When most converters think of finished flexible packaging, the image of slit rollstock probably comes first to mind, followed closely by some type of bag. And with data from the Flexible Packaging Association (www.flexpack.org) showing 94 percent and 71 percent of survey respondents, respectively, manufacturing these kinds of materials, they'd be right. But as times change, so do products to fit the market. Today, 41 percent of FPA's members also convert standup pouches. Another 14 percent make retort pouches, while 7 percent say they print and finish shrink sleeves for labels and other end uses.

Evolution in the types of major flex-pack structures sold was only one of several trends highlighted in FPA chairperson Ilene Gordon's 2007 State of the Industry Report at the group's annual meeting last month in Aventura, FL. Other topics included hot end-use opportunities, the simultaneous consolidating/polarizing industry structure and FPA initiatives for the coming 12 months.

Overall, the US flex-pack field should clock in with a growth of 3.0 percent for 2007, which compares favorably to a forecasted 2.3 percent rate for US GDP, Gordon says. Volume was up 4.5 percent last year over 2005, while revenue increased 3.5 percent.

Various films continue to be the primary raw-material substrate converted by FPA survey respondents, and polyethylene remains the king—55 percent of all film types (see chart at right). Polypropylene and polyester together make up nearly another third of the pie.

So, what targeted markets do flex-pack makers consider leading contenders for their business? In 2005, pharmaceuticals, drink mixes and confectionery topped the list. In the latest survey, fresh produce, pet food & supplies, beverages again, and health & beauty aids were seen as having the best opportunities. Twelve entries to the 2007 FPA Achievement Awards competition fell into these categories. One example is Alcan Packaging's flat-bottom bag—for Royal Canin cat food—entered in the Packaging Excellence division (at left).

Despite a generally rosy outlook for flexible packaging's prospects into 2008, FPA converters expressed a number of concerns, Gordon says. Chief among them: both the cost and availability of raw materials (80 percent ranked this No. 1), getting and retaining skilled labor, the $1.6 billion trade deficit in flex-pack imports (primarily with China) and industry consolidation as large firms buy up middle-market companies.

Since 2002, US flex-pack makers have seen their materials costs climb from 52 to 56 percent of total expenses. Conversely, operating profits have fallen from an average of 6 percent to only 4 percent last year, the FPA report states.