Ceepackaging

Analysis

Frozen food demand to increase

Gains will be driven by heightened demand for convenience-type
foods, along with the prevalence of microwave ovens and technological advances in
packaging. Demographic trends such as smaller household sizes, the aging of the
population and rising numbers of households where all adults work will have a positive
impact on consumption of convenience-type foods, which tend to use more packaging
relative to their volume. In addition, healthy revenue growth in the foodservice industry,
which relies heavily on frozen foods, will boost opportunities for packaging. These and
other trends are presented in Frozen Food Packaging, a new study from The
Freedonia Group, Inc., a Cleveland-based industry research firm.

Meat, poultry and seafood and frozen specialties applications, which together
accounted for nearly 60 percent of demand in 2006, will post above-average
growth through 2011. Gains in meat, poultry and seafood uses will be the result of
production volume expansion and rising demand for convenience-type items, especially
microwaveable products and those packaged for single-portion use.
Fruit and vegetable, ice cream and baked goods applications will expand more
slowly. Nonetheless, growth opportunities will exist for various packaging types. For
instance, the mature frozen vegetable market has been reinvigorated by a spate of new
products that use self-venting films to enable steam cooking directly in pouches. Solid
gains for pouches in frozen baked goods applications will be based on expanded
offerings of products targeted at smaller households, with resealable pouches making it
more convenient for such households to store unused amounts.

Rigid packaging will continue to account for the majority of frozen food
packaging, though flexible packaging will grow faster due to the greater cost
effectiveness, space savings capability, lighter weight and overall source reduction
capabilities of pouches, bags and wraps. Pouches will continue to represent the fastest
growing frozen food packaging product type, with gains coming at the expense of both
bags and boxes. More moderate prospects for rigid packaging will be the result of the
greater maturity of products such as folding cartons, gabletop cartons and composite
cans. Still, good opportunities are anticipated for plastic rigid containers, such as trays,
tubs and cups, and clamshells.