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Healthy lifestyles refresh produce-pack sales

US demand nears $4.3 billion in 2010 with bagged salads leading the way: Freedonia

Edited by Chief Editor Mark Spaulding -- Converting Magazine, 6/1/2007

Our mothers' common advice to “Eat your vegetables” must finally be sinking in.

Fueled by trends toward healthier eating and rising demand for fresh-cut, ready-to-eat produce (which offers convenience and tends to use more value-added packaging than bulk produce), overall US demand for produce packaging will climb 4.6 percent a year, says a new study by The Freedonia Group, Inc. (www.freedoniagroup.com/packaging.html). Sales will top $4.32 billion in 2010—up from $3.45 billion in 2005.

Demographic trends such as the aging of the population, and a rise in the number of smaller and working households will also favorably impact growth for fresh-produce sales, including convenience-oriented products. One example is Simple Steps™ Fresh-Cut Vegetables (shown above). The 2006 FPA Achievement Awards gold winner for technical innovation is an easy-open, microwaveable package to steam-cook vegetables in two minutes or less.

Boxing champ

Corrugated boxes will remain the leading produce-packaging format, Freedonia says, accounting for more than a third of all materials. While demand will increase at a slower-than-average pace (2.8 percent), advances will be driven by the expanded prevalence of more costly box types such as modular boxes, white-top linerboard boxes and moisture-resistant boxes. Sales in 2010 will exceed $1.56 billion—up from $1.36 billion in 2005 (see chart below).

Although continuing to benefit from significant use by retailing giant Wal-Mart and others for specific applications, reusable plastic containers (RPCs) will still carry only a fraction of produce volume in the US. Demand will approach only $75 million in 2010, the study says.

Above-average prospects are anticipated for flexible-packaging bags and liners, aided by refreshed sales of bagged salads, along with increased offerings of other ready-to-eat and ready-to-cook produce packaged in bags and pouches (pre-cut broccoli, cauliflower and spinach, and single-serving pouches for sliced apples, pears and other fruits). The prevalence of value-added, modified-atmosphere packaging films for such bags will also help boost demand to about 5 percent a year through 2010, Freedonia predicts.

Hold the mayo!

Salad, which accounted for 13 percent of produce-packaging demand in 2005, will remain the fastest-growing market segment. Robust growth will be based on popular entree salads in both quick-service and other restaurants, and healthy sales increases for a widening array of bagged salads at retailers. Solid prospects for retail single-serving salads and salad kits will also fuel packaging gains.

On the rigid-packaging front, plastic container demand will be driven by new applications for clamshells beyond berries and grape tomatoes to include cut fruit and ready-to-eat salads.

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