Future of specialty films: Higher-value uses

Numerous kinds of specialty films, a key component in many innovative products we've begun to take for granted, simply didn't exist 10 or 20 years ago. From barrier materials for modified-atmosphere packaging keeping meat fresh without refrigeration, to biodegradable trash bags and soluble film for oral drug-delivery systems, specialty films are gaining a greater share of the market.

Driven by increasing performance requirements in several end-use fields, the future of specialty films lies in the application of higher-value materials, says a just-released study by Cleveland-based researcher The Freedonia Group, Inc. (www.freedoniagroup.com). US demand is forecasted to grow 4.8 percent a year, reaching $7.3 billion in total sales in 2010. Advances will be fueled by the rapid adoption of improved processing methods in film coating and metallization. This will be tempered by market maturity or weak demand for some end-use products such as PVC decorative films, breathable films for personal-care products, and interlayer films for motor vehicle windows, Freedonia says.

As the largest segment of the specialty-film industry, barrier films accounted for half of total demand in 2005—$2.87 billion. Growth will be driven by the rapid rise of case-ready technology in meat packaging. These opportunities will spur advances for plastic films such as ethylene vinyl alcohol, nylon and polyvinylidene chloride, which are used in the construction of barrier films.

Showing significant potential are conductive films, the study says, spurred on by a resurgent US electronics industry and the embryonic printed-electronics field. From declines in the 2000-2005 period, demand for conductive films is expected to pace at 6.9 percent a year, with sales topping $541 million in 2010. In particular, the market for flexible printed circuit boards will benefit demand for polyimide and polyester films used in their manufacture.

The most rapid growth in specialty films will happen with biodegradable and water-soluble films, which will see double-digit gains from a small base, Freedonia predicts. Sales will rise 7.7 percent annually, climbing from $351 million in 2005 to $509 million in 2010.

Biodegradable films, used to produce compostable kitchen and lawn bags, will benefit from growing environmental concerns, the sustainability trend and increased commercialization of bio-polymers. Water-soluble film demand is getting a boost from the current wave of medicinal and health products in dissolvable thin-film form—cough suppressants, throat soothers and breath fresheners.