US flexible packaging demand to decrease

US demand for flexible bulk packaging is expected to decelerate to 3.4 per cent growth per year with about 60 per cent of the demand to be for plastic flexible bulk packaging.

A researcher for the Freedonia Group a market research firm who conducted this study stated "Nonetheless, overall advances will benefit from healthy outlooks for manufacturing and retail activity. Products offering a combination of cost benefits and increased performance efficiency are expected to see the best growth, often supplanting a variety of alternative formats, both flexible and rigid."

The fastest growth is expected to in both the film wrap and flexible intermediate bulk containers (FIBCs) market. The higher demand for plastic shipping sacks and plastic strapping will outpace the industry average, all of this at the expense of paper and steel packaging producers.

Plastic shipping sack packaging demand is expected to be driven mostly by the agricultural and horticultural market.

30 per cent of total flexible bulk packaging demand in 2004 was for Film wrap, which will remain a growth segment of the industry.

FIBC's low cost, versatility and performance for the shipping and storage of bulk dry flowable products is very attractive to manufactures. The demand for FIBC is expected to expand 5.6 per cent annually through 2009. This increased demand is strongly influenced by the popularity of home centers, club stores and other mass retailers and the ever growing requirements for the bundling and protection of goods during warehousing and distribution.