Growth and Optimism in the U.S. Flex Pack Industry

LINTHICUM, Md.—The U.S. flexible packaging industry is expected to experience annual sales revenue growth of 8.1 percent in 2011, according to the Flexible Packaging Association (FPA). Industry revenue growth in 2010 rebounded an estimated 7.3 percent from a decrease of 10.9 percent in 2009. FPA research also suggests that flexible packaging converter volume increased approximately 5 percent in 2010.

Total U.S. packaging industry growth is estimated at 6.7 percent for 2010 versus a decrease of 13.7 percent in 2009. This and additional data regarding industry growth will be available in the soon-to-be-published 2011 FPA Flexible Packaging State of the Industry Report. The Report is provided to FPA members and non-members may purchase the Report for $3500.

The recently released 4th Quarter 2010 Pulse Report, produced by the Flexible Packaging Association also notes signs of optimism regarding industry growth. Key Report findings indicate that 77 percent of FPA converter members survey expect first quarter 2011 sales to be higher than fourth quarter 2010 levels; and 74 percent expect higher volume levels in first quarter 2011 versus fourth quarter 2010. In addition, 74 percent of survey participants note higher sales in fourth quarter 2010 versus fourth quarter 2009. These results are consistent with the trend over 7 of the last 8 years (2003-2010) where there has been fourth quarter year-on-year growth, with the exception of 2008.

Historical data has shown the flexible packaging industry growth to be slightly higher than U.S. GDP. First quarter 2011 U.S. GDP increased 1.8 percent versus 3.1 percent in fourth quarter 2010.

For more information, contact Bob Zaborowski, director, FPA Business & Economic Research, at bzaborowski@flexpack.org or 410-694-0800.