Drivers I – Consumer purchasing power

One of the strongest drivers for consumer packaging demand is the actual purchasing power in a market. It is a fact that for consumption of consumer goods to take off in a market, a certain GDP/capita hurdle needs to be cleared, normally around $1.000. There is also a clear link between consumer purchasing power and the number of packs used per capita. The number of packaging units used and the amount of money spent on consumer products increase steadily with the average GDP/capita for a given country or market. The graph below shows how packaging used per capita increases with an increasing level of GDP/capita.

Not only more but also better packaging with better functions and a thought through design are demanded in the developed markets. Consumers are prepared to pay for packaging features that adds convenience and for a more sophisticated design. The bottle of washing up liquid will sit there on the kitchen counter for a while and to have a nice looking one can make a difference and add value to the consumer.

The purchase power is increasing steadily in most markets of the world and is expected to continue to do so again after the effects of the recession.