Demand for films forecast to grow in USA

31-Aug-06

Demand for plastic films in USA is forecast to increase to 6.9 mln tons in 2010. This represents a growth of 2.6% pa, as per a report by Freedonia Group. Total plastic film demand, including resins, additives, processing and other costs, are expected to expand 4.5% pa to US$28.6 bln. Growth is likely to be driven by cost, performance and source reduction advantages over rigid packaging. Packaging accounted for 73% of plastic film use in 2005 and the strongest growth is forecast in secondary packaging such as stretch and shrink wrap and retail bags. Food packaging is expected to grow at above average pace. Low density polyethylene is predicted to continue as the largest film accounting for 64% of the total in 2010. High density polyethylene films are forecast to grow slightly faster due to growth in areas such as baked goods packaging and retail bags. Polypropylene is forecast to expand the fastest at 3.4% pa through to 2010 which is likely to be driven by growth in produce, grain mill, dairy and other food packaging. PVC film demand will advance marginally due to low red meat consumption and competition from polyolefin films.