US demand for plastic films is forecast to increase 2.6% annually to 15.2 billion pounds (6.9 million tonnes) in 2010 – or $12bn at resin costs.
This is according to the Plastic Film report from Cleveland-based industry market research firm the Freedonia Group.
It said total plastic film demand, including resins, additives, processing and other costs, are expected to expand 4.5% per year to $28.6bn.
This growth is likely to be driven by cost, performance and source reduction advantages over rigid packaging.
Steep price increases between 2004 and 2006 due to spikes in raw materials and energy costs are predicted to moderate.
Packaging accounted for 73% of plastic film use in 2005 and the strongest growth is forecast in secondary packaging such as stretch and shrink wrap and retail bags. Food packaging is expected to grow at above average pace.
Low density polyethylene is predicted to remain the leading film accounting for 64% of the total in 2010. However, due to growth in areas such as baked goods packaging and retail bags, high density polyethylene is forecast slightly faster growth.
Polypropylene is forecast to expand the fastest at 3.4% per year through to 2010 which is likely to be driven by growth in produce, grain mill, dairy and other food packaging. PVC film demand will advance marginally due to low red meat consumption and competition from polyolefin films.
