Ceepackaging

Analysis

Demand for produce packaging rising

Accelerated produce production will boost packaging unit
advances, though value gains will decelerate as prices rise more slowly than in the
2002-2007 period. Growth will outpace overall food packaging and be fueled by
increased produce production, growth in consumer spending, trends toward healthier
eating and rising demand for fresh-cut produce, which tends to use more value-added
packaging than bulk produce. These and other trends are presented in Produce
Packaging, a new study from The Freedonia Group, Inc., a Cleveland-based industry
research firm.
Corrugated boxes will remain the leading produce packaging product type
through 2012. While box demand will increase at a slower than average pace,
advances will be driven by the expanded prevalence of more costly box types such as
modular boxes, white-top linerboard boxes and moisture-resistant recyclable boxes.
Plastic containers will experience the fastest gains, resulting from continued
favorable increases in berry production and expanding applications for clamshells,
bowls and other plastic containers in other produce uses, especially ready-to-eat, freshcut
produce.
Bag and liner demand is expected to increase nearly in line with the overall
produce packaging average, decelerating from the 2002-2007 pace as the salad
market becomes more mature. Still, advances will be aided by continued volume
increases for bagged salads and other ready-to-eat produce, which are primarily
packaged in plastic bags, with many products using value-added modified atmosphere
packaging films to prolong shelf life.

Among major applications, salad will remain the fastest-growing segment of the
market, though growth will decelerate from the pace of the past decade as retail
bagged salads become more mature. Solid prospects for retail single-serving salads
and salad kits, which tend to use more costly packaging such as clamshells or bowls,
will fuel packaging gains. Fruit uses will slightly outpace the produce packaging
average, aided by a rebound in citrus production, along with robust growth for fresh-cut
fruit, which is gaining a wider presence in both retail and foodservice markets.