A recent report by the Freedonia Group suggests that plastic film demand in the US will increase 2.6 per cent per annum to 14.6 billion pounds in 2006.
Film advances will be driven by cost and performance advantages over other materials, as well as technology and processing improvements. While low density polyethylene will remain dominant, significantly better opportunities are expected for polypropylene and high density polyethylene film. Best growth is anticipated for the smaller ethylene vinyl alcohol film segment in light of increased demand for higher gas and moisture barrier properties. These and other trends are presented in Plastic Film, a new study from The Freedonia Group, a Cleveland-based industrial market research firm.
Demand for low density polyethylene film, the largest film type, is projected to reach 8.7 billion pounds in 2006 based on the film's low cost, versatility and expanding use in snack and produce packaging, stretch and shrink wrap, and retail bags. Metallocene grades which have better gloss, clarity and lower haze properties are also becoming available. Further growth will be constrained by competition from other films, notably polypropylene.
Demand for high density polyethylene (HDPE) film will rise 3.5 per cent annually through 2006 to 2.4 billion pounds as a result of good opportunities in snack food packaging, and retail and bin bags. Better growth, however, is anticipated in high molecular weight HDPE trash bags. HDPE applications are not as varied or extensive as those for low density polyethylene.
Among the major resins, polypropylene film demand is expected to expand the fastest at 4.5 per cent growth yearly through 2006, with food packaging presenting the best opportunities. Further polypropylene film inroads will be constrained by the entrenched position of low density polyethylene in many applications. Polyethylene terephthalate film demand will be stimulated by opportunities in food and non-food packaging applications, yet be restrained by declining photographic film and magnetic tape markets as a result of newer technologies such as digital photography, compact discs (CDs) and digital versatile discs (DVDs).
Plastic Film (published 09/2002, 283 pages) is available for $3,900 from The Freedonia Group. For further details, pr@freedoniagroup.com. Information may also be obtained through www.freedoniagroup.com