Opportunities Emerging for High-Performance Barrier Film Packaging

Kline & Co. Forecasts Annual Demand for Nonfoil Barrier Flexible Packaging Will Top $1 Billion by 1999

Although glass, cans and paperboard are experiencing lackluster growth, the flexible packaging segment of the packaging industry is expected to enjoy growth at an average annual rate of 5% over the next five years, according to forecasts from Kline & Co., a Fairfield, NJ-based international business-consulting firm serving the packaging, chemicals and allied industries. Annual demand for nonfoil barrier flexible packaging is predicted to top $1 billion by 1999.

Jay Dwivedi, senior consultant at Kline & Co., states why this growth is anticipated. "In addition to its cost advantages, attractive growth opportunities in the flexible packaging segment of the industry will be fueled by significant advances in the performance of barrier packaging films."

The growth opportunities for flexible packaging are outlined Kline & Co.'s comprehensive report titled, Opportunities in High-Performance Barrier Packaging Films, 1998. According to Dwivedi, "The study assesses and analyzes the current and projected status of technology and their effect on the markets for barrier packaging films, the opportunities for resin suppliers and packaging converters in 10 food market segments, and the major suppliers, converters and users of barrier materials."

Barrier Protection
The primary function of barrier packaging films historically has been to protect the product from moisture and oxygen. In recent years, however, there has been an increasing interest in films that provide barrier protection for flavor, aroma, chemicals, ultra-violet radiation and carbon dioxide. New grades of barrier resins, such as ethylene vinyl alcohol (EVOH) and polyvinylidene chloride (PVDC), and advances in coating and metallization technology are being used to create barriers for oxygen and organics. Other materials that are emerging in new applications include polyethylene napthalate (PEN)/polyethylene terephthalate (PEN-PET) blends, and PET/polyamide (PET-PA) blends.

Dwivedi notes that, "Despite the availability of a wide range of packaging film materials and the technology to blend them, the future will be in active packaging and optimizing the performance available from combinations of materials. "These materials work in conjunction with the product and its environment and play an active role in maintaining or even enhancing the quality of the packaged product. We see a clear unmet need of the end-users, where they would like to have custom-built films for each of the products," commented Dwivedi.

"Recycling, cost-effectiveness and environmental considerations will determine the choice of materials by the end-users in the future," Dwivedi continues.

Snack Food, Condiments Applications
Advances in high-performance barrier films are giving rise to a number of new and attractive business opportunities for packaging suppliers, particularly in snack foods and condiments applications. Restaurants, cafeterias, hospitals, institutions and even households are demonstrating a clear preference for high-performance barrier films, particularly in pouch type packaging. Pouches are ideal for single serve portions, and high-performance films open up the use of pouches for a wider range of food types.

An increase in demand for health-conscious foods is also driving growth in demand for high-performance barrier films. Modified atmosphere packaging (MAP) is increasingly being used to package "fresh" food that requires refrigeration and will have a significant impact on how food will be retailed and packaged. Dwivedi also notes that, "The improvements in high-performance barrier packaging films are changing the complete dynamics of the case-ready meat market. Recent technological developments will lead to dramatic changes in how meat is handled at the retail level."

Barrier Packaging Film to Diversify
In addition to food packaging applications, the barrier packaging film market is also expected to diversify into several new segments, with the development of silica oxide, aluminum oxide and metal coated films being used as barrier protection in pharmaceuticals, snacks, dry mixes and other niche markets. A key driver for development of further applications will be a combination of MAP and barrier packaging films in the food market.

"We are also looking into the factors that decision-makers are using to determining the trade-off between barrier effectiveness and cost, which are critical to product positioning by the film manufacturers," notes Dwivedi.

For more information: Garrett Gee, Kline & Co., Inc., 165 Passaic Ave., Fairfield, NJ, 07004. Tel: 973-808-3450 or 973-227-6262; email Garrett_Gee@klinegroup.com