Converted Flexible Packaging

Flexible packaging demand will be driven by real growth in consumer nondurables, and by cost, performance and source reduction advantages over most rigid packaging formats.

US demand to rise 3.8% annually through 2015

Demand for converted flexible packaging is projected to increase 3.8 percent annually to $18.2 billion in 2015. Gains will be similar to the pace of the 2005- 2010 period based on the now more well-established presence of pouches in a number of food and nonfood markets coupled with overall deceleration in raw material price growth. Volume increases, however, will accelerate from the previous five-year performance as a result of real growth in consumer nondurables as the US economy rebounds from the 2007-2009 recession. In addition, gains will be supported by cost, performance and source reduction advantages over most rigid packaging formats. Converted flexible packaging’s source reduction capabilities will be increasingly advantageous in light of initiatives by major retailers and packaged goods firms to evaluate their packaging in terms of ecofriendliness and cost reduction.

Pouches to be fastest growing major segment

Pouches will experience above-average advances, with demand expected to increase 4.6 percent yearly to $8 billion in 2015. Growth will be driven by continued conversions to stand-up pouches and healthy gains for flat pouches in a number of markets, along with a smaller environmental footprint due to light weight and reduced material use, which also holds down shipping costs. Additionally, the aging of rigid packaging equipment will create openings for replacements by pouch packaging equipment over the coming decade.

Bags to remain largest segment, with plastic bags outpacing paper

Gains for bags will be moderated by the maturity of many applications along with competition from pouches and rigid packaging. Still, advances will represent an improvement from the 2005-2010 performance based on the expected recovery in the US economy. Plastic bag demand will outpace that of paper bags due to cost and performance advantages, along with widespread usage in baked goods, produce, meat, frozen food and grain mill product applications. However, growing efforts by packaged goods firms to demonstrate their commitment to sustainability will lead to some degree of renewed interest in paper, which possesses such qualities as renewability, recyclability and compostability.

While overall gains for other converted flexible packaging, primarily wrap products, will lag the market average, above-average prospects are anticipated for pharmaceutical strip packs and specialized film packaging with meat products.

Study Scope

This study analyzes the $15.1 billion US converted flexible packaging industry. It presents historical demand data for the years 2000, 2005 and 2010, and forecasts for 2015 and 2020 by material (e.g., plastic film, paper, aluminum foil), product (e.g., bags, pouches) and packaging market (e.g., meat products, baked goods, snack food, grain mill products, produce, pharmaceuticals, medical products, paper and textile products, agricultural and horticultural products).

The study also considers market environment factors, details industry structure, evaluates company market share and profiles 35 industry players, including Bemis, Printpack and Sealed Air.

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INTRODUCTION xiii

EXECUTIVE SUMMARY

MARKET ENVIRONMENT

General

Macroeconomic Outlook

Demographic & Household Trends

Consumer Income & Spending

Food & Beverage Industry Overview

Consumer Preferences

Distribution Trends

Retail Sales Outlook

Packaging Trends

Performance

Aesthetics

Competitive Packaging Materials

Pricing Trends

Technological Developments

Environmental & Regulatory Factors

International Outlook

MATERIALS

General

Plastic Film

Polyethylene Film

Food Packaging

Nonfood Packaging

Polypropylene Film

Food Packaging

Nonfood Packaging

Polyester Film

Food Packaging

Nonfood Packaging

Polyvinyl Chloride Film

Food Packaging

Nonfood Packaging

Nylon Film

Polystyrene Film

Polyvinylidene Chloride Film

Ethylene Vinyl Alcohol Film

Degradable Films

Other Films

Paper

Kraft & Sulfite

Food Packaging

Nonfood Packaging

Glassine & Greaseproof

Food Packaging

Nonfood Packaging

Oiled & Waxed

Aluminum Foil

Food Packaging

Nonfood Packaging

PRODUCT & MARKET OVERVIEW

General

Bags

Pouches

Other

FOOD PACKAGING

General

Meat & Related Products

Meat & Related Products Outlook