported in their packag-ing to replace the domestic products and the export potential of domestic products grows in parallel with the improving packaging examples. The growth of the Packaging Sector in Turkey has been boosted by legislation directed at protecting public health and consumers.

2. Sector Scales

Turkish Packaging Sector, for which detailed information shall be provided later in the report, has been developing and expanding in connection to the general economy that has a growing trend for the last five years. In general, it is either very difficult or even impossible to obtain statistical data from the manufactur-ing industries in Turkey. However, estimation can be made for the outline of the size and the global position of the sector. To this end, member information has been obtained from the sector associations operating in the Turkish Packaging Sector and then this production data has been adapted to Turkish scale by compar-ing to their shares in the sector. At the end of this study, the following estimations have been made for the physical volume (in weight) and financial volume of the Turkish Packaging Sector.
* It is calculated that plastic packaging production is approximately 30% of total plastic production in 2007. Plastic materials used in flexible packaging are also included. FIBCs are not included.
As the table above suggests, although the Turkish packaging sector includes various material groups and various processes, it is a whole because of its functional properties in spite of the differences when considered in terms of the buyers and end users. On the other hand, when packaging sector is considered along with the products that it is commer-cially linked to, there is an economy of about 135 billion $ because packaging accounts for 2 – 5% (approx. 3.5%) of the cost of the product that is sold with it.

3. Foreign Trade

When we look from the Foreign Trade perspective, packaging sector is one with a high level of expor-tation in spite of an import figure of 350 – 400 million dollars per annum obtained from raw materials and semi-products. There is significant amount of exportation besides the packaging that is exported with various commercial goods made and sent abroad by manufacturing industries. The 2007 export figures have reached almost to 2 Billion US Dollar. ÝGEME, the Undersecretariat of the Prime Ministry for Foreign Trade Export Promotion Center has announced exports of packaging and packaging materials as 1.95 billion US $ for 2007. The increase is proportional to the improve-ment in the overall market in Turkey. Rigid and flexible plastic packagings are the leading segments of the total packaging exports. Among them FIBC’s are the most important subsegment in plastic packaging with more than $ 318 Million export value. Compared with ITC figures it is reported that FIBC’s are the world leader in quantity in addition to their qualitative difference significant on the world markets.
4. General Structure of Sector

It is estimated that there are about 5,000 companies in Turkey producing packaging materials. About 2,650 of them have been determined during a catalogue study that was made in 2006 by ASD – Packaging Manufacturers Association in Turkey where the names obtained from local chamber cata-logues in Turkey were called one by one for confirmation. Confirmation work is in progress for address and field of activity. The number is estimated to be higher than the identified figure because there are companies operating only in the packaging sector and others operating in various sectors but receiv-ing orders for packaging to produce main or side products. A major part of these companies are small and medium – scale. According to 2006 ISO (Istanbul Chamber of Industry) Industrial Survey, 56 packaging producers are among the top 1,000 companies in Turkey in terms of business volume. Packaging sector companies mainly operate in Istanbul, Izmir, Kocaeli, Gaziantep, Adana, Ankara, Konya and Balikesir. There are about 80,000 – 100,000 personnel employed in this sector. There is a high percent of qualified workforce in the Packaging Sector where a relatively advanced production technology is required.
5. Elements Influencing the Sector

Elements that influence the sector development can be classified under three main headings:

a- Legal Environment
Currently, packaging sector is interested in four main regulations.

b- Economic Environment

7. Issues about the competitive power of Turkish Packaging Sector

Education

In Turkey, there are 42 courses at 33 universities related to packaging. The courses are given under 25 various titles. However, the literature written in Turkish or trans-lated into Turkish is extremely limited in quantity and mainly related to the food sec-tor. This is the result of the fact that although academicians have been encouraged to make publications, there are not many researchers and academicians working espe-cially on “packaging”. Those who give packaging-related courses view the topic from the perspectives of Food, Forestry products, Industrial and Graphic Design and Print-ing which are their main branches. The ASD Packaging Manufacturers Association has contributed to this need by creating two books, i.e. Flexible Packaging 2nd revision, and Rigid Plastic Packagings; additionally two books have been translated in to Turk-ish, i.e. Technical Documentation and Style Guide for packaging machinery and Fun-damentals of Packaging Technology. Full financial support was given to revised pub-lishing of Food Packaging Technology. Nevertheless there are also other contribu-tions from the sector. Canpaþ, a label producer has published two translations. First Successful Packaging for Successful Marketing and later Encyclopaedia for Label and Label Technology. Öntaþ , Mr Ercan Öner, a metal packaging manufacturer, has col-lected his experiences in a book titled Tin Box Technology. Last but not least the bimonthly magazine Ambalaj Bulteni (The Packaging Bulletin) published by ASD contains valuable and rich educational information on packaging topics.

R&D

Research-Development Laboratories In the Izmir Region of Turkish Standards Institute, there is a well-equipped packaging laboratory which is only active in the field of certifying conformance to standards. There are projects opening laboratories in the greater area of the city of Istanbul which has an intense industrial and academic life and be restructured to include the packaging sector in its management in order to both meet the packaging related re-quirements of TSE and be used for the other R&D work of the sector. TÜBÝTAK – MAM /(The Scientific and Technological Research Council of Turkey – Marmara Research Center) has been making research and development work about food packaging in the Food Institute. However, non-food packaging is not included. A R&D project has been started by TURKONFED, ADF-Packaging Associations Federa-tion and ASD-Packaging Manufacturers Association. One of the “innovation centres es-tablished by clusters composed of related organisations and institutions”, which are expected to operate in 19 different locations and subjects all over Turkey, is about the subject of packaging. This project which is at the starting phase shall be supported 50% by TÜBÝTAK funds. Besides the above mentioned organisations, academic institutions, local governments and particularly private sector industrialists who will turn theory into practice are ex-pected to participate in the project.
Implementation of laws
Laws do exist (Food Codex, etc.), but are not implemented. For instance, although there are provisions stating that food covered by the Food Directive (Codex) may not be sold unpacked, many products including bread are delivered to consumers un-packed neglecting hygiene and public health and this practice is not punished.

There are problems related to EU harmonisation. Legislation about packaging includes regulations that hinder the provision and supply of raw materials. The amount of for-maldehyde used as binding agent in the production of cardboard and similar packag-ing materials and the rule that production chips from rigid plastic packaging produc-tion may not, even if uncontaminated, be used for food packaging are examples of is-sues that were hot in 2007.

Preparation of a general data bank

Although various import and export analyses can be made, sound and clear produc-tion figures cannot be calculated and conclusions and directions can only be based on estimates. Therefore, the reliability of any decisions is based on how close these esti-mates are to the actual values. In an industry that has a minimum volume of more than 4 million tons, it is highly important for operations to at least be able to transfer data about basic capacity and production. It is foreseen that the work must be per-formed within TOBB to establish a packaging profession category within a very near future and the companies that operate in that sector can make it possible for the Is-tanbul Chamber of Commerce to include packaging branch into the analyses that are carried out every year and that shed light on the Turkish Industry. On the other hand, the reliability of these analyses shall be enhanced when Voluntary Non-Governmental Organisations have access to data banks that are open to Exporters’ Unions.

Information and solidarity bridges

One of the ongoing projects is establishment of an information and solidarity network which foresees using internet and other communication media in order to avoid re-petitive work and to make references to global markets and help any possible coop-eration within the sector.

Turkish Packaging Industry Inventory

In an effort by ASD (Packaging Manufacturers Association) , 2650 companies in Turk-ish Packaging Industry are being listed for the entire country. Chamber addresses, participants of all packaging fairs in Turkey and addresses collected from the existing related address catalogues are updated by making phone calls at intervals of 3-6 months and are presented in CD format. Potential buyers and Turkish manufacturers can meet more easily and regularly by making this address and product list more comprehensive and easily accessible through internet. This will facilitate trading and contribute to the sector development.

Trade Platforms

Trade platforms where both manufacturers and commercial sector activities are pre-sented in the most comprehensive and qualified manner and where buyers and sup-plier can meet have important roles in sector development. Among them, fairs have the most significant place. Although there are various fair organisations, this activity is becoming focused on Istanbul Packaging Fair (TUYAP) . This fair which keeps on de-veloping with the support of sector associations has its alternatives at local level only. On the other hand, the existence of a single specialised fair in the country shall pro-vide the expected commercial benefit and efficiency. This international trade platform and similar promotional activities shall better con-tinue as part of the efforts to develop an organisational identity. This year the 14 th exhibition will be held during 23-26 October 2008.
A. The Voluntary Non-Governmental Organisations that operate in the packaging sector can be listed as follows.


ASD -  Packaging Manufacturers Association  

Web Page :  www.ambalaj.org.tr          
                                        
AMD - Packaging Machinery Manufacturers Association
Web Page :  www.amd.org.tr
                                                         
ESD- Label Manufacturers Association     
                                                         
Web Page :  www.esd.org.tr

FASD - Flexible Packaging Manufacturers Association

Web Page :   www.fasd.org.tr          
                                   
ISOMDER - Ýstanbul Corrugated Cardboard Manufacturers Association

Web Page :   www.isomder.org
                               
KASAD - Cardboard Packaging Manufacturers Association   

Web Page :    www.kasad.org
                                                   
OMÜD - Corrugated Cardboard Manufacturers Association

Web Page :   www.omud.org.tr
                                               
SEPA - Rigid Plastic Packaging Manufacturers Association 

Web Page :   www.sepa.org.tr
                                            
TASIAD - Tin Packaging Manufacturers and Businessmen Association  

Web Page :    www.tenekeambalaj.org.tr
                     
TÜRKFIBKA – Big Bag Manufacturers Association (Passive)
B. Related associations that have their own sectors but do important work in the area of packaging:

ASAD- Aerosol Manufacturers Association

Web Page : www.aerosolturk.org

BASEV – Printing Industry Education Foundation

Web Page : www.basev.org.tr

CAMSIAD – Glass Recycling and Businessmen Association

ÇEVKO – Environmental Protection and Packaging Waste Utilisation Foundation

Web Page : www.cevko.org.tr

EGEPLASDER – Aegean Plastic Manufacturers Association

Web Page : www.egeplasder.org.tr

KMO- Chamber of Chemical Engineers Aegean Regional Branch

Web Page : www.kmo.org.tr/ege/

PAGEV - Plastic Research and Development and Education Foundation

Web Page :  www.pagev.org.tr

PAGDER - Plastic Manufacturers Association

Web Page :  www.pagev.org.tr/pagder/main.asp

PÜD –  Polystyrene Manufacturers Association

Web Page :  www.pud.org.tr

TALSAD – Turkish Aluminium Manufacturers Association

Web Page :  www.talsad.org.tr/



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C. Organisations based on law

Packaging machinery manufacturers work effectively within the Machine Sector in Middle Anatolia Exporters Union.

Web Page :   www.makinebirlik.com

Paper and Cardboard Packaging work is being performed within the Forestry Products subgroup of IIB- Ýstanbul Exporters Union.

www.iib.org.tr
www.turkishpackology.com
D. Vertical Organisation – Senior Organisations

Since 2006 organisations have become vertical in two directions. In one of these routes, a Packaging Sector Assembly has been established in order to find solutions to the packaging sector issues and to hold regular meetings and subcommittee work in TOBB (The Union of Chambers and Commodity Exchanges of Turkey) , although it is not considered as a profession group in the chambers of industry within TOBB. A large number of TOBB Packaging Sector Assembly members consist of representatives from Packaging Industry Organisations who are either members or managers of the above ( A and B) mentioned voluntary NGO’s.
In the other route , the NGO’s ASD, AMD, ESD, FASD, KASAD, OMÜD, SEPA, TASÝAD have come to-gether to establish Packaging Associations Federation in 2006 and started to work actively since May 2007. In the Board of ADF- Packaging Associations Federation, each subsector association represents its own sector at the presidential level, coordinated by an independent packaging manufacturer. ADF completed its vertical organisation in 2007 and joined TURKONFED (Turkish Enterprise and Business Confederation - www.turkonfed.org ) and has obtained a board membership.

So, packaging sector has had a formal assembly within TOBB (www.tobb.org.tr) on one hand and has become a sector with an organisation that may be represented at the highest level suggested by the law of associations in Turkey in the Voluntary Non-governmental Organisations on the other.


E. International Organisations

In the packaging private sector, there is limited participation in international efforts and organisations aimed at saving resources by reducing repeated work. But on the other hand it has to mentioned that there not so many international organisation for the packaging field.

OMÜD FEFCO European Federation of Corrugated Board Manufacturers

Web Page : www.fefco.org

RESY Organisation für Wertstoffentsorgung GmbH

Web Page : www.resy.de

KASAD ECMA (European Carton Makers Association )

Web Page : www.ecma.org

ESD FINAT Féderation Internationale des fabricants et
transformateurs d'Adhésifs et Thermocollants

Web Page :  www.finat.com

PAGEV ve PAGDER EuPC European Plastic Convertors

Web Page : www.plasticsconverters.eu

While above associations are members at European coverage area The ASD is member of following global organizations:

WPO- World Packaging Organization

Web Page :  www.worldpackaging.org

IAPRI International Association of Packaging Research Institutes

Web Page :  www.iapriweb.org

ICPP International Confederation of Plastic Packaging Manufacturers

Web Page :  www.icpp.org

COPE Confederation of Organisers of Packaging Exhibitions

Web Page :  www.cope.org.uk


Please do not hesitate to contact the following persons , who prepared this report.

Dogan Erberk – Secretary General, ASD , doganerberk@ambalaj.org.tr
Aslihan Arikan - Research Expert, ASD , aarikan@ambalaj.org.tr


c- Social Environment
6. The Place of Turkish Packaging Sector in the World

World Packaging Organization, where ASD is a member, defines packaging as an indicator of welfare in developed countries. The increase in the number and quantity of packaged products is a very clear indicator of a qualitative and quantitative increase in the share of industrial production in the country’s GNP. According to findings from WPO – PIRA research, in the Western and Eastern Europe which covers 46 countries including Russia, Ukraine, Georgia and Turkey, a population of 803 million people consumed 180 billion dollars of packaging, corresponding to 224 $ per capita. 392 million population in Western European countries consumed 125 billion dollars of packaging, corresponding to 316 $ per capita, but 410 million population in Eastern European countries consumed 56 billion dollars of packaging, corre-sponding to 135 $ per capita. These figures are multiplied in developed countries such as North America, Canada and Japan. In Turkey, per capita consumption is estimated to be 72 $ in 2006 which is well below the above men-tioned levels. In spite of this relatively low consumption in Turkey, Turkish Packaging sector is able to manufacture to meet the needs of the EU and other countries in terms of quantity and quality. 25% of exports are being made to Germany, England and France which are the most selective countries in the EU. They are followed by the USA and Russian Federation orderly in the fourth and fifth place. The 2007 exports compared to 2006 have shown an increase of around %26, which is another reason to define Turkish Packaging Industry as an exporting industry.
7. Organisation in Turkish Packaging Sector

As a result of the work performed in the last 3 years by ASD – Packaging Manufacturers Association, vertical organisation of our packaging sector including a vast number of professional categories has been completed.
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