Tube and Stick Packaging Demand to Reach $1.8 Billion in 2014

Demand for tube and stick packaging in the US is forecast to expand 5.1 percent per year to $1.8 billion in 2014.  Advances will be driven by increased production of cosmetics, toiletries and pharmaceuticals, along with aesthetic and barrier performance improvements in squeeze tubes.  Additionally, gains will be boosted by a recovery in the US economy, which will result in improved outlooks for construction and manufacturing activity as well as retail sales.  A recovery in the construction sector, especially residential construction, will bode well for cartridges used to package caulks and sealants, which are widely used in new construction and in maintenance and repair applications. These and other trends, including market share and product segmentation, are presented in Tube & Stick Packaging, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

The fastest gains are expected for stick packs, with demand projected to climb 11.8 percent annually from a small base to $70 million in 2014.  Gains will be propelled by advantages of product differentiation, portability and material savings compared to conventional single-portion pouch configurations.  Moreover, the differentiation attributes of stick packs will be advantageous in introductions of product line extensions and in refreshing or repositioning mature products. 

Squeeze tubes are by far the largest tube and stick packaging product type, accounting for 61 percent of value demand in 2009.  Through 2014, squeeze tube demand is expected to climb 4.8 percent annually to $1.1 billion, slightly lagging the overall industry based on the maturity of aluminum tubes.  Nonetheless, gains will be supported by production growth in the large cosmetic, toiletry and pharmaceutical markets. 

Plastic is the dominant material in tube and stick packaging based on its combination of favorable attributes, including light weight, relatively low cost, decorative capabilities and barrier properties.  Though paper will remain a small player due to a more limited range of applications, favorable growth will be based on healthy prospects for fiberboard cartridges and the growing popularity of stick packs in the packaging of single-portion dry products such as drink mixes.  Below-average gains for aluminum will be the result of the maturity of aluminum squeeze tubes along with supplantation by laminate tubes and extruded plastic tubes. 

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 segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.