Plastic is expected to increase its share of packaging markets where it competes with paper to nearly 50 percent in 2008, according to a recent study by the Cleveland-based Freedonia Group.
Growth in plastic packaging is expected to outpace paper packaging through 2008. The study predicts plastic’s share of packaging demand will increase 3 percent annually for the next five years.
Freedonia predicts plastic will make the fastest advances in packaging for pet food, fruit beverages, eggs, candy and baked goods.
Growth is also expected for single-serving plastic milk bottles.
According to the study, plastic’s share will expand at a slower pace than that of past decades because a number of fairly mature markets are already dominated by plastic.
Technological improvements like faster line speeds, which have reduced costs, will support strong opportunities for plastic pouches in a variety of markets, says the Freedonia Group. Applications in frozen food and produce also look favorable.
According to the study, paper will continue to dominate packaging demand in the foodservice market. Stimulants for paper include a healthy outlook for foodservice revenues and good opportunities for foodservice disposable packaging applications like paperboard boxes, cartons, wraps and bags.
Paper is also favorable in foodservice markets in light of its breathability and good environmental profile, says Freedonia.
According to the study, paper will continue to lose ground in competitive primary packaging, but will dominate secondary packaging and shipping applications thanks to the popularity of corrugated boxes.
The full study is available by contacting the Freedonia Group.