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Converted Flexible Pkg

Converted flexible packaging demand in the US is forecast to grow 2.2 percent per annum to nearly seven billion pounds in the year 2002, valued at $12.6 billion. Advances will result from storage, production, performance and distribution advantages over rigid and other packaging mediums, as well as source reduction capabilities. Plastic films will extend their dominance with polyethylene and polypropylene presenting the best opportunities based on extensive markets and the availability of improved materials, including metallocene grades. Paper packaging demand will expand marginally due to competition from plastics, yet paper will remain in use because of its low cost, environmental compatibility and use in laminations. Food packaging markets will account for three-fourths of flexible packaging demand because of diverse applications and heightened needs for improved barrier structures at lower costs. These and other trends are presented in Converted Flexible Packaging, a new study from The Freedonia Group, Inc., a Cleveland-based industrial market research firm. Plastic film demand will expand nearly three percent annually to more than five billion pounds in the year 2002 paced by improved film grades and heightened performance properties compared to paper and foil. Polyethylene will remain the dominant film used, although significantly better growth is anticipated for polypropylene. Ethylene vinyl alcohol films will exhibit the most rapid growth based on more demanding barrier requirements. Cellophane and other resins will continue their volume declines because of cost and performance disadvantages compared to other resins. Food packaging markets will be stimulated by the ability of converted flexible packaging to provide improved, cost-effective methods of protecting food from contamination while enhancing shelf life and visual appeal. Consumers are also demanding smaller serving sizes and more easily prepared meals in light of the growing number of elderly and single-person households. Snack and produce packaging will exhibit the best growth based on market expansion, new product introductions, customer convenience and technological advances. Converted flexible packaging demand in nonfood applications will rise at a slower pace yet be stimulated by growing barrier requirements (in areas such as drug, health and beauty aid products), efforts to reduce materials' usage and mass merchandising techniques requiring attractive yet functional packaging. Converted Flexible Packaging (published 4/98, 234 pages) is available for $3400 from The Freedonia Group, Inc., 767 Beta Drive, Cleveland, Ohio . For further details, please contact Corinne Gangloff by phone , fax or e-mail at . Full text is also available online through commercial database companies and the www.freedoniagroup.com Web site. If information in this release is used in an article, please attribute information from this news release to The Freedonia Group, Inc. (Cleveland, OH) and include, if possible, the price of the report. We would also appreciate (at your convenience) a copy of the article or publication in which we appear.