Protective packaging demand to grow with economy

U.S. demand for protective packaging is forecast to climb 6.2% per year to $5.2 billion in 2015, reflecting an upswing in manufacturing output as the U.S. economy recovers from the recession that began in December 2007, said the latest study from The Freedonia Group Inc., a Cleveland-based industry market research firm.

The fastest growth is expected for air pillows (expected to climb 8.7% to $295 million in 2014), foamed plastics (expected to rebound substantially from a depressed base in 2009), and bubble packaging, which will be aided by favorable outlooks for manufacturing activity and electronic shopping. Gains in foamed plastic protective packaging will reflect a significantly improved outlook in the manufacturing sector, especially durable goods, which represent the majority of demand for molded foam, foam-in-place and polyolefin roll protective packaging. However, longer-term prospects for foams will be moderated by further shifting of manufacturing to nations that offer lower-cost production, said The Freedonia Group. —mpweditorial@cancom.com