State of the Industry-Flexible Packaging

Plastic films are a major component in flexible packaging, accounting for 70 percent of the global demand for flexible packaging materials says The Freedonia Group's study. Further, it predicts that its use will steadily increase due to continuing improvements in performance and price.

But these opportunities don't mean things will be easy for film producers. Robert Poirier, president of Crescent Associates, said that many film producers had a difficult time in 2002, "with tight economic conditions and the industry in a state of flux." Consolidation is still a factor, for two reasons says Poirier. "Investors found opportunities to buy companies, apparently at prices that were attractive for future profits. … Then, there are those companies with foresight and ideas who are identifying new markets, investing in new equipment, and growing their companies."