The Pira methodology: Market analysis

The majority of Pira's research activities are concentrated on trends in secondary processing areas or equivalent. These are represented in the red box in the diagram below (Market Trends). These markets are segmented according to material type or grade (in the case of packaging and paper respectively) and according to process type (in the case of printing). Demand in these markets is directly related to demand from end-use markets, which are themselves influenced by a range of factors including sometimes competition from other product or technologies - as in the case of print media versus electronic media.

Taking packaging as an example, packaging demand is principally reliant on demand trends in its key end-use markets such as food & drink, cosmetics, healthcare, other consumer products and industrial products, in turn influenced by economic and other factors making up the operating environment. In the case of food in particular, packaging demand is also influenced by the growing consumer preference for packaged foods, and also trends in retail distribution as retailers on the whole encourage the shift towards packaged foods, mainly down to the desire to reduce waste within the system. With regard to market segmentation, the mix of materials used in packaging is driven by retailer/brand owner desire for lighter, cheaper packaging, influenced by technological developments facilitating the shift from one form of packaging to another (generally towards plastics), as well as trends in raw material prices and in some cases consumer preferences for particular forms of packaging. Here and in other markets, all the various inputs are analysed in this fashion, and reports structured accordingly.

External/international dimensions

While retaining substantial in-house expertise, Pira also employs more than 30 external industry consultants with specific market and/or technical knowledge. Pira associates prepare market reports, give conference presentations on behalf of Pira, engage in direct (often face-to-face) discussions with industry, take part in RADAR unit meetings as part of the Delphi process, and assist in market research and technical consultancy. The variety of work engaged in has helped Pira maintain close, long-term working relationships with these associates, in turn helping Pira maintain a consistency of analysis over the years without over-dependence on the input of any single associate. Other associates, including in their ranks foreign-based research organisations, engage in more general survey and market investigation work, supported by in-house Pira consultants and analysts.

Pira associates are located around the world in all major regions, including in the US and in the key emerging and transitional markets of the BRIC countries (Brazil, Russia, India and China). Pira also has arrangements in place to conduct research in just about any country in the world, as the need arises.