Plastic packaging to continue outpacing paper In selected markets where plastic and paper compete as packaging materials, plastic is expected to increase its share of the market to 49 percent (in pounds) in 2012. This percentage understates plastic’s share since less plastic is required than paper in most applications due to its lighter weight. Additionally, plastic has greater ability for lightweighting than does paper. Plastic has made the greatest advances in primary packaging but remains far less significant than paper in secondary packaging and shipping containers.
Plastic packaging growth by volume is expected to outpace that of paper packaging through 2012 in all competitive markets covered in this study and is forecast to expand 2.4 percent per year through 2012. Advances will result from plastic’s relatively competitive cost and performance advantages over paper, along with growth in manufacturing activity and consumer spending. Material improvements and heightened requirements for product protection and stability will create further opportunities for plastic over paper in a number of areas including protective packaging as well as pet food, dry food, fruit beverages, candy and confection and frozen food applications.
Paper packaging will post marginal advances or continue to decline in most competitive markets through 2012 due to inroads from plastic. However, aboveaverage opportunities are expected in soy beverage, foodservice, protective packaging and frozen food applications.
Solid prospects for paper in soy beverage packaging will result from the ongoing movement of soy beverages into the mainstream marketplace and the general preference for paperboard containers in promoting a natural image. Foodservice opportunities will be fueled by favorable foodservice revenue growth and widespread demand for products such as paperboard boxes and cartons, paperboard buckets and pails, wraps and bags.
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Rigid, flexible packaging to grow at similar pace Rigid and flexible packaging growth will expand at about the same pace through 2012. Among rigid containers, fastest advances are anticipated for tubs and cups, trays and protective packaging. Opportunities will also be aided by favorable production and/or consumption outlooks in key applications such as meat, poultry and seafood; pet food; and frozen food.
Flexible packaging gains will be aided by continued solid growth for pouches, which offer greater cost effectiveness, enhanced barrier properties, space savings advantages, lighter weight and source reduction capabilities. Good opportunities for flexible protective packaging will be driven by rising demand for products such as air pillows and bubble packaging, which provide cost-effective options in the protection of goods from shock, vibration, abrasion and other damaging effects of shipping and handling.
Plastic will remain the dominant flexible packaging material, increasing its lead to 35 percent of the total in 2012. Advances will be attributable to performance advantages over paper in terms of moisture resistance, barrier properties and tear resistance. Based on widespread use of products such as folding and gabletop cartons, ovenable trays and fibre drums, paper will maintain its lead over plastic in rigid packaging through 2012. However, plastic will continue to gain ground in competitive rigid packaging, reducing paper’s share to 57 percent in 2012.
Study coverage This new Freedonia industry study, Paper Versus Plastic in Packaging, is priced at $4700. It presents historical demand data (1997, 2002, 2007) plus forecasts for 2012 and 2017 by product and market. The study also considers market environment factors, evaluates company market share and profiles 40 US industry players.
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