Converted Flexible Packaging


Attention: There is an updated edition available for this report.

US demand to exceed $18 billion in 2015
Demand for converted flexible packaging in the US is expected to exceed $18 billion in 2015. Gains will reflect a rebound in the US economy and will be supported by cost, performance and source reduction advantages over most rigid packaging formats. Rising demand for convenience-oriented and other further processed food items, which often use more costly higher barrier packaging materials for extended shelf life, will also propel growth.

Converted flexible packaging’s source reduction capabilities will be increasingly advantageous in light of initiatives by major retailers and packaged goods firms to evaluate the packaging used by their suppliers in terms of eco-friendliness and cost reduction.

Pouches to exhibit aboveaverage annual gains
Above-average gains for pouches will be driven by continued conversions to standup pouches and healthy gains for flat pouches in a number of markets. Demand will also benefit from the presence of convenience features (e.g., zippers, spouts) and the emergence of new applications and product types, such as flat-bottomed, side-gusseted pouches and hybrid pouch/folding carton products. In addition, stick pouches will experience rapid growth in single-portion packaging uses based on advantages of product differentiation and portability.

Growth for bags will increase at a faster pace than in the 2005-2010 period based on an expected recovery in the US economy from the 2007-2009 recession. However, gains will lag the overall converted flexible packaging average due to the maturity of many applications along with competition from pouches and rigid packaging. While demand for paper bags and sacks will be constrained by performance limitations relative to plastic bags and sacks, 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.

Demographic, eating trends to benefit food applications
Above-average growth in food applications will be driven by the need for more costly films for extended shelf life along with demographic trends such as increased numbers of single-person and empty nest households and households where all adults work. These trends will boost demand for food in smaller package sizes and more convenient foods designed to reduce food preparation time. Trends toward healthier eating and increased “on-the-run” eating will spur food manufacturers to expand their offerings of products, especially snacks, baked goods and beverages, in singleserving packages. Such products require more packaging than standard packages of similar items. The fastest growing food packaging markets for converted flexible packaging will be beverage, meat and related products, and snack food uses.

In nonfood applications, advances will be led by above-average gains in the pharmaceutical and medical product markets based on heightened barrier requirements, cost and convenience advantages, and adaptability to growing unit-of-use requirements. Moreover, benefits including product visibility, pilferage protection and good barrier properties will support continued demand in a broad range of uses.

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PRESS RELEASE

US Demand for Converted Flexible Packaging to Exceed $18 Billion in 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. 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 eco-friendliness and cost reduction. These and other trends are presented in Converted Flexible Packaging, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

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.

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.

Converted flexible packaging demand in food applications is projected to climb 4.0 percent per year to $12.9 billion in 2015. Advances will be driven by favorable demographics and rising demand for convenience-oriented and other processed food items, which often use more costly higher barrier packaging materials for extended shelf life. The fastest gains are anticipated in beverage, meat and related products, and snack food applications. Demand in nonfood markets is projected to increase 3.2 percent per year. Advances will be led by above-average gains in the pharmaceutical and medical product markets.

INTRODUCTION
I. EXECUTIVE SUMMARY
II. 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
III. 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
IV. PRODUCT & MARKET OVERVIEW
General
Bags
Pouches
Other
V. FOOD PACKAGING
General
Meat & Related Products
Meat & Related Products Outlook
Converted Flexible Packaging Demand
Materials
Baked Goods
Baked Goods Outlook
Converted Flexible Packaging Demand
Materials
Snack Food
Snack Food Outlook
Converted Flexible Packaging Demand
Materials
Grain Mill Products
Grain Mill Product Outlook
Converted Flexible Packaging Demand
Materials
Produce
Fresh Fruit & Vegetable Outlook
Converted Flexible Packaging Demand
Materials
Candy & Confections
Candy & Confections Outlook
Converted Flexible Packaging Demand
Materials
Frozen Food
Frozen Food Outlook
Converted Flexible Packaging Demand
Materials
Dairy Products
Dairy Products Outlook
Converted Flexible Packaging Demand
Materials
Beverages
Beverage Products Outlook
Converted Flexible Packaging Demand
Materials
Other Foods
Converted Flexible Packaging Demand
Materials
VI. NONFOOD PACKAGING
General
Pharmaceuticals
Pharmaceutical Industry Outlook
Converted Flexible Packaging Demand
Materials
Medical Products
Medical Products Outlook
Converted Flexible Packaging Demand
Materials
Paper & Textile Products
Paper & Textile Products Outlook
Converted Flexible Packaging Demand
Materials
Agricultural & Horticultural Products
Agricultural & Horticultural Industry Outlook
Converted Flexible Packaging Demand
Materials
Chemicals
Chemical Products Outlook
Converted Flexible Packaging Demand
Materials
Rack & Counter
Converted Flexible Packaging Demand
Materials
Other Nonfood Markets
Converted Flexible Packaging Demand
Materials
VII. INDUSTRY STRUCTURE
General
Market Share
Acquisitions & Divestitures
Marketing Strategies
Channels of Distribution
Research & Development
Competitive Strategies
Cooperative Agreements
Company Profiles
Accutech Films, see Clondalkin Group Holdings
Alcan Packaging Food Americas, see Bemis
Alcan Packaging Food Europe, see Amcor
Amcor Limited
American Packaging Corporation
American Synthetics, see Hood Companies
Ampac Packaging LLC
Applied Extrusion Technologies Incorporated
BagcraftPapercon, see Packaging Dynamics
Bancroft Bag Incorporated
Bemis Company Incorporated
Berry Plastics Corporation
Bryce Corporation
Clear Lam Packaging Incorporated
Cleveland Plastic Films, see Clondalkin Group Holdings
Clondalkin Group Holdings BV
Coating Excellence International LLC
Cryovac, see Sealed Air
Curwood, see Bemis
Direct Plastics, see Clondalkin Group Holdings
DuPont (EI) de Nemours
Excel-Pac, see Prolamina
Exopack Holding Corporation
Exxon Mobil Corporation
Flexsol Packaging, see Sigma Plastics Group
Fortune Plastics, see Clondalkin Group Holdings
Graphic Packaging Holding Company
Honeywell International Incorporated
Hood Companies
Innovia Films Limited
InterFlex Group Incorporated
International Converter, see Packaging Dynamics
ISO Poly Films, see Sigma Plastics Group
Jen-Coat, see Prolamina
Johnson Bryce, see Bryce
Kuraray Company Limited
McNeely Plastics, see Sigma Plastics Group
Mercury Plastics, see Sigma Plastics Group
Milprint, see Bemis
Mitsubishi Chemical Holdings Corporation
Noltex, see Mitsubishi Chemical Holdings
Nordenia International AG
Omega Plastics, see Sigma Plastics Group
Oracle Packaging Incorporated
Packaging Dynamics Corporation
Pactiv, see Reynolds Group Holdings
Perfecseal, see Bemis
Pliant, see Berry Plastics
Poly Plastics, see Sigma Plastics Group
Printpack Incorporated
Prolamina Corporation
Republic Bag, see Sigma Plastics Group
Reynolds Group Holdings Limited
Santa Fe Packaging, see Sigma Plastics Group
Scholle Corporation
Sealed Air Corporation
Shields Bag and Printing Company
Sigma Plastics Group
Sonoco Products Company
Thilmany Papers, see Packaging Dynamics
Toray Industries Incorporated
Tredegar Corporation
Vacumet, see Scholle
Wihuri Oy
Winpak, see Wihuri
Additional Companies in Converted Flexible Packaging
LIST OF TABLES
SECTION I -- EXECUTIVE SUMMARY
Summary Table
SECTION II -- MARKET ENVIRONMENT
1 Macroeconomic Indicators
2 Population & Households
3 Personal Consumption Expenditures
4 Food & Beverage Shipments
5 Retail Sales
6 Packaging Supply & Demand
7 Selected Raw Material Prices
SECTION III -- MATERIALS
1 Converted Flexible Packaging Material Demand by Type
2 Plastic Film Demand in Converted Flexible Packaging by Resin
3 Polyethylene Film Demand in Converted Flexible Packaging by Type & Market
4 Polyethylene Film Demand in Converted Flexible Food Packaging by Type & Market
5 Polyethylene Film Demand in Converted Flexible Nonfood Packaging by Type & Market
6 Polypropylene Film Demand in Converted Flexible Packaging by Type & Market
7 Polypropylene Film Demand in Converted Flexible Food Packaging
8 Polypropylene Film Demand in Converted Flexible Nonfood Packaging
9 Polyester Film Demand in Converted Flexible Packaging by Market
10 Polyester Film Demand in Converted Flexible Food Packaging
11 Polyester Film Demand in Converted Flexible Nonfood Packaging
12 Polyvinyl Chloride Film Demand in Converted Flexible Packaging by Market
13 Polyvinyl Chloride Film Demand in Converted Flexible Food Packaging
14 Polyvinyl Chloride Film Demand in Converted Flexible Nonfood Packaging
15 Nylon Film Demand in Converted Flexible Packaging by Market
16 Polystyrene Film Demand in Converted Flexible Packaging by Market
17 Polyvinylidene Chloride Film Demand in Converted Flexible Packaging by Market
18 Ethylene Vinyl Alcohol Film Demand in Converted Flexible Packaging by Market
19 Degradable Film Demand in Converted Flexible Packaging by Type & Market
20 Other Plastic Film Demand in Converted Flexible Packaging by Market
21 Paper Demand in Converted Flexible Packaging by Type
22 Kraft & Sulfite Paper Demand in Converted Flexible Packaging by Market
23 Kraft & Sulfite Paper Demand in Converted Flexible Food Packaging
24 Kraft & Sulfite Paper Demand in Converted Flexible Nonfood Packaging
25 Glassine & Greaseproof Paper Demand in Converted Flexible Packaging by Market
26 Glassine & Greaseproof Paper Demand in Converted Flexible Food Packaging
27 Glassine & Greaseproof Paper Demand in Converted Flexible Nonfood Packaging
28 Oiled & Waxed Paper Demand in Converted Flexible Packaging by Market
29 Aluminum Foil Demand in Converted Flexible Packaging by Market
SECTION IV -- PRODUCT & MARKET OVERVIEW
1 Converted Flexible Packaging Demand by Type & Market
2 Bag Demand by Market
3 Pouch Demand by Market
4 Other Converted Flexible Packaging Demand by Market
SECTION V -- FOOD PACKAGING
1 Food Packaging Markets for Converted Flexible Packaging 2 Meat, Poultry & Seafood Consumption
3 Meat & Related Products: Converted Flexible Packaging Demand by Type
4 Meat & Related Products: Converted Flexible Packaging Demand by Material
5 Baked Goods Shipments
6 Baked Goods: Converted Flexible Packaging Demand by Type
7 Baked Goods: Converted Flexible Packaging Demand by Material
8 Snack Food Shipments
9 Snack Food: Converted Flexible Packaging Demand by Type
10 Snack Food: Converted Flexible Packaging Demand by Material
11 Grain Mill Product Shipments
12 Grain Mill Products: Converted Flexible Packaging Demand by Type
13 Grain Mill Products: Converted Flexible Packaging Demand by Material
14 Fresh Produce Consumption
15 Produce: Converted Flexible Packaging Demand by Type
16 Produce: Converted Flexible Packaging Demand by Material
17 Candy & Confection Shipments
18 Candy & Confections: Converted Flexible Packaging Demand by Type
19 Candy & Confections: Converted Flexible Packaging Demand by Material
20 Frozen Food Shipments
21 Frozen Food: Converted Flexible Packaging Demand by Type
22 Frozen Food: Converted Flexible Packaging Demand by Material
23 Dairy Product Shipments
24 Dairy Products: Converted Flexible Packaging Demand by Type
25 Dairy Products: Converted Flexible Packaging Demand by Material
26 Beverage Shipments
27 Beverages: Converted Flexible Packaging Demand by Type
28 Beverages: Converted Flexible Packaging Demand by Material
29 Other Foods: Converted Flexible Packaging Demand by Type
30 Other Foods: Converted Flexible Packaging Demand by Material
SECTION VI -- NONFOOD PACKAGING
1 Nonfood Packaging Markets for Converted Flexible Packaging
2 Pharmaceutical Supply & Demand
3 Pharmaceuticals: Converted Flexible Packaging Demand by Type
4 Pharmaceuticals: Converted Flexible Packaging Demand by Material
5 Medical Product Shipments
6 Medical Products: Converted Flexible Packaging Demand by Type
7 Medical Products: Converted Flexible Packaging Demand by Material
8 Paper & Textile Product Shipments
9 Paper & Textile Products: Converted Flexible Packaging Demand by Type
10 Paper & Textile Products: Converted Flexible Packaging Demand by Material
11 Selected Agricultural & Horticultural Indicators
12 Agricultural & Horticultural Products: Converted Flexible Packaging Demand by Type
13 Agricultural & Horticultural Products: Converted Flexible Packaging Demand by Material
14 Chemical Product Shipments
15 Chemicals: Converted Flexible Packaging Demand by Type
16 Chemicals: Converted Flexible Packaging Demand by Material
17 Rack & Counter: Converted Flexible Packaging Demand by Type
18 Rack & Counter: Converted Flexible Packaging Demand by Material
19 Other Nonfood Products: Converted Flexible Packaging Demand by Type & Application
20 Other Nonfood Products: Converted Flexible Packaging Demand by Material
SECTION VII -- INDUSTRY STRUCTURE
1 US Converted Flexible Packaging Sales by Company, 2010
2 Selected Acquisitions & Divestitures
3 Selected Cooperative Agreements
LIST OF CHARTS
SECTION III -- MATERIALS
1 Converted Flexible Packaging Material Demand by Type, 2010
2 Plastic Film Demand in Converted Flexible Packaging by Resin, 2010
3 Polyethylene Film Demand in Converted Flexible Food Packaging by Market, 2010
4 Polyethylene Film Demand in Converted Flexible Nonfood Packaging by Market, 2010
5 Polypropylene Film Demand in Converted Flexible Food Packaging, 2010
SECTION IV -- PRODUCT & MARKET OVERVIEW
1 Converted Flexible Packaging Demand by Type, 2010
SECTION V -- FOOD PACKAGING
1 Food Packaging Markets for Converted Flexible Packaging, 2010
SECTION VI -- NONFOOD PACKAGING
1 Nonfood Packaging Markets for Converted Flexible Packaging, 2010
SECTION VII -- INDUSTRY STRUCTURE
1 US Converted Flexible Packaging Market Share by Company, 2010

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