Paper Vs. Plastic in Packaging

NEW STUDY Paper vs. Plastic in Packaging

US forecasts to 2006 & 2011

Study # 1612 November 2002 $3900 Paper Plastic 53% Plastic to continue gaining growth potential for paper and paperboard 47% packaging is expected in areas such as market share on paper in carry-out and prepared foods, shipping packaging applications sacks and juice and fruit drinks based on Plastic packaging will continue to make paper’s strength, breathability and price inroads vis-a-vis its paper and paperboard advantages in smaller containers such as packaging counterparts through 2006, ex- juice. Most rapid losses will occur in egg panding 3.3 percent per year to 10.7 billion cartons, milk cartons and retail bags/sacks. pounds in 2006. Gains will be predicated Total Competitive (Paper upon plastic’s light weight, strength, Industry composition & Plastic) Packaging moisture-resistance and durability. Plastic The packaging sector is dominated by Demand in the US packaging also has storage, production and large, multinational packaging firms with distribution advantages over other packag- further consolidation anticipated in light of (19.3 billion pounds, 2001) ing mediums. Low cost, clarity, moisture- continual needs for expansion and new resistance and high barrier properties of product development. Packaging concerns The Freedonia Group, Inc. plastic are difficult, if not impossible, for commonly specialize on the basis of major paper to match. The Freedonia Group, Inc. is a leading product (e.g., retail bags), material (paper international database business research or plastic) or end-use market (food, bever- company. Since 1985, Freedonia has Plastic packaging trends age, etc.). Nonetheless, much cross- and published more than 1,800 multiclient Best plastic packaging growth opportuni- multi-line participation among packaging industry studies that have proven to be ties are anticipated in areas such as firms also exists. outstanding aids to market and corporate shipping drums, snacks, egg cartons, juice analysis and strategic planning. Freedonia and fruit containers and candy. Plastic pet Study coverage can save you time and money on research food pouches will also expand rapidly at Details on these and other major findings you would otherwise have to do yourself the expense of multilayer paper sacks and are contained in the new Freedonia study, or contract out. paperboard boxes due to their better barrier Paper vs. Plastic in Packaging, available properties and consumer convenience in for $3900. This study analyzes selected Proprietary Database resealability. Plastic packaging demand competitive paper and plastic packaging Freedonia's proprietary database of will also continue to benefit from techno- markets in the US, with a focus on the loss thousands of economic and industry logical and processing advances resulting of traditional paper-based packaging mar- series, with an internally consistent set of in faster line speeds and better performance kets to plastics. Historical data through intermediate and long range projections, attributes such as increased barrier proper- 2001 plus forecasts to 2006 and 2011 are provides the background for Freedonia's ties, puncture resistance and clarity. provided for competitive paper and plastic studies. packaging applications. Electronic Library Paper packaging trends Analysts use Freedonia's comprehensive The market environment is analyzed, as Paper and paperboard packaging is well electronic library of corporate reports, well as developments in retail sales and established and competitive in many trade literature and government data. segments due to its better environmental manufacturing activity, pricing factors and profile and continued cost efficiencies. international markets. An overview of the Nonetheless, paper packaging will continue industry structure includes a discussion of Save 15% to lose market share to plastic packaging competitive variables, assessment of see order form virtually across-the-board due to the better market shares and profiles of key players performance attributes of plastics. Best such as Bemis, International Paper, Pactiv, on back page Printpack and Sonoco Products. Preliminary Meat, Poultry & Fish Candy Plastic Plastic Table of Contents Trays Flexible Packaging Rigid Containers Rigid Containers Flexible Packaging Paper EXECUTIVE SUMMARY Paper Flexible Packaging Produce Rigid Containers MARKET ENVIRONMENT Plastic Juice & Fruit Drinks General Flexible Packaging Paper Cartons Macroeconomic Outlook Trays Plastic Demographic & Household Trends Paper Bottles Age Distribution Patterns Bags Pouches Other Demographic Trends Dairy Products Frozen Food Consumer Income & Spending Plastic Plastic Retail Sales Rigid Containers Flexible Packaging Manufacturing Outlook Flexible Packaging Rigid Containers Nondurable Goods Film Wrap Paper Food Product Outlook Paper Flexible Packaging Beverages Outlook Rigid Containers Rigid Containers Chemicals & Other Nondurables Flexible Packaging Carry Out & Prepared Foods Raw Material Pricing Trends Milk Plastic Paper Plastic Bottles Rigid Containers Plastic Paperboard Cartons Flexible Packaging Environmental & Regulatory Considerations Egg Cartons Paper Recycling Trends Paper Cartons Rigid Containers Plastic Cartons Flexible Packaging PACKAGING OVERVIEW Dry Foods Pet Food Competitive Packaging Variables Plastic Paper Performance Flexible Packaging Flexible Packaging Price Rigid Containers Boxes Aesthetics & Marketing Value Paper Plastic Environmental Image Rigid Containers Packaging Types Flexible Packaging COMPETITIVE SHIPPING & RETAIL PRODUCTS Rigid Containers Detergents General Flexible Packaging Plastic Retail Bags & Sacks Packaging Materials Paper Shipping Containers Paper Baked Goods Drums Plastic Paper Sacks Rigid Containers COMPETITIVE PRODUCT PACKAGING Flexible Packaging INDUSTRY STRUCTURE General Plastic General Snacks Flexible Packaging Market Share Plastic Film Wrap Mergers & Acquisitions Flexible Packaging Manufacturing & Product Development Rigid Containers Marketing & Distribution Paper Integration Cooperative Agreements Company Profiles Preliminary List of Tables & Charts each table includes forecasts through 2006 & 2011

EXECUTIVE SUMMARY Cht Competitive Product Packaging 20 Carry-Out Markets for Competitive 1 Summary Table by Market, 2001 Paper & Plastic Packaging 2 Snack Markets for Paper & Plastic Packaging 21 Pet Food Markets for Competitive MARKET ENVIRONMENT 3 Meat Markets for Competitive Paper & Plastic Packaging 1 Macroeconomic Environment Paper & Plastic Packaging 2 Demographic Trends 4 Produce Markets for Competitive COMPETITIVE SHIPPING & RETAIL PRODUCTS 3 Consumer Expenditures Paper & Plastic Packaging 1 Competitive Shipping & Retail 4 Retail Sales 5 Dairy Markets for Competitive Products Demand 5 Manufacturers’ Shipments Paper & Plastic Packaging Cht Competitive Shipping & Retail 6 Nondurable Goods Shipments 6 Milk Markets for Competitive Products Demand, 2001 7 Food Product Shipments Paper & Plastic Packaging 2 Competitive Shipping Sack Demand 8 Beverage Demand 7 Paperboard Milk Carton Demand 3 Paper Shipping Sack Demand 9 Durable Goods Shipments 8 Plastic Milk Packaging Demand 4 Plastic Shipping Sack Demand 10 Paper Pricing Trends 9 Egg Carton Markets for Competitive 5 Competitive Shipping Drum Demand 11 Plastic Pricing Trends Paper & Plastic Packaging 6 Plastic Shipping Drum Demand 10 Molded Pulp Egg Carton Demand 7 Fibre Shipping Drum Demand PACKAGING OVERVIEW 11 Plastic Egg Carton Demand 8 Paper & Plastic Retail Bag & Sack Demand 1 Packaging Demand by Type 12 Dry Food Markets for Competitive 9 Paper Retail Bag & Sack Demand 2 Rigid Containers Demand Paper & Plastic Packaging 10 Plastic Retail Bag & Sack Demand Cht Competitive Rigid Container Demand 13 Detergent Markets for Competitive by Type, 2001 Paper & Plastic Packaging INDUSTRY STRUCTURE 3 Flexible Packaging Demand 14 Paperboard Detergent Container Demand 1 Selected Acquisitions & Divestitures Cht Competitive Flexible Packaging Demand 13 Plastic Detergent Packaging Demand 2 Selected Cooperative Agreements by Type, 2001 14 Baked Goods Markets for Competitive 3 Selected Competitive Paper & Plastic 4 Packaging Demand by Material Paper & Plastic Packaging Packaging Companies 5 Paper Packaging Demand 15 Candy Markets for Competitive Cht Paper Packaging Demand by Type, 2001 Paper & Plastic Packaging 6 Plastic Packaging Demand 16 Fruit Beverage Markets for Competitive COMPANY PROFILES Cht Plastic Packaging Demand by Type, 2001 Paper & Plastic Packaging 17 Paperboard Fruit Beverage Container Demand presented for over COMPETITIVE PRODUCT PACKAGING 18 Plastic Fruit Beverage Packaging Demand 1 Competitive Paper & Plastic 19 Frozen Food Markets for Competitive 40 competitors in Packaging Demand Paper & Plastic Packaging the US industry Freedonia study #1612 - “Paper vs. Plastic in Packaging”

COMPETITIVE PRODUCT PACKAGING

Egg Cartons This study can help you: Shelled egg consumption in the US is expected to increase little more than one percent yearly through 2006 to 53.5 billion. Eggs will continue to be mar- keted as an affordable protein source, withExplanations the continued development to of lower • Determine your market & sales potential cholesterolSAMPLE eggs and scientific/medical evidence questioning the link between egg consumption and cardiovascular disease.support Egg carton each demand will expand • Learn more about industry competitors more thanPAGE one percent annually to 2.9 billiontable’s units in 2006,data requiring 162 million pounds of molded pulp and plastic. Slightlyand slower forecasts carton weight growth reflects the fact that advances will be concentrated in plastic cartons, which are lighter • Assess new products & technologies than their molded pulp counterparts.

• Identify companies to merge with or acquire Plastic egg carton demand will continue to outstrip its molded pulp counterpart, raising its percentage of total units to 60 percent in 2006. Further • Complement your own research & planning advances will be limited by moderation in packaged egg consumption brought about by a decline in home baking activity in favor of prebaked items, increased use of lower cholesterol egg products such as EGG BEATERS, and more • Gather data for presentations breakfast meals being consumed outside of the home. Polystyrene offers superior cushioning properties compared to molded pulp cartons, which is a crucial con- • Confirm your own internal data sideration in egg packaging. A recent development has been the introduction of clear polyethylene terephthalate egg cartons. Due to their higher cost, however, • Make better business decisions it is expected that these cartons will be used for the packaging of premium shell eggs based on their upscale appearance and ability to let consumers check for egg breakage before purchasing.

Molded pulp egg carton demand will continue to decline through 2006 to 1.1 billion units and 71 million pounds. Molded paper containers will continue to lose market share to plastic packaging, although the rate of loss will be restrained by the environmentally friendly reputation of paper compared to polystyrene. Advantages of molded paper include degradability, durability and COMPETITIVE PRODUCT PACKAGING low cost.

TABLE IV-10 © Copyright by The Freedonia Group, Inc. FROZEN FOOD MARKETS FOR COMPETITIVE PAPER & PLASTIC PACKAGING (million pounds)

Item 1992 1996 2001 2006 2011

Frozen Foods Shipments (bil 1996$) 15.2 18.3 21.2 24.2 27.8 lbs pkg/000$ shpts 52.8 48.6 45.6 43.7 41.6 Freedonia’s methods involve: Frozen Food Packaging Demand 802 889 SAMPLE966 1058 1157 Paper: 614 658TABLE 696 740 785 Rigid Containers 378 393 406 420 435 • Establishing consistent economic and Trays 160 185 205 230 255 Flexible Packaging 76Historical 80 85 90data 95 market forecasts Plastic: 188 231 270 318 372 Flexible Packaging 99 112through 117 2001 129 142 Trays 64 81 108 134 165 Pouches 25plus 38 Freedonia 45 55 65 • Using input/output ratios, flow charts and % plastic 23.4 26.0forecasts 28.0 30.1 to 32.2 other economic methods to quantify data % paper 76.6 74.0 72.0 69.9 67.8 2006 and 2011 Source: The Freedonia Group, Inc. • Employing in-house analysts who meet Carry-Out & Prepared Foods stringent quality standards Plastic carry-out food and prepared food containers will continue to make inroads via-a-vis paper and paperboard due to their low cost, light weight and performance advantages such as moisture resistance. DataPlastic pouch supported demand will • Interviewing key industry participants, also expand rapidly in light of its convenience and costwith effectiveness. the Plasticaid of packaging will also benefit from the popularity of home meal replacements, in- experts and end-users store salad bars and other food industry segments whichnearly rely disproportionately 60 tables on plastic containers. Carry-out food service products includeand clamshells charts and • Researching a proprietary database that related containers. High visibility clamshells are gaining ground over other types of restaurant takeout containers and are often used in supermarkets for prepared includes trade publications, government reports and corporate literature © Copyright by The Freedonia Group, Inc. sample page Order Information Other Titles from The Freedonia Group

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