Stronger demand from key downstream industries helped fuel the industry's recovery.
Los Angeles, CA (PRWEB) October 27, 2013
After a rough patch during the recession, revenue for the Plastic Film, Sheet and Bag Manufacturing industry bounced back in 2010 and has been on the rise ever since. “Stronger domestic demand from food and beverage manufacturers, building material manufacturers, wholesalers and retailers have helped fuel the industry's post-recession recovery,” according to IBISWorld Industry Analyst Sean Windle. Also contributing to strong revenue growth the past few years is stronger demand from the United States, the industry's largest trading partner. These factors have led to revenue growing at an annualized rate of 0.4% over the past five years to $3.5 billion, including a 1.4% gain in 2013.
The one-two punch of lower domestic demand and lower demand from foreign markets caused a severe drop in industry demand, with revenue falling 6.4% in 2008 and 7.3% in 2009. “In response to lower demand and revenue, industry operators cut employment and consolidated operations in order to preserve profit,” says Windle. Tough economic conditions and constrained profit also accelerated industry consolidation. In the five years to 2013, the number of companies operating within this industry has fallen at an annualized rate of 1.2% to 197 enterprises.
Over the next five years, demand from domestic and foreign markets is expected to strengthen, which will bolster revenue growth. While stronger revenue growth is good news, operators continue to face threats in the form of rising import penetration, which is expected to constrain profit growth over the next five years.
For more information, visit IBISWorld’s Plastic Film, Sheet and Bag Manufacturing in Canada industry report page.
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IBISWorld industry Report Key Topics
This 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 multi-wall plastic bags.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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