Despite decelerating growth from the hectic pace of the late 1990s, US demand for flexible bulk packaging is expected to reach $7 billion in 2009, according to a new study by Cleveland-based market researcher The Freedonia Group, Inc. Sales are forecasted to rise 3.4 percent a year, creating a market for 6.2 billion lbs of raw materials.

Converted products that offer a combination of customer-pleasing cost benefits as well as increased performance should see the best growth, Freedonia says, typically replacing a variety of alternative packaging formats—either flexible or rigid.

Flexible intermediate bulk containers (FIBCs) and film wrap will likely see the fastest growth, with demand climbing 5.6 and 5.7 percent a year, respectively. FIBC growth is attributable to increased overall manufacturing activity, along with advantages of low cost, versatility and performance for storage of bulk dry, flowable products, the study notes. Film wrap, making up a third of all bulk flex packs in 2004, will remain a prime mover. Sales of plastic sacks are predicted to rise 1.8 percent a year, with its expansion displacing paper-based constructions.

What end markets are hot for bulk flex packs? Nondurable goods such as foods, chemicals, ag products, plastics and petroleum represented more than 70 percent of demand last year. Best gains are seen for food and some smaller nondurables markets, the report says.

Substrate-wise, plastics will remain the top material for flexible bulk packaging with demand growth far outpacing other materials through 2009, Freedonia concludes.

More info: www.freedoniagroup.com