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FLEXO Magazine : November 2012
Industry Indicators Cups & Lids: Paperboard Converting Standouts annual sales Growing to $9 Billion Foodservice package providers can expect business volumes to rise continually over the next three years, as industry-wide revenues will climb from $7.2 billion in 2011 to approximately $9 billion in 2016. To paperboard converters, 7 percent of Flexographic Technical Association printer members, the forecasted boost in business is being pinpointed at 4.1 percent annually. Fastest gains are seen in the packaging cup segment, where yogurt cups stand out as the single largest application. Growth patterns place the segment’s 2016 revenues at $2.5 billion, up from 2011’s $1.9 billion. Annual rate of improvement equates to 5.6 percent. Word of these developments comes from The Freedonia Group, a Cleveland, OH-based research house that just re- cently compiled a 305-page study: Cups & Lids. Findings were released in late August. Foodservice, which accounted for 68 percent of demand in 2011, is by far the largest market for cups and lids, where Freedonia analysts forecast that gains will be supported by above average prospects for hot beverages, along with the increased emphasis in quick service and other restaurants on premium beverages. Faster growth will be seen in the food and beverage packaging market, reflecting a combination of convenience and portability, along with healthy eating trends, which will provide further upward momentum. SELF-SERVE SURGE Lids for packaging applications will post faster gains than drinking cup lids, supported by the popularity of single-serving cup packaging and the ongoing development of new applica- tions and product line extensions. In fact, lid demand growth will outpace that of cups, rising 4.9 percent per year to $1.2 bil- lion in 2016. Advances will be fueled by an increasing percent- age of drinking cups utilizing lids, heightened demand for costlier specialty lids, and healthy increases for single- serving packaging cups. U.S. demand for cups and lids is forecast to increase 4.1 percent per year to $8.9 billion in 2016, with growth driven by above average gains for food packaging cups and a favorable outlook for foodservice revenues. 18 FLEXO novemBer 2012 www.flexography.org prEssIng IssuEs $8.9 Billion Foodservice Packaging 2016 Revenue Projections Annual Growth = 4.1% 2011 Sales Base = $7.2 Billion $5.2 Billion Drinking Cup Business Projections Annual Growth = 3.3% 2011 Sales Base = $4.4 Billion $2.5 Billion Packaging Cups Market Annual Growth = 5.6% 2011 Sales Base = $1.9 Billion $1.2 Billion Lids/Tops 2016 Revenues Annual Growth = 4.9% 2011 Sales Base = $945 Million