Packaging industry growth seen lagging GDP

Due to high material costs

MANILA, Philippines — The Philippine packaging industry is expected to grow at a pace below the country’s gross domestic product (GDP) due to high material costs.

Asian Packaging Federation president Joseph Ross Jocson told reporters the country’s packaging industry may grow “a bit slower” than the GDP this year, citing the high cost of packaging materials.

The government has set a six to eight percent economic growth target for the year.

From January to September last year, the Philippine economy expanded by 5.8 percent, below the government’s six to 6.5 percent growth target for 2024.

Jocson said some of the materials used for packaging are coming from abroad.

Aside from high costs, he said regulations on the use of packaging materials like single-use plastic are also posing challenges to the industry.

“If the single-use plastic or other types of banning is passed, it will affect (the industry). There will be a radical change. We can’t do anything about it. If it’s a law, then we have to abide,” he said.

Among the priority legislative measures up for approval within the current Congress is the proposed excise tax on single-use plastics to reduce plastic waste.

The proposed measure, which seeks to impose an excise tax of P100 per kilo of bags made of single-use plastic removed from the place of production or released from custody of the Bureau of Customs, has been approved by the House of Representatives on third and final reading.

The counterpart measure is still being discussed at the Senate.

Should the proposed measure become law, Jocson said it would raise the cost of single-use plastic.

“It could badly (affect) the economy and positively (affect) the environment,” he said.

Jocson also said the industry needs support to be able to compete with other countries in terms of packaging design.

“Our packaging center here is way behind what Korea has or Thailand has. Therefore, we are lagging behind with regard to those designs or packaging,” he said.

With the quality of packaging lagging behind, it is challenging for local enterprises to export their products.

“We have to really upscale the packaging design and packaging product. So we need support there,” Jocson said.