Paper Bag and Disposable Plastic Product Wholesaling in the US Industry Market Research Report Now Available from IBISWorld

Share Article

While sustained growth from supermarkets and grocery stores mitigated Paper Bag and Disposable Plastic Product Wholesaling industry revenue declines over the past five years, declining business and consumer spending during the recession resulted in an overall decrease in the five-year period. While revenue will improve modestly in light of stronger demand from retailers over the coming years, wholesalers will face hurdles including plastic bag regulation and bans. Furthermore, high input costs will force profit margins down. On the positive front, more consumers will eat out, driving demand for takeout containers and related packaging. For these reasons, industry research firm IBISWorld has added a report on the Paper Bag and Disposable Plastic Product Wholesaling industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Although retail sales will drive demand, plastic bag regulations will impede growth

The Paper Bag and Disposable Plastic Product Wholesaling industry sells a variety of paper and plastic goods, including cardboard containers, paper and plastic bags, disposable dishes, wrapping paper and sanitary paper products. Wholesalers buy these products from manufacturers and sell them to retail stores, supermarkets, warehouse clubs and accommodation and food-service establishments. In 2012, the industry is expected to record $68.2 billion in sales, with a projected 3.5% increase from 2011. Over the past five years, though, revenue declined at a moderate 0.9% per year on average. Says IBISWorld industry analyst Caitlin Moldvay, “While sustained growth from supermarkets and grocery stores mitigated revenue declines, declining business and consumer spending during the recession resulted in an overall decrease over the past five years.”

The growing price of commodities, particularly during 2008 and 2009, created higher output prices in manufacturing industries, from which the Paper Bag and Disposable Plastic Product Wholesaling industry purchases. “Due to heightened competition, wholesalers were not able to pass on the full cost increases to downstream retailers,” says Moldvay. Instead, firms have had to lower prices and decrease margins. As a result of lower margins, many firms have been downsizing operations or leaving the industry. As companies downsized their US operations, as well as expanded overseas operations, market share concentration decreased. This trend is due to increasing demand for industry products from Asia and Latin America, while the US market has remained relatively stagnant.

Conditions will likely improve over the five years to 2017. IBISWorld estimates that industry revenue will grow at an average annualized rate of 2.6% to $77.3 billion. Improving economic conditions toward the end of the five-year period will likely bolster retail sales, driving demand for paper and plastic products distributed by the industry. A number of states have proposed regulations concerning the use of plastic bags, however. Should these regulations pass, industry operators will likely face decreased demand for plastic bags, which represent a substantial share of industry revenue. For more information, visit IBISWorld’s Paper Bag and Disposable Plastic Product Wholesaling report in the US industry page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld industry Report Key Topics

Wholesalers in this industry purchase a range of paper and plastic products from manufacturers and distribute them to retail stores, manufacturers, food service outlets and agricultural producers. Industry products are wide ranging and typically include sanitary and tissue products, disposable cutlery and food trays, cartons, plastic and paper bags, paper party goods, and cardboard packaging. This industry does not include wholesale distribution of stationery or office supplies.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Gavin Smith
Visit website