US demand to reach $8.4 billion in 2008
Demand for paper packaging (excluding corrugated and folding boxes) is expected to reach $8.4 billion in 2008, with prospects aided by steady population growth and favorable trends in consumer spending and manufacturing activity. Despite competition from plastic packaging, many segments will register growth based on the presence of niche or entrenched markets that will continue to hold strong competitive positions, thus providing areas of opportunity. In some cases, such as paperboard sleeves, growth will be the result of retail trends -- specifically, the popularity of multipacks and the trend toward smaller multipacks in supermarkets and club stores.
Rigid paper packaging to outpace flexible
Rigid paper packaging demand will outpace flexible paper packaging, the result of favorable gains for sleeves, protective packaging, tubs and cups, and blister cards. Slower growth is expected for cartons, cans and tubes, and trays based on continued inroads made by rigid and flexible plastic packaging.
Paper wraps, pouches to lead gains among flexible packaging
Bags and sacks, the dominant flexible paper packaging type, will log the slowest gains due to competition from plastic sacks and the shift to larger formats for many bulk packaging applications. However, better growth is anticipated for paper wraps and pouches. Paper foodservice wraps will post above-average advances due to healthy foodservice revenue growth, along with ongoing wide usage in the quick service restaurant and snack/bakery/coffee shop segments. Moreover, gains will benefit from the popularity of wrap-utilizing menu choices in quick service restaurants and in the rapidly growing fast casual restaurant segment.
Foodservice market to grow the fastest
Above-average growth is expected in the foodservice market, with continued growth stimulated by rising disposable personal income levels, leading to healthy expansion for consumer food expenditures, especially for food consumed away from home.
Pet food, dry food, dairy to be leading applications
Food applications will remain the leading market for paper packaging; however, growth will continue to be threatened by competition from plastic packaging, with saturated, slower growing uses also holding down advances. Still, paper will maintain a strong position in key applications such as pet food, dry food and dairy products, which will stimulate gains.
Study coverage
Paper Packaging, a new This Freedonia industry study. It provides historical US demand data (1993, 1998 and 2003) and forecasts to 2008 and 2013 by product (e.g., cartons, protective packaging, cans and tubes, sleeves, tubs and cups, blister cards, wraps and pouches, bags and sacks); and by market. The study also examines the market environment, presents company market shares and profiles more than 35 US industry competitors.
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