Annual purchases to require 14 billion lbs of resins by 2010
Staff -- Purchasing, 5/4/2006 2:00:00 AM
U.S. demand for plastic containers is expected to grow 4.6% annually through 2010 to over $24 billion, creating a demand for 14.2 billion lbs of polyethylene-based polymers and other resins.
Gains will be supported by plastic's numerous packaging advantages of low cost, lightweight, design flexibility, shatter resistance, strength, favorable barrier properties and clarity. However, further advances will be limited by increasing maturity in key markets like soft drinks and household chemicals, says analyst Joe Iorillo at Freedonia Group, the Cleveland-based market research firm.
"Unit expansion will outpace volume advances due in large part to the growing popularity of smaller containers, particularly in the beverage and food markets," he says. "Continuing efforts aimed at reducing consumption through lightweighting or downgauging will restrain growth in resin volume."
Plastic bottles and jars, which accounted for 78% of plastic container poundage in 2005, will be the dominant plastic container type through 2010, according to the Freedonia study.
Although beverage container growth will slow from the 2000-2005 period due to the maturity of the soft drink segment, the overall food and pharmaceuticals markets will provide above-average opportunities for plastic containers. Smaller end-use segments such as cans for consumer goods, squeeze tubes for cosmetics and toiletry, and trays for retail products will record above-average demand growth.
By 2010, polyethylene terephthalate (PET) will usurp high density polyethylene (HDPE) as the dominant plastic container resin due to growth in the bottled water market and increasing usage in other applications like food and household chemicals, the study reports. "Nevertheless, HDPE will still account for 43% of total plastic container volume largely due to its low cost and entrenched position in many key markets, such as milk."
Polypropylene will register the fastest growth because of development of clarified grades and improved processing rates.
Sustained growth seen for purchases of plastic containers
(annual U.S. buys, billion pounds)
| 2000 | 2005 | 2010 | 2015 | % Annual Growth '00-'05 | % Annual Growth '05-'10 | |
| Source: Freedonia Group |
||||||
| Bottles & Jars | 8.151 | 9.565 | 10.930 | 12.385 | 3.3% | 2.7% |
| Pails | 0.910 | 1.100 | 1.320 | 1.555 | 3.9% | 3.7% |
| Tubs, Cups & Bowls | 0.755 | 0.865 | 1.000 | 1.140 | 2.8% | 2.9% |
| Other Types | 0.641 | 0.780 | 9.500 | 1.135 | 4.0% | 4.0% |
| Total | 10.457 | 12.310 | 14.200 | 16.215 | 3.3% | 2.9% |
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