While its growth will trail that of overall packaging demand, US sales of paper-based packaging materials (excluding boxes) are forecasted to climb 2.3 percent a year through 2008, says a new study by Cleveland-based market researcher The Freedonia Group, Inc.

Sales are projected to reach $8.44 billion in 2008, up from $7.55 billion in 2003, says the report, "Paper Packaging," published in January 2005.

Although competition from plastics will result in further loss of market share for most types of paper packaging, many segments register growth based on the presence of niche or entrenched markets where paper holds strong competitive positions, Freedonia says. Paper's use in combination with film and foil to improve performance properties will provide further sales-growth opportunities.

Rigid paper packaging demand is expected to outpace that of paper flexibles, the report projects. Sales for this segment will rise 2.8 percent a year from $4.09 billion in 2003 to $4.69 billion in 2008. Above-average gains are forecasted for sleeves, protective packaging, tubs and cups, and blister cards.

Below-average growth for flexible paper packs will be based on weak prospects for bags and sacks—the dominant flexible paper pack type, Freedonia says. Better growth is anticipated for paper wraps and pouches. Segment sales will rise only 1.6 percent a year from $3.45 billion dollars in 2003 to $3.75 billion in 2008.