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Report: secondary packaging under close review

With retailers demanding greater value, and bottom lines in need of reduced costs, secondary packaging is under the microscope, according to a November 2008 study from the Packaging Machinery Manufacturers Institute (PMMI).

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The report’s central findings should interest buyers and sellers of contract-packaging services, because co-packers produce a lot of secondary packaging.

Every company that participated in the study is re-evaluating their secondary-packaging containers, PMMI says. They’re examining materials, weight, cube size, and ways to fit more into a cubic foot of retail shelf space, says Charles Yuska, PMMI president and CEO.

Sixty-seven consumer packaged goods companies participated in the study, representing the food, beverage, dairy, electronics, and personal-care markets. Other participants included contract packagers and materials suppliers.

Corrugated fiberboard, in particular, is being reviewed closely, the survey reports, because the amount of fiberboard that is used impacts overall costs. According to PMMI’s research, 80% of companies are using regular slotted containers (RSCs) for secondary packaging. Within that group, 51% are decreasing usage by 5% to 60%.

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