US plastic container demand is projected to increase 4.3 percent annually to $30.4 billion in 2014, creating demand for 13.9 billion pounds of resin. Growth will be driven by performance advantages over alternative packaging media, which will stimulate ongoing opportunities in a broad range of applications. Additionally, consumer preferences for small, single-serving containers in food and beverage uses will support gains. However, value growth will decelerate from the 2004-2009 pace due to the maturity of several bottle markets and more moderate raw material price increases. Unit advances will outpace growth in the amount of resin consumed as a result of the preference for smaller, single-serving containers and the lightweighting of plastic bottles and other containers in order to lower material costs and achieve a reduced environmental footprint. PET and high density polyethylene (HDPE) are by far the leading plastic container resins, accounting for a combined 85 percent of demand in 2009. These and other trends are presented in Plastic Containers, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.
Plastic bottles and jars, which represented 78 percent of plastic container poundage in 2009, are by far the leading plastic container type. Through 2014, plastic bottle and jar demand is expected to increase 3.1 percent annually to 157 billion units, a marked deceleration from the pace of the 2004-2009 period due to the maturing of several large beverage applications and a significantly slower outlook for bottled water based on heightened environmental concerns. The food and pharmaceutical markets will experience faster unit growth. Among plastic containers other than bottles and jars, demand in some segments will be helped by an upswing in construction activity as the US economy recovers from the recession that began in December 2007. This will result in heightened requirements for items packaged in plastic pails, such as paints, adhesives and driveway sealers, as well as boosting demand for plastic paint cans. Tub, cup and bowl demand will be supported by the convenience, portability and portion control benefits of single-serving cup packaging as well as the popularity of various foods packaged in tubs and cups. However, volume expansion will be moderated by thinwalling of resins in order to reduce the amount of resin consumed per container.
Plastic Containers (published 08/2010, 341 pages) is available for $4,900 from The Freedonia Group, Inc., 767 Beta Drive, Cleveland, OH 44143-2326.
| Corinne Gangloff Tel:+1 440.684.9600 Fax: +1 440.646.0484 pr@freedoniagroup.com. |
