U.S. Food Container Demand to Hit $14 Billion by 2003 12/28/99 An expanding population along with product mix changes toward higher value-added packaging systems and consumer interest in convenient, highly packaged prepared foods are leading factors that will increase food container demand in the United States over the next several years. Not surprisingly, plastic packaging demand will experience the most growth among food containers.Overall, food container demand in the United States is projected to increase 3.3% annually to $14 billion in 2003, according to Food Containers, a new study from Cleveland-based The Freedonia Group Inc. (see chart). This increase will result in 120 billion units.The 238-page report, published in December, says that further advances in food container demand will be threatened by competition from flexible packaging, such as pouches. Also cutting into food container market share will be increased consumption of fast food and other restaurant fare in lieu of home prepared meals.Paperboard Containers Still LeadPaperboard containers will remain the largest segment of the food container industry, with demand growing 3.2% annually to $5.4 billion in 2003. Folding carton demand will be constrained by ongoing source reduction efforts and growing competition from flexible packaging in traditional strongholds such as breakfast cereals.Better opportunities are anticipated for paperboard containers in smaller product segments including gabletop cartons, aseptics and paperboard cups. These applications will be driven by technological advances and strength in growing markets like flavored creamers and premium ice creams.Plastic Overtakes MetalPlastic packaging demand will exhibit the best growth, expanding 5.5% per annum to $3.8 billion in 2003 and overtaking metal as the second largest food container material. The advantages that plastic provides ?including clarity, light weight and shatter resistance ?will lead to its advances. Improved barrier properties will create new opportunities for plastic in hot-fill applications such as jams, jellies and baby foods.As for other food containers, best growth prospects are anticipated for aluminum and aerosol cans. Aluminum cans will benefit from rising demand for items like pet foods and canned nutritional supplements. By contrast, steel cans will experience only modest demand growth, while glass containers will lose share to plastics in virtually every major category. Polyethylene terephthalate (PET) is expected to make rapid inroads into the last stronghold of glass containers, namely widemouth jars.Best food container market opportunities are anticipated for sauces and condiments, and, to a lesser extent, frozen and baked items. Niche growth areas include containers used to package low-calorie and low-fat foods, ethnic and other highly flavored products.Food Containers is available from industrial market research firm The Freedonia Group for $3,600.For more information: The Freedonia Group Inc., 767 Beta Drive, Cleveland, OH 44143-2326, Tel: 440-684-9600, Fax: 440-646-0484.
