Freedonia Measures Bulk Packaging Markets

Demand for flexible bulk packaging in the US is projected to expand 4.9 percent per annum through 2002 to $5.7 billion. Flexible bulk packaging demand in the nondurable goods markets will outpace demand in durable markets due to a slowing, albeit healthy, macroeconomy, as well as improving export markets for foods, chemicals and other nondurables. The remainder of flexible bulk sales are in nonmanufactured goods, including minerals, horticultural materials such as bark, and hazardous wastes. These and other trends are presented in Flexible Bulk Packaging, a new study from The Freedonia Group, Inc., a Cleveland-based industrial market research firm.

Demand for shipping sacks, comprising over half of the market, will increase to $2.9 billion, with gains limited largely by their reliance on products such as agricultural, food and chemical products. Demand for these nondurables tends to increase at steady, incremental rates. Paper shipping sacks will continue to dominate the market; however, their growth will trail demand for plastic and textile shipping sacks, which are encroaching on traditional paper sack markets. Sacks will experience increasing competition from flexible intermediate bulk containers (FIBCs), particularly in agricultural and chemical markets. FIBCs will enjoy double digit gains, increasing over twelve percent per annum through 2002, partially at the expense of sacks and other flexible packaging. However, FIBCs are also taking market share from drums, RIBCs (rigid intermediate bulk containers) and other types of rigid packaging.

Healthy gains in film wrap will have a profound effect on the overall industry, as end-users discover the advantages of unitizing loads. Film wrap's rapid growth has strongly depressed the market for strapping and has created new applications for flexible bulk packaging. Already the dominant means of unitizing pallet loads for food and other nondurables, stretch wrap will continue to find new uses in construction materials and other durables.

Demand for drum, bin and box liners will expand 4.6% per annum through 2002, benefiting from rising use in rigid containers, particularly drums, and double-digit gains in FIBCs. Liners can provide cost savings for users of drums and other rigid containers (they extend the life of the drum or other rigid container, and prevent costs associated with product contamination).

For more information: Corinne Gangloff, The Freedonia Group, Inc., 767 Beta Drive, Cleveland, Ohio 44143-2326. Tel: 440-684-9600. Fax: 440-646-0484.