Flexible Packaging Europe (FPE) reported in early 2022 that member converters faced record-level raw material and energy input prices during the first quarter—surpassing even the inflation peaks experienced in 2021. The association's communications highlighted unsustainable margin pressure unless brand owners accepted structural price adjustments for flexible packaging.
Cost drivers included petrochemical feedstock volatility, energy surcharges tied to natural gas and electricity spikes, and continued logistics expenses for film and resin imports. European converters—heavily dependent on gas-intensive processes upstream—felt disproportionate energy pass-through compared to some U.S. peers with different energy mixes.
FPE advocated for transparent dialogue between converters and FMCG customers, emphasizing that flexible packaging's lightweight efficiency did not shield plants from euro-denominated input shocks. Temporary production curtailments occurred at extreme cases where spot resin quotes invalidated contracted finished roll pricing.
Plants responded operationally: energy audits on dryers and compressors, shift scheduling to off-peak power tariffs where available, and accelerated waste reduction on slit lines. Maintenance teams prioritized leak repairs on pneumatic systems and insulation upgrades with quick payback periods.
The Q1 2022 FPE price record became a benchmark cited in quarterly earnings across the flexible packaging chain. Equipment suppliers noted customers delaying optional upgrades while funding essential repairs—yet interest persisted in efficiency technology that reduced pounds processed per unit of output.