SOURCE: The Freedonia Group, Inc.

August 22, 2006 10:18 ET

New Series of Reports Analyze Packaging and Beverage Demand Trends

CLEVELAND, OH -- (MARKET WIRE) -- August 22, 2006 -- Packaging demand in the U.S. is forecast to increase 2.8 percent annually from 2005 to $131.0 billion in 2010. Demand for plastic packaging is projected to expand 4.4 percent per year through 2010, the fastest pace of all packaging products. Plastic will continue to expand its share of the market as technical advances enable further supplantation of alternative materials. The food market will continue to account for the largest share of packaging demand in 2010, or $47.8 billion. Source reduction efforts are promoting the use of flexible packaging products such as bags, sacks and pouches, which contain about 80 percent less material than equivalent rigid containers. These and other trends are presented in the new series of Freedonia Focus reports from The Freedonia Group, Inc., a Cleveland-based industry research firm.

Packaged domestic beer sales are projected to grow 0.5 percent annually during the 2005-2010 period to 172.2 million barrels. Gains will be aided by the popularity of off-premise beer consumption and the convenience of purchasing packaged beer. Aluminum cans will remain the largest type of packaged beer through 2010; however, they will continue to lose share to beer packaged in glass as well as other materials. Aluminum bottles will gain ground as producers seek distinctive containers to give beer a more upscale image.

Demand for snack food packaging in the U.S. is projected to advance 3.7 percent per year from 2005 to $5.6 billion in 2010. Gains will benefit from changes in food consumption patterns and trends such as portion control, which are altering the way snack food is packaged. In particular, flexible packaging will benefit from the trend toward individually wrapped products. Of individual snack food packaging formats, pouches are expected to experience the fastest growth through 2010.

Bottled water demand in the U.S. is forecast to expand 4.7 percent per annum from 2005 to 9.5 billion gallons in 2010. Growth will be stronger than aggregate beverage demand, supported by concerns about personal health and the quality of municipal water supplies. Still water is projected to account for the vast majority of bottled water demand in 2010, or 9.2 billion gallons. Flavored and enhanced waters are forecast to experience the strongest growth of all bottled water segments through 2010, with annual gains of 14.9 percent from 2005, albeit from a small base.

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