Plastics demand outpacing paper 10:1 Plastics demand outpacing paper 10:1 Plastics demand outpacing paper 10:1

From a Freedonia Report
The ubiquitous grocery bagger's question, "Paper or plastic?" is being answered more and more with a resounding "Plastic" when it comes to consumer packaged-goods makers and their choice of converted materials and containers. 
 Plastic is expected to increase its share of the market to 53 percent (in pounds) in 2010, according to a new study by Cleveland-based researcher The Freedonia Group, Inc.

This percentage understates plastic's share because less plastic is generally required than paper in most applications due to its lighter weight. Plastic's share of the market will expand at a slower pace than in the past decade, as a number of packaging applications are now fairly mature in terms of the share controlled by plastic. 
Overall, volume for these two fields will climb from 23.6 billion lbs last year to 25.6 billion in 2010—about 1.7 percent annually. Growth in demand for plastic packaging is forecasted to outpace that of paper packaging by a 10:1 margin through 2010. Demand will rise 2.9 percent a year versus paper's increase of only 0.3 percent. While barely in positive territory, this contrasts with the 1.0 percent annual decline in paper-packaging demand seen in the 2000-05 period. Plastic’s advances will result from its competitive cost and performance advantages over paper, Freedonia says. Robust growth is expected for single-serve plastic milk bottles, driven by conversions from half-pint tabletop cartons in quick-serve restaurants and school lunch programs. 
 Foodservice demand will be sparked by growing use of paperboard boxes, cartons, buckets and pails, wraps and bags. While most dairy applications for paper are mature, watch for frozen novelties to drive folding-carton growth.