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To: Frank Haims who wrote (3810)	7/10/1999 1:03:00 PM
From: Don Devlin	Respond to of 8393

>Date: Sat, 10 Jul 1999 08:06:38 -0700 >From: Robert Thrasher <thrasherent@earthlink.net> > >Subject: Demand for High-Barrier Film Packaging Surpassing Expectations; Snack Foods Top Market > >TO: STAN OVSHINSKY FROM:: BOB THRASHER This attachment is for your >per >usal >What >are >you >doing >with >your >thin >flim >technology??? > > > > INDUSTRY NEWS 07/09/1999 > > >Demand for High-Barrier Film Packaging >Surpassing >Expectations; Snack >Foods Top Market > > > The demand for >high-performance barrier >packaging films has >surpassed all previous >estimates, and the non-foil >barrier flexible >packaging market is now >projected to grow at an average >rate of 6% a year >to $3.8 billion in 2003. >Leading the way is the snack >foods industry, >which a new report says is >the fastest growing market >segment with the >greatest demand for new >barrier films. Opportunities >In >High-Performance Barrier Packaging >Films, 1998, published by >management >consulting firm Kline & Co. Inc. >(Little Falls, NJ), cites >technological >and demographic changes, improved >equipment and the >emergence of new >applications as leading factors that >have pushed the >demand for >high-performance barrier packaging films beyond >expectations. >Consumer >demand along with a robust U.S. economy have helped >drive >growth. <P> >There are a number of reasons why the demand for >new >barrier films has been >so strong in the snack foods industry, says >Jay >Dwivedi, senior consultant >at Kline & Co. "Due to low unemployment >and >active lifestyles, consumers >eat a majority of their meals on the >run," >says Dwivedi. "However, >consumers are also demanding healthy, fresh >and >flavor-rich foods. Thus, >food companies are increasingly >seeking >high-performance film constructions >that will enable them to meet >these >expectations." <P> Other high-growth >areas, says the study, >include >fresh meats, medical products, >pharmaceuticals, pet foods and >specialty >chemicals. A breakdown of >estimated market size in 2003 by >end-use >segments is shown below: <P> ></TABLE> <P> Identifying >Strategies<BR>Dwivedi notes >that >packagers are constantly seeking >innovative packaging solutions on >a >cost-to-performance basis. Thus, the >leading flexible packaging >suppliers >need to better understand the unmet >needs of their customers. >"The barrier >film market is in such a state of >turbulence that industry >participants are >struggling to clearly identify >their strategic intent," >says Dwivedi. >"Along with know-how, companies >should also make investments >in technology, >research, testing, cost >benchmarking and state-of-the-art >equipment to >fully exploit the >opportunity being presented." <P> >Reducing the >amount of material >used and obtaining a desired set of film >attributes for >optimum barrier >performance will drive the technological >developments in >the industry, >but companies must be careful about their >costs of >manufacturing. >"Companies that lack these resources or are not >willing to >make such >strategic investments are not likely to survive in >the long term >as >competitive pressures mount," Dwivedi adds. <P> The >study >also >asserts that a high level of competitive activity in the U.S. >market >is >expected as Japanese and European companies try to enter either >on >the >basis of superior technology or lower price. In addition, >the >report >identifies a clear potential for acquisition of >under-performing >companies >as consolidation will continue to dominate the >film industry for >the next >few years. <P> Complex >Industry<BR>The high-barrier >film industry >is very complex with >numerous participants throughout the >value-chain. >Garrett Gee, business >manager for plastics and packaging at >Kline & Co., >says that though film >converters have traditionally been >close to their >customers, the quality >of communication across the >value-chain has been >relatively poor. "This >has had a detrimental impact >on the growth of many >industry >participants," says Gee. "We expect plastic >resins and other raw >material >suppliers to start considering the >high-barrier film market as a >separate >entity. Film suppliers definitely >need to understand consumer >needs >because they are driving the speed of >innovation." ><P> >Opportunities In High-Performance Barrier >Packaging Films, >1998 is >intended to assist companies in assessing new >and emerging >opportunities in >high-performance barrier film packaging. >Says Dwivedi, >"This study provides >insights into the latest developments >and how these >can be exploited by >industry participants to grow in the >high-performance >barrier packaging >film market."