Now Available: The 2006 FPA State of the Industry Report 

The 2006 FPA State of the Industry Report is currently available in print or within the Members Only section of the FPA Web site, www.flexpack.org. Published annually, this premiere publication provides data on the economic and financial health of the flexible packaging industry. 

The State of the Industry Report is a key source of information for flexible packaging converters and suppliers, and the investment community. Noteworthy enhancements to the State of the Industry Report improve the collection and reporting of qualitative flexible packaging industry data, and provide exceptional analysis of key industry issues.

Several aspects of the U.S. flexible packaging industry including structure and performance, materials and processes, end-uses, issues and visions are profiled within the Report. In addition, an outlook on the global flexible packaging industry is also discussed.

Following are highlights of featured sections within The 2006 FPA State of the Industry Report.  

Industry Performance & Structure
The flexible packaging industry generated an estimated $21.8 billion in annual sales in 2005. The Report focuses on the “value added” segment of the flexible packaging industry, which generated an estimated $17 billion in annual sales. This segment of the industry adds significant value to flexible materials usually by performing multiple processes and does not include retail shopping bags, consumer storage bags, wraps or trash bags. 

Merger and acquisition activity within the flexible packaging industry was significant, with 18 domestic M&A transactions taking place in 2005 versus the 11 transactions completed in 2004. Converters and suppliers expect a slight decrease in M&A activity in 2006. 

Dynamics within the industry have contributed to the consolidation of flexible packaging companies and created an industry structure where large companies (more than $500 million in revenue) account for an estimated 50 percent of the industry revenue.

Materials & Processes
Plastic resins, films and sheets account for more than two-thirds, or 69 percent, of the materials used in the flexible packaging industry. Printing within the flexible packaging industry is valued at $4.6 billion with converters using an average of seven colors when producing final flexible packaging.

End-Uses
The flexible packaging industry represents an estimated 17 percent of the total U.S. packaging industry and is the second largest packaging segment within the industry. Flexible packaging is utilized within several end-use segments including retail and institutional food, retail and institutional non-food, medical and pharmaceutical, industrial applications and consumer products.

Industry Issues
Flexible packaging converters and suppliers ranked the cost and availability of raw materials as the number one issue for 2006. Results of the 2006 State of the Industry Survey also indicate that competition and imports are among the top three issues for 2006.

Global Packaging
Global packaging industry sales are estimated at $460 billion for 2005. U.S. packaging accounts for about $127 billion, or 28 percent, of the global packaging industry. Flexible Packaging imports grew by 23 percent in 2005, while exports rose by only 10 percent. As a result, the trade balance within the flexible packaging industry increased to an unprecedented $1.7 billion.

The 2006 FPA State of the Industry Report is available online, free of charge, to FPA members. The Report is available to FPA non-members for $3500. For more information on The 2006 State of the Industry Report contact the FPA at (410) 694-0800 or visit the association at www.flexpack.org.