Freedonia Market Research Analyzes Plastic Film Industry

Demand for plastic film in the US is projected to grow 2.6 percent annually to over 16 billion pounds in 2012, valued at $13.4 billion (resin cost only). Total plastic film market value (including resins, additives, and processing and other costs) will reach nearly $32 billion. Advances will reflect film’s cost, performance and source reduction advantages over rigid packaging, as well as opportunities in film products such as pouches and modified atmosphere packaging. Low density polyethylene will remain the leading film, accounting for almost two-thirds of the total in 2012. These and other trends are presented in Plastic Film, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

Demand for low density polyethylene film is forecast to increase nearly three percent yearly to 10.5 billion pounds in 2012. This will result from the film’s competitive cost structure, versatility and opportunities in areas such as produce and snack packaging, stretch and shrink wrap, and trash bags. High density polyethylene film demand will grow at a below average pace as a result of slow retail bag advances. Polypropylene film demand will expand 3.4 percent annually, driven by produce, grain mill, dairy product and other food packaging applications.

Polyethylene terephthalate (PET) film demand will continue to decline as remaining applications in photographic film and magnetic tape diminish further in the wake of continued inroads made by digital cameras, CDs and DVDs. Nonetheless, good opportunities are anticipated for PET film in food packaging applications such as snack foods, confections and frozen food, due to needs for higher barrier properties.

Packaging accounted for nearly three-fourths of all plastic film use in 2007 due to cost, convenience and source reduction advantages over other materials. The most rapid growth is anticipated in secondary packaging due to opportunities in areas such as stretch and shrink wrap, and retail bags. Food packaging will grow at a near average pace, driven by continued expansion in produce, confections and frozen food segments. Nonpackaging film advances will be fueled by trash bag growth. Research efforts will focus on improving film’s strength, barrier and graphic capabilities, while maintaining a competitive cost position.

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.