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Flexible Bulk Packaging US Industry Study with Forecasts to 2007 & 2012 Order Information About The Freedonia Group Study #1668 • April 2003 • $3800 • 271 Pages To order, fill out the coupon below The Freedonia Group, Inc. and mail to The Freedonia Group, or place your order by phone toll free, The Freedonia Group is a leading international database business research 800.927.5900 (US) or company. Since 1985, Freedonia has published 2,000 multiclient industry Flexible intermediate bulk (FIBCs) swill see double-digit growth based 440.684.9600, or by fax, on their low cost, versatility and excellent performance characteristics 440.646.0484, or e-mail studies that have proven to be outstanding aids to market and corporate [email protected] analysis and strategic planning. Freedonia can save you time and money on research you would otherwise have to do yourself or contract out. Free Handling & Shipping There is NO charge for handling and Freedonia studies cover a broad range of industrial topics in many areas US demand to exceed UPS shipping in the US. Expect including the following: delivery in 3 to 5 business days. $6 billion in 2007 Flexible Bulk Packaging Outside the US, Freedonia provides • Chemicals • Packaging free airmail service. If you require • Construction & Building • Flexible bulk packaging demand in the Demand by Market, 2002 ($5.2 billion) express delivery, Freedonia provides Materials • Security/Electronics/ US is projected to advance four percent this to you at cost. per year to $6.3 billion in 2007, • Energy & Power Equipment Communications creating a market for over six billion Credit Card Orders • Industrial Components • Automotive & Other pounds of raw materials, of which over Chemicals You may charge your order to either & Equipment Transportation Equipment half will be plastics. Growth will be 22% American Express, MasterCard or • Life Sciences: • World Studies stimulated by heightened manufacturing Visa. Please include your credit card account number, expiration date, and Biotech/Medical/Pharmaceutical and retail activity as well as the rise of your signature. home centers, club stores and other Food Freedonia Methodology mass retailers offering a wide array of 21% Orders Outside of the US Freedonia does not just collect and reprint data, Freedonia develops data. products packaged in bulk and utilizing Checks must be made payable in US secondary packaging for product Agricultural/ funds, drawn against a US bank and Our analysts thoroughly investigate an industry by interviewing key partici- warehousing. Prospects among the Horticultural 17% mailed directly to The Freedonia pants and analyzing information from sources such as associations, govern- different product segments of the Group. Wire transfers should be sent ment and trade literature. Once this research is complete, Freedonia estab- Flexible Bulk Packaging to: Fifth Third Bank, Cincinnati, OH; industry will be varied. The strongest Other Nondurables SWIFT No. FTCUS3C; ABA lishes one set of forecasts. All gains are expected in segments offering 14% #042000314; Account #83051814 writing, editing and forecasting is a combination of cost benefits and (please include study number and/or done in-house to assure quality and Need analysis on a topic not covered by invoice number with all wire trans- increased performance efficiency as consistency. In cases where data Freedonia Industry studies? they supplant a variety of alternatives, Durable Goods fers). Or you may use a credit card. US Industry Study with Forecasts to 2007 & 2012 does not exist, Freedonia develops Call customer service for details on both flexible and rigid. Fastest growth 21% Corporate Use License is forecast for flexible intermediate bulk Other 5% the data based on input/output Freedonia Custom Research Now every decision maker in your ratios, bills of materials and flow containers (FIBCs), film wrap, and organization can act on the key STUDY #1668 | April 2003 | $3800 , bin and liners. Growth for intelligence found in all Freedonia charts. shipping sacks and strapping will be However, value gains will trail unit Chemicals, food to post studies. For and additional $2000, ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○○○○○○○○○○○○○○○○○○○○○○○○○○ below average largely due to loss of growth as a result of an ongoing decline you receive unlimited use of an electronic version (PDF) of the study. Title share to faster-growing alternatives. in the average FIBC price. This price above-average gains Order Form The best opportunities are anticipated Place it on your intranet, e-mail it to However, shipping sacks and decline has occurred due to the dramati- coworkers around the world, or print plastic strapping will register healthy cally expanded presence of lower-cost in chemicals, food and smaller it as many times as you like! Order it Name Flexible Bulk Packaging ...... $3800 nondurables markets such as plastics today. gains, typically supplanting sacks imports in the US market, which is Corporate Use License (add to study price) +$2000 and strapping, respectively. driving a growing emphasis on the part and textiles based on favorable Title of US-based producers to higher shipment growth as well as opportu- Additional Print Copies @ $400 each Company ® FIBCs, film wrap to be performing FIBCs. Film wrap will remain nities for flexible bulk packaging Total (including selected option) $ largest growth types a growth segment of the industry, with formats offering cost and performance advantages over alternative flexible Division Enclosed is my check (5% discount) drawn expected annual gains of 6.7 percent to on a US bank and payable to The Freedonia FIBCs, which have substantially enlarged and/or rigid bulk packaging products. $1.5 billion in 2007. Upward momen- Street Group, Inc., in US funds (Ohio residents add their presence in the flexible bulk tum will be fueled by healthy expansion Durable goods markets will lag the 7% sales tax) packaging industry over the past decade, overall market average largely due to in the manufacturing sector as well as City/State/Zip Bill my company will be by far the fastest-growing heightened needs for the bundling and heavy reliance on paper shipping American Express MasterCard Visa segment, as continued advances come protection of goods during warehousing sacks and steel strapping, which are Country The Freedonia Group at the expense of several alternatives. and distribution. While will losing ground to more cost efficient www.freedoniagroup.com Annual growth of 11.2 percent per continue to penetrate strapping and alternative flexible formats. However, Phone Credit Card Number annum to $680 million in 2007 will be film wrap, plastic strapping, plastic 767 Beta Drive • Cleveland, OH • 44143-2326 • USA applications, shrink wrap Online Access: The complete text and attributable to low cost, versatility and demand will be boosted by its rising use shipping sacks and FIBCs will make Fax Tel: 800.927.5900 (US) or 440.684.9600 Fax: 440.646.0484 tables from our studies and reports Expiration Date excellent performance along with a in the unitizing of multipacks for an impressive gains in durables as they can be purchased at our website, e-mail rebound in the manufacturing sector. expanding range of products. penetrate new applications. www.freedoniagroup.com, and Signature through major commercial online INQ hosts. The Freedonia Group, Inc. 767 Beta Drive • Cleveland, OH • 44143-2326 • USA • Web site: www.freedoniagroup.com Tel: 800.927.5900 (US) or 440.684.9600 Fax: 440.646.0484 e-mail: [email protected] Visit www.freedoniagroup.com for complete text and table of contents Flexible Bulk Packaging US Industry Study with Forecasts to 2007 & 2012 Order Information About The Freedonia Group Study #1668 • April 2003 • $3800 • 271 Pages To order, fill out the coupon below The Freedonia Group, Inc. and mail to The Freedonia Group, or place your order by phone toll free, The Freedonia Group is a leading international database business research 800.927.5900 (US) or company. Since 1985, Freedonia has published 2,000 multiclient industry Flexible intermediate bulk containers (FIBCs) swill see double-digit growth based 440.684.9600, or by fax, on their low cost, versatility and excellent performance characteristics 440.646.0484, or e-mail studies that have proven to be outstanding aids to market and corporate [email protected] analysis and strategic planning. Freedonia can save you time and money on research you would otherwise have to do yourself or contract out. Free Handling & Shipping There is NO charge for handling and Freedonia studies cover a broad range of industrial topics in many areas US demand to exceed UPS shipping in the US. Expect including the following: delivery in 3 to 5 business days. $6 billion in 2007 Flexible Bulk Packaging Outside the US, Freedonia provides • Chemicals • Packaging free airmail service. If you require • Construction & Building • Plastics Flexible bulk packaging demand in the Demand by Market, 2002 ($5.2 billion) express delivery, Freedonia provides Materials • Security/Electronics/ US is projected to advance four percent this to you at cost. per year to $6.3 billion in 2007, • Energy & Power Equipment Communications creating a market for over six billion Credit Card Orders • Industrial Components • Automotive & Other pounds of raw materials, of which over Chemicals You may charge your order to either & Equipment Transportation Equipment half will be plastics. Growth will be 22% American Express, MasterCard or • Life Sciences: • World Studies stimulated by heightened manufacturing Visa. Please include your credit card account number, expiration date, and Biotech/Medical/Pharmaceutical and retail activity as well as the rise of your signature. home centers, club stores and other Food Freedonia Methodology mass retailers offering a wide array of 21% Orders Outside of the US Freedonia does not just collect and reprint data, Freedonia develops data. products packaged in bulk and utilizing Checks must be made payable in US secondary packaging for product Agricultural/ funds, drawn against a US bank and Our analysts thoroughly investigate an industry by interviewing key partici- warehousing. Prospects among the Horticultural 17% mailed directly to The Freedonia pants and analyzing information from sources such as associations, govern- different product segments of the Group. Wire transfers should be sent ment and trade literature. Once this research is complete, Freedonia estab- Flexible Bulk Packaging to: Fifth Third Bank, Cincinnati, OH; industry will be varied. The strongest Other Nondurables SWIFT No. FTCUS3C; ABA lishes one set of forecasts. All gains are expected in segments offering 14% #042000314; Account #83051814 writing, editing and forecasting is a combination of cost benefits and (please include study number and/or done in-house to assure quality and Need analysis on a topic not covered by invoice number with all wire trans- increased performance efficiency as consistency. In cases where data Freedonia Industry studies? they supplant a variety of alternatives, Durable Goods fers). Or you may use a credit card. US Industry Study with Forecasts to 2007 & 2012 does not exist, Freedonia develops Call customer service for details on both flexible and rigid. Fastest growth 21% Corporate Use License is forecast for flexible intermediate bulk Other 5% the data based on input/output Freedonia Custom Research Now every decision maker in your ratios, bills of materials and flow containers (FIBCs), film wrap, and organization can act on the key STUDY #1668 | April 2003 | $3800 drum, bin and box liners. Growth for intelligence found in all Freedonia charts. shipping sacks and strapping will be However, value gains will trail unit Chemicals, food to post studies. For and additional $2000, ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○○○○○○○○○○○○○○○○○○○○○○○○○○ below average largely due to loss of growth as a result of an ongoing decline you receive unlimited use of an electronic version (PDF) of the study. Title share to faster-growing alternatives. in the average FIBC price. This price above-average gains Order Form The best opportunities are anticipated Place it on your intranet, e-mail it to However, plastic shipping sacks and decline has occurred due to the dramati- coworkers around the world, or print plastic strapping will register healthy cally expanded presence of lower-cost in chemicals, food and smaller it as many times as you like! Order it Name Flexible Bulk Packaging ...... $3800 nondurables markets such as plastics today. gains, typically supplanting paper sacks imports in the US market, which is Corporate Use License (add to study price) +$2000 and steel strapping, respectively. driving a growing emphasis on the part and textiles based on favorable Title of US-based producers to higher shipment growth as well as opportu- Additional Print Copies @ $400 each Company ® FIBCs, film wrap to be performing FIBCs. Film wrap will remain nities for flexible bulk packaging Total (including selected option) $ largest growth types a growth segment of the industry, with formats offering cost and performance advantages over alternative flexible Division Enclosed is my check (5% discount) drawn expected annual gains of 6.7 percent to on a US bank and payable to The Freedonia FIBCs, which have substantially enlarged and/or rigid bulk packaging products. $1.5 billion in 2007. Upward momen- Street Group, Inc., in US funds (Ohio residents add their presence in the flexible bulk tum will be fueled by healthy expansion Durable goods markets will lag the 7% sales tax) packaging industry over the past decade, overall market average largely due to in the manufacturing sector as well as City/State/Zip Bill my company will be by far the fastest-growing heightened needs for the bundling and heavy reliance on paper shipping American Express MasterCard Visa segment, as continued advances come protection of goods during warehousing sacks and steel strapping, which are Country The Freedonia Group at the expense of several alternatives. and distribution. While stretch wrap will losing ground to more cost efficient www.freedoniagroup.com Annual growth of 11.2 percent per continue to penetrate strapping and alternative flexible formats. However, Phone Credit Card Number annum to $680 million in 2007 will be film wrap, plastic strapping, plastic 767 Beta Drive • Cleveland, OH • 44143-2326 • USA shrink wrap applications, shrink wrap Online Access: The complete text and attributable to low cost, versatility and demand will be boosted by its rising use shipping sacks and FIBCs will make Fax Tel: 800.927.5900 (US) or 440.684.9600 Fax: 440.646.0484 tables from our studies and reports Expiration Date excellent performance along with a in the unitizing of multipacks for an impressive gains in durables as they can be purchased at our website, e-mail rebound in the manufacturing sector. expanding range of products. penetrate new applications. www.freedoniagroup.com, and Signature through major commercial online INQ hosts. The Freedonia Group, Inc. 767 Beta Drive • Cleveland, OH • 44143-2326 • USA • Web site: www.freedoniagroup.com Tel: 800.927.5900 (US) or 440.684.9600 Fax: 440.646.0484 e-mail: [email protected] Visit www.freedoniagroup.com for complete text and table of contents Table of Contents Letter From the CEO Freedonia Study #1668 - FLEXIBLE BULK PACKAGING Table of Contents (cont.)

INTRODUCTION Product Types & Constructions .. 107 Markets ...... 110 EXECUTIVE SUMMARY ...... 1 Dear Colleague: Food Market for Flexible Bulk Packaging Producers ...... 112 Drum, Bin & Box Liners ...... 114 Flexible Bulk Packaging Demand, 2002 (million dollars) MARKET ENVIRONMENT ...... 4 Markets ...... 116 ($5.2 billion) General ...... 4 In challenging economic times, it is more important Producers ...... 118 Item 1992 1997 2002 2007 2012 Shipping Sacks Macroeconomic Outlook ...... 5 than ever to have credible industry information on Other Flexible Bulk Packaging ...... 120 49% Demographic Trends ...... 7 which to base your business decisions. Food & Beverage Shpts (bil $) 382.9 456.2 488.0 567.0 657.0 Manufacturers’ Shipments ...... 11 MARKETS ...... 122 $ pkg/000$ shpts 1.89 2.01 2.27 2.40 2.57 Retail Sales ...... 13 General ...... 122 Competitive Bulk Packaging ...... 16 At Freedonia, it is our mission to provide you with an Nondurable Goods ...... 125 Food Flexible Bulk Pkg Demand 723 917 1106 1360 1690 Historical Market Trends ...... 19 unbiased, reliable outlook for each industry that we Chemical Products ...... 126 Shipping Sacks: 511 577 599 644 688 Chemical Products Outlook ... 127 Pricing Trends ...... 22 study. We carefully examine available sources, Other Paper Shipping Sacks 380 430 438 455 475 Flexible Bulk Packaging Environmental Issues ...... 24 3% Regulatory Issues ...... 27 separate the wheat from the chaff, and distill an ocean of data into a concise Textile Shipping Sacks 113 122MARKETS 126 142 154 Demand ...... 129 Foreign Trade ...... 30 presentation of where an industry stands today... and where it is going. Plastic Shipping Sacks 18The 25Markets 35Section 47 ana- 59 Food Products ...... 133 Drum, Box & Bin Liners Film Wrap Film Wrap: 152lyzes 251 trends 386 and considers 542 746 Food Industry Outlook ...... 133 8% 21% FIBCs MATERIALS ...... 33 Stretch Wrap 123the 206threats 323and opportuni- 459 630 Flexible Bulk Packaging PRODUCTS 8% General ...... 33 At Freedonia, it is our mission to provide you with an Shrink Wrap 29 45 63 83 116 Demand ...... 137 Strapping ties in each major market 12% Plastic Resins ...... 36 unbiased, reliable outlook for each industry ... FIBCs 18 35 55 93 155 Agricultural & Horticultural ...... 37 Flexible Intermediate Bulk Containers - Markets Drum, Bin & Box Liners 22 29 35 43 53 Products ...... 142 ...... 41 Other 20 25 31 38 48 Agricultural & Horticultural Other Resins ...... 44 Each Freedonia industry study provides you with the information and analysis Demand for flexible intermediate bulk containers is pro- Industry Outlook ...... 142 jected to climb 11.2 percent per annum to $680 million in Paper ...... 45 you need to make important decisions. How large is your target market? % food 21.2 20.8 21.3 21.5 22.0 Flexible Bulk Packaging 2007. Chemical products, which represented 60 percent Demand ...... 145 Steel ...... 47 Which product segments are growing fastest? Which markets are growing Flexible Bulk Packaging Demand3413 4406 5184 6320 7680 of demand in 2002, will remain the dominant market and Other Nondurable Goods ...... 148 Textiles ...... 48 COMPANY PROFILES fastest? Our analysts review the relevant secondary sources and talk directly will advance slightly fasterSAMPLE than PAGEthe overall FIBC pace, Paper Products ...... 149 PRODUCTS ...... 50 to participants in the industry to find the answers. reaching $415 millionText sections in 2007. support Gains willeach be stimulated by Paper Products Outlook .... 149 General ...... 50 cost advantagestable’s versus numbers rigid bulk & packagingprojections alternatives Flexible Bulk Packaging Bemis Company Incorporated like drums, and RIBCs, as well as easier handling and Demand ...... 151 222 South Ninth Street, Suite 2300 Shipping Sacks ...... 53 Our Flexible Bulk Packaging study is the culmination of several hundred hours Paper Shipping Sacks ...... 55 more efficient transportation and storage than larger Textile Products ...... 153 Minneapolis, MN 55402 numbers of individual sacks and . Additionally, the 612-376-3000 Material Use & Constructions .... 57 of Freedonia analysts' time, and is an excellent complementary study to our Textile Products Outlook ... 153 capability of FIBCs to transport some classes of hazardous http://www.bemis.com Markets ...... 60 recently completed Rigid Bulk Packaging. In addition to analyzing the outlook Flexible Bulk Packaging chemicals will boost gains, as will increased availability of Producers ...... 62 Demand ...... 155 for the top flexible bulk packaging products (shipping sacks, film wrap, FIBC's, specialty bags incorporating value-added features such as Sales: $2.4 billion (2002) Plastic Shipping Sacks ...... 63 All Other Nondurable Goods.. 157 liners, and strapping), the study examines requirements for the major materials antimicrobial and antistatic protection or bags suited for US Sales: $1.9 billion (2002) Material Use & Product Types ... 66 Durable Goods ...... 160 clean room processing environments (e.g., pharmaceuti- Employment: 11,800 (2002) Markets ...... 68 (polyethylene, polypropylene, paper, steel, and textiles). The study should be Building Materials...... 161 cals). Producers ...... 71 of great use to manufacturers and material suppliers alike. Construction Outlook ...... 161 Key Products: high barrier films, shrink films, polyethyl- Flexible Bulk Packaging Textile Shipping Sacks ...... 72 Food markets for FIBCs will grow at an 11.1 percent annual ene films, and paper bags and other paper packaging Demand ...... 164 Material Use ...... 74 pace through 2007, valued at over $90 billion, aided by products I invite you to add the Freedonia Group to your team by acquiring our Metal Products ...... 167 Markets ...... 75 product improvements which are enabling FIBCs with liners Flexible Bulk Packaging study today. Metal Products Outlook ...... 168 Producers ...... 76 to be used with liquid food products. RepresentativeShrink Wrap foods Demand Bemis is one of the largest producers of flexible and Film Wrap...... 77 which can be shipped in lined FIBCs include(million sauces, pounds) syrups, Flexible Bulk Packaging protective packaging in the US. The Company operates in Stretch Wrap ...... 78 Very truly yours, purees and concentrates. Demand will also be boosted by Demand ...... 169 two segments: Flexible Packaging and Pressure Sensitive Markets ...... 81 continued use with dry flowable foods likeItem sugar, flour, 1992 1997 2002 2007 2012 Other Durable Goods ...... 171 Materials. In August 2002, the Company announced an Producers ...... 84 starches, corn and beans based on cost advantages over Other Markets ...... 174 agreement to sell the Pressure Sensitive Materials seg- Shrink Wrap ...... 85 alternative packaging formats as well asTotal their Film ease Wrap of filling Demand 680 1012 1390 1848 2365 ment to UPM-Kymmene Corporation (Finland) for $420 Markets ...... 88 % shrink 22.1 20.9 19.1 17.9 17.3 INDUSTRY STRUCTURE ...... 176 million. The transaction was delayed in December 2002 Producers ...... 89 Jeffrey Weiss, CEO General ...... 176 due to the ongoing review by the US regulatory authori- PRODUCTS Industry Composition ...... 177 Strapping ...... 91 Shrink Wrap Demand 150 212 265 330 410 ties, and in April 2003, Bemis received notice of the Steel Strapping ...... 92 The Products Section Market Share ...... 181 Low Density Polyethylene 130 194 250 320 400 intent of the US Department of Justice to file a civil Markets ...... 95 provides demand for Acquisitions & Divestitures ...... 186 Polyvinyl Chloride 20 18 15 10 10 antitrust lawsuit to block the sale. Producers ...... 96 historical years and Competitive Strategies ...... 191 Plastic Strapping ...... 98 forecasts growth to 2007 Manufacturing & Development ..... 192 $/lb 0.89 0.95 0.98 1.05 1.10 The Company is active in the US flexible bulk packaging Markets ...... 101 Horizontal & Vertical Integration .. 194 industry through the Flexible Packaging segment, which Shrink Wrap Demand (mil $) 134 201and 260 2012 345 450 Producers ...... 102 Marketing & Distribution ...... 197 had 2002 sales of $1.9 billion. Bemis identifies Printpack Flexible Intermediate Cooperative Agreements ...... 199 Bulk Containers ...... 104 Company Profiles ...... 200-271 Table of Contents Letter From the CEO Freedonia Study #1668 - FLEXIBLE BULK PACKAGING Table of Contents (cont.)

INTRODUCTION Product Types & Constructions .. 107 Markets ...... 110 EXECUTIVE SUMMARY ...... 1 Dear Colleague: Food Market for Flexible Bulk Packaging Producers ...... 112 Drum, Bin & Box Liners ...... 114 Flexible Bulk Packaging Demand, 2002 (million dollars) MARKET ENVIRONMENT ...... 4 Markets ...... 116 ($5.2 billion) General ...... 4 In challenging economic times, it is more important Producers ...... 118 Item 1992 1997 2002 2007 2012 Shipping Sacks Macroeconomic Outlook ...... 5 than ever to have credible industry information on Other Flexible Bulk Packaging ...... 120 49% Demographic Trends ...... 7 which to base your business decisions. Food & Beverage Shpts (bil $) 382.9 456.2 488.0 567.0 657.0 Manufacturers’ Shipments ...... 11 MARKETS ...... 122 $ pkg/000$ shpts 1.89 2.01 2.27 2.40 2.57 Retail Sales ...... 13 General ...... 122 Competitive Bulk Packaging ...... 16 At Freedonia, it is our mission to provide you with an Nondurable Goods ...... 125 Food Flexible Bulk Pkg Demand 723 917 1106 1360 1690 Historical Market Trends ...... 19 unbiased, reliable outlook for each industry that we Chemical Products ...... 126 Shipping Sacks: 511 577 599 644 688 Chemical Products Outlook ... 127 Pricing Trends ...... 22 study. We carefully examine available sources, Other Paper Shipping Sacks 380 430 438 455 475 Flexible Bulk Packaging Environmental Issues ...... 24 3% Regulatory Issues ...... 27 separate the wheat from the chaff, and distill an ocean of data into a concise Textile Shipping Sacks 113 122MARKETS 126 142 154 Demand ...... 129 Foreign Trade ...... 30 presentation of where an industry stands today... and where it is going. Plastic Shipping Sacks 18The 25Markets 35Section 47 ana- 59 Food Products ...... 133 Drum, Box & Bin Liners Film Wrap Film Wrap: 152lyzes 251 trends 386 and considers 542 746 Food Industry Outlook ...... 133 8% 21% FIBCs MATERIALS ...... 33 Stretch Wrap 123the 206threats 323and opportuni- 459 630 Flexible Bulk Packaging PRODUCTS 8% General ...... 33 At Freedonia, it is our mission to provide you with an Shrink Wrap 29 45 63 83 116 Demand ...... 137 Strapping ties in each major market 12% Plastic Resins ...... 36 unbiased, reliable outlook for each industry ... FIBCs 18 35 55 93 155 Agricultural & Horticultural Polyethylene ...... 37 Flexible Intermediate Bulk Containers - Markets Drum, Bin & Box Liners 22 29 35 43 53 Products ...... 142 Polypropylene ...... 41 Other 20 25 31 38 48 Agricultural & Horticultural Other Resins ...... 44 Each Freedonia industry study provides you with the information and analysis Demand for flexible intermediate bulk containers is pro- Industry Outlook ...... 142 jected to climb 11.2 percent per annum to $680 million in Paper ...... 45 you need to make important decisions. How large is your target market? % food 21.2 20.8 21.3 21.5 22.0 Flexible Bulk Packaging 2007. Chemical products, which represented 60 percent Demand ...... 145 Steel ...... 47 Which product segments are growing fastest? Which markets are growing Flexible Bulk Packaging Demand3413 4406 5184 6320 7680 of demand in 2002, will remain the dominant market and Other Nondurable Goods ...... 148 Textiles ...... 48 COMPANY PROFILES fastest? Our analysts review the relevant secondary sources and talk directly will advance slightly fasterSAMPLE than PAGEthe overall FIBC pace, Paper Products ...... 149 PRODUCTS ...... 50 to participants in the industry to find the answers. reaching $415 millionText sections in 2007. support Gains willeach be stimulated by Paper Products Outlook .... 149 General ...... 50 cost advantagestable’s versus numbers rigid bulk & packagingprojections alternatives Flexible Bulk Packaging Bemis Company Incorporated like drums, boxes and RIBCs, as well as easier handling and Demand ...... 151 222 South Ninth Street, Suite 2300 Shipping Sacks ...... 53 Our Flexible Bulk Packaging study is the culmination of several hundred hours Paper Shipping Sacks ...... 55 more efficient transportation and storage than larger Textile Products ...... 153 Minneapolis, MN 55402 numbers of individual sacks and bags. Additionally, the 612-376-3000 Material Use & Constructions .... 57 of Freedonia analysts' time, and is an excellent complementary study to our Textile Products Outlook ... 153 capability of FIBCs to transport some classes of hazardous http://www.bemis.com Markets ...... 60 recently completed Rigid Bulk Packaging. In addition to analyzing the outlook Flexible Bulk Packaging chemicals will boost gains, as will increased availability of Producers ...... 62 Demand ...... 155 for the top flexible bulk packaging products (shipping sacks, film wrap, FIBC's, specialty bags incorporating value-added features such as Sales: $2.4 billion (2002) Plastic Shipping Sacks ...... 63 All Other Nondurable Goods.. 157 liners, and strapping), the study examines requirements for the major materials antimicrobial and antistatic protection or bags suited for US Sales: $1.9 billion (2002) Material Use & Product Types ... 66 Durable Goods ...... 160 clean room processing environments (e.g., pharmaceuti- Employment: 11,800 (2002) Markets ...... 68 (polyethylene, polypropylene, paper, steel, and textiles). The study should be Building Materials...... 161 cals). Producers ...... 71 of great use to manufacturers and material suppliers alike. Construction Outlook ...... 161 Key Products: high barrier films, shrink films, polyethyl- Flexible Bulk Packaging Textile Shipping Sacks ...... 72 Food markets for FIBCs will grow at an 11.1 percent annual ene films, and paper bags and other paper packaging Demand ...... 164 Material Use ...... 74 pace through 2007, valued at over $90 billion, aided by products I invite you to add the Freedonia Group to your team by acquiring our Metal Products ...... 167 Markets ...... 75 product improvements which are enabling FIBCs with liners Flexible Bulk Packaging study today. Metal Products Outlook ...... 168 Producers ...... 76 to be used with liquid food products. RepresentativeShrink Wrap foods Demand Bemis is one of the largest producers of flexible and Film Wrap...... 77 which can be shipped in lined FIBCs include(million sauces, pounds) syrups, Flexible Bulk Packaging protective packaging in the US. The Company operates in Stretch Wrap ...... 78 Very truly yours, purees and concentrates. Demand will also be boosted by Demand ...... 169 two segments: Flexible Packaging and Pressure Sensitive Markets ...... 81 continued use with dry flowable foods likeItem sugar, flour, 1992 1997 2002 2007 2012 Other Durable Goods ...... 171 Materials. In August 2002, the Company announced an Producers ...... 84 starches, corn and beans based on cost advantages over Other Markets ...... 174 agreement to sell the Pressure Sensitive Materials seg- Shrink Wrap ...... 85 alternative packaging formats as well asTotal their Film ease Wrap of filling Demand 680 1012 1390 1848 2365 ment to UPM-Kymmene Corporation (Finland) for $420 Markets ...... 88 % shrink 22.1 20.9 19.1 17.9 17.3 INDUSTRY STRUCTURE ...... 176 million. The transaction was delayed in December 2002 Producers ...... 89 Jeffrey Weiss, CEO General ...... 176 due to the ongoing review by the US regulatory authori- PRODUCTS Industry Composition ...... 177 Strapping ...... 91 Shrink Wrap Demand 150 212 265 330 410 ties, and in April 2003, Bemis received notice of the Steel Strapping ...... 92 The Products Section Market Share ...... 181 Low Density Polyethylene 130 194 250 320 400 intent of the US Department of Justice to file a civil Markets ...... 95 provides demand for Acquisitions & Divestitures ...... 186 Polyvinyl Chloride 20 18 15 10 10 antitrust lawsuit to block the sale. Producers ...... 96 historical years and Competitive Strategies ...... 191 Plastic Strapping ...... 98 forecasts growth to 2007 Manufacturing & Development ..... 192 $/lb 0.89 0.95 0.98 1.05 1.10 The Company is active in the US flexible bulk packaging Markets ...... 101 Horizontal & Vertical Integration .. 194 industry through the Flexible Packaging segment, which Shrink Wrap Demand (mil $) 134 201and 260 2012 345 450 Producers ...... 102 Marketing & Distribution ...... 197 had 2002 sales of $1.9 billion. Bemis identifies Printpack Flexible Intermediate Cooperative Agreements ...... 199 Bulk Containers ...... 104 Company Profiles ...... 200-271 Table of Contents Letter From the CEO Freedonia Study #1668 - FLEXIBLE BULK PACKAGING Table of Contents (cont.)

INTRODUCTION Product Types & Constructions .. 107 Markets ...... 110 EXECUTIVE SUMMARY ...... 1 Dear Colleague: Food Market for Flexible Bulk Packaging Producers ...... 112 Drum, Bin & Box Liners ...... 114 Flexible Bulk Packaging Demand, 2002 (million dollars) MARKET ENVIRONMENT ...... 4 Markets ...... 116 ($5.2 billion) General ...... 4 In challenging economic times, it is more important Producers ...... 118 Item 1992 1997 2002 2007 2012 Shipping Sacks Macroeconomic Outlook ...... 5 than ever to have credible industry information on Other Flexible Bulk Packaging ...... 120 49% Demographic Trends ...... 7 which to base your business decisions. Food & Beverage Shpts (bil $) 382.9 456.2 488.0 567.0 657.0 Manufacturers’ Shipments ...... 11 MARKETS ...... 122 $ pkg/000$ shpts 1.89 2.01 2.27 2.40 2.57 Retail Sales ...... 13 General ...... 122 Competitive Bulk Packaging ...... 16 At Freedonia, it is our mission to provide you with an Nondurable Goods ...... 125 Food Flexible Bulk Pkg Demand 723 917 1106 1360 1690 Historical Market Trends ...... 19 unbiased, reliable outlook for each industry that we Chemical Products ...... 126 Shipping Sacks: 511 577 599 644 688 Chemical Products Outlook ... 127 Pricing Trends ...... 22 study. We carefully examine available sources, Other Paper Shipping Sacks 380 430 438 455 475 Flexible Bulk Packaging Environmental Issues ...... 24 3% Regulatory Issues ...... 27 separate the wheat from the chaff, and distill an ocean of data into a concise Textile Shipping Sacks 113 122MARKETS 126 142 154 Demand ...... 129 Foreign Trade ...... 30 presentation of where an industry stands today... and where it is going. Plastic Shipping Sacks 18The 25Markets 35Section 47 ana- 59 Food Products ...... 133 Drum, Box & Bin Liners Film Wrap Film Wrap: 152lyzes 251 trends 386 and considers 542 746 Food Industry Outlook ...... 133 8% 21% FIBCs MATERIALS ...... 33 Stretch Wrap 123the 206threats 323and opportuni- 459 630 Flexible Bulk Packaging PRODUCTS 8% General ...... 33 At Freedonia, it is our mission to provide you with an Shrink Wrap 29 45 63 83 116 Demand ...... 137 Strapping ties in each major market 12% Plastic Resins ...... 36 unbiased, reliable outlook for each industry ... FIBCs 18 35 55 93 155 Agricultural & Horticultural Polyethylene ...... 37 Flexible Intermediate Bulk Containers - Markets Drum, Bin & Box Liners 22 29 35 43 53 Products ...... 142 Polypropylene ...... 41 Other 20 25 31 38 48 Agricultural & Horticultural Other Resins ...... 44 Each Freedonia industry study provides you with the information and analysis Demand for flexible intermediate bulk containers is pro- Industry Outlook ...... 142 jected to climb 11.2 percent per annum to $680 million in Paper ...... 45 you need to make important decisions. How large is your target market? % food 21.2 20.8 21.3 21.5 22.0 Flexible Bulk Packaging 2007. Chemical products, which represented 60 percent Demand ...... 145 Steel ...... 47 Which product segments are growing fastest? Which markets are growing Flexible Bulk Packaging Demand3413 4406 5184 6320 7680 of demand in 2002, will remain the dominant market and Other Nondurable Goods ...... 148 Textiles ...... 48 COMPANY PROFILES fastest? Our analysts review the relevant secondary sources and talk directly will advance slightly fasterSAMPLE than PAGEthe overall FIBC pace, Paper Products ...... 149 PRODUCTS ...... 50 to participants in the industry to find the answers. reaching $415 millionText sections in 2007. support Gains willeach be stimulated by Paper Products Outlook .... 149 General ...... 50 cost advantagestable’s versus numbers rigid bulk & packagingprojections alternatives Flexible Bulk Packaging Bemis Company Incorporated like drums, boxes and RIBCs, as well as easier handling and Demand ...... 151 222 South Ninth Street, Suite 2300 Shipping Sacks ...... 53 Our Flexible Bulk Packaging study is the culmination of several hundred hours Paper Shipping Sacks ...... 55 more efficient transportation and storage than larger Textile Products ...... 153 Minneapolis, MN 55402 numbers of individual sacks and bags. Additionally, the 612-376-3000 Material Use & Constructions .... 57 of Freedonia analysts' time, and is an excellent complementary study to our Textile Products Outlook ... 153 capability of FIBCs to transport some classes of hazardous http://www.bemis.com Markets ...... 60 recently completed Rigid Bulk Packaging. In addition to analyzing the outlook Flexible Bulk Packaging chemicals will boost gains, as will increased availability of Producers ...... 62 Demand ...... 155 for the top flexible bulk packaging products (shipping sacks, film wrap, FIBC's, specialty bags incorporating value-added features such as Sales: $2.4 billion (2002) Plastic Shipping Sacks ...... 63 All Other Nondurable Goods.. 157 liners, and strapping), the study examines requirements for the major materials antimicrobial and antistatic protection or bags suited for US Sales: $1.9 billion (2002) Material Use & Product Types ... 66 Durable Goods ...... 160 clean room processing environments (e.g., pharmaceuti- Employment: 11,800 (2002) Markets ...... 68 (polyethylene, polypropylene, paper, steel, and textiles). The study should be Building Materials...... 161 cals). Producers ...... 71 of great use to manufacturers and material suppliers alike. Construction Outlook ...... 161 Key Products: high barrier films, shrink films, polyethyl- Flexible Bulk Packaging Textile Shipping Sacks ...... 72 Food markets for FIBCs will grow at an 11.1 percent annual ene films, and paper bags and other paper packaging Demand ...... 164 Material Use ...... 74 pace through 2007, valued at over $90 billion, aided by products I invite you to add the Freedonia Group to your team by acquiring our Metal Products ...... 167 Markets ...... 75 product improvements which are enabling FIBCs with liners Flexible Bulk Packaging study today. Metal Products Outlook ...... 168 Producers ...... 76 to be used with liquid food products. RepresentativeShrink Wrap foods Demand Bemis is one of the largest producers of flexible and Film Wrap...... 77 which can be shipped in lined FIBCs include(million sauces, pounds) syrups, Flexible Bulk Packaging protective packaging in the US. The Company operates in Stretch Wrap ...... 78 Very truly yours, purees and concentrates. Demand will also be boosted by Demand ...... 169 two segments: Flexible Packaging and Pressure Sensitive Markets ...... 81 continued use with dry flowable foods likeItem sugar, flour, 1992 1997 2002 2007 2012 Other Durable Goods ...... 171 Materials. In August 2002, the Company announced an Producers ...... 84 starches, corn and beans based on cost advantages over Other Markets ...... 174 agreement to sell the Pressure Sensitive Materials seg- Shrink Wrap ...... 85 alternative packaging formats as well asTotal their Film ease Wrap of filling Demand 680 1012 1390 1848 2365 ment to UPM-Kymmene Corporation (Finland) for $420 Markets ...... 88 % shrink 22.1 20.9 19.1 17.9 17.3 INDUSTRY STRUCTURE ...... 176 million. The transaction was delayed in December 2002 Producers ...... 89 Jeffrey Weiss, CEO General ...... 176 due to the ongoing review by the US regulatory authori- PRODUCTS Industry Composition ...... 177 Strapping ...... 91 Shrink Wrap Demand 150 212 265 330 410 ties, and in April 2003, Bemis received notice of the Steel Strapping ...... 92 The Products Section Market Share ...... 181 Low Density Polyethylene 130 194 250 320 400 intent of the US Department of Justice to file a civil Markets ...... 95 provides demand for Acquisitions & Divestitures ...... 186 Polyvinyl Chloride 20 18 15 10 10 antitrust lawsuit to block the sale. Producers ...... 96 historical years and Competitive Strategies ...... 191 Plastic Strapping ...... 98 forecasts growth to 2007 Manufacturing & Development ..... 192 $/lb 0.89 0.95 0.98 1.05 1.10 The Company is active in the US flexible bulk packaging Markets ...... 101 Horizontal & Vertical Integration .. 194 industry through the Flexible Packaging segment, which Shrink Wrap Demand (mil $) 134 201and 260 2012 345 450 Producers ...... 102 Marketing & Distribution ...... 197 had 2002 sales of $1.9 billion. Bemis identifies Printpack Flexible Intermediate Cooperative Agreements ...... 199 Bulk Containers ...... 104 Company Profiles ...... 200-271 Flexible Bulk Packaging US Industry Study with Forecasts to 2007 & 2012 Order Information About The Freedonia Group Study #1668 • April 2003 • $3800 • 271 Pages To order, fill out the coupon below The Freedonia Group, Inc. and mail to The Freedonia Group, or place your order by phone toll free, The Freedonia Group is a leading international database business research 800.927.5900 (US) or company. Since 1985, Freedonia has published 2,000 multiclient industry Flexible intermediate bulk containers (FIBCs) swill see double-digit growth based 440.684.9600, or by fax, on their low cost, versatility and excellent performance characteristics 440.646.0484, or e-mail studies that have proven to be outstanding aids to market and corporate [email protected] analysis and strategic planning. Freedonia can save you time and money on research you would otherwise have to do yourself or contract out. Free Handling & Shipping There is NO charge for handling and Freedonia studies cover a broad range of industrial topics in many areas US demand to exceed UPS shipping in the US. Expect including the following: delivery in 3 to 5 business days. $6 billion in 2007 Flexible Bulk Packaging Outside the US, Freedonia provides • Chemicals • Packaging free airmail service. If you require • Construction & Building • Plastics Flexible bulk packaging demand in the Demand by Market, 2002 ($5.2 billion) express delivery, Freedonia provides Materials • Security/Electronics/ US is projected to advance four percent this to you at cost. per year to $6.3 billion in 2007, • Energy & Power Equipment Communications creating a market for over six billion Credit Card Orders • Industrial Components • Automotive & Other pounds of raw materials, of which over Chemicals You may charge your order to either & Equipment Transportation Equipment half will be plastics. Growth will be 22% American Express, MasterCard or • Life Sciences: • World Studies stimulated by heightened manufacturing Visa. Please include your credit card account number, expiration date, and Biotech/Medical/Pharmaceutical and retail activity as well as the rise of your signature. home centers, club stores and other Food Freedonia Methodology mass retailers offering a wide array of 21% Orders Outside of the US Freedonia does not just collect and reprint data, Freedonia develops data. products packaged in bulk and utilizing Checks must be made payable in US secondary packaging for product Agricultural/ funds, drawn against a US bank and Our analysts thoroughly investigate an industry by interviewing key partici- warehousing. Prospects among the Horticultural 17% mailed directly to The Freedonia pants and analyzing information from sources such as associations, govern- different product segments of the Group. Wire transfers should be sent ment and trade literature. Once this research is complete, Freedonia estab- Flexible Bulk Packaging to: Fifth Third Bank, Cincinnati, OH; industry will be varied. The strongest Other Nondurables SWIFT No. FTCUS3C; ABA lishes one set of forecasts. All gains are expected in segments offering 14% #042000314; Account #83051814 writing, editing and forecasting is a combination of cost benefits and (please include study number and/or done in-house to assure quality and Need analysis on a topic not covered by invoice number with all wire trans- increased performance efficiency as consistency. In cases where data Freedonia Industry studies? they supplant a variety of alternatives, Durable Goods fers). Or you may use a credit card. US Industry Study with Forecasts to 2007 & 2012 does not exist, Freedonia develops Call customer service for details on both flexible and rigid. Fastest growth 21% Corporate Use License is forecast for flexible intermediate bulk Other 5% the data based on input/output Freedonia Custom Research Now every decision maker in your ratios, bills of materials and flow containers (FIBCs), film wrap, and organization can act on the key STUDY #1668 | April 2003 | $3800 drum, bin and box liners. Growth for intelligence found in all Freedonia charts. shipping sacks and strapping will be However, value gains will trail unit Chemicals, food to post studies. For and additional $2000, ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○○○○○○○○○○○○○○○○○○○○○○○○○○ below average largely due to loss of growth as a result of an ongoing decline you receive unlimited use of an electronic version (PDF) of the study. Title share to faster-growing alternatives. in the average FIBC price. This price above-average gains Order Form The best opportunities are anticipated Place it on your intranet, e-mail it to However, plastic shipping sacks and decline has occurred due to the dramati- coworkers around the world, or print plastic strapping will register healthy cally expanded presence of lower-cost in chemicals, food and smaller it as many times as you like! Order it Name Flexible Bulk Packaging ...... $3800 nondurables markets such as plastics today. gains, typically supplanting paper sacks imports in the US market, which is Corporate Use License (add to study price) +$2000 and steel strapping, respectively. driving a growing emphasis on the part and textiles based on favorable Title of US-based producers to higher shipment growth as well as opportu- Additional Print Copies @ $400 each Company ® FIBCs, film wrap to be performing FIBCs. Film wrap will remain nities for flexible bulk packaging Total (including selected option) $ largest growth types a growth segment of the industry, with formats offering cost and performance advantages over alternative flexible Division Enclosed is my check (5% discount) drawn expected annual gains of 6.7 percent to on a US bank and payable to The Freedonia FIBCs, which have substantially enlarged and/or rigid bulk packaging products. $1.5 billion in 2007. Upward momen- Street Group, Inc., in US funds (Ohio residents add their presence in the flexible bulk tum will be fueled by healthy expansion Durable goods markets will lag the 7% sales tax) packaging industry over the past decade, overall market average largely due to in the manufacturing sector as well as City/State/Zip Bill my company will be by far the fastest-growing heightened needs for the bundling and heavy reliance on paper shipping American Express MasterCard Visa segment, as continued advances come protection of goods during warehousing sacks and steel strapping, which are Country The Freedonia Group at the expense of several alternatives. and distribution. While stretch wrap will losing ground to more cost efficient www.freedoniagroup.com Annual growth of 11.2 percent per continue to penetrate strapping and alternative flexible formats. However, Phone Credit Card Number annum to $680 million in 2007 will be film wrap, plastic strapping, plastic 767 Beta Drive • Cleveland, OH • 44143-2326 • USA shrink wrap applications, shrink wrap Online Access: The complete text and attributable to low cost, versatility and demand will be boosted by its rising use shipping sacks and FIBCs will make Fax Tel: 800.927.5900 (US) or 440.684.9600 Fax: 440.646.0484 tables from our studies and reports Expiration Date excellent performance along with a in the unitizing of multipacks for an impressive gains in durables as they can be purchased at our website, rebound in the manufacturing sector. e-mail expanding range of products. penetrate new applications. www.freedoniagroup.com, and Signature through major commercial online F-SM.1668 hosts. The Freedonia Group, Inc. 767 Beta Drive • Cleveland, OH • 44143-2326 • USA • Web site: www.freedoniagroup.com Tel: 800.927.5900 (US) or 440.684.9600 Fax: 440.646.0484 e-mail: [email protected] Visit www.freedoniagroup.com for complete text and table of contents