Even though globalization has changed packaging, the effects of treating the world as your Sephora were not well understood until now. The biggest surprise was that package development is rapidly consolidating into the hands of a few large multinationals. According to MTI, the 10 largest multinationals now generate 60 to 65 percent of the revenues for packaging suppliers.
Money is the reason why consolidation is moving so quickly.
A global launch requires a great deal of packaging and given that most global launches use the same packaging for each market, economies of scale come into play. Global purchasing has leveraged down the growth rate for revenues from packaging from 13.96 percent in 1995 to 5.73 percent in 1999, according to the report. Costs have also influenced what types of packaging are on the market. Versatility and safety favor plastics, not to mention shipping costs. Plastic containers and tubes accounted for 55 percent of all packaging in 1998.