INDUSTRY MARKET RESEARCH FOR BUSINESS LEADERS, STRATEGISTS, DECISION MAKERS CLICK TO VIEW

Table of Contents 2

List of Tables & Charts 3

Study Overview 4

Sample Text, Table & Chart 5

Sample Profile, Table & Forecast 6

Order Form 7

About Freedonia, Custom Research, Related Studies, photo: Adams Foods photo: Corporate Use License 8

Frozen Food Packaging

US Industry Study with Forecasts for 2013 & 2018

Study #2594 | January 2010 | $4700 | 257 pages

The Freedonia Group 767 Beta Drive www.freedoniagroup.com Cleveland, OH • 44143-2326 • USA Toll Free US Tel: 800.927.5900 or +1 440.684.9600 Fax: +1 440.646.0484 E-mail: [email protected] Study #2594 January 2010 Frozen Food Packaging $4700 257 Pages US Industry Study with Forecasts for 2013 & 2018

Table of Contents

Executive Summary Vegetables...... 99 Acquisitions & Divestitures...... 173 Fruits & Juices...... 104 Competitive Strategies...... 178 Market EnvironmenT Other...... 108 Marketing & Distribution...... 181 General...... 4 Macroeconomic Outlook...... 5 PRODUCTS Company Profiles Demographic Trends...... 10 General...... 111 AEP Industries...... 184 Consumer Spending Trends...... 12 Boxes...... 114 American Packaging...... 186 Retail Sales Outlook...... 14 Folding Cartons...... 119 Ampac Packaging...... 188 Food Industry Outlook...... 17 Corrugated...... 122 Anchor Packaging...... 189 Frozen Food Industry Outlook...... 19 Sleeves...... 123 Associated Packaging Technologies...... 191 Foodservice Industry Outlook...... 22 Bags...... 125 Bemis Company...... 192 Packaging Industry Outlook...... 25 Applications...... 128 Berry Plastics...... 196 Pricing Trends...... 28 Producers...... 130 Caraustar Industries...... 200 Environmental & Regulatory Issues...... 32 Tubs & Cups...... 131 Carter Holt Harvey...... 202 International Activity...... 34 Trays...... 135 Cascades Incorporated...... 203 Materials...... 138 CM Packaging...... 205 APPLICATIONS Producers...... 139 Excelsior Packaging...... 206 Wrap...... 141 Exopack Holding...... 207 General...... 37 Pouches...... 145 Graphic Packaging...... 210 Meat, Poultry & Seafood...... 40 Product Types...... 149 Healthy FX International...... 213 Frozen Meat/Poultry/Seafood Outlook...40 Producers...... 150 Hindalco Industries...... 214 Packaging Demand...... 43 Other...... 151 Hood Companies...... 216 Poultry...... 46 Plastic Containers...... 152 Huhtamaki Oyj...... 218 Meat...... 50 Aluminum Foil Containers...... 155 International Paper...... 220 Seafood...... 53 Gabletop Cartons...... 156 Koch Industries...... 223 Frozen Specialties...... 57 All Other...... 156 LINPAC Group...... 226 Frozen Specialties Outlook...... 58 Materials & Formats...... 157 MeadWestvaco Corporation...... 228 Packaging Demand...... 60 Menasha Corporation...... 230 Dinners...... 63 Mullinix Packages...... 231 Pizza...... 67 INDUSTRY STRUCTURE Pactiv Corporation...... 232 Entrees & Side Dishes...... 69 General...... 163 Printpack Incorporated...... 235 Breakfast Foods...... 73 Market Share...... 166 Reynolds Packaging...... 236 Other Frozen Specialties...... 75 Graphic Packaging...... 168 Rio Tinto...... 239 Ice Cream...... 80 Huhtamaki...... 169 Rock-Tenn Company...... 241 Ice Cream Outlook...... 80 Bemis...... 169 Sabert Corporation...... 244 Packaging Demand...... 82 International Paper...... 170 Sealed Air...... 245 Baked Goods...... 88 Alcan Packaging...... 170 Smurfit-Stone Container...... 249 Frozen Baked Goods Outlook...... 88 Rock-Tenn...... 171 Solo Cup...... 251 Packaging Demand...... 90 Berry Plastics...... 171 Sonoco Products...... 253 Fruits & Vegetables...... 95 Printpack...... 172 Wilkinson Industries...... 255 Frozen Fruit & Vegetable Outlook...... 96 Sealed Air...... 172 Additional Companies in Packaging Demand...... 98 Smurfit-Stone Container...... 173 Frozen Food Packaging...... 256

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List of Tables List of Charts

Executive Summary 14 Ice Cream & Other Frozen APPLICATIONS Dessert Shipments...... 82 1 Summary Table...... 3 1 Frozen Food Packaging Demand 15 Ice Cream & Other Frozen Dessert by Application, 2008...... 40 Packaging Demand 2 Frozen Meat, Poultry & Seafood Market EnvironmenT by Product & Type...... 87 Packaging Demand 16 Frozen Baked Goods Shipments...... 90 1 Macroeconomic Indicators...... 9 by Product, 2008...... 45 17 Frozen Baked Goods Packaging 2 Population & Households...... 12 3 Frozen Poultry Packaging Demand by Type...... 94 3 Personal Consumption Expenditures...14 Demand by Type, 2008...... 50 18 Frozen Fruit & Vegetable Shipments...97 4 Retail Sales...... 16 4 Frozen Meat Packaging 19 Frozen Fruit & Vegetable 5 Food Shipments...... 19 Demand by Type, 2008...... 53 Packaging Demand...... 99 6 Frozen Food Shipments...... 22 5 Frozen Seafood Packaging 20 Frozen Vegetable Packaging 7 Foodservice Revenues Demand by Type, 2008...... 57 Demand by Product & Type...... 103 by Establishment Type...... 24 6 Frozen Specialties Packaging 21 Frozen Fruit & Juice Packaging 8 Packaging Supply & Demand...... 28 Demand by Product, 2008...... 62 Demand by Product & Type...... 107 9 Selected Frozen Food 7 Frozen Dinner Packaging 22 Other Frozen Food Packaging Packaging Prices...... 31 Demand by Type, 2008...... 67 Demand by Type...... 110 8 Frozen Entree & Side Dish Packaging APPLICATIONS Demand by Type, 2008...... 73 PRODUCTS 1 Frozen Food Packaging Demand 9 Other Frozen Specialties Packaging by Application...... 39 1 Frozen Food Packaging Demand by Type, 2008...... 80 2 Frozen Meat, Poultry & Demand by Type...... 113 10 Ice Cream & Other Frozen Dessert Seafood Shipments...... 42 2 Box Demand in Frozen Food Packaging Demand by Type, 2008...88 3 Frozen Meat, Poultry & Seafood Packaging by Type & Application.. 118 11 Frozen Baked Goods Packaging Packaging Demand...... 45 3 Bag Demand in Frozen Food Packaging Demand by Type, 2008...... 95 4 Frozen Poultry Packaging by Type & Application...... 127 12 Frozen Vegetable Packaging Demand by Type...... 49 4 Tub & Cup Demand in Frozen Food Demand by Type, 2008...... 104 5 Frozen Meat Packaging Packaging by Type & Application.. 134 13 Frozen Fruit & Juice Packaging Demand by Type...... 52 5 Tray Demand in Frozen Food Demand by Type, 2008...... 108 6 Frozen Seafood Packaging Packaging by Type & Application.. 138 Demand by Type...... 56 6 Wrap Demand in Frozen PRODUCTS Food Packaging...... 145 7 Frozen Specialties Shipments...... 60 1 Frozen Food Packaging Demand 7 Pouch Demand in Frozen 8 Frozen Specialties Packaging Demand 62 by Type, 2008...... 114 Food Packaging...... 149 9 Frozen Dinner Packaging 2 Box Demand in Frozen Food 8 Other Frozen Food Packaging Demand by Type...... 66 Packaging by Application, 2008... 119 Demand by Type & Application..... 152 10 Frozen Pizza Packaging 3 Bag Demand in Frozen Food 9 Frozen Food Packaging Demand Demand by Type...... 69 Packaging by Application, 2008... 128 by Material & Format...... 161 11 Frozen Entree & Side Dish Packaging 4 Frozen Food Packaging Demand Demand by Type...... 72 by Material, 1998-2018...... 162 12 Frozen Breakfast Food Packaging INDUSTRY STRUCTURE Demand by Type...... 75 1 US Frozen Food Packaging Sales INDUSTRY STRUCTURE 13 Other Frozen Specialties Packaging by Company, 2008...... 165 Demand by Type...... 79 1 US Frozen Food Packaging 2 Selected Acquisitions & Divestitures 177 Market Share, 2008...... 168

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Growth factors include the popularity of convenience-type foods among consumers and foodser- vice establishments, the prevalence of microwave ovens and advances in packaging technology.

US demand to climb 3.7% Meat, Poultry & US Frozen Food Packaging, 2013 annually through 2013 Seafood 33% ($6.8 billion) Demand for frozen food packaging is projected to climb 3.7 percent per year to $6.8 billion in 2013, driven by the popularity of convenience-type foods, both among consumers and foodservice Frozen Specialties establishments; the prevalence of 29% microwave ovens; and technological Adams Foods photo: advances in packaging. Demographic trends such as small household sizes, above-average growth in older age Ice Cream groups and high numbers of households 13% where all adults work will stimulate Baked Goods demand for convenience foods, which 12% tend to use more packaging relative to Other Applications their volume. Revenue growth in the 13% foodservice industry, which relies heavily on frozen foods, will also bode well for packaging. Additional factors supporting growth will include greater use of value- ments resulting from packaging innova- The ice cream, baked goods, and fruit added components such as susceptors tions. In addition, solid prospects for and vegetable markets are expected to and the use of high-quality graphics for frozen dinner packaging will reflect the advance more slowly due to market enhanced visual appeal and to convey a growing presence of items incorporating maturity and/or limited production premium image. premium ingredients and those posi- volume growth. Still, opportunities for tioned as being healthier through packaging will be supported by shifting Frozen specialties, meat, reduced calories or the presence of product mixes. For example, the growing poultry and seafood uses whole-grain ingredients. Meat, poultry popularity of single-serving and other and seafood applications are forecast to small-sized baked goods and ice cream to post fastest gains increase 4.2 percent annually to $2.3 novelties targeted at smaller households Packaging for frozen specialties and for billion in 2013, aided by increased or consumers desiring indulgent treats in meat, poultry and seafood are expected production volume, the popularity of portion control sizes will provide a to post the fastest gains among major products that offer convenience in meal growth niche for related packaging. frozen food applications. Demand for preparation, and the promotion of frozen Robust growth is anticipated for frozen frozen specialties packaging is projected meat, poultry and seafood as economi- vegetables using self-venting pouches, to expand 4.4 percent annually to $2 cal protein options. In addition, gains will which enable steam cooking in their billion in 2013, propelled by consumer be helped by continued high-volume packaging and provide improved taste demand for foods offering convenience requirements in the foodservice sector. and texture. and value along with quality improve- Copyright 2010 The Freedonia Group, Inc.

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Sample Text, TABLE III-17 Table & Chart FROZEN BAKED GOODS PACKAGING DEMAND BY TYPE (million dollars)

Item 1998 2003 2008 2013 2018

Frozen Baked Goods Shipments (bil $) 4.8 5.7 7.9 8.6 10.3 $ packaging/000$ baked goods 88 92 87 93 94 applications Frozen Baked Goods Packaging 421 524 690 800 970 Boxes: 124 137 161 180 205 Packaging Demand Demand for frozen meat, poultry and seafood packaging is pro - Folding Cartons & Sleeves 80 86 98 106 116 jected to climb 4.2 percent per year to $2.3 billion in 2013. Advances Corrugated 44 s51am 63ple 74 89 will decelerate from the performance of the 1998-2008 period as mate Bags- 93 110 148 173 212 rial price increases moderate.sam ple Nonetheless, growth will be supported Plastic Containers 67 100tab 138le 160 200 by expanded production volume, the popularity of convenience-type Trays 62 70 89 103 122 products and the promotion of frozen meat, poultry and seafood as ecoAluminum- Foil Containers 48 57 76 87 103 nomical protein options.te Productxt development activity among proces Pouches- 15 27 40 49 65 sors will boost the availability of products aimed at meeting a variety Other of 12 23 38 48 63 household and institutional demands. In addition, gains will be aided by continued requirements in the foodservice sector. Favorable prospects % baked goods 11.6 11.9 12.1 11.7 11.6 for limited service restaurants will bode well for packaging since Totalthese Frozen Food Packaging 3628 4400 5710 6840 8390 establishments rely heavily on frozen meat, poultry and seafood. Poul- try, which accounted for 47 percent of frozen meat, poultry and seafood packaging demand in 2008, will remain the leading product based on favorable production and consumption trends and the significance of shipments marketed in frozen form. Poultry applications will also out- pace the overall frozen meat, poultry and seafood market through 2013.

Boxes, wrap and bags are the leading packaging products for frozen meat, poultry and seafood, accounting for a combined 82 percent of de- mand in 2008. The remainder of demand is generated by pouches, trays and other products such as paper interleaving and plastic containers. Through 2013, pouches will experience the fastest growth among frozen meat, poultry and seafood packaging types, reflecting rising use of stand- up pouches at the expense of folding cartons. Additionally, value gains will be helped by the growing popularity of larger-sized pouches in club CHART V-1 stores and supermarkets. Growth for bags will be based on heightened demand for value-added frozen products that typically are packaged inU S FROZEN FOOD PACKAGING MARKET SHARE, 2008 bags, such as poultry parts, meatballs, fish fillets and shrimp.The avail- ($5.7 billion) ability of frozen products designed to be cooked in their packaging will also support gains for specialty bags that can go from freezer to oven. 8.9% G rap h ic Pkg 43 Copyright 2009 The Freedonia Group, Inc. 4.7% H u h tam aki

M ar ketsample 3.3% B em is O th er s L ead er s 63.9 % 3.2% In tl Pap er 36.1 % chart 3.0% Alcan Pkg 3.0% R o ck-T en n 2.9% B erry Plastics 2.5% Prin tp ack 2.3% Sealed Air 2.3% Sm u rfit-Sto n e

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Sample Profile, TABLE IV-1 Table & Forecast FROZEN FOOD PACKAGING DEMAND BY TYPE (million dollars)

Item 1998 2003 2008 2013 2018

Packaging Demand (bil $) 95.6 103.7 127.2 139.5 161.0 % frozen food 3.8 4.2 4.5 4.9 5.2

Frozen Food Packaging Demand 3628 4400 5710 6840 8390 Boxes 1368 1627sam 2010ple 2355 2830 Bags 789 912 1135 1320 1580 Tubs & Cups 377 450tab 595le 725 880 Trays 312 404 550 685 870 Wrap 277 354 495 615 785 Pouches 104 207 380 530 735 COMPANY PROFILES Other 401 446 545 610 710

MeadWestvaco Corporation 11013 West Broad Street Glen Allen, VA 23060 804-327-5200 http://www.meadwestvaco.com

Sales: $6.6 billion (2008) US Sales: $4.4 billion (2008) Employment: 22,000 (2008) sample “Demand for trays in frozen food packag- Key Products: coatedp paperboardrofile and coated natural kraft paperboard ing is forecast to expand 4.5 percent an- MeadWestvaco is a global manufacturer of packaging, coated and nually to $685 million in 2013, outpacing specialty papers, school supplies and office products, and a variety of the overall frozen food packaging aver- specialty chemicals. The Company operates through six segments: age. Gains will be helped by the ongoing Packaging Resources, Consumer Solutions, Consumer and Office popularity of frozen dinners, entrees and Products, Specialty Chemicals, Community Development and Land Management, and Corporate and Other. side dishes, sandwiches, and other fro- zen foods commonly packaged in trays. The Company is involved in the US frozen food packaging Heightened demand for such foods will be industry via the Packaging Resources segment, which had 2008 sales based on convenience for consumers with of $2.3 billion. Through this segment, MeadWestvaco makes bleached paperboard, coated natural kraft (CNK) paperboard, linerboard, and limited time for meal preparation, and converted packaging materials for beverage, dairy, produce, cosmetics, demographic trends such as above-average tobacco, pharmaceutical and health care products. growth of older age groups and increasing numbers of one- and two-person house- For frozen food packaging applications, the Company makes PRINTKOTE paperboard and CUSTOM KOTE CNK paperboard, both holds. Preventing faster growth will be ...” of which can be converted into cartons and other materials for packag- --Section IV, pg. 135 ing frozen entrees, pizza, seafood, novelty ice cream and other food products. PRINTKOTE paperboard products include standard varieties

228 Copyright 2009 The Freedonia Group, Inc.

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Page 7 INDUSTRY MARKET RESEARCH FOR BUSINESS LEADERS, STRATEGISTS, DECISION MAKERS

Other Studies About The Freedonia Group

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