PACKAGING EXPORTS OF TÜRKİYE

DESCRIPTION AND CLASSIFICATION OF THE SECTOR

Two basic classification systems are used for all products in trade. For detailed data, the Harmonized Commodity Description and Coding System (commonly known as the Harmonized System) is used, while the International Standard Industrial Classification (SITC Rev.4, Standard International Trade Classification) is used for aggregated data. The Packaging Industry, according to the Standard International Trade Classification (SITC), is defined in sections 582, 635, 641, 642, 658, 665, 692, 699, and 892. Details of the SITC classification can be found on the Turkish Statistical Institute's website.

 Product descriptions for the Packaging Industry, based on the Customs Tariff Statistical Position Codes (HS Codes) created according to the Harmonized System, are provided below.

HS Code – Product Description

• 3919- Adhesive sheets, strips, films, etc., of plastics, flat
• 3920- Other plates, sheets, film, and foil of plastics
• 3921- Other plates, sheets, film, foil, and strip of plastics
• 3923- Plastic products for packaging, closures, caps, capsules
• 4415- Wooden boxes, crates, drums, and similar packaging
• 4416- Wooden barrels, casks, tubs, buckets, and similar containers
• 4804- Uncoated kraft paper and paperboard, in rolls or sheets
• 4805- Other uncoated paper and paperboard (rolls or sheets)
• 4806- Vegetable parchment, greaseproof paper, tracing paper, glassine
• 4807- Paper and paperboard made by sticking flat layers
• 4808- Corrugated paper and paperboard; creped, crinkled, embossed papers
• 4811- Paper, paperboard, cellulose wadding, and webs of cellulose fibers
• 4817- Envelopes, letter cards, plain postcards, etc., of paper or paperboard
• 4819- Boxes, cases, bags, etc., of paper or paperboard
• 4821- Labels of all kinds, of paper or paperboard
• 4823- Other paper, cut to size or shape; articles of paper

PRODUCTION IN TURKEY

The packaging industry in Turkey is a rapidly growing sector. The packaging industry, which has grown by an average of 6% in the last five years, entered a rapid recovery process with a 17.6% growth in 2010 following a 5% contraction in 2009. The rapid urbanization, population growth, increased living standards, the rise in women's participation in the workforce, changes in consumption habits, the widespread presence of shopping malls leading to an increase in retail shopping trends, the growing demand for consumer goods, and increased exports are the main factors contributing to the rapid development of the sector.

Approximately 3,000 companies in Turkey produce packaging materials, with the majority being small and medium-sized enterprises. Fifty-three packaging manufacturers are among Turkey's largest 1000 companies in terms of business volume. Companies in the packaging sector are concentrated in Istanbul, Izmir, Bursa, Ankara, Konya, Kocaeli, Gaziantep, Adana, Kayseri, and Manisa.

Companies in the sector operate in five main groups: plastic, paper-cardboard, metal, glass, and wood packaging. The total production of the packaging industry is around 5.5 million tons annually. The sector's size, which was $7.9 billion in 2010, is expected to reach $9 billion in 2011.

Looking at subgroups in packaging consumption: paper, cardboard, and corrugated cardboard packaging constitute 39%, plastic packaging 33%, glass packaging 13%, wood packaging 8%, and metal packaging 7%.

Plastic packaging production in Turkey is over 1.8 million tons. The Turkish polyethylene (PE) and polypropylene (PP) woven bags and sacks sector have significant production and export capacity.

Paper, cardboard, and corrugated cardboard products have become an important sector in the packaging industry, accounting for 39% of total production in the sector. The total production of paper, cardboard, and corrugated cardboard products is over 2.1 million tons.

The production capacity of metal packaging has reached 600 thousand tons, with actual production around 388 thousand tons, accounting for a 7% share in the packaging industry.

Turkey has a developed glass industry. Turkey Şişe ve Cam Fab. A.Ş. dominates the domestic market in the glass industry, producing approximately 90% of Turkey's annual total glass production, ranking 12th among the top 25 companies in this sector worldwide. The group, consisting of 26 companies, produces all kinds of glass. Anadolu Cam, a member of this group, produces glass packaging. Turkey has a total glass production capacity of 2.2 million tons, with 750 thousand tons of this capacity dedicated to glass packaging products. In addition to glass packaging exports, Anadolu Cam also exports packaging production technologies. Glass packaging is widely used in the food sector, especially as recycling gains importance today.

Wooden packaging mainly consists of wooden boxes, crates, and pallets used for packaging agricultural products (fresh fruits, vegetables, etc.). The total capacity is around 600 thousand tons annually, and the annual production of various wooden packaging materials exceeds 440 thousand tons. Production in the sector is widespread according to ISO and new ISPM 15 standards.

Moreover, the Turkish packaging sector has reached world standards in terms of quality. There is a significant increase in the number of companies in the sector in the ISO 9000, ISO 14001, and ISO 22000 areas. Research and development in the sector and packaging designs undertaken in this context have become crucial for global competitiveness.

Turkish packaging manufacturers closely follow national and international environmental regulations and adapt to these regulations. The existing "Packaging Waste Control Regulation" aims to:

a) Production of packaging with specific criteria, basic requirements, and features from an environmental perspective,
b) Prevention of the formation of packaging waste, reducing the amount of unavoidable packaging waste through reuse, recycling, and recovery,
c) Prevention of the direct and indirect release of packaging waste to the environment in a way that would harm the receiving environment,
d) Collection, transportation, and separation of packaging waste at the source within a specific management system by creating technical and administrative standards.

TURKEY'S EXPORTS

Turkish packaging industry product exports amounted to 3.1 billion dollars in 2011. Additionally, a significant amount of packaging is indirectly exported as export product packaging. Packaging industry exports have increased by an average of 14% annually in the last five years. Due to the contraction in markets caused by the global crisis, packaging product exports decreased by approximately 15% in 2009. In 2010, exports regained momentum, increasing by 22%, and in 2011, the increase reached 24%.

In 2011, plastic packaging products took the lead in packaging industry exports with a 69% share. Plastic packaging exports increased by 26% in 2011 to reach 2.142 million dollars compared to the previous year. The main plastic packaging products exported include PP sheets and films, PE bags and pouches, and bags woven from PE or PP strips. In 2010, Turkey became the world's second-largest exporter of Flexible Intermediate Bulk Containers (FIBC) with an 18.3% share, following China. Other plastic packaging products exported include caps, containers, barrels, bottles, and similar items.

Another significant export group is paper and cardboard packaging products, with an 18% export share. In 2011, the export of paper and cardboard packaging reached 567 million dollars. The main exported products are paper and cardboard, corrugated cardboard, boxes, crates, and other packaging containers.

Metal packaging, with a 9% export share in the total packaging sector, is another essential export group. The total export of metal packaging products was 281 million dollars in 2011. The main exported products include aluminum barrels, other metal barrels, and canned cans (including rigid or foldable cans).

Glass and wood packaging products are other important export items. In 2011, glass packaging exports were approximately 31 million dollars, and wood packaging exports were 37 million dollars.

Turkish packaging industry products are exported to over 200 countries, primarily to EU countries, as well as Commonwealth of Independent States, Eastern European, and Middle Eastern countries. Looking at specific countries, in 2011, Germany, the United Kingdom, Iraq, France, Iran, the Netherlands, Italy, Israel, the Russian Federation, and Romania were the main countries to which Turkey exported. In 2011, Germany accounted for 9%, the UK for 7%, Iraq for 7%, France for 6%, and Iran for 5% of Turkey's packaging industry exports.

IMPORTS 

Turkey's import of packaging materials was approximately 3.1 billion dollars in 2011, an increase of about 19% compared to 2010. Plastic packaging and paper, cardboard, and corrugated cardboard packaging make up 49% and 42% of packaging imports, respectively.

The main countries in packaging materials imports are Germany, Italy, China, the US, France, South Korea, the UK, Finland, Spain, and Belgium. Germany has a 22% share in packaging material imports, while Italy, China, and the US each have a 10% share, and France has a 5% share.