Plastic Film, Sheet and Bag Manufacturing in the US Industry Market Research Report from IBISWorld Has Been Updated
New York, NY (PRWEB) January 03, 2014 -- Over 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. According to IBISWorld Inustry Analyst James Crompton, “Despite these circumstances, the industry managed to fend off decline over the period, and industry operators weathered the economic storm with relative success.” In the five years to 2013, industry revenue growth has remained virtually flat, declining at an annualized rate of 0.1%. In 2013, industry revenue is expected to grow 2.9% to $38.7 billion as demand from food manufacturers grows and other downstream markets demand more plastic film, sheet and bag products.
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 overall at an annualized rate of 1.4% in the five years to 2013, driving demand and revenue growth for plastic bag manufacturers.
In the five years to 2018, consumer spending is expected to grow. “As consumers return to spending, demand for plastic materials will rise, helping industry revenue grow during the five years to 2018,” says Crompton. 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.
Operators are expected to benefit from economies of scale because of the recent trend of mergers and acquisitions. In 2010, the industry's largest company, Bemis, acquired Food Americas, which was a division of Rio Tinto Alcan Inc.'s business unit Alcan Packaging. This move demonstrates that companies are turning to acquisitions in order to gain a competitive edge and expand operations. As a result, IBISWorld anticipates that the number of firms will fall in the five years to 2018.
For more information, visit IBISWorld’s Plastic Film, Sheet and Bag Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
The Plastic Film, Sheet and 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.
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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.
Gavin Smith, IBISWorld Inc., http://www.ibisworld.com, +1 (310) 866-5042, [email protected]
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