According to a new study published by Freedonia, US demand for plastic film is expected to grow 1.5 percent per year through 2018 to 15.4 billion pounds, valued at 24.9 billion dollars.

Expected price stabilization stemming from elevated plastic resin supply will improve the cost-competitiveness of plastic film versus other materials.  Increased penetration of pouches into new markets will also boost demand for plastic film.

Linear low density polyethylene (LLDPE) is the largest volume film resin, comprising 45 percent of total resin usage in 2013, and LLDPE will maintain solid growth through 2018. Above average growth is forecast for polypropylene film, driven by its use in packaging for the increasingly popular fresh produce market and its growth in snack food packaging. Below average growth is expected for LDPE, HDPE, PET and PVC.

Degradable plastic resins will experience the highest growth rate of all film types, with falling prices prompting packaging converters to adopt their use.

The US food packaging market will exhibit the fastest growth in film demand, driven by the expanding popularity of pouches for a variety of food items, as well as the rise of active and intelligent packaging.  Non food packaging will see solid growth stemming from strong demand for pharmaceutical and medical packaging.

Slower growth is forecast for non packaging film due to the maturity of trash bag applications and the decrease in photographic and magnetic film, as these are only partially offset by robust advances for construction film. Secondary packaging will see the slowest gains, with flat or negative growth in garment bags and retail bags, although stretch film demand will benefit from a rebound in manufacturing activity.