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Freedonia study shows demand for plastic sheet on the rise

Cleveland, OH; January 4, 2008 -- According to a recent report from The Freedonia Group, demand for plastic sheet in the US is projected to grow nearly three percent yearly to 7.7 billion pounds in 2011, valued at $7.2 billion (resin content only). Resins will account for 39 percent of the final product cost of $18.5 billion. The study shows that demand will be bolstered by opportunities in food packaging, as well as sheet's versatility, good aesthetics, material combining capabilities, and resin and technology improvements. Further growth will be constrained by the maturity of many applications, and efforts to reduce the packaging waste stream.

Aggregate sheet prices will stay relatively stable through 2011, as pricing is expected to moderate from the steep increases experienced in the 2004 to 2006 period that saw high raw material and energy costs affecting all resins and production costs. Polystyrene is the leading resin, with best advances anticipated for polypropylene and polyester sheet. These and other trends are presented in Plastic Sheet, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

Polystyrene sheet is projected to exhibit good opportunities and account for nearly half of all applications in 2011. Advances will reflect cost and performance advantages in the production of thermoformed food packaging. Polypropylene and polyester sheet advances will reflect opportunities in areas such as tubs, cups, trays, blister packs and clamshells. Declines are expected for PVC sheet based on a projected drop-off in single-family housing starts, which will impact demand for flooring and roofing products. Other sheet resins include high density polyethylene, acrylic, polycarbonate, acrylonitrile-butadiene-styrene, and low-density polyethylene.

Food packaging markets will present the best opportunities and increase 3.6 percent annually to 3.8 billion pounds in 2011, accounting for nearly half of all sheet applications. Advances will be driven by above-average growth in foodservice applications and the packaging of such foods as baked goods, frozen foods, fresh produce, and meat and dairy products. Advances for pharmaceutical and medical packaging, the next largest packaging market, will be stimulated by opportunities in pharmaceutical blister packs. Construction markets will expand at a much slower annual pace. Increases will be attributable to above-average glazing and insulation uses, yet be constrained by slumping single-family housing starts.

The study is available for $4500 from The Freedonia Group, Inc. More information is available at www.freedoniagroup.com.

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