Innovation and resilience: the cornerstones of Portugal’s printing industry
The printing and packaging industry plays a vital role in Portugal's business structure, exporting more than 80% of its production. As a proud member of the European Union, Portugal has embarked on a remarkable journey of economic progress in recent decades. This progress has been achieved through a focus on structural reforms, strategic investments in infrastructure, and a firm commitment to promoting strong integration in the global market.
In this context, Portugal's economic picture reveals a rich and varied industry structure, each of which plays a key role in shaping its growth narrative. Among these industries, tourism, agriculture, industry and technology have become the cornerstones of Portugal's economic strength. However, the printing and packaging industry is the anchor that supports the operations of all other industries.
Despite their diverse functions and forms, the printing and packaging industries share one fundamental role: they serve as an indispensable supporter, providing vital support and enhancement to numerous other industries. Their importance cannot be overlooked, as they contribute significantly to a country's economic landscape, leave a lasting mark on its GDP, and serve as a key driver of economic prosperity.
Portugal has a global reputation for high-quality graphic and packaging products. The country is widely admired for its expertise and skilled skills in these fields, and its exports play a key role in international trade. Remarkably, about 83% of Portugal's printing and packaging products are sold to overseas markets. From the sun-soaked coast of Spain to the picturesque France, from the busy British market to the hardworking heartland of Germany, Portugal's products find eager buyers in the international market.
In addition, the United States, the Netherlands and Belgium stand out as important markets, each with a strong demand for Portuguese printing and packaging products. In addition to Europe, the Portuguese printing and packaging industry also extends its global influence to the United States across the Atlantic Ocean and to the economies of PALOPs (Portuguese-speaking African countries), Asia and Latin America.
At the heart of Portugal’s printing and packaging industries is a strong commitment to innovation. Driven by a relentless pursuit of technological advancement, Portuguese businesses continue to raise the bar, ensuring they remain at the forefront of global competitiveness. Similarly, sustainability also takes center stage in the ethos of these industries. Recognizing the importance of environmental stewardship, Portuguese companies have begun implementing eco-friendly practices and sustainable sourcing, ensuring they keep pace with evolving customer expectations.
The essence of Portugal’s printing and packaging sector is truly reflected in its small and medium-sized enterprises. These enterprises constitute a vibrant ecosystem of around 21,000 registered companies and are the backbone of Portugal’s industrial landscape. Significantly, more than 65% of the companies have been operating for more than 11 years, highlighting their resilience. Furthermore, with a financial autonomy rate of more than 30%, these figures are testament to their staying power and dynamism.
There is no doubt that Portuguese companies have to face challenges, just like their counterparts in Europe and around the world. These challenges range from the pressing environmental crisis to the looming threat of recession and inflation, rising costs of raw materials and energy, as well as labor shortages and demographic changes. These are important topics to focus on as entrepreneurs navigate an increasingly difficult environment.
Spanish packaging printing market maintains recovery trend
Every year, the business association Neobis prepares a report on the Spanish packaging printing market. The latest report for 2023 confirms that the sector maintains its recovery trend, with improvements in revenues, performance and net assets, a decrease in the number of debts and bankruptcies, and an increase in the concentration of companies with high turnover.
According to the Commercial Registry, there are 6,422 printing companies operating in Spain, and the market is shrinking year by year. In general, counting all the companies operating in the packaging printing sector, there are 13,866 packaging printing companies with a turnover of 19,034.03 million euros, according to data from the Spanish National Statistics Institute INE. According to the Neobis report, the total turnover in 2022 increased by 15% compared to 2021 and 2% compared to 2019. In addition, the number of employed people remained stable at 72,274 people. The good news is that the sector exceeded the pre-pandemic performance and billing figures.
Sergi Bellido, CEO of Novoprint and Chairman of impriCLUB, the largest private commercial printers association in Spain, explains the situation in the country's graphic arts market. He said: "The Spanish packaging printing market is characterized by a high degree of fragmentation and fragmentation among companies, many of which are family-owned. With the decline in demand in recent years, supply should have decreased, but this has not been the case. Excess supply is a deep-rooted evil because it depresses prices too much and profit margins suffer. However, overall costs are slightly lower than those in Central European countries, which is an advantage for exports."
Focusing on the different printing markets, the biggest growth in operating income was recorded by companies producing packaging and labels, while stressing that more than 90% of these specialized companies declared profits. In the book and commercial printing sector, there were also some companies that confirmed their margins and profitability, as confirmed by Álvaro García, CEO of Gráficas AGA and Chairman of Neobis.
Joan Nogues, manager of Norprint and president of the Catalan Association of Packaging Printers and the Catalan Institute of Graphic Arts, is convinced that despite major changes in consumption patterns, the sector continues to show strength and diversity. He believes that "graphic communications combined with digital processes are an area of potential growth and new business opportunities. We are at the starting point of a renewal of graphic arts and a consolidation of the industry in the global communications sector."
At impriCLUB, they believe that the fastest growing sectors in recent years are labels and large formats. "Advertising at the point of sale will continue to be an important activity in the future to help companies strengthen their brand image. Therefore, the large format sector has a good outlook. The demand for more sustainable products will also force many industries to transform, and paperboard as packaging will gain a lot of prominence. Therefore, the packaging and labeling industry can enjoy good growth," Bellido said.
José Ramón Benito, Chairman of the Docuworld Group and President of ASPACK, the Spanish Association of Manufacturers, Packaging and Cardboard Converting, ensures that the printing of cardboard containers has experienced great growth in Spain, as it is a completely circular material. Moreover, he elaborates, "Since Spain has a very efficient packaging chain in pharmacies, perfumes and cosmetics, combined with competitive labor costs, and very high-level graphic arts companies, this means that we expect significant growth in the coming years."
José Carrasquel, General Manager of Etygraf and Chairman of AIFEC, the Iberian Association of Continuous Label Manufacturers, affirms that the Spanish market is still growing, albeit at a slower pace than in previous years, but with room for improvement, offering competitive advantages compared to other European countries, in terms of operating costs, with high quality and services adapted to shorter deadlines than in other parts of Europe. "Jesús Durá, CEO of VinylColor Digital and Chairman of FESPA Spain, points out the segments that are currently in the greatest demand in the field of visual communications in Spain. "Personalization, decoration and interior design, as well as all types of event materials, have emerged strongly after the pandemic".
In conclusion, according to the report prepared by Neobis, in Spain, the commercial printing sector is experiencing positive economic growth. The label sector has seen a 14.25% increase in turnover, and packaging companies have shown clear signs of strengthening and strong growth, with a profit margin of 6.24%. Overall, from all the analyzed sectors, it is agreed that the Spanish printing sector has important strengths in terms of innovation, adaptability and commitment to sustainability.
