Flexibles Fly High, Aim Higher
March 2000
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As growth rates get more comfortable and application areas open up, flexible packaging converters remain keen on expansion.
By Susan Friedman
Could flexible packaging be on the cusp of a growth comfort zone? The Flexible Packaging Association (FPA)'s finalized economic statistics for 1997 reveal 5.2 percent growth that pushed shipment values to $17.1 billion—the second highest growth rate recorded in the last five years. Projections for the years following '97 indicate shipment values will ultimately near $19 billion in 2000.
In 1999, packagePRINTING's Top Flexible Packaging Converters survey showed smallest converters ($10 million in annual sales or less) posting the most impressive growth rates, at 23 percent. By contrast, the largest converters ($50 million plus in annual sales) reported a still-robust 9 percent growth rate.
Are any dark forces looming that could hold all this progress back? Barry Goldberg, head of Tappa Group International, a Deerfield, IL-based marketing/consulting firm specializing in packaging, points out Y2K concerns may have slightly inflated sales at the end of '99, causing a slower start at the outset of 2000. "Many major companies over-bought in '99 out of concern with getting caught without critical elements for their packaging," he explains. "However, due to economic and industry dynamics, 2000 should be a good year."
Material matters
According to FPA's 2000 Outlook Survey, film's overwhelming popularity shows no signs of abating. Ninety percent of converters reported using film in 1999, and 93 percent plan to put it to work in the next five years. Bret Biggers, FPA's director of business and economic research, reports fresh spikes in popularity for co-extruded barrier films, aluminum oxide,and silicon oxide. Polypropylene's strong growth pattern continues, with 45 percent of converters using it in 1999, and 60 percent predicting usage in the next five years. Ten years ago, 33 percent used this material.
A check on specific structures shows stand-up pouches capturing ever-more elbow room on store shelves. According to Goldberg, faster, more efficient packaging machinery is contributing to their rise, with conversions still most common for cracker, cereal, and other box-in-a-bag package constructions. Goldberg adds some shipping cartons turn into display packs to more easily keep pouches upright.
Zipper improvements are also working in stand-up pouches' favor, emphasizes Andrea Mandel, president of consulting firm Andrea S. Mandel Associates, Princeton Junction, NJ. No longer limited to high-end packages, zippers now work better and cost less to make. "This provides increased opportunities for flexibles to get into applications where opening and closing a product is critical," Mandel states. "Improved printing capabilities combined with better closures should push this package design along even more."
By Susan Friedman
Could flexible packaging be on the cusp of a growth comfort zone? The Flexible Packaging Association (FPA)'s finalized economic statistics for 1997 reveal 5.2 percent growth that pushed shipment values to $17.1 billion—the second highest growth rate recorded in the last five years. Projections for the years following '97 indicate shipment values will ultimately near $19 billion in 2000.
In 1999, packagePRINTING's Top Flexible Packaging Converters survey showed smallest converters ($10 million in annual sales or less) posting the most impressive growth rates, at 23 percent. By contrast, the largest converters ($50 million plus in annual sales) reported a still-robust 9 percent growth rate.
Are any dark forces looming that could hold all this progress back? Barry Goldberg, head of Tappa Group International, a Deerfield, IL-based marketing/consulting firm specializing in packaging, points out Y2K concerns may have slightly inflated sales at the end of '99, causing a slower start at the outset of 2000. "Many major companies over-bought in '99 out of concern with getting caught without critical elements for their packaging," he explains. "However, due to economic and industry dynamics, 2000 should be a good year."
Material matters
According to FPA's 2000 Outlook Survey, film's overwhelming popularity shows no signs of abating. Ninety percent of converters reported using film in 1999, and 93 percent plan to put it to work in the next five years. Bret Biggers, FPA's director of business and economic research, reports fresh spikes in popularity for co-extruded barrier films, aluminum oxide,and silicon oxide. Polypropylene's strong growth pattern continues, with 45 percent of converters using it in 1999, and 60 percent predicting usage in the next five years. Ten years ago, 33 percent used this material.
A check on specific structures shows stand-up pouches capturing ever-more elbow room on store shelves. According to Goldberg, faster, more efficient packaging machinery is contributing to their rise, with conversions still most common for cracker, cereal, and other box-in-a-bag package constructions. Goldberg adds some shipping cartons turn into display packs to more easily keep pouches upright.
Zipper improvements are also working in stand-up pouches' favor, emphasizes Andrea Mandel, president of consulting firm Andrea S. Mandel Associates, Princeton Junction, NJ. No longer limited to high-end packages, zippers now work better and cost less to make. "This provides increased opportunities for flexibles to get into applications where opening and closing a product is critical," Mandel states. "Improved printing capabilities combined with better closures should push this package design along even more."
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