SOURCE: The Freedonia Group, Inc.

February 21, 2008 14:43 ET

US Converted Flexible Packaging Demand to Reach $16.5 Billion in 2011

CLEVELAND, OH--(Marketwire - February 21, 2008) - Demand for converted flexible packaging is forecast to expand 4.2 percent per year to $16.5 billion in 2011. Growth will be attributable to cost, performance and source reduction advantages over most rigid packaging. Moreover, heightened barrier requirements in many markets will drive increased demand for value-added materials. Developments in breathable and self-venting films and resealable features will also fuel growth. Demographic changes such as greater numbers of single-person households and older consumers will support demand for more convenient prepared foods and single-serving portions. These and other trends, including market share and company profiles, are presented in "Converted Flexible Packaging," a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

Among major converted flexible packaging types, pouches will log the fastest advances, with demand expected to grow 5.9 percent per annum to $6.9 billion in 2011. Solid prospects will be driven by continued expansion of the stand-up pouch segment and healthy gains for flat pouches in certain markets. Bags will post more moderate growth based on the maturity of many applications along with loss of share for paper bags to plastic bags and sacks, and pouches.

Food markets are projected to increase 4.5 percent per year to $11.6 billion in 2011. Heightened demand for food in smaller package sizes or larger multipacks containing smaller units will bode well for converted flexible packaging demand. The produce, meat and related products, beverage and frozen food markets will enjoy the fastest growth. Nonfood markets are forecast to climb 3.5 percent per year through 2011, aided by cost, source reduction, barrier protection, product visibility, theft protection and product unitization advantages. The pharmaceutical and medical markets will expand more rapidly based on heightened barrier requirements, cost and convenience advantages, and adaptability to growing unit-of-use requirements.

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product and market forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles. More than 90% of the industrial companies in the Fortune 500 use Freedonia research to help with their strategic planning.

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