Magazine: The product fee law may change trends

According to data collected by the Hungarian Association of Packaging and Materials Handling (CSAOSZ) from the database of KSH, in terms of value the domestic packaging industry produced a 14-percent growth in the first half of 2011, if compared with the same period of 2010. Paper is the number one packaging material in Hungary in both value and volume. Plastic caught up with paper in terms of value but volume-wise it was only at half the level. Metal usage is also on the rise but at a slower pace than the previous two. There is steady demand for wood in terms of value but volume usage is very fluctuating. Glass: usage is slowly but steadily declining if we look at value, but volume data indicate a more robust drawback. 2011 brought the continuation of the previous year’s trends and the Hungarian packaging industry closed last year in the positive zone. The outlook for 2012 is greatly influenced by the environmental protection product fee law that was passed on 27 June 2011 and amended twice. Businesses in the sector were not given enough time to prepare for the new regulatory environment starting in 2012. Several new administrative burdens are imposed on businesses in the sector and the fees themselves increased significantly (expected budget revenue from the fee is HUF 44 billion for 2012) – at the same time environmental aspects became less important. By now packaging has become a means for preserving food products and protecting the environment as well; convenience consideration are also influential. The latest packaging technologies reach Hungary rapidly. Putting innovations into practice is urged by cost efficiency and the strengthening trend of achieving a premium effect.