Flexible Packaging Seen Making Inroads

Demand in the United States for food service packaging is forecast to climb 2.5 percent per year to $7.9 billion in 2014. Growth will be driven by rising disposable personal income levels and expanding food service revenue as consumers continue to favor convenient, ready-to-eat foods that provide a change of pace from meals prepared at home, according to a new study from The Freedonia Group Inc., a Cleveland-based market research firm.

In Freedonia’s study “Foodservice Packaging: Bulk & Portion Control,” the group predicts that flexible packaging demand will outpace rigid packaging, advancing 3.3 percent per annum to comprise $3.6 billion of the market in 2014.

Concerns about sustainability and environmental friendliness will continue to affect all areas of the packaging industry, according to The Freedonia Group. This could benefit flexible food service packaging since such packaging is perceived as occupying less space in landfills and consuming less material than rigid alternatives.

The recycling rates of newer flexible packaging compared to established rigid packaging types were not mentioned in the Freedonia news release.

Pouches are expected to post the fastest gains of all flexible food service packaging types, with growth often coming at the expense of metal cans. Bags and sacks will remain the leading flexible packaging format in food service uses.

Rigid foodservice packaging demand is expected to increase 1.9 percent per year to $4.3 billion in 2014. Gains will be limited by loss of share to flexible alternatives and potential increases in materials pricing, particularly in metal cans.

However, growth will be supported by the widespread use of corrugated boxes as shipping containers for a broad range of food items. In addition, demand will be bolstered by healthy gains for plastic containers as a result of heightened use of single-serving plastic ketchup containers, which are making inroads at the expense of pouches.

Demand for plastic containers will also be supported by advantages such as shatter resistance, light weight, design flexibility and effective barrier properties. Good prospects for paperboard containers will result from the environmental friendliness of paperboard packaging and inroads by aseptic cartons in many metal can applications, according to the Freedonia study.

Fruits and vegetables; and meat, poultry, seafood and eggs were the leading applications for food service packaging in 2009, together accounting for 50 percent of demand. Through 2014, foodservice packaging used in baked goods applications will post the fastest gains based on an acceleration in baked goods shipments in real terms and the popularity of snack/bakery/coffee shops such as Starbucks and Panera Bread.

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Solid advances in specialty processed food applications will stem from the increasing importance of pre-made food items that can speed food preparation, reduce labor costs and give the appearance of being made from scratch.

The 248-page “Foodservice Packaging: Bulk & Portion Control” study is available from The Freedonia Group through its Web site at www.freedoniagroup.com.