The Cleveland-based Freedonia Group's latest findings forecasts dairy packaging suppliers will have to respond toconsumers' increased nutritional awareness and demand for fresh foods sold in smaller units.
Increasing spending on food prepared or eaten away from home, which tends to be served in convenience sizes, as well as a general consumer move towardssmaller serve units is expected to increase while aggregate demand for dairy products per capita will remainflat, the analyst stated.
The dairy packaging market is expected to reach $4.3bn in sales by 2010, representing an annualgrowth of 4.1 per cent, Freedonia stated. Within that figure, milk packaging demand is expected toexpand by 3.5 per cent a year to reach a $1.25bn market by 2010.
Cheese packaging is expected to increase by 3.4 per cent a year to $965m, while packaging forfrozen dairy products is forecast to grow by 3.8 per cent to $800m during the same period.
New products aimed at children and functional products offering health benefits added to continuing demand for existingproducts is expected to grow packaging demand for cultured products alone by 7.5 percent annually,to reach $575m by 2010.
Drinking yogurt, packaged in bottles rather than less costly cups, is a significant growth opportunity in the expanding yogurt market.
Increased demand for cream packaging is being driven by rapidly expanding sales of coffee brewedoutside the home, even though per capita milk consumption overall continues to fall.
Shifts to single serve plastic bottles away from gabletop cartons in schools and quick service restaurants, tends to boost sales in these venues also, booting packaging demands.
Pouches and bottles present the strongest opportunities for the industry, with demand for tubs and cups expected to grow also. Continued growth inCheese, frozen dairy and cultured dairy uses, will drive pouch demand, while single serve milk and drinkable yogurtwill expand bottle demand, Freedonia forecasts.
Tub and cup packaging will gain through increased demand for cultured dairy, although limited volume growth in frozen dairy and cream cheese production will moderate the growth, the analyst stated.
The researchers also forecast expansion for cartons and boxes with bags and wrap will slow due to bottle and pouch inroads.