19 January 2007 – Plastics will continue to replace paper in US packaging applications over the next three years, according to Freedonia Group.
The US research group predicts plastics packaging demand to increase by 2.9% up to 2010, when it will reach 13.6 billion pounds. Paper packaging will increase at the slower rate of 0.3% annually to 12.0 billion pounds.
In volume terms, plastics’ market share of 53% understates its importance due to the lighter weight of plastics in packaging, it said.
Plastics growth is expected to outpace paper in all competitive markets. Advances will result from plastics’ competitive cost and performance advantages over paper.
Freedonia expects the most rapid gains for plastics in soy and other non-dairy beverages, as well as pet food applications. Frozen food, fruit beverages and detergent markets are also set for favourable increases.
Freedonia noted the potential for robust growth in single-serve plastic milk bottles, driven by conversion from half-pint gabletop cartons to plastic bottles in quick service restaurants and school lunch programmes.
