Plastic Film, Sheet & Bag Manufacturing in the US Industry Market Research Report from IBISWorld Has Been Updated

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Within the past five years, the Plastic Film, Sheet and Bag Manufacturing industry has contended with declining demand from downstream industries brought on by the recession, major technological improvements and persistent challenges from environmental groups opposing the use of plastic bags. For these reasons, industry research firm IBISWorld has updated a report on the Plastic Film, Sheet & Bag Manufacturing industry in its growing industry report collection.

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The increase in consumer spending on packaged goods will raise industry revenue

Within the past five years, the Plastic Film, Sheet and Bag Manufacturing industry has contended with declining demand from downstream industries brought on by the recession, major technological improvements and persistent challenges from environmental groups opposing the use of plastic bags. Despite these circumstances, the industry managed to find opportunities for growth in the five years to 2013, which helped operators weather the economic storm. During the five years to 2013, industry revenue growth has remained virtually flat. According to IBISWorld Industry Analyst Olawale Harrison, “In 2013, industry revenue will grow slightly, as demand from food manufacturers grows and reductions in input prices allow the industry to maintain some growth.”

The Plastic Film, Sheet and Bag Manufacturing industry consists of a large number of small to midsize firms, with only a few large players (Bemis Company Inc., Alpha Industries, Printpack Inc., Sealed Air Corporation and AEP Industries Inc.). Combined, the four largest players account for more than 10.0% the industry's market share (see IBISWorld report 32611 for major player market shares). The wide variety of products and the diverse buying markets make it difficult for individual firms to grab a large portion of market share. However, the industry's concentration has been increasing slowly. The recent increase in acquisitions, including Bemis Company Inc.'s acquisition of Alcan Packaging's Food Americas division in 2010, indicates that companies are making a concerted effort to increase profitability by claiming larger portions of market share. “This move demonstrates that companies are turning to acquisitions to gain a competitive edge and expand operations,” says Harrison, and IBISWorld anticipates that the number of firms will fall by 2018.

When consumer spending declined in 2008 and 2009 in response to rising unemployment, companies in the retail supply chain experienced decreased demand for products, which reduced the need for the industry's plastic bags and packaging materials. Nevertheless, consumer spending has increased from 2010 to 2013, driving demand and revenue growth for plastic bag manufacturers. In the five years to 2018, consumer spending is expected to continue growing, and as consumers return to spending, demand for plastic materials will rise, helping industry revenue to grow in 2018. During this time, US exports of packaged foods will grow too, as domestic plastic packaging manufacturers develop and implement newer, more efficient technologies. Manufacturers that offer advanced barrier-protection technologies will gain market share in the food exports market, giving the industry some defense against low-cost imported plastic packaging material.

For more information, visit IBISWorld’s Plastic Film, Sheet & Bag Manufacturing in the US industry report page.

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IBISWorld industry Report Key Topics

The Plastic Film, Sheet & Bag Manufacturing industry converts plastic resins into various films, sheets and bags. Industry products are used by manufacturers for packing and storing products, by retailers for transporting merchandise, and by consumers for household purposes. Industry operators also form, coat or laminate plastic film and sheets into single-wall or multiwall plastic bags.

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.

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Gavin Smith
IBISWorld Inc.
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