Demand for produce packaging in the US is forecast to increase 3.6
percent per year to $4.8 billion in 2014. Growth will be fueled by a
rebound in fresh produce production and improved consumer spending
in a recovering US economy. Other trends stimulating gains include
increased nutritional awareness and efforts to curb obesity, which
will promote healthier eating and interest in foods such as produce.
Packaging demand will be further aided by retailer preferences for
display-ready packaging to hold down labor costs and a favorable
outlook for fresh-cut, ready-to-eat produce, which offers
convenience and tends to use more value-added packaging than bulk
produce. Preventing faster growth will be price sensitivity among
consumers and competition from processed fruits and vegetables,
which tend to be less costly than fresh produce and have a longer
shelf life. These and other trends are presented in Produce
Packaging, a new study from The Freedonia Group, Inc., a
Cleveland-based industry market research firm.
Corrugated boxes, which accounted for 38 percent of produce
packaging demand in 2009, will remain the leading packaging type
through 2014 and beyond. Box demand is projected to increase a
below-average 2.5 percent per year based on more moderate box price
increases than in the 2004-2009 period, the maturity of most
applications and competition from reusable plastic containers
(RPCs). Plastic containers will experience the fastest gains among
major produce packaging types, with demand expected to increase 6.1
percent annually to $1.1 billion in 2014. Advances will be propelled
by solid growth in berry production and expanding applications for
clamshells and other plastic containers with whole and fresh-cut
produce. Concerns regarding food safety and security will boost
demand for plastic containers with tamper resistance features.
Fruit applications are expected to outpace the overall average,
aided by trends toward healthier eating and the increased
availability of ready-to-eat fruit, especially in quick service
restaurants and schools. Advances for salad will decelerate from the
pace of the 1999-2009 period due to the growing maturity of the
segment. Still, gains will be supported by the increased presence of
ready-to-eat single-portion salads in supermarkets and other retail
establishments. Vegetable applications, which comprised 50 percent
of total produce packaging demand in 2009, will expand more slowly
based on sluggishness in potato production.
Produce Packaging (published 06/2010, 295 pages) is available for
$4,800 from The Freedonia Group, Inc. For further details, call
440.684.9600 or e-mail
pr@freedoniagroup.com. Information may also be obtained through
www.freedoniagroup.com.