Plastic film demand in the US is forecast to increase 2.6 percent annually

Total plastic film demand (including resins, additives, and processing and other costs) will expand 4.5 percent per annum to $28.6 billion. Advances will result from cost, performance and source reduction advantages over rigid packaging. Low density polyethylene will remain the leading film, accounting for 64 percent of the total in 2010, with polypropylene presenting the best opportunities. Average film prices are expected to moderate following the steep price increases between 2004 and 2006, which were caused by spikes in raw material and energy costs. These and other trends are presented in Plastic Film, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Low density polyethylene will remain the largest plastic film resin based on its competitive cost structure, versatility and opportunities in areas such as produce and snack packaging, stretch and shrink wrap, and trash bags. Slightly faster increases are expected for high density polyethylene film due to good growth in areas such as baked goods packaging and retail bags.