Specialty film demand to nearly $7.3 billion by 2010

The Freedonia Group’s latest report states that demand for specialty films is forecast to advance 4.8% per year to $7.3 billion in 2010, driven by increasing performance requirements in a number of markets that is necessitating the use of higher-value specialty materials in films. Additionally, the rapid adoption of technologies such as modified-atmosphere and case-ready packaging will also drive demand, as will improved processing methods in film coating and metallization.

Barrier films will remain the largest segment of the specialty film industry, accounting for over half of total demand in 2010. Growth will be driven by the rapid rise of case-ready technology in meat packaging, which requires barrier films to maintain an optimum atmosphere inside the package. These will spur advances in ethylene vinyl alcohol, nylon, and polyvinylidene chloride, which are used in barrier films.

Conductive films will see demand from a resurgent U.S. electronics industry, in particular the market for flexible printed circuit boards, which is expected to rebound from declines posted during the 2000-2005 period, which will benefit demand for polyimide and polyester films used in their manufacture.

The most rapid growth will occur in biodegradable and water-soluble films, which will see double-digit gains from a small base. Demand for biodegradable films, which are used to produce compostable kitchen and lawn bags, will benefit from environmental concerns and increased commercialization of biobased polymers. Water-soluble film demand will receive a boost from the introduction of medicinal and health products in dissolvable thin-film form.