Ceepackaging

Analysis

Demand for plastic sheeting set to increase

Demand will be bolstered by opportunities in food packaging, as well as sheet’s versatility, good
aesthetics, material combining capabilities, and resin and technology improvements.
Further growth will be constrained by the maturity of many applications, and efforts to
reduce the packaging waste stream. Aggregate sheet prices will stay relatively stable
through 2011, as pricing is expected to moderate from the steep increases experienced
in the 2004 to 2006 period that saw high raw material and energy costs affecting all
resins and production costs. Polystyrene is the leading resin, with best advances
anticipated for polypropylene and polyester sheet. These and other trends are
presented in Plastic Sheet, a new study from The Freedonia Group, Inc., a
Cleveland-based industry research firm.
Polystyrene sheet is projected to exhibit good opportunities and account for
nearly half of all applications in 2011. Advances will reflect cost and performance
advantages in the production of thermoformed food packaging. Polypropylene and
polyester sheet advances will reflect opportunities in areas such as tubs, cups, trays,
blister packs and clamshells. Declines are expected for PVC sheet based on a
projected drop-off in single-family housing starts, which will impact demand for flooring
and roofing products. Other sheet resins include high density polyethylene, acrylic,
polycarbonate, acrylonitrile-butadiene-styrene and low density polyethylene.

Food packaging markets will present the best opportunities and increase 3.6
percent annually to 3.8 billion pounds in 2011, accounting for nearly half of all sheet
applications. Advances will be driven by above-average growth in foodservice
applications and the packaging of such foods as baked goods, frozen foods, fresh
produce, and meat and dairy products. Advances for pharmaceutical and medical
packaging, the next largest packaging market, will be stimulated by opportunities in
pharmaceutical blister packs. Construction markets will expand at a much slower annual
pace. Increases will be attributable to above-average glazing and insulation uses, yet be
constrained by slumping single-family housing starts.