Flexible Packaging Association

Top Flexible Packaging Converters — Cornerstones of Success

Top Flexible Packaging Converters — Cornerstones of Success

With favorable trends in the use of plastics and pouches, flexible packaging converters are set for success. FLEXIBLE PACKAGING CONTINUES to cast a shining glow over the package-printing landscape. The category has at least two very positive forces filling up its sails (could be spelled "sales"). One is the continuing industry trend toward the use of plastic materials and, along with this, the growth of pouches as a preferred packaging method. In a study released last October titled "Paper versus Plastic in Packaging to 2008," The Freedonia Group projected plastic materials used in packaging to increase 3.1 percent annually through 2008. At

The market will see continued growth, driven mostly by an increasing demand for stand-up pouches. FLEXIBLE PACKAGING FACES a bright outlook for 2004. Currently, flexible packaging—a $20 billion industry—is the second largest packaging category in the United States, according to the Flexible Packaging Association's Web site. Furthermore, industry experts and studies only expect the market to see continued growth over the next several years, despite a slowly recovering economy. "There's going to be continued growth in the market," said Dennis Calamusa, president of ALLIEDFLEX Technologies, Inc. and a sales and marketing consultant providing global flexible packaging machinery to the North and South American markets.

FLEXIBLE PACKAGING CONTINUES to be an area for growth opportunities in the package printing industry, even in an economic recovery that is spotty at best. Several market drivers for this growth potential were identified in a study done in 2002 by The Freedonia Group titled, "World Converted Flexible Packaging." These drivers include: the expansion of end-use markets such as snack foods, pet and prepared foods, and pharmaceuticals; the continuing trend for conversion of rigid packaging to new flexible packaging alternatives; the need to reduce packaging costs and volume; and the increased use of stand-up pouches and liquid flexible packaging. The Flexible Packaging Association's

Converters put a conservative spin on spending and profits in 2001—but how much caution is too much? by Susan Friedman, Editor On the surface, there's plenty of positive flexible packaging news. Consider the 2000 returns reported by some of the larger players in the industry: Alcoa turned in its best fourth quarter in the company's history, while Alcan sales were down for the quarter but up 34 percent for the year. Bemis netted a 13 percent increase in sales for the year, completing acquisitions of Viskase, and Arrow's flexible packaging business. Sealed Air's Cryovac division reported a 3 percent annual sales gain, and AEP's

Are advances in film barrier technology to the point that multi-web structures could soon be obsolete? Or is multi-web still preferred to produce today's high-end packaging? By Chris Bauer PRODUCERS OF FLEXIBLE packaging materials are constantly on the lookout for products that help bring down costs while speeding up the process. film suppliers now have the ability to add more sophisticated barrier properties to a single layer of film. So does this mean single layers of film for packaging have the potential to replace common multi-web structures? "We are actually seeing more multiple layer structures being put together at this point," says Rich Eichfeld,

As growth rates get more comfortable and application areas open up, flexible packaging converters remain keen on expansion. By Susan Friedman Could flexible packaging be on the cusp of a growth comfort zone? The Flexible Packaging Association (FPA)'s finalized economic statistics for 1997 reveal 5.2 percent growth that pushed shipment values to $17.1 billion—the second highest growth rate recorded in the last five years. Projections for the years following '97 indicate shipment values will ultimately near $19 billion in 2000. In 1999, packagePRINTING's Top Flexible Packaging Converters survey showed smallest converters ($10 million in annual sales or less) posting the most impressive growth rates,

Flexible packagers must stay alert to hints of change, even in the face of repetitive annual growth rates. By Susan Friedman The numbers make it tempting, but flexible packaging converters can't afford to be lulled into a sense of predictability. By Flexible Packaging Association (FPA) estimates, the industry grew at a rate of 3.7 percent in 1998, to a shipment level of $17.5 billion—a rate almost dead even with 1997's 3.5 percent annual growth. The same 3.7 percent growth rate emerges in FPA's forecast for 1999—with familiar rainmakers like multi-web rollstocks, rigid to flexible conversions and stand-up pouches still firmly in place. However, if