Blow Molding Plastic Packaging Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Every organization and its procurement team look forward to negotiating the best deal while procuring a set of products or subscribing to services. Rate benchmarking involves price/cost comparison of more than one set of products/services to analyze the most efficient combination that can potentially help the procurement team in getting the optimum rate.

The geographical location, scale, and type of the business play a vital factor in analyzing the rate benchmarking of the blow molding plastic packaging category. For example, molding services in China are typically cheaper than services in other parts of the world. For instance, injection molding in China costs around USD 1,000 for small-scale production, and for large production, depending on the work quality and quantity, it may go to USD 12,000 which is relatively cheaper due to manufacturing conditions specific to the country. China has also the latest technology compared to other countries such as 3D printing and automation which drastically reduces labor costs. 

The cost of blow molding plastic packaging services varies depending on the scale of the project. For example, a small business that is simply looking to produce on a smaller scale will likely pay higher than a large enterprise that is looking to produce on a large scale. Prices also depend on the complexity of the blow molding application. For instance, Injection molding has the highest complexity among all others, but with larger complexity, it delivers more accuracy and precise production. Cost is also higher as high as about 50 -60% higher than the extrusion type.

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Labor cost is one of the key components of the total incurred costs while offering a product or service. Therefore, an organization must decide on whether the focus category should be retained in-house or outsourced if the organization is providing its products or services at competitive prices. If the organization decides in favor of outsourcing, it must understand the difference in the salary structures of suppliers before selecting a supplier and formulating a negotiation strategy. According to our research, production managers at Noble Group, Supreme Industries, and KGM Industries receive a 10% - 15% higher base salary compared to the salary received by managers working in companies such as Emirates National Plastic Industry and Time Plastech. However, the year-on-year increment rate in all these companies majorly depends on the Key Result Areas (KRAs).

Organizations may find it cumbersome to continuously track all the latest developments in their supplier landscape. Outsourcing the activities related to gathering intelligence allows organizations to focus on their core offerings. At this juncture, our newsletter service can help organizations stay updated with the latest developments and innovations and subsequently assist in preventing disruptions in the supply chain. We have identified the following developments within the blow molding plastic packaging category over the last two years:

In May 2023, PepsiCo announced to automate the process of production to ease the process and increase the efficiency of the operations involved. This includes packaging equipment, such as palletizing equipment, fillers, packers, stretch wrappers, and labelers. They have automated tasks such as changeover management, machine setups during format changes, and mold changes on blow molding equipment.

In 2022, UNIKO developed a unified approach for continuous extrusion, accumulation technologies, and all brands of blow molding machines as “UNIKO 2.0 PLC Controls and Software”. With its rapid adaptation technology, it can be applied to any blow molding machine of extrusion type with accumulation or continuous technology. In August 2022, Jomar Corporation expanded its line with the addition of blow machines of extrusion type from Automa by Magic. These machines are equipped with UNIKO 2.0 technology and increased the capacity of various extrusion shuttles from 8 to 33 tons. These can handle specially designed molding stackable jerry cans.

In 2022, PepsiCo announced to use 3D printing for making the bottle molds at their R&D campus in New York. This helps them in saving around USD 10,000 for creating a blow mold set of metal. It has improved efficiency and lowered the cost of production involved resulting in decreased time to launch new products.

In October 2021, Coca-Cola, UPM, and Changchun Meihe announced to commercialization of the technology of converting second gen biomass to plant-based mono ethylene glycol. This has reduced the usage of oil-based plastic used during production. This has helped them to achieve their goal towards carbon emission reduction by reducing the usage of oil-based plastics in packaging, and other materials of the category.