Demand for Specialty Films to Reach $7.6 Billion in 2012

Demand for specialty films is forecast to advance 4.7 percent per year to $7.6 billion in 2012.  Gains will be driven by the increasing need for high-performance plastic films which offer such benefits as barrier properties, mechanical strength and chemical resistance in packaging and construction applications.  The penetration of specialty films into new, high-growth market areas such as photovoltaic modules and biodegradable bags will also bolster advances in demand.  Packaging will remain the dominant outlet for specialty films through 2012, accounting for 53 percent of demand.  Gains will result from trends toward more specialized, functional packaging systems in meat, produce and pharmaceutical packaging applications.  These and other trends, including market share and product segmentation, are presented in Specialty Films, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

Barrier films will remain the largest segment of the specialty films industry, accounting for over half of total demand in 2012.  Above-average growth will be driven by the rapid rise of case-ready technology in meat packaging, which requires barrier films to maintain an optimum atmosphere inside the package.  These opportunities will spur advances for plastic films produced from ethylene vinyl alcohol, nylon and polyvinylidene chloride resins. 

Safety and security films and light control films are two closely related groups of specialty films, as both are applied to glass substrates and are used in motor vehicles and buildings.  While the use of polyvinyl butyral interlayer films in laminated vehicle glass is highly mature and offers minimal opportunities for growth, better prospects are expected for light control films.  These films can reduce energy costs in buildings by controlling the transmission of light through windows.  Demand for light control films will also benefit from emerging applications in the fast-growing photovoltaic module market.

The most rapid growth in specialty films will occur in biodegradable and water soluble films, which will see double-digit gains from a small base.  Demand for biodegradable films, which are used to produce compostable kitchen and lawn bags, will benefit from environmental concerns and increased commercialization of bio-based polymers.  Water soluble film demand will receive a boost from the introduction of medicinal and health products in dissolvable thin film form.

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.