Freedonia Industry Study #1357 Study Publication Date: January 2001 Price: $3,700 Versus Plastic Pages: 261 in Packaging

Paper Versus Plastic in Packaging, a new study from The Freedonia Group, provides you with an in-depth analysis of competitive paper and plastic packaging markets -- critical information to help you with strategic planning.

This brochure gives you an indication of the scope, depth and value of Freedonia's new study, Paper Versus Plastic in Packaging. Ordering information is included on the back page of the brochure.

Brochure Table of Contents

Study Highlights ...... 2 Table of Contents and List of Tables and Charts ...... 4 Sample Pages and Sample Tables from: Market Environment ...... 6 Competitive ...... 7 Competitive Flexible Packaging ...... 8 Industry Structure ...... 9 Company Profiles ...... 10 List of Companies Profiled ...... 11 Forecasting Methodology ...... 12 About the Company ...... 13 Advantages of Freedonia Reports ...... 13 About Our Customers ...... 14 Other Titles From Freedonia ...... 15 Ordering Information...... 16 Study Highlights

• Demand for paper and plastic packaging in selected US markets where the two materials directly compete is projected to increase more than two percent yearly to 86 billion pounds in 2004.

• Paper and plastic are the two most important seg- ments of the packaging industry in terms of volume output and dollar sales.

• Best paper opportunities are anticipated in the consumer packaging market, where paper will benefit from its dominant position in the expanding cup, plate and other food serviceware segment.

• Plastic packaging demand will be driven by its storage, production, performance and distribution advantages over other mediums. The cost, clarity, moisture-resistance and high barrier properties of plastic are difficult, if not impossible, for paper to match.

• Leading producers of paper or plastic packaging include Smurfit-Stone , Weyerhaeuser, Temple-Inland, Georgia-Pacific, International Paper, Printpak, Bemis, Sonoco, Packaging Corporation of America, Sealed Air, Pactiv and S&G Packaging.

* Among the paper and plastic packaging products not covered in the study are folding and plastic (other than those used to package laundry detergent, and juice, and carry-out food), plastic blister packs, fiber shipping sacks, and flexible paper and plastic packaging used in foodservice settings. Also excluded are other competitive material, such as , aluminum and steel.

Paper Versus Plastic in Packaging #1357 Freedonia Industry Study 2 Study Highlights Competitive Paper & Plastic Packaging Demand, 1999

Paper & Board Plastic (6.7 bil lbs) (9.8 bil lbs)

Shipping Consumer Containers Containers 86.4% 40.7% Shipping Containers 14.4%

Consumer Containers Flexible Flexible 9.2% Packaging Packaging 4.4% 44.9%

Competitive Paper & Plastic Packaging Demand (million pounds) % Annual Growth Item 1989 1999 2004 2009 99/89 04/99

Nondurable Goods Shpts (bil 1996$) 1495 1729 1893 2064 1.5 1.8 lbs paper/000$ shpts 37.4 39.0 39.3 39.6 -- -- lbs plastic/000$ shpts 4.4 5.7 6.0 6.4 -- -- SUMMARY TABLE Competitive Paper & Plastic Packaging 62451 77290 85780 94920 2.2 2.1 Paper & Board: 55899 67462 74350 81776 1.9 2.0 Shipping Containers 46773 58298 64454 70919 2.2 2.0 Consumer Containers 4605 6222 7221 8378 3.1 3.0 Flexible Packaging 4521 2942 2675 2479 -4.2 -1.9 Plastic: 6552 9828 11430 13144 4.1 3.1 Shipping Containers 1080 1591 1861 2159 4.0 3.2 Consumer Containers 2846 3917 4499 5108 3.2 2.8 Flexible Packaging 2626 4320 5070 5877 5.1 3.3

% paper 89.5 87.3 86.7 86.2 -- -- % plastic 10.5 12.7 13.3 13.8 -- --

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Paper Versus Plastic in Packaging #1357 Order form on last page 3 Chart - Competitive Paper & Board Packaging Demand, 1999 ...... 45 Plastic ...... 45 Table - Competitive Plastic Packaging Demand ...... 46 List of Contents, Chart - Competitive Plastic Packaging Demand, 1999 ...... 47 Tables and Charts IV. COMPETITIVE SHIPPING CONTAINERS General ...... 48 Table - Competitive Demand ...... 49 ...... 49 Table - Demand ...... 50 Corrugated Boxes ...... 50 I. EXECUTIVE SUMMARY Table - Corrugated Box Demand ...... 52 Summary Table ...... 3 Plastic Boxes ...... 52 Table - Plastic Box Demand...... 54 II. MARKET ENVIRONMENT Shipping Sacks ...... 54 General ...... 4 Table - Competitive Shipping Sack Demand ...... 56 Macroeconomic Outlook ...... 4 Paper Shipping Sacks...... 56 Table - Macroeconomic Environment ...... 6 Table - Paper Shipping Sack Demand...... 58 Consumer Income & Spending ...... 6 Plastic Shipping Sacks ...... 58 Table - Consumer Expenditures ...... 7 Table - Plastic Sack Demand ...... 60 Demographic & Household Trends ...... 8 Box Inserts ...... 60 Table - Demographic Trends ...... 9 Table - Box Insert Demand ...... 61 Age Distribution Patterns ...... 9 Box Inserts...... 61 Other Demographic Trends ...... 10 Table - Paperboard Insert Demand ...... 62 Retail Sales ...... 10 Plastic Box Inserts ...... 62 Table - Retail Sales ...... 13 Table - Plastic Insert Demand...... 65 Manufacturing ...... 13 Chart - Plastic Insert Demand, 1999 ...... 65 Table - Manufacturers’ Shipments ...... 14 Shipping Drums ...... 66 Nondurable Goods ...... 15 Table - Shipping Demand ...... 67 Table - Nondurable Goods Shipments...... 15 Plastic Drums ...... 67 Food Product Outlook ...... 16 Table - Plastic Drum Demand ...... 70 Table - Food Product Shipments ...... 17 Fibre Drums...... 70 Beverages Outlook ...... 18 Table - Fibre Shipping Drum Demand...... 73 Table - Beverage Demand ...... 19 Chemicals & Other Nondurables ...... 20 V. COMPETITIVE CONSUMER CONTAINERS Table - Durable Goods Shipments...... 21 General ...... 74 Durable Goods ...... 21 Table - Competitive Paper & Plastic Competitive Packaging Trends ...... 22 Consumer Container Demand...... 75 Table - Packaging Shipments by Material ...... 24 Chart - Competitive Paper & Plastic Chart - Packaging Shipments by Material, 1999 ...... 25 Consumer Container Demand by Type, 1999 ...... 76 Competitive Variables ...... 25 Food Serviceware ...... 76 Performance...... 26 Table - Competitive Paper & Plastic Aesthetic Appeal & Environmental Image...... 27 Food Serviceware Demand ...... 78 Market Trends...... 28 Chart - Competitive Paper & Plastic Table - Paper & Plastic Packaging Trends, 1989-1999 ...... 30 Food Serviceware Demand ...... 78 Chart - Paper & Plastic Packaging Trends, 1989-1999 ...... 30 Paper Serviceware ...... 79 Pricing Trends ...... 31 Plastic Serviceware ...... 79 Paper ...... 31 Milk Containers...... 80 Table - Paper Pricing Trends ...... 32 Table - Competitive Paper & Plastic Milk Container Demand ... 82 Chart - Paperboard Pricing Trends ...... 33 Chart - Competitive Paper & Plastic Milk Container Demand ... 82 Plastic ...... 33 Paperboard Milk Cartons ...... 83 Table - Plastic Pricing Trends ...... 35 Table - Paperboard Milk Container Demand ...... 84 Chart - Plastic Pricing Trends ...... 35 Plastic Milk Bottles ...... 84 Environmental & Regulatory Considerations...... 36 Table - Plastic Milk Container Demand ...... 85 US Foreign Trade ...... 38 Carry-Out Food Containers ...... 86 International Markets ...... 39 Table - Competitive Paper & Plastic Carry-Out Food Container Demand ...... 86 III. COMPETITIVE OUTLOOK Chart - Competitive Paper & Plastic General ...... 41 Carry-Out Food Container Demand ...... 87 Table - Competitive Paper & Plastic Packaging Demand .....42 Paperboard Carry-Out Containers ...... 87 Chart - Competitive Paper & Plastic Plastic Carry-Out Containers ...... 88 Packaging Demand, 1999 ...... 43 Containers ...... 89 Paper & Board...... 43 Table - Competitive Paper & Plastic Table - Competitive Paper & Board Packaging Demand ...... 44 Dairy Container Demand ...... 90

Paper Versus Plastic in Packaging #1357 Freedonia Industry Study 4 Competitive Paper & Plastic Dairy Container Demand, 1999 .....91 Table - Produce Markets for Competitive Paperboard Dairy Containers ...... 91 Flexible Packaging ...... 134 Plastic Dairy Containers ...... 92 Chart - Produce Markets for Competitive Food Trays ...... 93 Flexible Packaging ...... 134 Table - Competitive Paper & Plastic Food Tray Demand .....94 Plastic ...... 135 Chart - Competitive Paper & Plastic Food Tray Demand .....94 Paper ...... 136 Paperboard Food Trays ...... 95 Confections ...... 136 Plastic Food Trays ...... 96 Table - Confections Markets for Competitive Polystyrene ...... 97 Flexible Packaging ...... 138 CPET ...... 97 Chart - Confections Markets for Competitive Polypropylene & Other ...... 98 Flexible Packaging ...... 138 Detergent Containers ...... 99 Plastic ...... 139 Table - Competitive Paper & Plastic Paper ...... 139 Detergent Container Demand ...... 101 Grain Mill Products ...... 140 Chart - Competitive Paper & Plastic Table - Grain Mill Product Markets for Competitive Detergent Container Demand ...... 101 Flexible Packaging ...... 141 Paperboard Detergent Containers ...... 102 Chart - Grain Mill Product Markets for Competitive Table - Paperboard Detergent Box Demand ...... 102 Flexible Packaging ...... 142 Plastic Detergent Containers ...... 102 Plastic ...... 142 Table - Plastic Detergent Demand ...... 104 Paper ...... 143 Juice Containers...... 104 Dairy Products ...... 144 Table - Competitive Paper & Plastic Table - Dairy Markets for Competitive Flexible Packaging .... 145 Juice Container Demand ...... 105 Chart - Dairy Markets for Competitive Flexible Packaging .... 146 Chart - Competitive Paper & Plastic Plastic ...... 146 Juice Container Demand ...... 106 Paper ...... 147 Paperboard Juice Containers ...... 106 Other Foods ...... 147 Table - Paperboard Juice Container Demand ...... 108 Table - Other Food Markets for Competitive Plastic Juice Containers ...... 108 Flexible Packaging ...... 148 Table - Plastic Juice Container Demand ...... 109 Chart - Other Food Markets for Competitive Egg Cartons ...... 109 Flexible Packaging ...... 149 Table - Competitive Paper & Plastic Egg Demand .....111 Plastic ...... 149 Chart - Competitive Paper & Plastic Demand .....111 Paper ...... 150 Egg Cartons ...... 112 Grocery & Sacks ...... 150 Table - Molded Pulp Egg Carton Demand ...... 112 Table - Grocery & Sack Markets for Competitive Plastic Egg Cartons ...... 113 Flexible Packaging ...... 151 Table - Plastic Egg Carton Demand ...... 114 Chart - Grocery Bag & Sack Markets for Competitive Flexible Packaging ...... 152 VI. COMPETITIVE FLEXIBLE PACKAGING Paper Grocery Bags & Sacks ...... 152 General ...... 115 Table - Paper Grocery Bag & Sack Demand ...... 153 Table - Competitive Flexible Packaging Demand ...... 116 Plastic Grocery Bags & Sacks ...... 154 Chart - Competitive Flexible Packaging Table - Plastic Grocery Bag & Sack Demand ...... 156 Demand by Material, 1999 ...... 117 Flexible ...... 117 VII. INDUSTRY STRUCTURE Table - Competitive Flexible Food Packaging Demand ...... 119 General ...... 157 Chart - Competitive Flexible Food Packaging Market Share ...... 159 Demand by Market, 1999 ...... 120 Shipping Containers ...... 159 Snacks ...... 120 Chart - Paper & Plastic Shipping Container Table - Snack Markets for Competitive Flexible Packaging ... 122 Market Share, 1999 ...... 160 Plastic ...... 123 Consumer Containers ...... 162 Paper ...... 124 Chart - Paper & Plastic Consumer Container Baked Goods ...... 124 Market Share, 1999 ...... 163 Table - Baked Goods Markets for Competitive Flexible Packaging ...... 165 Flexible Packaging ...... 126 Chart - Flexible Paper & Plastic Packaging Chart - Baked Goods Markets for Competitive Market Share, 1999 ...... 166 Flexible Packaging ...... 126 Mergers & Acquisitions ...... 168 Plastic ...... 127 Table - Selected Acquisitions & Divestitures ...... 170 Paper ...... 128 Manufacturing & Product Development ...... 175 Meats ...... 128 Marketing & Distribution ...... 176 Table - Meat Markets for Competitive Flexible Packaging .... 130 Integration ...... 177 Chart - Meat Markets for Competitive Flexible Packaging .... 130 Cooperative Agreements ...... 179 Plastic ...... 131 Table - Selected Cooperative Agreements ...... 180 Paper ...... 132 Table - Selected Competitive Paper & Plastic Produce ...... 132 Packaging Companies ...... 182 Company Profiles ...... 182-261

Paper Versus Plastic in Packaging #1357 Order form on last page 5 Market Environment

The Market Environment Section discusses factors influencing paper and plastic packaging demand, in- cluding consumer spending, food and MARKET ENVIRONMENT beverage outlooks, and demographic trends. Performance

This information provides you with an In terms of performance, the primary factor considered in selecting a package is understanding and an analysis of the its ability to store and protect its contents. Product preservation takes on even greater importance in the of food and beverage containers, as many items are climate in which the paper versus subject to spoilage and other forms of degradation. In general, the ideal container plastic packaging industry operates. is one which resists puncture SAMPLEor other physical PAGE damage; preserves freshness; shields its contents from the degrading properties of sunlight, oxygen and moisture; maintains a product's natural flavor, odor and color; and offers a long . In addition, the persisting threat of retail sabotage has forced producers of consum- able goods such as foods to upgrade the security features of their packages in the form of tamper evidence and tamper resistance.

Other factors which may favor one packaging type over another include various safety and convenience considerations. In the case of safety, plastics and paperboard are often favored over metal or glass in that they are not breakable and typically do not contain sharp or edges. Other important considerations include the ease of opening a package, its capacity to be reused and resealed, and its ease of use (pourability, handles, etc.). Physical characteristics and technological feasibility (e.g., weight, amenability to single-serve sizing and microwaveability) also come into play. Food and beverage processors have also become interested in various forms of ; that is, containers which not only preserve but actually affect their contents. Examples include containers which control the ripening process of produce; temperature-sensitive which indicate when a product is ripe, fully cooked or adequately chilled; and so-called "scavenger" films which absorb oxygen and other gases in order to retard spoilage and lengthen shelf life. More of these developments are expected.

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Paper Versus Plastic in Packaging #1357 Freedonia Industry Study 6 Competitive Containers

These Sections analyze trends and consider the threats and opportunities for competitive paper and plastic shipping

and consumer containers. COMPETITIVE SHIPPING CONTAINERS

The information presented will Plastic Box Inserts help you: Plastic box insert demand is forecast to increase 3.4 percent yearly to 575 million pounds in 2004. Although plastics will continue toSAMPLE far outpace paper PAGE in this • Focus your sales and marketing market, advances will slow from the past decade's pace as much of the replacement efforts on high growth areas. has already occurred. Plastics will continue to benefit from secular growth in important packaging markets such as computers and other electronic equipment • Propose new areas for development. and accessories, with further advances limited by a slowing economy and decelerat- ing corrugated box shipments. Plastics' advantages over paper in protective packaging applications include light weight and excellent cushioning properties. Plastic can also be molded to form fit fragile equipment like computers and consumer electronics, or be loosefill. Plastics' environmental profile, while still poorer than paper's, continues to improve based on growing rates and the rising use of biodegradable plastics.

Plastic box inserts, as with paper, can assume two forms: loosefill, which competes with shredded and crumpled wastepaper, wood excelsior, popcorn and plastic ; and molded shapes, which compete with rigid paperboard (i.e., fibre) inserts. Molded plastic packaging will remain the domain of expandable polystyrene (EPS), Consumer Containers - although gains will be more rapid for other resins such as polyurethane and Competitive Paper & Plastic Food Serviceware Demand . EPS will remain the dominant resin due to widespread, low cost, low (million pounds) performance applications. EPS shapes can be molded to conform to the exact Item 1989product shape, 1994 providing 1999 structural 2004 support 2009 as well as cushioning to a wide variety of electrical, electronic, appliance and other products. Eating/Drinking Establishments (000) 392 449 485 520 550 Resident Population (mil persons) Expandable246.8 polystyrene 260.3 will 272.9also remain 285.4 dominant 297.5 in the loosefill market, although gains will be limitedSAMPLE by environmental TABLE concerns and competition from 000 lbs/establishmentother materials 6.3 such as 7.1 degradable 8.2 polymers. 9.5 Expandable 10.9 polystyrene foam lbs serviceware/capitastrands, peanuts, 9.9 stars12.3 and saddles 14.7 are extensively 17.3 used 20.2 as protective loosefill packaging. Advantages include low cost, low density, resiliency, cushionability and Food Serviceware Demand 2455 3190 4000 4925 6020 By Type: Cups 1690 2180 2660 3220 3870 Plates, Dishes & Bowls 765 1010 1340 1705 2150 By Material: Paper 1600 2200 2850 3600 4500 Plastic 855 990 1150 1325 1520

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Paper Versus Plastic in Packaging #1357 Order form on last page 7 Competitive Flexible Packaging

This Section provides demand for COMPETITIVE FLEXIBLE PACKAGING historical years and forecasts growth to 2004 and 2009 for competitive paper Baked Goods - Plastic and plastic flexible packaging. demand in the packaging of baked goods will rise 2.6 percent annually to more than 690 million pounds in 2004. The introduction of low fat, fat-free, This information helps you: sugar-free andSAMPLE healthier renditions PAGE of cookies, pies and other products will contribute to packaging advances. Polyethylene, primarily linear low density polyethylene, will remain the dominant plastic film used in baked goods because of • Analyze your company's the resin's low cost and ease of processing. Breadwrap is typically made from three growth potential in plies of clear, conventional low density polyethylene. Some sections of the film the industry. have an opaque underlayer to carry the graphics, while the bread is revealed through clear sections. Since fresh bread and related bakery products are typically consumed within several days, polyethylene film is used for cleanliness, moisture • Outline your strategic protection and display purposes. Cookies and crackers also require moisture plans for five and ten protection, and polyethylene and polypropylene films are normally used as inner years out. wraps.

Polypropylene film, mainly oriented polypropylene, will provide the best • Establish sales goals. opportunities based on its superior moisture, grease and oxygen barrier attributes at a lower cost than other materials. Polypropylene film also provides an excellent substrate. Metallized polypropylene will be increasingly used as a foil replacement. Packaging mix is also impacted by changing consumer eating habits, such as rapid growth of fat free products, which require higher barrier property resins, such as metallized polypropylene, in order to keep cookies and other products moist and soft. film demand will continue its gradual decline Paper Grocery Bag & Sack Demanddue to the better performance, higher processing speeds and lower overall costs of (billion units) polypropylene and other films. Cellophane use will continue in specialty bread wrap and other uses requiring clarity, high gloss and good dead-fold characteristics.

Item 1989 1994 1999 2004 2009

Grocery Bag Demand 40.2 48.2 52.8 59.1 66.0 % paper 60.2 45.4 24.2 17.9 13.6 SAMPLE TABLE Paper Grocery Bag Demand 24.2 21.9 12.8 10.6 9.0 ounces/unit 2.25 2.20 2.19 2.19 2.19

Paper Grocery Bag Demand (mil lb) 3397 3010 1748 1450 1230

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Paper Versus Plastic in Packaging #1357 Freedonia Industry Study 8 Industry Structure

Gain a better understanding of your competition and analyze your company's position in the industry with information about:

• market share INDUSTRY STRUCTURE

• manufacturing Integration

A number of paper and plastic packaging manufacturers have pursued integration • product development strategies in order to gain marketing and technological advantages and better control of costs and raw materials. Such strategies also permit these companies to • cooperative agreements improve quality control, enhance product differentiation, improve their ability to forecast cost and demand fluctuations, and assure an adequate and reliable supply of SAMPLE PAGE • marketing & distribution raw materials and/or finished products.

Both upstream (i.e., backward) and downstream (i.e., forward) vertical integration • mergers & acquisitions are employed to varying degrees in the US packaging industry. Upstream integration into raw materials procurement or production helps lower manufactur- • integration ing costs, as well as securing reliable supplies of quality feedstocks. Such activity is most common in the paper and paperboard segment, where most of the leading producers of paper and paperboard packaging (e.g., Smurfit-Stone Container) maintain timberland resources; produce pulp, paper and paperboard; and convert their own paper and board into rigid and flexible packaging, among other products.

On the plastics side, firms like AEP Industries and Honeywell International produce the resins used in their flexible packaging. A few packaging producers like SIG Combibloc (SIG Swiss Industrial Company) are also integrated upstream in that they produce and/or filling equipment.

The industry also exhibits a degree of downstream or forward integration, by which consumer product companies obtain a portion of their packaging requirements from captive operations. This sort of activity is most common in the milk packaging segment, where most local and regional manufacture their own plastic bottles. More common forms of downstream integration include packaging manufacturers which also engage in packaging decoration, distribution and contract

Paper Versus Plastic in Packaging #1357 Order form on last page 9 Company Profiles

The Profiles Section analyzes 42 companies active in the U.S. paper and plastic packaging market. These profiles represent a sampling or cross-

section of the types of companies COMPANY PROFILES involved in the industry. Greif Brothers Corporation 425 Winter Road Divisions, subsidiaries, joint Delaware, OH 43015 ventures, etc., are discussed under 740-549-6000 appropriate parent companies.

Greif Brothers operates in three industry segments: Industrial Shipping Containers; Sources for profiles included: Containerboard and Corrugated Containers; and Timber. The Company owns approximately 319,000 acres of timberland in Canada and the southern US. In October 2000, Greif agreed to acquire Finland-based Huhtamaki Van Leer Oyj's • Information provided by $990 million Industrial Packaging segment, which produces drums, bulk containers key staff members in the and systems. In FY 1999, Greif had sales of $819 million and employed 5,100. respective companies SAMPLE PAGE The Company produces packaging through both its Industrial Shipping Containers, • Annual reports and Containerboard and Corrugated Containers segments. The $493 million Industrial Shipping Containers segment produces fibre and plastic drums, as well as intermediate bulk containers (IBCs), among other products. Greif's fibre drums • 10-K reports range from 2-1/2 to 75 gallons in size, and are typically used in the chemical, food and pharmaceutical industries. The Company also has the capability to manufac- ture custom drums, including and meat drums, tapered drums, and harvest • Security analysts reports drums for chili, onions and garlic. Drums are marketed under the HOT FLO, COLD FLO, ALL-FI, ECONOMY, LIQUIPAK, LOK-RIM, PAYOFFPAK and RO-CON brand names. The Company produces fibre drums at US facilities in • Corporate product literature Alabama, Arkansas, California, Colorado, Connecticut, Georgia, Illinois, Kansas, Massachusetts, Michigan, Minnesota, Missouri, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, West Virginia and Wisconsin.

HOT FLO and COLD FLO fibre drums are designed to provide a tight seal with metal, fibre or plastic covers. HOT FLO drums allow removal of up to 100

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Paper Versus Plastic in Packaging #1357 Freedonia Industry Study 10 Companies Profiled

Alcan Aluminium Limited Packaging Corporation of America Alusuisse Lonza Group Limited Pactiv Corporation Lawson Mardon USA Tenneco Packaging Alcoa Incorporated Pechiney Reynolds Metals Company Plastipak Packaging Corporation Bemis Company Incorporated Pliant Corporation Curwood Incorporated Huntsman Packaging Corporation Techy International SA Printpack Incorporated Blue Ridge Paper Products Incorporated Riverwood Holding Incorporated DairyPak Rock-Tenn Company Bryce Corporation Sealed Air Corporation Caraustar Industries Incorporated SIG Swiss Industrial Company Holding Limited Crane Carton Company LLC Silgan Holdings Incorporated Consolidated Container Company LLC Smurfit-Stone Container Corporation Crown Cork & Seal Company Incorporated St. Laurent Paperboard CONSTAR International Solo Cup Company Dart Container Corporation Sonoco Products Company Duro Bag Manufacturing Corporation Sweetheart Cup Company Incorporated E.ON AG Tekni-Plex Incorporated Schmalbach-Lubeca Plastic Containers USA Dolco Packaging Gaylord Container Corporation Temple-Inland Incorporated Georgia-Pacific Corporation Tetra Laval International SA Connelly Container Manufacturing Westvaco Corporation Fort James Corporation IMPAC Group Incorporated Millennium Packaging Solutions LLC Mebane Packaging Group Graham Packaging Holdings Company Weyerhaeuser Company Graphic Packaging International Corporation ACX Technologies Greif Brothers Corporation Honeywell International Incorporated Hood Companies Southern Bag Corporation Huhtamaki Van Leer Oyj Royal Packaging Industries Van Leer NV International Paper Company Champion International Ivex Packaging Corporation Bagcraft Packaging LLC Owens-Illinois Incorporated

Paper Versus Plastic in Packaging #1357 Order form on last page 11 Forecasting Methodology

Freedonia does not just collect and reprint data; Freedonia develops data. Our analysts thoroughly investigate an industry by extensively interviewing key industry participants and analyzing information from sources such as associations, govern- ment and trade literature. Once this The Freedonia research is complete, Freedonia establishes Economics Group Freedonia one set of forecasts. All writing, editing In-house Research Consistent framework and forecasting is done in-house to assure of economic indicators on . . . • Quantitative forecasting quality and consistency. In cases where • Food Product Shipments • Industry structure & market • Resident Population share analyses data does not exist, Freedonia develops the • Gross Domestic Product (GDP) • Product analyses & forecasts data based on input/output ratios, bills of . . . and many others materials and flow charts. The following chart summarizes Freedonia's methodology:

Methodology for Paper Versus Plastic in Packaging

Proprietary Extensive Interviews Electronic Database • Key participants • Trade publications • Industry experts • Government reports • End-users • Corporate literature • Online databases . . . and many others

Paper Versus Plastic in Packaging #1357 Freedonia Industry Study 12 The Freedonia Group, Inc. is a leading international industry study/ About database company. The Freedonia Group Since 1985, Freedonia has published over 1,500 titles covering areas such as chemicals, and , building materials, plastics, industrial components and equipment, health care, packaging, household goods, security, and many other industries.

Freedonia has produced a wide variety of titles, including:

• Converted Flexible Packaging • Rigid Bulk Packaging • Plastic Film • Plastic Containers

Because Freedonia is a reliable information source, our forecasts are cited in numerous publications such as The Wall Street Journal, Packaging Digest and Purchasing.

Advantages In-house operations of Freedonia Reports Because all of our staff work at the same location, interaction between analysts and departments provides a strong system of checks and balances.

Consistency Our Economics Group develops indicators that are used by all analysts. Therefore, every Freedonia study is based on a consistent set of economic assumptions (GDP, resident population, food product shipments, etc.)

Reliable forecasts Because all of our forecasts consider the environment in which a product or industry is operating, as well as threats and opportunities to the market, Freedonia forecasts are reliable indicators of future performance.

One-on-one interviews All studies are produced by conducting interviews with key industry participants and end-users.

Proprietary electronic database Freedonia’s analysts can tap into an extensive in-house electronic database containing corporate literature (including private company information), trade publications, government reports and many other sources of information.

Paper Versus Plastic in Packaging #1357 Order form on last page 13 About Our Customers

Freedonia's clients include major US and international companies in the manufacturing, services, consulting and financial sectors.

Typical purchasers of Freedonia studies :

• Key Executives • Corporate Planners • Market Researchers • Financial Analysts • Information Centers • New Product Developers • Merger & Acquisition Specialists

Since 1985 we have provided research to customers ranging in size from global conglomerates to one person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia research to help with their strategic planning.

Some of Freedonia's customers in the paper and plastic packaging market include: Alcoa, Bemis, Crown Cork & Seal and Westvaco.

Paper Versus Plastic in Packaging #1357 Freedonia Industry Study 14 Packaging Machinery - Converted Flexible Packaging Private Companies Report Efforts to reduce costs and protect the environ- Other Titles Six private US firms each generate total packag- ment will be the driving forces in US flexible ing machinery sales of over $75 million. Two of packaging demand. Plastic films will extend their these have worldwide sales of at least $200 mil- leadership based on extensive applications and From Freedonia lion and are among the five top US producers improved materials. Food packaging markets will overall. Twelve other private companies have to- remain dominant because of diverse uses and tal corporate sales of over $75 million. This re- needs for lower costs and longer shelf lives. This port profiles over 130 privately-held firms (e.g., study analyzes the $10 billion US converted flex- Automated Packaging, Barry-Wehmiller, Bosch, ible packaging industry to 2003 and 2008 by ma- For more information about Crown Simplimatic, Lantech, Pro Mach) and terial, resin and market. The study also details lists them by product and location. It also fore- market share and profiles key firms. these or other Freedonia titles, casts industry demand and reviews acquisitions. #1211...... 1/00 ...... $3,600 please contact us at: #1316...... 8/00 ...... $3,200 Boxes & Other Paperboard Packaging - The Freedonia Group, Inc. Plastic Containers Private Companies Report Phone: (440) 684-9600 demand in the US will grow Nine private firms each have paperboard container over 4% annually. Three-fourths of all plastic sales of at least $200 million, with twelve others (800) 927-5900 containers by weight are bottles, which will also having at least $200 million in total sales. Private log the best growth driven by markets such as companies have been both purchasers and targets Fax: (440) 646-0484 drugs, soft drinks and beer. High density poly- in the hunt for converting facilities, international ethylene (HDPE) will remain the most widely locations and/or related business lines. This report used resin, while polyethylene terephthalate profiles 180+ private firms (e.g., Field Container, (PET) grows the fastest. This study analyzes the Four M, Green Bay Packaging, Packaging Corp. of $10 billion US plastic container industry to America), forecasts industry demand, details market 2004 and 2009 by resin, type and market. It also share and lists companies by product and locale. details market shares and profiles key firms. #1208...... 1/00 ...... $3,000 #1306...... 8/00 ...... $3,600 World Pharmaceutical Plastic Film Packaging I: Blister Packs, Performance, cost and environmental advantages Bottles & Other Primary Packaging will stimulate plastic film growth in the US, as Blister packs will offer the best growth opportu- will technological advances in metallocene resins nities while plastic bottles remain the top-selling and other areas. Low density polyethylene will container. China will be the fastest growing na- remain the dominant film, although significantly tional market, although the US, Japan and Ger- better growth is anticipated for high density many will remain the three largest. Plastic resins polyethylene and polypropylene. Packaging will and aluminum foil will provide the best opportu- remain the major market. This study analyzes nities for raw materials. This study analyzes the the $13.4 billion US plastic film industry to $9.2 billion market for primary 2004 and 2009 by type and market. It also pre- to 2003 and 2008 by material and type in 25 sents market share data and profiles key firms. countries and 6 world regions. The study also #1291...... 7/00 ...... $3,700 evaluates market share and profiles key firms. #1189...... 12/99 ...... $4,200

Pharmaceutical Packaging Rigid Bulk Packaging Demand for drug packaging in the US will grow Trends toward the use of larger, reusable con- nearly 4% annually in the next five years. Blis- tainers will drive rapid advances for RIBCs ter packaging, prefillable syringes and child-re- (rigid intermediate bulk containers), although sistant dispensing closures will lead gains. shipping drums will remain the workhorse bulk Pouches and strip packs will also do well based container. The use of plastics will outpace that on expanding unit dosage and cost advantages of steel and paperboard. Overall growth will re- over blister packs. Plastic bottles will retain the flect expanding production of goods and healthy largest market share. This study analyzes the exports. This study analyzes the $4.5 billion US $3.9 billion US drug packaging industry to rigid bulk packaging industry to 2003 and 2008 2004 and 2009 by product and material. It also by material, type and market. It also presents evaluates market share and profiles key firms. market share data and profiles key firms. #1263...... 4/00 ...... $3,700 #1165...... 8/99 ...... $3,400

Paper Versus Plastic in Packaging #1357 Order form on last page

15 How to Order

Ordering Information For more information about our products, Fill out the coupon below and mail it to The Freedonia Group, or send your order by fax (440) 646-0484, or E-mail to please call the Freedonia Customer Service [email protected] Department at (440) 684-9600 or (800) 927-5900 or fax (440) 646-0484. Handling and Shipping is FREE There is NO charge for handling and shipping. In the US we ship via UPS. Outside the US, we provide free airmail service. If you would like express delivery, we provide this to you at cost. Discounts If your order is accompanied by a check, you may take a 5% cash discount. If you order three (3) separate industry studies and/or private company reports at the same time, you are entitled to a 15% discount. Use Credit Card You may charge your order to either Visa, MasterCard or American Express. Please include your credit card account number, expiration date and your signature. Orders Outside of the US Checks must be paid in US funds and drawn against a US bank. Wire transfers should be sent to: Fifth Third Bank, Cincinnati, Ohio; The Freedonia Group, Inc.; SWIFT #FTBCUS3C; ABA #042000314; Account #830-51814 (please include study number and/or invoice Corporate Use Licenses number with all wire transfers). Additional Copies Corporate and Electronic Use Licenses are Additional copies are available to original purchasers at $400 per title. available for one or more users. For informa- tion about obtaining a Freedonia use license, Online Access contact our customer service department. The complete text and tables from our studies and reports can be found on our Web site www.freedoniagroup.com and through major commercial online vendors.

THE FREEDONIA GROUP, INC. TITLE PRICE 767 Beta Drive Cleveland, OH 44143-2326 USA Phone: (440) 684-9600 • (800) 927-5900 #1357 Paper Versus Plastic in Packaging $3,700 Fax: (440) 646-0484 Corporate Use License $2,000 Name: Additional Print Copies $400 each Title:

Company:

Division: Please check method of payment: Total: $ Street: Enclosed is my check (5% discount) drawn on a US bank and payable to The Freedonia (no PO Box please) Group, Inc., in US funds. (Ohio residents add 7% sales tax). City/State/Zip: Bill my company MasterCard Visa American Express

Country:

MO. YR. Phone: Fax:

Email: Credit Card # Expiration Date SHIPPING and HANDLING charges are FREE via UPS (USA only) or airmail. Express delivery available at cost. Signature: INQ Please inquire.