Freedonia Market Research Analyzes Plastic Container Industry

US demand for plastic containers will advance 5.4 percent annually through 2012 to nearly $32 billion, creating demand for 15.7 billion pounds of resin.  Gains will be bolstered by plastic’s many benefits relative to other packaging media, including light weight, shatter resistance, design flexibility, clarity, strength and effective barrier properties.  However, demand will be limited by increasing maturity in such key markets as soft drinks and household chemicals.  Growth in resin volume will be restrained by lightweighting and downgauging efforts aimed at reducing resin consumption.  Unit expansion will outpace volume increases as a result of consumer preferences for smaller, single-serving containers in large markets like food and beverages. These and other trends, including market share and company profiles, are presented in Plastic Containers, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

Plastic bottles and jars, which accounted for 78 percent of plastic container poundage in 2007, will remain the leading container type through 2012.   Unit demand will increase 4.8 percent per year through 2012 to 168 billion units, supported by the popularity of smaller-sized beverage bottles and continued expansion of the bottled water market, the largest single market for plastic bottles.  The food market will also provide good opportunities as the improved barrier properties of polyethylene terephthalate (PET) will expand the use of plastic bottles and jars in hot-fill applications.  In the pharmaceuticals market, the aging population will benefit plastic bottle and jar demand, as senior citizens tend to be among the heaviest consumers of packaged medications.  In markets such as household chemicals, industrial and institutional cleaning chemicals, and automotive fluids, market maturity will result in below-average bottle and jar unit gains. 

Plastic pails will see below-average growth based on competition from alternative packaging like drums and intermediate bulk containers.  Demand for plastic tubs, cups and bowls will benefit from ongoing use in the packaging of such foods as yogurt, cottage cheese and dips.  Other segments of the plastic container industry will have varied prospects, with containers such as cans and squeeze tubes registering the fastest gains.  Can demand will be bolstered by further inroads into the paint market, while squeeze tube gains will be aided by increasing production of skin care products.  Tray demand will be supported by heightened use of dual-ovenable trays that can be used in microwave and conventional ovens.

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.