US demand for high visibility packaging is projected to expand 4.0 percent yearly to $8.5 billion in 2012, exceeding 33 billion units and generating demand for 1.1 billion pounds of plastic resin.

Gains will reflect rising disposable personal income levels, the influence of mass market retailers, and the cost and performance efficiency of high visibility packaging. Low cost, market aesthetics and consumer convenience will remain the main drivers of high visibility packaging demand. Food will continue to account for more than half of the high visibility packaging market in 2012 due to opportunities in fresh produce; meat, poultry and seafood; and prepared and frozen food.

These and other trends are presented in High Visibility Packaging, a new study from The Freedonia Group, Inc., (www.freedoniagroup.com) a Cleveland-based industry research firm.

Clamshell packaging and carded blister packs together accounted for 56 percent of high visibility packaging demand in 2007. Clamshells are said to present the best opportunities, and are projected to expand 5.0 percent annually through 2012 due to large gains in food markets such as fresh produce and prepared foods. Clamshell demand will also benefit from their upscale appearance; thick, rigid construction; clarity; and ability to deter theft and tampering. Current efforts focus on making clamshell packages easier to open. Blister pack demand is expected to rise 4.4 percent per annum, fueled by healthy gains for pharmaceutical packaging.

Windowed packaging demand is expected to increase only 2.1 percent annually to $2.0 billion in 2012. Advances will reflect opportunities in areas such as fresh produce, and cosmetics and toiletries. Nonetheless, below-average growth is anticipated as a result of subdued demand in major markets such as baked goods, and intense competition from imported products.

Skin packaging will register the slowest growth based on diminished demand for carded skin packs, due to their higher production cost and growing offshore production of toys, hardware and other goods. Strong growth is forecast for the niche segment of high visibility tubs, cups and bowls, due to opportunities in the packaging of baked goods, produce, snacks, candies and other foods.

Source: Freedonia Group, Inc.

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