Paper Packaging Demand Grows

U.S. demand for paper packaging excluding boxes is growing forecasts The Freedonia Group (Cleveland) in a new report, Paper Packaging . It predicts a rise in demand of 2.3 percent per year to $8.4 billion in 2008. While growth will trail overall packaging demand based on the maturity of most product types, steady population growth and favorable trends in consumer spending and manufacturing activity will push demand higher. Although competition from plastic will result in further loss of share for most types of paper packaging, many segments will register growth based on the presence of niche or entrenched markets where paper holds strong competitive positions. Paper's use in combination with film and foil to improve performance properties will provide further opportunities. Paper Packaging, a new study from The Freedonia Group Inc. (Cleveland) 257-pages and costs $4,100.

The study report rigid paper packaging demand will outpace flexible paper packaging. Above-average gains are anticipated for sleeves, protective packaging, tubs and cups, and blister cards. Plastic is this industry segment's greatest competitor. While plastic alternatives do compete with these products, the presence of key uses where paper remains favored has insulated these segments somewhat from inroads by plastic. Below-average growth is expected for flexible paper packaging.

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