Ceepackaging

Analysis

Plastic container growth over five percent annually

Gains will be bolstered by plastic’s many benefits relative to other packaging media, including light
weight, shatter resistance, design flexibility, clarity, strength and effective barrier
properties. However, demand will be limited by increasing maturity in such key markets
as soft drinks and household chemicals. Growth in resin volume will be restrained by
lightweighting and downgauging efforts aimed at reducing resin consumption. Unit
expansion will outpace volume increases as a result of consumer preferences for
smaller, single-serving containers in large markets like food and beverages. These and
other trends are presented in Plastic Containers, a new study from The Freedonia
Group, Inc., a Cleveland-based industry research firm.
Plastic bottles and jars, which accounted for 78 percent of plastic container
poundage in 2007, will remain the leading container type through 2012. Unit
demand will increase 4.8 percent per year through 2012 to 168 billion units, supported
by the popularity of smaller-sized beverage bottles and continued expansion of the
bottled water market, the largest single market for plastic bottles. The food market will
also provide good opportunities as the improved barrier properties of polyethylene
terephthalate (PET) will expand the use of plastic bottles and jars in hot-fill applications.
In the pharmaceuticals market, the aging population will benefit plastic bottle and jar
demand, as senior citizens tend to be among the heaviest consumers of packaged
medications. In markets such as household chemicals, industrial and institutional
cleaning chemicals, and automotive fluids, market maturity will result in below-average
bottle and jar unit gains.

Plastic pails will see below-average growth based on competition from alternative
packaging like drums and intermediate bulk containers. Demand for plastic tubs,
cups and bowls will benefit from ongoing use in the packaging of such foods as yogurt,
cottage cheese and dips. Other segments of the plastic container industry will have
varied prospects, with containers such as cans and squeeze tubes registering the
fastest gains. Can demand will be bolstered by further inroads into the paint market,
while squeeze tube gains will be aided by increasing production of skin care products.
Tray demand will be supported by heightened use of dual-ovenable trays that can be
used in microwave and conventional ovens.