Top Flexible Packaging Converters — A Very Good Year

If Frank Sinatra were to look back on 2006’s flexible packaging market, he might break into “It Was a Very Good Year.” About 85 percent of the converters that responded to packagePRINTING’s Top Flexible Packaging Converters Survey reported that their businesses experienced growth in 2006, while 15 percent said business stayed the same or decreased.

Overall, flexible packaging converters are using a majority of their capacity. About 61 percent of respondents are operating at capacity levels of between 80 and 90 percent, while 39 percent are operating at less than 80 percent. Nearly all of the respondents anticipate that they will expand their package printing operations, with a majority expecting to venture into new flexible packaging printing processes or new end-use markets in 2007.

The Flexible Packaging Association expects that new end-use market growth opportunities will include produce, pet food/supplies, beverages, health/beauty aids, pharmaceuticals, snacks, and confectionery, according to the preliminary version of the “2007 State of the Industry” report, presented by Ilene Gordon, president/CEO of Alcan Packaging at the FPA’s annual meeting.

Looking ahead, in addition to expecting more creativity and innovation, the FPA anticipates a 2 to 4 percent growth for the flexible packaging industry in 2007. And, according to a Freedonia Group study, “Paper Versus Plastic in Packaging to 2019,” this growth will be aided by an increasing demand for pouches.

Cheers, flexible packaging converters, to a successful 2006 and a promising 2007!