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Ref. Ares(2020)4498708 - 31/08/2020
June 2016
Competitiveness of the 
European Plastics Converting Industry 
a european industry study 

Dr. Wieselhuber & Partner Gmbh



ComPetitiveness of the euroPean PlastiCs ConvertinG inDustry
3
Foreword
Resource efficiency, the circular economy, mass customiziation, e-mobilty … to name 
but a few. All of these megatrends have a common denominator: they critically rely 
on plastics products and components! Thus, the polymer industry is a key building 
block shaping the future economy as well as the industrial and private consumption. 
European plastics converters are at the heart of the polymer industry providing inno-
vative products and solutions for various appliances in customer industries.
In recent times, more and more converter company executives state a critical opin-
ion about the competitiveness of the European plastics converting industry. They 
particularely see the industries’ future at risk if market and framework conditions 
continuously pose threats to the competitive strength of converters. Furthermore, 
management responses to market conditions, which develop and change at a faster 
pace become intensely complex. To assess how the industry structure developed 
recently and how it will develop in the future, plus insights on corporate pattern to 
cope with changing market conditions are thus a main interest for all stakeholders 
within the European plastics converter industry. 
The European industry study on the “Competitiveness of the European Plastics con-
verting industry” by Dr. Wieselhuber & Partner (W&P) in cooperation with the EU-
level trade association of the plastics converting industry, EuPC, is focused on the 
assessment of the industries’ current as well as future level of competitiveness. As 
one of the largest industry studies with a most representative industry sample, the 
study clearly showed that a more intense competition and many disadvantageous 
regulatory framework conditions constitute a massive threat to the competitiveness 
of EU plastics converters. However, study insights also show that converters can still 
rely on their strength in efficiency, innovation and customer proximity to maintain 
their competitiveness. 
We very much like to thank all respondents of the industry study as well as the 
company executives and industry experts being available for the complementary in-
terviews. This in-depth industry perspective is what makes this study unique and 
most valuable. We wish you a hopefully insightful and inspiring reading of the study.
Munich, June 2016
Prof. Dr. Norbert Wieselhuber 
Dr. Stephan Hundertmark
Managing Partner 
Manager - Plastics Industry
Dr. Wieselhuber & Partner GmbH 
Dr. Wieselhuber & Partner GmbH
  
euroPean PlastiC Converters

4
ComPetitiveness of the euroPean PlastiCs ConvertinG inDustry
Dr. Wieselhuber & Partner Gmbh

ComPetitiveness of the euroPean PlastiCs ConvertinG inDustry
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Content
Foreword 3
Executive Summary 
6
1.  Objective of the Industry Study on European Plastics Converters 
12
1.1  European Plastic Converter Industry 
14
1.2  Objective of the Industry Study 
15
2.  Empirical Industry Study  
16
2.1  Study Design 
18
2.2  Industry Sample 
19
3.  Results of the Study in Detail 
22
3.1  Assessment of the Competitive Environment  
22
3.2  Assessment of the Regulatory Framework Conditions  
28
3.3  Assessment of the Supply Situation  
31
3.4  Assessment of the Market and Demand Conditions  
34
3.5  Self-Assessment of the Competitiveness of EU Plastics Converters  
37
4.  Maintaining Competitiveness  
40
4.1  Corporate Response to Maintain Competitiveness 
42
4.2  Strategic Levers to Maintain Competitiveness 
45
Contact 47
euroPean PlastiC Converters




Executive Summary

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ComPetitiveness of the euroPean PlastiCs ConvertinG inDustry
Executive Summary
What is the current level of competitiveness of the European plastics conver-
ting industry and how will it develop in the near future?
 As plastics products are 
of highest relevance in many industry segments and for the satisfaction of consumer 
needs, this question is of particular interest. The European industry study on the 
“Competitiveness of the European Plastics converting industry”
 by Dr. Wiesel-
huber & Partner (W&P) in cooperation with the EU-level trade association of the 
plastics converting industry, EuPC, is focused on the assessment of the industries’ 
current as well as future level of competitiveness. 
Based on a large scale-survey with 326 EU plastics converters from 19 European 
countries
 and more than 20 complementary expert interviews with mostly senior 
company representatives, managing owners and industry experts, the study provi-
des a unique industry insight. Due to a most adequate match of the sample with the 
general industry structure in terms of company size, industry segments and country 
distribution of the EU plastics converting industry, the results are highly valid and 
reliable for direct management as well as policy implications
.
 
The study design follows a basic industry structure model to assess the indus-
tries’ competitiveness in terms of the competitive situation, the regulatory frame-
work conditions, the supply situation as well as the market and demand conditions. 
The analysis is complemented by a self-assessment of plastics converters and a  
compilation of most important management responses to maintain business com-
petitiveness. 
1.  EU converters face a fiercer competition with an increase of non-EU com-
petitors entering the EU market. Still EU companies compete mostly with other 
European plastics converters. However, for more than 30 % of the converters 
Chinese and Turkish companies are already highly relevant competitors. The com-
mon belief among European plastics converters is that the relevance of non-EU 
competitors will continue to increase and thus further intensify the competitive 
rivalry in the industry. 
  To defend their competitiveness and withstand in a fiercer competitive environ-
ment, EU converters leverage their innovativeness and customer proximity along 
with the constant drive for efficiency as market entry barriers wherever possible. 
The resulting innovative products and solutions are still very competitive in global 
markets. Accordingly unsurprisingly, also in export markets, EU converters mostly 
face other EU producers of plastics products as main competitors. 
2. The bureaucratic and regulatory framework conditions within the EU are as-
sessed as mostly stable for plastics converters. Nevertheless, cost burdens 
from direct taxes or necessary effort to comply with domestic and EU-driven 
regulations and requirements have worsened substantially compared to previous 
years. This development poses a massive threat to the competitiveness of EU 
plastics converters. Still, most converters expect a further worsening of the situa-
tion. As a result, study respondents from large, multinational active converters 
Dr. Wieselhuber & Partner Gmbh

ComPetitiveness of the euroPean PlastiCs ConvertinG inDustry
9
assess a shift of their investment focus to outside of the EU. Small and mid-sized 
converters with a strong regional focus more directly face a decline in their cost 
competitiveness and sometimes place their longterm business success in ques-
tion.
 
3.  Assessing the level of fragmentation of the EU single market, the study clearly 
revealed that mostly domestic legislation and slow adoption of EU regulations 
within the member countries is responsible for a still not level European play-
ing field

4. European converters have to deal with a twofold supply situation. The 
serious disruptions in the availability of basic polymers in 2015 led to a critical  
assessement of most converters in the current and future reliability of polymer 
suppliers. Additionally more volatile prices are expected, which also may effect 
the short term competitiveness of particularily SME converters. Contrary to the 
situation with basic polymers, the availability as well as the industry cooperation 
with suppliers of specialized niche products/grades and machine and processing 
technologies is assessed as mostly positive. Furthermore, close linkages within 
these industry networks are positively highlighted as a key source for industry 
innovations. 
5.  Study results back the assessment of the EU market as being attractive for 
most converters and their customer industries. Apart from emerging non-EU 
regions with bigger growth options, predominantly attractive for large, multinatio-
nal converters, the EU markets’ attractiveness is driven by stable framework con-
!
Threats to Competitiveness
0
W Fierce competition with a further 
Management Levers
increasing relevance of non-EU
to maintain Competitiveness
competitors
W A critical level of bureaucratic
W Asset investments with a focus on 
burden with direct cost effects
replacement, efficiency and
W Worsened for supply conditions for
capacity expansion
basic polymers, while suppliers of
W Constant striving for efficiency
innovative materials, machine and
process technologies are key levers
W Focus on innovation and quality
for the industries’ innovativeness
W Customer proximity as a competitive 
W Competitiveness of EU converters
advantage
to non-EU competitors is continously
W Business expansion within the EU 
at risk in price competition
figure 1: management leavers and threats  
and abroad
to competitiveness
W Review of the corporate strategy if 
business evolution cannot cope
with market revolution
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ComPetitiveness of the euroPean PlastiCs ConvertinG inDustry
ditions and sufficient growth options for polymer products. EU plastics converters 
can leverage their main competitive advantages, efficiency, innovation and custo-
mer proximity, within such market conditions and defend their competitiveness 
to global competition.
 
6.  Facing a more intense competition within the European market and threats to 
their competitiveness from the supply side as well as increasing burdens from 
the regulatory framework conditions, EU plastics converters unsurprisingly 
have a very critical self-assessment of their competitiveness
. Compared to 
non-EU competition the vast majority of converters assess their competitiveness 
as worsened in terms of price, energy and labor costs. Contrary to these factors, 
converters assess their competitiveness as positive and still improving in terms of 
product quality, complementary service offers and substitutions for non-plastics 
products. This mixed picture reveals the conflict for most EU plastics converters: 
being highly competitive at the front-end with customer solutions while struggling 
to cope with disadvantageous cost structures at the back-end of their business. 
As a result, converters necessarily need to focus on efficiency and innovation at 
the same time, compared to many non-EU competitors.
 
7.  To maintain their competitiveness converters show some clear patterns of 
management and strategy responses. Increasing efficiency and operational ex-
cellence is the predominant management objective to maintain competitiveness. 
To offer attractive products and solutions for customer industries, most conver-
ters focus and invest in innovation and leverage customer proximity with custom-
ized solutions. Additionally options for business growth are on the agenda of the 
management board together with a critical review of the business strategy, when 
it seems that business evolution cannot cope with market revolution.
 
The European industry study shows that the competitiveness of Europ-
ean plastics converters is still on a sound level but more and more at risk:
 
Fierce competition from non-EU competitors, further increasing cost burdens 
from policy-driven regulations and duties and a less reliable supply with basic 
polymers and qualified staff are the key factors diminishing the industries’ 
competitiveness. However, a constant drive for efficiency and operational ex-
cellence as well as innovation and customer proximity are the key corporate 
levers to maintain the competitiveness on converting businesses. 
Accordingly, the mix of a more cautious industry policy on the domestic as 
well as the EU-level combined with tailored and ambitious strategic manage-
ment responses is the answer to maintain the competitiveness for European 
plastics converters to global competition. 
Dr. Wieselhuber & Partner Gmbh

ComPetitiveness of the euroPean PlastiCs ConvertinG inDustry
11
euroPean PlastiC Converters




1 Objective of 
the Industry Study on 
European Plastics 
Converters

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ComPetitiveness of the euroPean PlastiCs ConvertinG inDustry
1 Objective of the Industry Study on 
European Plastics Converters
1.1 European Plastic Converter Industry
Megatrends like resource efficiency, the circular economy, mass customization and 
e-mobility all have a common denominator: they critically rely on plastics products 
and components. Thus, the polymer industry is a key building block to shape the  
future European industry and economy. European plastics converters are at the heart 
of the polymer industry providing products and solutions for various appliances in 
customer industries. Further, plastics converters together with the machine and pro-
cess technology industry and polymer producers are main drivers for innovation in 
their customer industries.
 
Main Industry segments of 
Unlike many other industry segments of comparable size and relevance the Euro-
EU plastics converter:
pean converting industry is mostly made up of small- to medium-sized companies. 
Further, the industry is widely spread among the European countries following an 
Packaging
often regional consumption of its products. As a result, many converters are located 
Building & Construction
outside of big industry hubs within the EU and bring industry relevance and employ-
Automotive 
ment into regions beyond major cities. Accordingly, the European plastics converting 
Technical Parts
industry with its close to 50.000 companies, employing roughly 1.6 million people 
Consumer Goods 
and creating annual sales of more than 280 billion g is a critical backbone of the 
Agriculture
European economy.
  
With its roots in a big industry value chain, plastics converters are positioned some- 
what in a sandwich between a highly consolidated polymer supply industry and mul-
tinational customer industries, like food, consumer goods, construction and automo-
tive. Further, the converting industry itself has relatively low market entry barriers in 
basic appliances and thus is highly competitive. The ability to successfully conduct 
business in this environment is driven by the overall competitiveness palstics conver-
ters. The key factors driving competitiveness can be described in a basic industry 
structure model including the competitive situation, the regulatory framework condi-
tions, the supply situation as well as the market and demand conditions.
Competitive Environment
European Plastics Converters
Regulatory
W Packaging
Market
Conditions
W Construction
and Demand
W Technical parts
Behavior
figure 2: industry structure model
W Automotive
W Consumer products
Supply Situation
Dr. Wieselhuber & Partner Gmbh

ComPetitiveness of the euroPean PlastiCs ConvertinG inDustry
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1.2 Objective of the Industry Study
Based on the industry structure model the competitiveness of European plastics 
converters shall be assessed. The main interest is on the current level of competi-
tiveness of the European plastics converting industry and how it will develop in the 
near future. The study design and the assessment of competitiveness is aligned to 
hypothesis on the potential major threats to the industries’ competitiveness:
W   A fiercer competition among European converters and non-EU competitors ente-
Hypothesis on threats to the 
ring the market.
competitiveness of EU plastics 
converters

W   Disadvantageous regulatory framework conditions with a still fragmented Euro-
pean single market and critical cost burdens from taxation and regulatory compli-
ance.
W   A less stable feedstock supply and more volatile polymer prices in future, as well 
as worsening access to machine and process technologies and qualified staff.
W   Unfavorable market and demand conditions in Europe for plastics converters. 
The study will assess these hypotheses based on a direct industry opinion from Eu-
ropean plastics converters. Further, insights shall be derived as to how EU converters 
self-assess their competitiveness and what are the management responses on a 
corporate level to maintain competitiveness.
 
As a result, the study shall provide a sound basis for sustaining corporate responses 
of EU plastics converters to secure their competitiveness and maintain their position 
as a key driver for innovation at the heart of the European polymer industry.
 
Further, it shall provide a sound and neutral basis for any policy implications to further 
strengthen and improve the framework conditions for a successful future of Euro-
pean plastic converter industry. 
euroPean PlastiC Converters




2Empirical Industry 
Study 

18
ComPetitiveness of the euroPean PlastiCs ConvertinG inDustry
2 Empirical Industry Study 
2.1 Study Design
The study design followed the objective to capture a most adequate and representa-
tive picture of the European plastics converter industry. Therefore it was designed as 
an integrated three-stage survey. 
1.
Background/Desk Research
2.
Initial large-scale questionnaire-based study among
EuPC-member companies
3.
Small-scale interview study
Trends
Examples
4.
Assessment of EuPC Competitivness to global competition
figure 3: industry study design 
The first stage covered background analysis and desk research on key drivers of the 
industries’ competitiveness. The results were used to develop the questionnaire for 
the large-scale survey. An initial draft of the questionnaire was discussed and fine-
tuned with industry representatives. The final questionnaire was translated into 8 
different languages to ensure a minimized barrier for participation and make it most 
convenient for converters to participate. 
Multi-langual online-Survey 
The questionnaires of the large-scale survey were available online for 8 weeks be-
with the questionnaire 
tween mid January and mid March 2016. The acquisition of converters to participate 
available in 8 different 
was organized by EuPC and an invitation was distributed via national industry asso-
languages:
ciations to their member companies. Additional reminders to participate in the survey 
were sent during the field phase of the study.
  
English
Italian
The online-questionnaire was necessarily focused on the assessment of most rele-
German
vant issues. The objective was to investigate industry trends in their current state 
French
and their expected future development. Further information explaining driving factors 
Spanish
and business effects for plastics converters were captured with the complementary 
Dutch
interview study. The Interview study was conducted with participants of the large-
Polish
scale online survey and additional industry experts. The interviews were based on a 
Turkish
semi-structured guide including already preliminary results from the online survey to 
be discussed with company executives and experts. The interviews were conducted 
in March and April 2016. The average duration of the interviews was 45-60 minutes, 
regardless whether conducted in person or via telephone.  
Dr. Wieselhuber & Partner Gmbh

ComPetitiveness of the euroPean PlastiCs ConvertinG inDustry
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2.2 Industry Sample
In total 326 European plastics converters from 19 EU countries participated in 
the large-scale survey and filled out the online questionnaire. However, not all res-
pondents answered every question but noted the available outside option “not ap-
plicable/no answer”. As a result the available observations per question were below 
the total number of respondents, with more than 200 valid responses for the majority 
of the questions.
Overall Response
ntotal
326 Total Online-Survey Participants
figure 4: total study respondents
nmax
299
nmedian
200
Respondents per Question
nmin
169
 
The sample covered in the online survey represents the industry structure most ade-
The industry sample of 
quate. 54 % of survey respondents have their headquarters in Italy, Germany, France 
the study is most adequate 
and Spain. Together these countries also account for about 56 % of the annual quan-
and represents the industry 
tity of plastics being converted within the EU.
structure in product segments, 
country relevance and 

Study respondents in company size are also a good representation of the heterogene- 
company size
ity of the European industry. The majority of plastics converters in Europe are small 
to medium sized companies. Accordingly the sample with about 74 % of small-to me-
dium-sized companies is an adequate representation of the industry. The segmenta-
tion was made according to annual sales and thus different to the eurostat-segmen-
tation following persons employed. To have a more adequate distinction between 
small and medium-sized converters the following grouping criteria for company size 
with annual sales was applied: Small companies: <20 mill. m, mid-sized companies: 
20-100 mill. m, large companies: >100 mill. m.
Responses by industry
Responses by country
Responses by company size
packaging
construction
RoEU
Italy
Large
   Companies
            Small
18%
18%
18%
Companies
27%
Portugal
6%
39%
11%
47%
automotive
15%
Germany
9%
Turkey
9%
technical parts
9%
13%
34%
15%
12%
France
       Mid-sized
Benelux
Companies
consumer goods
Spain
figure 5: industry sample structure
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ComPetitiveness of the euroPean PlastiCs ConvertinG inDustry
The affiliation of survey respondents to industry segments is adequate to the actual 
industry structure: Packaging and construction being the largest segments followed 
by consumer goods and automotive.
Managing partners or senior 
For the small-scale study 21 complementary interviews were conducted with 18 
executives from plastics 
executives from plastics converters and 3 industry experts from specialized consul-
converters were interviewed 
tants to the industry and national industry associations. The interviewees represen-
for the complementary 
ted plastics converters from 10 different EU countries (Germany 4, Spain 2, Belgium 
small-scale study
2, Netherlands 2, Austria 2, Greece 2, UK 1, France 1, Poland 1, Italy 1) and were 
predominantly active in rigid or flexible film production for various applications and 
the packaging industry. 
The presentation of results follows the objective to give an adequate picture of the 
competitiveness of European plastics converters with the most relevant facts. Ac-
cordingly, the results of the large-scale survey are presented jointly for all responding 
converters. Whenever significant differences between respondents from different 
industry segments, regional origin or company size are observed, additional informa-
tion on the differences is given. 
The industry study with the combined respondents from the online survey and the in-
terviews provides a most adequate cross-section of the European plastics converting 
industry. Any results can be taken as a representative picture of the current state of 
the industry and thus provide a sound basis to derive relevant implications for policy 
as well as management actions for European plastics converters. 
 
21
Poland
France
Industry Experts
3
1
Germany
Italy
1
1
4
UK
1
Company Executives
18
Greece
2
4
Benelux
2
Spain
2
figure 6: experts interview sample
Experts Interviews
Austria
Dr. Wieselhuber & Partner Gmbh

ComPetitiveness of the euroPean PlastiCs ConvertinG inDustry
21
euroPean PlastiC Converters


3


3Results of the Study 
in Detail

24
ComPetitiveness of the euroPean PlastiCs ConvertinG inDustry
3 Results of the Study in Detail
3.1 Assessment of the Competitive Environment 
Due to the maturity of the polymer industry in Europe, plastics have always been 
a highly competitive environment. Today the European converter industry is active 
in a globalized competition. Only a relatively small number of converters is active in 
products, where shipping incurs prohibitive costs, e.g. lightweight rigid packaging 
containers and bottles with large volumes. For these products proximity to custom-
ers is a prerequisite and oversea imports do not make sense. Nevertheless, for the 
majority of converters competition with importing converters is daily business.
 
However, the study shows that for all companies European converters are still the 
largest group of direct competitors. The inner European competition has even be-
come more intense in recent years. Particularly converters from Eastern Europe 
largely invested in most modern production capacity can leverage cost advantages 
along with innovative customer service solutions. 
For about one third of the European companies Turkish and Asian/Chinese converters 
are already highly relevant importing competitors. In particular, Turkish converters are 
very active in the European market, due to a mostly saturated domestic market, cost 
advantages and the regional proximity. Accordingly 85 % of the companies assess 
the European market as being relevant or highly relevant for Turkish converters.
EU
Turkish
Asian/Chinese
Middle East/
RoW
converters
converters
converters
North African
(US, Russia,
converters
etc.)
78%
35%
32%
figure 7: origin of highly relevant 
9%
6%
competitors for european plastic converters 
Majority of respondents (> 50%) believes in an increase
of relevance as competitor in the future
In the future a more fierce competition with more market participants is expected by 
the majority of European converters. The driving force is the further increase of rele-
vance of Turkish and Asian converters. Additionally converters from the Middle East 
and North Africa are expected to increase in relevance in the future, due to substan-
tial advantages in feedstock supply and production costs. Nevertheless, only 8 % of 
the companies assess converters from these regions as relevant competitors today. 
 
Dr. Wieselhuber & Partner Gmbh

ComPetitiveness of the euroPean PlastiCs ConvertinG inDustry
25
Taking an industry perspective, the assessment of the current as well as the future 
competition from importing converters differs somewhat from the general perspec-
tive: Nearly all industry respondents expect an increase in relevance from Asian con-
verters, with technical parts being the exemption. New competition from Middle 
East/North African converters is expected as relevant by companies being active in 
packaging, automotive and technical parts. 
Turkish
Asian/Chinese
Middle East/North African
converters
converters
converters
Increase in relevance in the future
Increase in relevance in the future
Increase in relevance in the future
Construction
Automotive
Automotive
Consumer Goods
Construction
Technical Parts
Automotive
Consumer
Packaging
Packaging
Technical Parts
Goods
Packaging
Currently
Currently Currently
Currently Currently
Construction
Currently
not
highly
not
highly
not
highly
relevant
relevant relevant
Technical Parts
relevant
relevant
Consumer Goods
relevant
Decrease in relevance in the future
Decrease in relevance in the future
Decrease in relevance in the future
figure 8: industry perspective on the current and future relevance of importing converters
However, the more intense competition with a growing number of competitors is 
Threat to competitiveness
not the biggest threat to the competitiveness of European plastics converters. It’s a 
growing competitive maturity of importing converters mostly from Asia, by increas-
ing customer proximity.
 
Still, the predominant pattern of competition from importing converters is the offering 
Competitive Maturity 
of cheap commodities via European agents. Substantial and sometimes grant-aided 
of importing converters 
advantages in costs for feedstock and production entirely cover shipping costs and 
import taxes. As a result importers imply a “next-door” competition for commodity 
products in Europe. The main disadvantage of this business approach is the focus on 
large quantities and a sometimes rather inflexible supply. As a result importers adjust 
and invest in local storage capacities for their basic products. 
A second dimension of competitive maturity develops with the product solutions. As 
seen in other industries, e.g. electronics, machine engineering and automotive, Tur-
kish and Asian converters will also enter the competition in high quality products as 
well as polymer-based systems and solutions for customer industries. The estimated 
timeline for this growing maturity of producers is seen by somewhere between 3-5 
years in innovative product areas.
 
euroPean PlastiC Converters

26
ComPetitiveness of the euroPean PlastiCs ConvertinG inDustry
Product
Maturity of
Performance
Competition
Market entry barrier for
Systems
non-EU competitors:
& Solutions
Customer proximity, e. g.
with customer-integrated
innovation
High-Quality
Products
Market entry
barrier for non-
EU competitors:
Maximized

efficiency at
given regional
non-EU competitors:
cost structure
Commodity
Products
figure 9: Competitive maturity 
European
of plastic converters
Market Presence
Pure
EU-based
EU-based
Import Business
sales office incl.
Subsidiary local
storage capacities
Production
The necessary reaction of 
As a response to this development, survey participants emphasized the common 
EU converters is a matter 
knowledge for the preservation of competitiveness for European converters: Further 
of common knowledge:
enhancing customer proximity with innovative products as well as flexible supply 
solutions and a constant drive for efficiency.
Innovation
 
Customer proximity
Based on their high-quality products and solutions, European plastics converters have 
Efficiency
a competitive edge relevant also beyond the European market. Accordingly Europe is 
a net-exporting region for processed plastics. From a company perspective the study 
revealed that most European converters’ export activities follow their customers. 
Being medium to small companies, most converters do not pursue export activities 
with their growth targets. But if customers invest abroad or as large multinationals 
have global subsidiaries, converters enlarge their business with those customers 
and export to their global sites. Accordingly competition in export markets follows 
Innovative products from 
the comparable pattern as in the EU market. As shown below, other European con-
European converters make the 
verters are the most relevant group of export competitors. Turkish as well as Asian/
EU a net-exporting region
Chinese converters follow in relevance as seen in the European market.
 
Dr. Wieselhuber & Partner Gmbh

ComPetitiveness of the euroPean PlastiCs ConvertinG inDustry
27
100%
94%
89%
87%
69%
48%
50%
Share of respondents assessing
converters for different reasons
as relevant/highly relevant
competitors in export markets
0%
EU
Asian/Chinese
Turkish
USA/
RoW
countries
converters
converters North American
converters
figure 10: origin of competitors in export markets
The competitive environment of European plastics converters is very challenging. In 
a mature market, competition has always been very intense among EU converters. 
Importing competitors from Turkey and Asia further increase competition mostly in 
already price-aggressive market segments. EU converters need to be aware of com-
petitive advantages of importing converters in costs and a growing competitive ma-
turity, which endangers their still strong position in the European market. 
 
euroPean PlastiC Converters

28
ComPetitiveness of the euroPean PlastiCs ConvertinG inDustry
3.2 Assessment of the Regulatory Framework Conditions
The level of fragmentation 
The overall regulatory framework conditions within the European single market are 
is somewhere between 40-60% 
assessed as constant compared to previous years and also in their future develop-
of a perfectly harmonized 
ment by the majority of respondents and interviewed industry experts. This percep-
EU single market
tion did not change from a national or from an industry perspective.
Study respondents answered that compared to previous years, conditions 
W   improved 12 % 
W   remained constant 61 % 
W   worsened 27 %
 
Further, study respondents answered that conditions in the future will 
W   improve 15 % 
W   remain constant 55 % 
W   worsen 30 %
 
Fragmentation is mostly 
However, the level of fragmentation from domestic legislation, regulations and by-
pushed on a national level, 
laws, driving the framework conditions, is assessed as too high and still far from a 
sometimes in contrary to 
perfectly harmonized European single market. The root cause for this fragmenta-
EU-driven harmonization
tion can be found within the member states. EU legislation, by nature aiming at a 
legislative level playing field, is slowly or sometimes even not adopted to national 
law by the member states. Other fac-
Conditions will improve
tors further pushing the level of frag-
in the future
mentation are different domestic by- 
laws and authorities charged with the  
enforcement of legislation. Thus, com- 
panies need to adjust to these differen-
Spain
RoEU
ces within the EU market with addition-
figure 11: assessment of the overall regulatory 
Conditions
Italy
Germany
Condition
al administrative effort. Key drivers for 
framework conditions by country
worsened
improved
France
Benelux
this fragmentation on a national level 
Turkey
Portugal
are different requirements for consum-
er safety, the use of raw materials, for 
processing technologies and approvals 
to sell different plastic products.
Conditions will worsen
in the future
 
Accordingly the perceived change in the 
The perceived change 
level of fragmentation differs quite substantially between respondents from different 
in the level of fragmentation 
countries. Looking at the current level of fragmentation and whether it improved 
differs between converters 
or worsened compared to previous years, the Benelux countries, France and Spain  
from different EU countries
differ most from the general assessment.
 
The Spanish plastics converting industry is most divergent in its assessment of the 
regulatory framework conditions. More than one out of four Spanish converters 
(26 %) perceives conditions to have improved within the regulatory framework for 
doing business. Nearly the same share of converters perceives conditions to have 
worsened (29 %). One has to note, that in particular Spain still copes with the mas-
sive economic crisis and that converters obviously benefit very differently from the 
slight economic recovery. 
Within the Benelux countries and France only one out of sixteen companies follows 
the positive perception of changed conditions. Further, Benelux countries also differ 
in their perception of worsening conditions to the general assessment. Only 17 % of 
converters from Benelux perceive worsened conditions, compared to the negative 
assessment from 27 % of the converters in the total sample.
 
Dr. Wieselhuber & Partner Gmbh

ComPetitiveness of the euroPean PlastiCs ConvertinG inDustry
29
The expected future development of framework conditions differs most in Germany,  
Italy and again in Spain compared to the general assessment. In Germany only 6 %  
of the converters expect improved conditions in the future compared to the 15 % 
of the total respondents. Contrary to this 20 % of Italian converters expect im- 
proved conditions. The share of companies expecting worsened conditions in Ger-
many (33 %) and Italy (28 %) is close to the share of all respondents with 30 %. Here 
Spain is the exemption with “only” one out of five companies expecting conditions 
to worsen in the future. Again, the most recent economic crisis will have influenced 
this assessment.
Compared to previous years conditions …
Conditions in the future will …
… worsened
… improved
… worsen
… improve
EU average
27%
12%
EU average
29%
15%
Portugal
33%
17%
France
33%
17%
Italy
33%
11%
Germany
33%
6%
Germany
30%
12%
RoEU
31%
20%
France
30%
7%
Portugal
31%
17%
Spain
29%
26%
Benelux
29%
12%
RoEU
23%
9%
Italy
28%
20%
figure 12: assessment of the regulatory 
Benelux
17%
6%
Spain
19%
12%
framework conditions by country 
A direct threat to the competitiveness of European plastics converters comes from 
the high level of bureaucratic effort and taxes, resulting from complex regulatory 
framework conditions. Unsurprisingly but nevertheless well-founded, converters cri-
ticize this high level of expenses they have to incur. Typically they are substantially 
higher, compared to costs of importers and non-EU producers of polymer products.
 
For nearly half of the converters participating in the study, the burden of duties and  
taxes increased over the last years (43 %). For 52 % the level of duties and taxes 
remained constant on a critical high level. Accordingly, only 5 % have seen an im-
provement in the cost burden from regulatory framework conditions. The drivers 
behind such costs, the necessary bureaucratic effort is equally driven by EU as well 
as domestic legislation, based on the respondent’s assessment. Thus, the majority 
of converters have the perception that the tax and bureaucratic effort from EU (59 %) 
and national (57 %) legislation increased compared to previous years.
As shown, the necessary effort driven by domestic legislation is mostly coming from 
Converters perceive the 
slow or heterogeneous adoption of EU regulations alongside with additional national 
ongoing expansion of the 
regulations for companies. The EU administration itself is also a driver of bureaucratic 
regulatory framework as 
effort for converters with a constant expansion of the regulatory framework. Particu-
a threat to the legitimate 
larly this continuous development of additional legislation is seen as a threat to the 
expectation for their 
legitimate expectation for converters’ business activities within the EU. Company re-
business in the EU
presentatives from some of the multinational active converters participating in the in-
terview study, mentioned scenarios for a dislocation of business assets from Europe  
due to an ongoing increase of the regulatory burden.
 
euroPean PlastiC Converters

30
ComPetitiveness of the euroPean PlastiCs ConvertinG inDustry
Compared to previous years conditions …
… improved
6%
3%
8%
… remained constant
3%
5%
52%
50%
47%
… worsened
38%
38%
42%
59%
57%
47%
45%
The burden
The bureaucratic effort The bureaucratic effort The legal and planning
The bureaucratic effort
of duties & taxes
driven by
driven by domestic
certainty for companies for sustainable products
EU legislation
legislation
affected by
along the life cycle
EU legislation
Conditions in the future will …
… improve
12%
9%
12%
… remain constant
8%
8%
43%
… worsen
40%
34%
38%
43%
figure 13: assessment of taxes 
48%
48%
45%
and bureaucratic burden for 
58%
54%
eu plastics converters
The burden
The bureaucratic effort
The bureaucratic effort The legal and planning
The bureaucratic effort
of duties & taxes
driven by
driven by domestic
certainty for companies
for sustainable
EU legislation
legislation
affected by
products along
EU legislation
the life cycle
Although the bureaucratic burden for companies has always been ranked high and 
placed prominently on the agenda of policy discussions, most converters still expect 
a further increase in the necessary expenses and thus, a still worsening situation in  
the future. In detail, study respondents assessed that the burden from taxation and 
bureaucratic efforts in the future …
W   will improve 10 % 
W   will remain constant 39 % 
W   will worsen 51 %
 
Asked for a comparison to other regions in the globalized economy, multinational 
active converters responded, that the regulatory framework conditions in the EU 
are comparably higher than in the US for example, or in Asia. Thus, they constitute 
a lower competitiveness of the EU market. Nevertheless, for Asia it was mentioned 
that despite a lower level of regulation, there is also a lower level of accountability of 
authority actions.
 
The results of the companies’ assessment of the regulatory framework conditions 
are a clear indication for a threat to the competitiveness of EU converters. The in-
tense competitive environment demands the highest focus on defending the current 
level of competitiveness from European plastics converters. A still further increase 
of bureaucratic burden and necessary effort to comply with regulatory requirements 
weakens the ability to apply this focus and preserve the industries competitiveness. 
Accordingly, policy makers on a EU and a national level should be most cautious 
about the industries‘ perspective, when refining economic policy in the future.
Dr. Wieselhuber & Partner Gmbh

ComPetitiveness of the euroPean PlastiCs ConvertinG inDustry
31
3.3 Assessment of the Supply Situation
As a converting industry, plastics processing companies critically rely on three types 
of supply:
W   Supply of feedstock
W   Supply of processing technology and machines
W   Supply of skilled labor force
The supply with some basic polymers was subject to massive disruptions in the last 
year. On the one hand there was the temporary critical shortage in the supply of PE 
and PP alongside with highly volatile prices as a major shock for the European indus-
try. On the other hand European producers of PVC were subject to a fundamental 
industry consolidation, with changes of ownership and industry structure over the 
last two years. As these three types of polymers together constitute about 60 % of 
processed plastics in Europe, these disruptions had an effect on the assessment of 
the supply situation by European converters.
 
Accordingly 60 % of the converters see a worsened supply of basic polymers compa-
The 2015 supply shock is a 
red to previous years. Further, 39 % of the converters expect a further worsening of 
threat to the competitiveness 
the supply situation in the future. The effect for European converters differs mostly 
of mostly large converters 
by company size. Large, multinational converters start to actively evaluate options for 
in the EU and still a critical 
global sourcing or a dislocation of production facilities towards thriving global hubs of 
challenge for small to medium 
the petrochemical and upstream industry. Small to medium-sized converters cannot 
sized multi-national companies
easily enter a globalized sourcing of polymers and also have a lock-in effect with their 
operations footprint within the EU. These companies, being the majority of European 
converters, face a substantial threat to their competitiveness from a less reliable and 
more volatile supply of feedstock. 
 
Compared to previous years
The situation in the future
the situation …
will …
30%
24%
… improved
27%
16%
16%
… remained constant
… worsened
12%
60%
58%
58%
57%
45%
28%
15%
26%
13%
16%
figure 14: assessment 
39%
of the supply situation
60%
The supply with
The supply
The supply
The supply with
The supply
The supply
basic polymers
specialized niche
with recycled
basic polymers
specialized niche
with recycled
(commodities)
products/grades
material
(commodities)
products/grades
material
euroPean PlastiC Converters

32
ComPetitiveness of the euroPean PlastiCs ConvertinG inDustry
figure 15: assessment of the supply 
Compared to previous years
The situation in the future
with basic polymers by company size
the situation for the supply
for the supply with basic
with basic polymers …
polymers will …
… worsened
… improved
… worsen
… improve
SME
59%
15%
SME
36%
23%
large
71%
11%
2%
large
55%
4%
figure 16: assessment of the supply 
Compared to previous years
The situation in the future
with niche products by company size
the situation for the supply
for the supply with niche
with niche products …
products will …
… worsened
… improved
… worsen
… improve
SME
17%
27%
SME
16%
29%
large 9%
29%
large 4%
33%
The picture is different for the supply of specialized niche products and grades. The 
situation is assessed as mostly constant or improved compared to previous years by 
nearly 85 % of the survey participants. The picture is comparable for the supply of 
recycled material, with three out of four companies assessing a constant or improved 
situation. Nevertheless, 26 % of the converters see a worsened supply for recycled 
material compared to previous years and thus, a threat to initiatives for a circular 
economy in plastics apart from energy recovery.
New and innovative materials 
New and innovative materials are one of the key drivers for converters to develop 
are mostly developed in close 
innovative plastics products. Accordingly access to such materials is crucial for con-
cooperation between conver-
verters to remain competitive. The direct market access to such innovative mate-
ters and polymer suppliers
rials is assessed as constant or improved by 72% of the converters. In some cases 
even more relevant for a single company, is the joint specification or development 
of innovative materials with suppliers. Somewhat different to the perceived eroded 
partnership of suppliers and converters in basic polymers, still 81% of the companies 
assess development cooperation with suppliers as positive. 
 
Compared to previous years the situation …
The situation
in the future will …
25%
… improved
20%
23%
35%
… remained constant
… worsened
61%
62%
50%
42%
19%
13%
27%
23%
figure 17: assessment of the access to innovative 
materials
Cooperation
Access to
Cooperation
Access to
with suppliers
new/innovative
with suppliers
new/innovative
to develop new/
materials
to develop new/
materials
innovative
innovative
materials
materials
Producers of machine and 
Like plastics converters, European producers of processing machinery and techno-
processing technologies are 
logies face a comparable threat to their innovativeness from global competition and 
seen as the dominant driver of 
a commoditization of their products. The close linkage between converters and the 
innovation in the industry
machine industry is thus crucial to maintain competitiveness for either side. Accord-
ingly, only an absolute minority of less than 5 % of the converters sees a worsened 
cooperation compared to previous years or in the future. 
Dr. Wieselhuber & Partner Gmbh

ComPetitiveness of the euroPean PlastiCs ConvertinG inDustry
33
Compared to previous years the situation …
The situation
in the future will …
… improved
41%
38%
42%
40%
… remained constant
… worsened
55%
58%
55%
57%
4%
4%
3%
3%
figure 18: assessment of the access 
Access to
Cooperation with
Access to
Cooperation with
to innovative process technologies
new/innovative
suppliers of
new/innovative
suppliers of
process
new/innovative
process
new/innovative
technologies
process
technologies
process
technologies
technologies
The maintenance and further development of a skilled labor force is critical to the com-
petitiveness of European converters. Due to the EU economic crisis, the framework 
conditions on the domestic labor markets differ largely between EU countries. Accord- 
ingly, the assessment of the supply situation differs between southern and central 
European countries. Regions still facing 
Situation will improve
a high rate of unemployment, provide 
in the future
much less difficulties for converters to 
attract and develop a skilled workforce. 
Portugal
For Germany, France and the Benelux 
countries, the maintenance and devel-
opment of skilled staff is already today 
Situation
Italy
Spain
Situation
figure 19: assessment of the access 
France
RoEU
difficult. Again, the majority of small to 
worsened
improved
to skilled staff by regions
medium sized companies faces bigger 
problems, as they have limited options 
to attract staff, e.g. with employer brand- 
Germany
Benelux
ing like big and better known conver-
ters.
Situation will worsen
in the future
The overall supply situation for European converters has become more difficult. In 
To defend their competitive-
particular smaller companies are largely effected by a worsened supply of basic poly-
ness European converters 
mers. Nevertheless, the competitiveness of EU converters mostly depends on their 
need to further engage in joint 
innovativeness, with the two main supply levers, innovative materials and processing 
innovation with suppliers, both 
technologies. Here, the traditionally close relationship between material and machine 
in materials and in processing 
suppliers together with converters prevails. As partners within an integrated value 
technologies 
chain, they mutually rely on innovation to remain competitive beyond commodity 
markets. 
euroPean PlastiC Converters

34
ComPetitiveness of the euroPean PlastiCs ConvertinG inDustry
3.4 Assessment of the Market and Demand Conditions
The competitiveness of European plastics converters in the front end towards cus-
tomer industries is driven by influencing factors of the market and demand situation. 
The most relevant factors are 
W   a stable customer basis
W   industry customer demands
W   end-user opinion and demand for plastics products 
Customer industries have 
Due to the regional focus of most EU converters a stable customer base within the 
a strong commitment to the 
EU is crucial for any current and future business success. Based on the converter’s 
European market 
assessment, customer industries have a strong commitment to the European mar-
ket. Accordingly, 81 % of the respondents think that the EU market stays relevant or 
even gains relevance for customer industries to sell their products. Asked for invest-
ments of customer industries within the EU market, 76 % of the respondents assess 
constant or increased investments in Europe compared to previous years. Yet, nearly 
one out of four converters expects declined investment activities from customer 
industries in the EU. 
23 % of the converters expect 
The assessment of the future development is closely linked to this perception, with 
declining future investment 
about one out of five converters expecting a worsened commitment to the European 
activities from customer 
market from customer industries. As a result, converters need to closely follow this 
industries in the EU 
development, as a bigger dislocation of customers’ production from the EU would of 
course harm their business activities.
 
Compared to previous years the situation …
The situation
21%
15%
in the future will …
19%
18%
… improved
… remained constant
… worsened
60%
61%
62%
59%
19%
19%
figure 20: assessment of the customers’ 
24%
23%
commitment to the european market
The relevance of
Investments
The relevance of
Investments
the EU market for
of customer
the EU market for
of customer
customer industries
industries within
customer industries
industries within
to sell their
the EU
to sell their
the EU
products
products
Patterns of EU converters 
The ability to meet customer demands is directly linked to the competitiveness of 
to hold the pace of innovation 
plastics converters. EU converters mostly focus on innovative products and are thus, 
for their customers:
at the heart of innovation at their customers. This distinctive position in the global 
competition was defended and remained constant, according to the assessment of 
R&D spending
the majority of converters. Yet, every third converter has seen an improvement in 
Customer integrated innovation
providing innovative products and solutions for customer industries. In particular the 
Industry cooperation with the 
close customer proximity of EU converters is assessed as a competitive advantage in 
machine and polymer industry 
this matter by the vast majority of respondents. As the converters’ strive for contin-
Science cooperation
uous innovation, the future expectation to provide relevant innovations for custom-
ers industries is equally positive.
 
Dr. Wieselhuber & Partner Gmbh

ComPetitiveness of the euroPean PlastiCs ConvertinG inDustry
35
Compared to previous years
the situation …
36%
… improved
35%
36%
31%
… remained constant
… worsened
60%
55%
54%
55%
4%
10%
10%
14%
The relevance of
The level of
The pace of
Customer proximity
plastic products
innovativeness
innovation at EU
as a competitive
and components
(incremental,
plastic converters to
advantage
from EU
radical) at EU plastic meet the customer
converters
converters to meet
expectations
for innovation
the customer
in customer
expectations
industries
The situation in the future
will …
39%
38%
38%
… improve
35%
… remain constant
… worsen
59%
59%
58%
54%
figure 21: assessment of the converters’ 
innovativeness to meet customer demands
2%
11%
3%
4%
The relevance of
The level of
The pace of
Customer proximity
plastic products
innovativeness
innovation at EU
as a competitive
and components
(incremental,
plastic converters to
advantage
from EU
radical) at EU plastic meet the customer
converters
converters to meet
expectations
for innovation
the customer
in customer
expectations
industries
As a result, European plastics converters have a dominant position as reliable and 
mostly preferred suppliers in their customer industries, as assessed by the majority 
of respondents. Nevertheless, 29 % of the converters have seen a setback as a pre-
ferred supplier compared to previous years and still 26 % expect a further threat to 
this position in the future. 
Compared to previous years
The situation in the future will …
the situation …
41%
39%
… improved
13%
18%
… remained constant
50%
… worsened
58%
56%
52%
figure 22: assessment of the 
converters’ positioning as 
industry supplier
9%
9%
29%
26%
The status of EU
The trust in
The status of EU
The trust in
plastic converters
reliability as a
plastic converters
reliability as a
as preferred
supplier for
as preferred
supplier for
suppliers for
customer
suppliers for
customer
customer industries
industries
customer industries
industries
euroPean PlastiC Converters

36
ComPetitiveness of the euroPean PlastiCs ConvertinG inDustry
Public Opinion
Despite the unquestionable benefits 
 
will improve in the future
of polymer products for a resource ef-
ficient Europe, the public opinion about 
plastics is selectively very critical. For 
example, policy initiatives to ban plastic 
Germany
Spain
bags are driven by a mostly emotion-
Public
France
Public
Opinion
RoEU
Italy
Opinion
ally charged discussion but hard facts. 
worsened
Benelux
Turkey
improved
Such a critical environment can influ-
ence customers’ decisions to deploy 
figure 23: assessment of the public 
Portugal
plastics products and accordingly harm 
opinion about plastics products by region
the competitiveness of converters over 
other solution providers. In particular 
Public Opinion
will worsen in the future
converters from Portugal, Germany and 
the Benelux countries have to face this 
threat to their competitiveness, whereas the other big players in plastics processing, 
Italy, France and Spain, can rely on a stable and mostly positive public opinion about 
plastics products. 
74 % of plastics converters 
The positive opinion from the majority of converters about the European market and 
assess the EU market 
demand conditions can be summarized in their assessment of own regional growth 
conditions as attractive for 
targets. Two thirds of the converters have the opinion that the EU market is equally 
their growth targets 
attractive or improved in attractiveness to meet their individual growth targets. Asked 
for the assessment of future conditions this expectation is supported by an even 
larger number of respondents.
 
Compared to previous years
Conditions
the situation …
in the future will …
… improved
23%
21%
… remained constant
… worsened
53%
55%
figure 24: assessment of 
the attractiveness of the eu market 
for growth targets
26%
22%
The attractiveness
The attractiveness
of the EU market
of the EU market
for your growth
for your growth
targets
targets
Large, multinational converters 
The 26 % of respondents assessing a declined attractiveness of the EU market are 
aim for growth options beyond 
mostly large, multinational converters. For these global players growth targets are 
the EU market in emerging 
oriented at emerging economic regions in the world, where up to double-digit eco-
economic regions 
nomic growth rates are accessible. For these converters the European market is 
a mostly mature market with limited growth options apart from crowding out and 
acquisitions. Middle and South America as well as India are such globally attractive 
regions for these converters, to name but a few. From a product perspective, these 
regions are attractive for highly innovative products as in the EU and if shipping costs 
are insignificant, also for basic quality products. 
Dr. Wieselhuber & Partner Gmbh

ComPetitiveness of the euroPean PlastiCs ConvertinG inDustry
37
3.5 Self-Assessment of the Competitiveness of EU Plastics Converters
Facing a more intense competition within the European market and threats to their 
competitiveness from the supply side as well as increasing burdens from the regul-
atory framework conditions, plastics converters unsurprisingly have a very critical 
self-assessment of their competitiveness. 
Compared to previous years, costs for energy and staff increased for EU converters 
About 60 % of EU plastics 
and thus worsened their competitiveness against non-EU converters. As a result, 
converters face a worsened 
the ability to withstand fierce price competition is harmed for most EU converters 
competitiveness against 
in comparison to non-EU competitors. About 60% of the respondents assess wor-
non-EU competitors
sened conditions in these three dimensions of converters’ competitiveness. Asked 
for the future expectation of their competitiveness nearly every second converter 
expects a further worsening of the conditions in energy and labor costs as well as 
price competitiveness.
 
Compared to previous years
The situation in the future
the situation …
will …
16%
… improved
11%
16%
… remained constant
18%
10%
9%
39%
40%
37%
… worsened
22%
28%
32%
figure 25: assessment of the 
45%
competitiveness against non-eu 
49%
47%
60%
62%
59%
competitors
Competitiveness
Competitiveness
Competitiveness
Competitiveness
Competitiveness
Competitiveness
in price compared
in energy costs
in labor costs
in price compared
in energy costs
in labor costs
to non-EU
compared to non-EU compared to non-EU
to non-EU
compared to non-EU compared to non-EU
competition
competition
competition
competition
competition
competition
Positively notable in this self-assessment is the fact that still about every fifth conver-
ter stated an improved competitiveness in price compared to non-EU competition. 
Product innovation and the ability to demand higher prices for more product value is 
the predominant factor behind this perception of the some respondents. The con-
stant urge for efficiency and cost reduction additionally drives the positive assess-
ment of competitiveness from respondents reporting improved conditions. 
 
As the energy market within the EU is still highly fragmented and in particular non-
wage labor costs are driven mostly by national legislation, a closer look at the con-
verters assessment from a national perspective provides further valuable insights: 
Italian converters have suffered most from a decline of competitiveness regarding 
Most converters in Germany 
prices compared to previous years. Contrary to that, in Germany and Portugal a big-
and Portugal face higher costs 
ger share of converters has seen an improvement in their price competitiveness than 
for energy and labor – but still 
converters facing a decline. This is particularly remarkable as the majority of convert- 
more converters in these 
ers from these two countries incurred worsened competitiveness in energy and labor 
countries assess their price 
costs resulted in higher costs for energy and staff. The explanation for German and 
competitiveness as improved 
Portuguese converters is mostly rooted in their innovative, distinctive products and 
and not worsened
services alongside with a constant drive for efficiency. 
euroPean PlastiC Converters

38
ComPetitiveness of the euroPean PlastiCs ConvertinG inDustry
For Portugal one can add that it has mostly recovered from the economic crisis and 
can still produce on a very cost competitive level within the EU. But alongside with 
the recovery, costs started to increase again and thus lead to a negative assessment 
compared to previous years. 
Competitiveness in price
Competitiveness in price
Competitiveness in price
Competitiveness in energy costs
Competitiveness in energy costs
Competitiveness in energy costs  
Competitiveness in labor costs
Competitiveness in labor costs
Competitiveness in labor costs
compared to EU competition …
compared to EU competition …
compared to EU competition …
compared to EU competition …
compared to EU competition …
compared to EU competition …
compared to EU competition …
compared to EU competition …
compared to EU competition …
… worsened
… worsened
… worsened… improved
… improved
… improved
… worsened
… worsened
… worsened … improved
… improved
… improved
… worsened
… worsened
… worsened … improved
… improved
… improved
EU average
EU average
EU average 46%
14%
46%
14%
46%
14%
EU average
EU average
EU average 69%69%69% 8% 8% 8%
EU average
EU average
EU average 39%39%39% 9% 9% 9%
Portugal
Portugal
Portugal 46%46%46%
9% 9% 9%
Germany
Germany
Germany 69%69%69%
10%10%10%
ItalyItalyItaly
55%55%55% 0% 0% 0%
RoEURoEURoEU
32%32%32% 8% 8% 8%
Portugal
Portugal
Portugal 67%67%67%
11%11%11%
Germany
Germany
Germany 54%54%54%
7% 7% 7%
Benelux
Benelux
Benelux
28%28%16%
28%16%16%
Spain
Spain
Spain
60%60%60% 5% 5% 5%
Portugal
Portugal
Portugal
60%60%60%
8% 8% 8%
Spain
Spain
Spain
24% 14%
24% 14%
24% 14%
ItalyItalyItaly
55%55%55%3% 3% 3%
France
France
France
38%38% 19%
38% 19%19%
France
France
France
24%24%24% 12%12%12%
RoEURoEURoEU
39%39% 3%
39% 3% 3%
Spain
Spain
Spain
33%33%33% 10%10%10%
Germany
Germany
Germany
17% 21%
17% 21%
17% 21%
Benelux
Benelux
Benelux
32%
24%
32%
24%
32%
24%
Benelux
Benelux
Benelux
32%32% 19%
32% 19%19%
Portugal
Portugal
Portugal
8% 8% 8% 33%33%33%
France
France
France
20%
7%
20%
7%
20%
7%
RoEURoEURoEU
23%23% 9%
23% 9% 9%
Turkey
Turkey
Turkey 53%53%53%
12%12%12%
Turkey
Turkey
Turkey
38%38%38%12%12%12%
Turkey
Turkey
Turkey
40%40%40% 7% 7% 7%
figure 26: assessment of the 
The vast majority of respondents assess positively the competitiveness of products 
competitiveness by country
and services offered to customers. In particular, 20 % and 27 % of the converters 
even state an improvement of their competitiveness compared to previous years 
over non-EU converters. 
Compared to previous years
The situation in the future
the situation …
will …
20%
… improved
28%
25%
25%
22%
24%
… remained constant
… worsened
67%
60%
53%
54%
58%
55%
13%
12%
22%
21%
20%
21%
figure 27: 
Competitiveness
Competitiveness
Competitiveness
Competitiveness
Competitiveness
Competitiveness
assessment of product and 
in product quality
in complementary
compared to
in product quality
in complementary
compared to
service competitiveness 
compared to
service offers
non-plastic
compared to
service offers
non-plastic
against non-eu 
non-EU
compared to
products for the
non-EU
compared to
products for the
competitors
competition
non-EU
same application
competition
non-EU
same application
competition
competition
This assessment holds true from a national perspective, where again German and 
Portuguese converters stand out with the biggest share of converters assessing im-
proved competitiveness in product and service quality. 
 
Dr. Wieselhuber & Partner Gmbh

ComPetitiveness of the euroPean PlastiCs ConvertinG inDustry
39
Competitiveness in quality
Competitiveness in complementary
compared to EU competition …
service offers compared to EU
competition …
… worsened
… improved
… worsened
… improved
EU average
6%
20%
EU Average
9% 17%
France
12%
18%
France
13%
7%
Germany
10%
28%
Italy
13% 13%
Italy
9%
21%
Benelux
60%
9%
14%
Benelux
4%
20%
RoEU
55%
9%
20%
RoEU
3%
13%
Germany
8%
27%
Spain
0%
19%
Benelux
5%
11%
Portugal
0%
33%
France
0%
27%
Turkey
35%
12%
Turkey
38%
6%
figure 28: assessment of the competitiveness by country
The self-assessment of Turkish converters on their competitiveness is quite remark-
Turkish converters face 
able. Compared to previous years, most converters face a worsened competitive-
a worsened competitiveness 
ness in price. Every third converter in Turkey further assessed competitiveness in 
in the European market to 
product quality and service offers as worsened to non-EU competition. Accordingly, 
non-EU competition, 
competition from Asia, active in comparable commodity products gained competi-
mostly from Asia
tiveness on the European market on the account of Turkish converters
euroPean PlastiC Converters




4Maintaining 
Competitiveness 

42
ComPetitiveness of the euroPean PlastiCs ConvertinG inDustry
4 Maintaining Competitiveness 
4.1 Corporate Response to Maintain Competitiveness
The assessment of the five key factors driving competitiveness by the European 
plastics converters proved the challenging competitive environment for converters. 
Besides unquestionable and notable strengths of EU converters, market conditions 
continuously pose a threat to competitiveness of the European industry:
 
W  More fierce competition among European plastics converters and a further in-
creasing relevance of Asian and Turkish converters as competitors within the Eu-
ropean market.
W   A critical level of bureaucratic burden resulting in increased necessary manage-
ment attention and effort as well as increased direct costs, in mostly constant 
regulatory framework conditions with a still notable level of fragmentation of the 
European market.
 
W   Worsened supply conditions for basic polymers for European converters, while 
suppliers of innovative materials, machine and process technologies are key levers  
for the innovativeness of European plastics converters.
W   Mostly positive market conditions with a strong customer base committed to the 
European market and relying on plastics converters as innovative and reliable sup-
pliers for customer industries.
W   Competitiveness of EU converters to non-EU competitors is continuously at risk 
in price competition, from increased costs for energy and staff. However constant 
striving for efficiency and innovative products and solutions still preserve the head 
start of EU converters to global competition. 
Management response 
To maintain their competitiveness, European converters show a clear pattern of man-
to maintain competitiveness:
agement response to the challenging market environment: First, increasing effici-
ency and reducing energy consumption and second, investments in innovation and 
Increase efficiency
expanding business activities by entering new product and regional markets. The 
Focus on innovation
high relevance of these management responses, holds true for all company sizes. 
Expand business activities
 
 
Dr. Wieselhuber & Partner Gmbh

ComPetitiveness of the euroPean PlastiCs ConvertinG inDustry
43
Rank
Strategic responses to maintain competitiveness
(by number of responses)
Increase efficiency with focus on 
operations and supply chain
36%
33%
31%
100%
Reduce energy consumption
32%
30%
29%
91%
Enter new regional markets/countries 
inside EU
42%
29%
20%
91%
Increase investments into innovation
and new product developments
32%
28%
30%
90%
Enter new market segments/
application
34%
26%
25%
85%
Enter new regional market/countries 
outside EU
29%
28%
23%
80%
Increase efficiency with focus 
on administration, marketing, sales
31%
28%
21%
80%
Focus on product individualization 
and customer solutions
28%
23%
15%
66%
Expand complementary services
figure 29: management responses to maintain 
13%
15%
36%
competitiveness
7%
Small Companies
Mid-sized Companies
Large Companies
Converters also pursue strategic activities to maintain competitiveness and expand 
Strategic response to maintain 
their businesses to meet growth targets. In a mostly mature market, substantial 
competitiveness:
growth options are mostly accessible by business consolidation. Accordingly, the 
Growth targets
acquisition of quantities to achieve economies of scale is the predominant strategic 
Internationalization 
response of EU converters. Foreign investments for growth inside and outside the 
Review corporate strategy 
EU are also used by many converters. The preference and the ability to pursue such 
targets of course depends on the company size and thus more large converters fol-
low M&A and foreign investment activities than small to medium sized converters. 
 
Rank
Strategic responses to maintain competitiveness
(by number of responses)
Growth for economies of scale 
(e. g. via M&A)
28%
30%
42%
100%
Foreign investments outside EU
22%
23%
34%
79%
Foreign investments inside EU 
33%
21%
21%
75%
Restructuring of the company
25%
26%
18%
69%
Change of company strategy 
24%
19%
11%
54%
Expand vertical integration along 
figure 30: strategic responses to maintain 
the value chain
14%
7% 10% 31%
competitiveness
Small Companies
Mid-sized Companies
Large Companies
As complementary activities to maintain their competitiveness, European converters 
further invest in their assets and thus show a strong commitment to the European 
market. The vast majority of 88 % of the companies have most recently invested in 
their operations footprint or plan to do so. These investments aim at a higher level 
of efficiency and automation of production equipment as well as an expansion of 
production capacity. 
euroPean PlastiC Converters

44
ComPetitiveness of the euroPean PlastiCs ConvertinG inDustry
No Investments
12%
32%
Capacity Expansion
figure 31: Corporate investments 
Asset Investments
35%
Replacement
to maintain competitiveness
88%
33%
Rationalization
Physical asset investments:
The latter is mostly driven by a growing market demand, in particular in profitable  
niche markets, where a large number of converters are active. Nevertheless, an ex-
Capacity expansion
pansion of production capacity comes at the cost of a necessary equipment utilizati-
Replacement together with 
on and acquisition of quantities. Converters within some market segments need to 
increased efficiency
be very aware of such an expansion of capacities and whether it may be the starting 
point to enter the commodity trap, with a purely price driven competition.
Automation/rationalization
 
Looking at the investment in detail and from the perspective of different industry 
segments, European plastics converters typically invest more than 1 % of annual 
sales. In some industries the majority of companies even invests more than 3 % of 
the sales volume in an expansion of production capacity as a predominant motive for 
such capital expenditure. Alongside with the investment motives in question, higher 
levels of efficiency are always a key focus of any investment in operations equipment 
and process technologies. 
 
Expand
Automotive
15%
35%
45%
5%
production
capacity
Construction
12%
32%
35%
21%
Consumer Goods
10%
24%
55%
11%
Packaging
9%
22%
50%
19%
Technical Parts
11%
33%
50%
6%
Replacement
Automotive
20%
40%
40%
investment
Construction
18%
59%
15%
8%
Consumer Goods
17%
45%
24%
14%
Packaging
18%
39%
36%
7%
Technical Parts
28%
39%
33%
Rationalization
Automotive
30%
45%
25%
investment
Construction
38%
29%
15%
18%
Consumer Goods
38%
31%
10%
21%
Packaging
32%
34%
24%
10%
Technical Parts
61%
22%
11%
6%
figure 32: Corporate 
no investments
investments by industry 
investment of less than 1% of annual sales volume
investment between 1-3% of annual sales volume
investment of more than 3% of annual sales volume
Dr. Wieselhuber & Partner Gmbh

ComPetitiveness of the euroPean PlastiCs ConvertinG inDustry
45
4.2 Strategic Levers to Maintain Competitiveness
As clear as most of the strategic and management levers to maintain competitive-
ness seem to be, they are not that easy to operate. Converters’ management needs 
to carefully select initiatives to pursue and individually frame their implementation.
Innovation: pillar to competitiveness, if more than a marketing label 
Most converters state that they will critically rely on innovation to maintain their 
competitive-ness. Yet, there is often a gap between converters labeling themselves 
as “innovative” and their actual ability to deliver new, beneficial and distinctive prod-
ucts for customers. The problem for most converters is at the two ends of a mostly 
defined new product development process. At the back-end it’s a fuzzy innovation 
strategy and a lack of ideas. At the front-end it is often an insufficient innovation  
marketing and time-to-market performance. Comprehensive innovation management 
thus starts with a clear innovations strategy linked to the corporate strategy, and a 
thorough idea-generating stage. Further, innovation marketing differs from marketing 
for established products in many ways and needs to be shaped individually for every 
company. Otherwise new products stumble into the market and sales and diffusion 
rates stay well below initially planned figures. From our industry practice, we know 
that many executives from plastics converters are very self-critical when assessing 
their innovation performance as a lever for competitiveness.
Customer Proximity: a driver of distinction, customization 
and critical complexity
If products do not offer differentiating features, price is the predominant decision 
factor. Nevertheless, European converters often provide a large bundle of comple-
mentary services, which still make a difference over cheap commodity suppliers. 
Close cooperation with customers offers the opportunity to develop distinctive in- 
dividualized product solutions and shape individual supply chain and service pack-
ages. Customer industries will always welcome such further support offers, but are 
rarely willing to pay substantially higher prices. Accordingly, converters need to be 
very cautious and consider the additional effort resulting from add-on services. Many 
companies underestimate cost effects for customizing products, smaller production 
lots, more change-overs and additional working capital for an extensive inventory. 
Excellent, KPI-driven product management is the lever to balance benefits from  
customer proximity and additional effort.
Efficiency: the right focus – yet often still room for improvement
 
The constant and intensive focus on efficiency is a constant pattern of optimization 
for most plastics converters. Price competition and increasing costs for energy urge 
converters to do so. The predominant focus is on equipment efficiency, operations 
and product design with less material usage. Nevertheless, it is difficult for many con-
verters to combine customer proximity coming with mass customization and smaller 
lots in process or batch production with a straight focus on a most efficient produc-
tion. As a result there is often still room for improvement within operations to incre-
ase efficiency. To gain such excellence it is necessary to combine perspectiveness 
from shop floor management with the supply chain configuration. Accordingly initia-
tives on lean management, overall equipment effectiveness (OEE), optimized change 
overs and procedural KPI need to be aligned with an optimization of the entire supply 
chain, including production planning, warehousing, and working capital management 
to name but a few. Converters following such a holistic approach for an optimized 
value chain can keep their head start from competition with a higher level of efficiency.
euroPean PlastiC Converters

46
ComPetitiveness of the euroPean PlastiCs ConvertinG inDustry
Internationalization: not always the easy way to growth
Many converters stated that they will pursue international growth targets: Large  
multinational companies focus on emerging markets and the US for a business ex- 
pansion, whereas small to mid-sized converters focus on a further penetration of the  
European market. In particular, the latter attempt to leverage chances of the European 
single market. But the empirical assessment and the experts’ interviews revealed 
that there is still a substantial level of fragmentation also within the EU. Different 
industry structures, distribution channels and inherited customer preferences may 
provide substantial market entry barriers for converters. Mid-sized converters with 
limited financial and – even more relevant – limited management resources need to 
carefully consider robust market opportunities as well as resulting expenditures from 
entering new regional markets. To deliver growth and thus, capitalize competitive- 
ness, converters need a consistent strategy for the business expansion. This inclu-
des a decent and hard facts-based evaluation of the growth levers, being export, 
regional sales offices or the set-up of a local production in a subsidiary.
 
Review of the corporate strategy: business evolution cannot cope 
with market revolution
Most European plastics converters have a long-standing business history and an im-
pressive track record from organic growth. Business success was created in a mostly 
steady market environment. But not only is competition becoming more fierce with 
new market entrants, also industry structures and distribution channels began to 
change rapidly in the last couple of years. Business consolidation at different levels 
of the polymer industries’ value chain endangers established personal relationships 
between customers and suppliers. New technologies, most prominently additive  
manufacturing and 3D-printing, grow in their maturity and will enter standard busi-
ness applications beyond prototyping and rapid tooling. Digitalization will further push 
customer integration beyond linked supply chains and big data usage will open up 
new opportunities for efficiency in operations with predictive maintenance and em-
bedded quality control. 
Together, these drivers of change in the industry will impose massive pressure on 
plastics converters to adapt. Only those companies being cautiously aware of the 
upcoming change and necessary business adoptions will be able to take advantage 
of this situation. Of course, this begins with a review of the corporate strategy, to 
identify levers for future competitiveness. Additionally any revised strategy needs a 
consistent implementation to match internal strength and leverage them with exter-
nal chances. 
Our Consulting Approach: 
We support plastics converters at the front end, that is, regarding every pro-
cess focused on the customer – especially in the areas of market and com-
petitive strategy, digitalization, iMarketing, sales, product and range policies, 
innovation and product management, management of product lifecycles.
At the back end, that is, regarding the value chain and financial architecture, 
we offer consulting – especially in the areas of organization and leadership, 
operational excellence, individual solutions for Industry 4.0, variability, comple-
xity management, supply chain, working capital management, and financing.
Dr. Wieselhuber & Partner Gmbh


ComPetitiveness of the euroPean PlastiCs ConvertinG inDustry
47
Contact
Dr. Stephan Hundertmark
Manager 
Plastics Industry
Phone:  +49 (0)89 / 286 23 270
Mobile:  +49 160 745 18 72
Mail: xxxxxxxxxxx@xxxxxxxxxxx.xx
n.b.:
this publication was carefully produced. nonetheless certain details 
and conclusions might be misunderstood, incomprehensible, or incorrect.
Dr. Wieselhuber & Partner Gmbh and the authors do not assume responsibility 
for the use of the information presented.
Copyright © 
all rights reserved. reprinting, even of excerpts, is expressly prohibited.
Published by: Dr. Wieselhuber & Partner Gmbh, munich, Germany
editor: Gustl f. thum, member of the executive board
Design/layout: Kinzel Werbeagentur
Photos: fotolia/shutterstick/istockphoto
euroPean PlastiC Converters


xxxx@xxxxxxxxxxx.xx
www.wieselhuber.de