Demand for converted flexible packaging is projected to increase 3.4 percent per year to over $18 billion in 2013. Growth in value will decelerate from the 2003-2008 performance as raw material price increases moderate following sharp spikes caused by high energy and transportation costs. Nevertheless, gains will reflect an expected recovery in the US economy and will be supported by cost, performance and source reduction advantages over most rigid packaging formats. These and other trends are presented in Converted Flexible Packaging, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

Pouches will experience the fastest growth among converted flexible packaging products, with demand expected to increase 4.7 percent yearly to $7.9 billion in 2013, a deceleration from the 2003-2008 period based on the more established presence of pouches in a number of markets and more moderate material price increases.

Bag demand will increase more slowly, reflecting mature applications along with loss of share to pouches. Plastic bags will post faster gains than paper bags, based on lower cost and improved performance. More favorable prospects in food markets will be based on ongoing widespread uses with baked goods, meat products, produce, frozen food and grain mill products. In nonfood uses, plastic bags will continue to supplant multiwall paper bags in agricultural and horticultural, and chemical uses. Gains for other converted flexible packaging, primarily wrap products, will be slightly above-average, aided by heightened demand for specialized film packaging with meat products and opportunities for printed ream wrap.

Demand for converted flexible packaging in food markets is projected to expand 3.5 percent per year to $12.7 billion in 2013. Growth will be driven by source reduction advantages and rising demand for convenience-oriented or other further processed food items. The fastest advances are anticipated in meat and related products, produce, and beverages. Demand for converted flexible packaging in nonfood markets is forecast to increase 3.3 percent per year to $5.4 billion in 2013, supported by cost, performance, source reduction and product unitization advantages. The pharmaceutical and medical markets will experience faster growth based on heightened barrier requirements, cost and convenience advantages, and adaptability to growing unit-of-use requirements.