Finland’s Huhtamäki is seeking to ‘leverage significant opportunities’ in the global packaging market following strong progress on its sustainability goals
Huhtamäki forecasts the food and everyday necessities packaging market reaching €620bn by 2030 | Photo credit: Huhtamäki
Huhtamäki has said it will scale its core businesses and further invest in sustainable technologies as part of its updated 2030 profitable growth strategy.
Espoo-based Huhtamäki said the packaging industry is currently experiencing a ‘paradigm shift’ as a result of heightened consumer awareness of single-use plastic.
The coffee cup and packaging giant forecasts the food and everyday necessities packaging market growing 30% by 2030 to reach €620bn ($672bn).
Huhtamäki said it will capitalise on the ensuing ‘profitable growth opportunities’ by scaling its core retail, foodservice and FMCG businesses, driving sustainable innovation and investing in ‘strategic capabilities’.
In November 2022, Huhtamäki partnered with Swiss coffee pod manufacturer Nespresso to create a home compostable paper-based coffee capsule. The product will be piloted in France and Switzerland from spring 2023, before being launched in several other European countries.
The coffee cup and packaging giant has also partnered with global fast-food chain McDonald’s to develop paper-based cup lids for use across its European outlets.
Huhtamäki also outlined its five-year financial targets in its updated 2030 profitable growth strategy, which includes 5% comparable sales growth and an adjusted EBIT margin of 10-12%.
“We started our 2030 transformation journey in 2020. Despite continued disruption since then, we have made strong progress on our financial and sustainability ambitions. We are updating our strategy to accelerate our transformation, leveraging the significant opportunities we see by investing in our three key technologies, fiber, paperboard and flexibles. The future of packaging is in sustainable innovation and our technology leadership positions us to win” said Charles Héaulmé, CEO, Huhtamäki.
Huhtamäki reported 25% sales growth in the 12 months ended 31 December 2022 to reach €4.5bn ($4.8m).
The coffee cup and packaging manufacturer cited the divestment of its operations in Russia and inflation as negatively impacting sales in the second half of the year.
Huhtamäki sold its Russian operations, including four manufacturing units, to Russian holding company Espetina Ltd in September 2022 for €151m ($151m).