Market Research Com 2206981

SBI
Sustainable ("Green") Packaging Market for Food and Beverage Worldwide

2nd Edition
May 2009
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About the Author

Mary Hopkins (Berwyn, PA) has been in market research for more than 25 years, as analyst, instructor, and manager. She has written several bestselling reports for SBI.
SUSTAINABLE ("GREEN") PACKAGING MARKET FOR FOOD

AND BEVERAGE WORLDWIDE, 2ND EDITION
MAY 2009
Sustainable ("Green") Packaging Market for Food and Beverage Worldwide, 2nd Edition has been prepared by SBI. Our market intelligence reports are specifically designed to aid the action-oriented executive by providing a thorough presentation of essential data and concise analysis.
Vice President of Publishing Publisher Author Research Director Communications Associate Publication Date
Copyright 2009 SBI
Don Montuori Shelley Carr Mary Hopkins David Sprinkle Daniel Granderson May 2009
SB1926700
1-59814-264-X
Sustainable Packaging Market Worldwide
Table of Contents
Table of Contents Sustainable ("Green") Packaging Market for Food and Beverages Worldwide, 2nd Edition
Chapter 1: Executive Summary .................................................. 1
Scope of the Report ...................................................................................1 Methodology...............................................................................................2 Definition of Sustainability........................................................................3 Sustainability Issues .................................................................................4
Reduce ................................................................................................................ 4 Reuse .................................................................................................................. 4 Recycle................................................................................................................ 4 Life Cycle Analysis .............................................................................................. 4
Packaging Materials ..................................................................................5

Table 1-1: Sustainability Comparison of Food & Beverage Packaging Materials............................................................................................................ 6
Packaging is a Mature Market...................................................................7

Figure 1-1: U.S. Market for Food & Beverage Packaging Materials, 2004-2008 (in billions of dollars) ....................................................................... 7 Figure 1-2: Global Market for Food & Beverage Packaging Materials (percent). 8 Composition of the Food & Beverage Packaging Market.................................... 8 Figure 1-3: U.S Market for Food and Beverage Packaging, by Type, 2008 (percent) ............................................................................................................ 9 Paper Renewable and Recyclable ................................................................... 9 Shipments of Paper Packaging ......................................................................... 10 Figure 1-4: Value of U.S. Shipments of Paper-Based Food Packaging, 2004-2008 (in billions of dollars) ..................................................................... 10 Paper Imports and Exports................................................................................ 11 Sustainability of Paper Renewable and Recyclable ....................................... 11 Paper and Paperboard Packaging Waste and Recycling ................................. 11 Imports and Exports of Recycled Paper............................................................ 11 International Aspects......................................................................................... 12 Figure 1-5: Global Paper and Paperboard Packaging Consumption by Region (percent).............................................................................................. 12 The Outlook for Paper ....................................................................................... 13 Plastic Where the Growth Is........................................................................... 13 Table 1-2: Plastic Resins Used for Food & Beverage Packaging ..................... 13 Shipments of Plastic Packaging ........................................................................ 14 Figure 1-6: U.S. Shipments of Plastic Bottles, 2004-2008(E) (in billions of dollars)............................................................................................................. 15 Plastic Imports and Exports............................................................................... 15 The Sustainability of Plastic Packaging............................................................. 15 Recycling Plastics ............................................................................................. 15 A Variety of Uses for Recycled Plastics ............................................................ 16 Table 1-3: Uses for Recycled Plastics............................................................... 16 Figure 1-7: Uses for Recycled PET, 2007 (percent) ......................................... 17 Exports of Recyclables...................................................................................... 17
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Chapter 1: Executive Summary [cont.]

International Aspects of Plastic Packaging ....................................................... 17 Figure 1-8: Global Consumption of Rigid Plastic Packaging by Region (percent).......................................................................................................... 18 Outlook for Plastic ............................................................................................. 18 Metal Packaging Rigid and Flexible ............................................................... 19 Figure 1-9: U.S. End-Use Demand for Aluminum (percent).............................. 19 Table 1-4: Beverage Can Variations ................................................................. 20 Shipments of Metal Packaging.......................................................................... 20 Figure 1-10: End Use Markets for Metal Can Packaging (percent)................... 21 Can Imports and Exports .................................................................................. 21 Sustainability of Metal Packaging ..................................................................... 21 Can Recycling ................................................................................................... 22 Reuse of Aluminum ........................................................................................... 22 International Markets for Metal Packaging ........................................................ 22 Figure 1-11: Global Consumption of Metal Packaging by Region (percent) ..... 23 Outlook for Cans ............................................................................................... 23 Glass The Smallest Category......................................................................... 24 Shipments of Glass Packaging ......................................................................... 24 Glass Imports and Exports ................................................................................ 24 Sustainability of Glass ....................................................................................... 24 Recycling Glass ................................................................................................ 25 Reusing Glass ................................................................................................... 25 Imports and Exports of Waste and Scrap Glass ............................................... 25 International Markets for Glass Packaging........................................................ 25 Figure 1-12: Global Glass Packaging Consumption by Region (percent)......... 26 The Outlook for Glass ....................................................................................... 26 Flexible The Next Big Thing ........................................................................... 27 Figure 1-13: U.S. End-Use Market for Flexible Packaging (percent) . .............. 28 Shipments of Flexible Packaging ...................................................................... 28 U.S. Imports and Exports of Flexible Packaging ............................................... 28 Sustainability of Flexible Packaging .................................................................. 28 The Outlook for Flexible Packaging .................................................................. 29
Recycling ................................................................................................. 29
Recycling is Not Accessible Everywhere .......................................................... 29 Containers and Packaging in Municipal Solid Waste ........................................ 30 Figure 1-14: Categories of U.S. Municipal Solid Waste, 2007 (percent)........... 30 Figure 1-15: U.S. Recovery of Containers and Packaging Products in Municipal Solid Waste, 2007 (percent of generation)...................................... 31 Food Packaging Market Projections.................................................................. 31
Trends and Factors to Growth ............................................................... 31

The Economy .................................................................................................... 32 Producer Price Indices Paper Packaging....................................................... 33 Producer Price Indices Plastic Packaging...................................................... 33 Producer Price Indices Metal Packaging........................................................ 33 Producer Price Index for Glass Containers ....................................................... 34 Producer Price Indices Flexible Packaging .................................................... 34 Recycling Costs ................................................................................................ 34 Regulation ......................................................................................................... 35
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Chapter 1: Executive Summary [cont.]

Regulation of Packaging Claims ....................................................................... 35 Deposit Laws/Bottle Bills ................................................................................... 36 Extended Producer Responsibility .................................................................... 36
Consumer Attitudes and Behaviors .......................................................36

Sustainable = Recyclable .................................................................................. 37 International Consumer Perspectives ............................................................... 37 Consumer Behavior........................................................................................... 37 Greenwashing ................................................................................................... 37
Technology/Innovation............................................................................38
Lightweighting ................................................................................................... 38 Advances in Design........................................................................................... 38 Bio-based Materials........................................................................................... 38
The Wal-Mart Effect .................................................................................39

Alcan Sustainability and Stewardship Evaluation Tool (ASSET) ................... 39
International Aspects ..............................................................................39

International Differences Affect Package Design and Use................................ 40 International Comparisons of Municipal Waste ................................................. 41
Company Information ..............................................................................41

Paper Food & Beverage Packaging Companies............................................... 41 Plastic Food & Beverage Packaging Companies.............................................. 41 Metal Food & Beverage Packaging Companies................................................ 42 Glass Food & Beverage Packaging Companies ............................................... 42 Flexible Food & Beverage Packaging Companies ............................................ 42 Bio-Based Materials Producers and Packaging Manufacturers ........................ 42
Marketing & Promotion............................................................................42

The Sustainability Learning Curve .................................................................... 43 The Message Within the Company ................................................................... 43 Industry Conferences and Trade Shows Promote Sustainability ...................... 43 Schooling for Sustainability ............................................................................... 43 The Message for Consumers ............................................................................ 44 The Message to Investors ................................................................................. 44 Federal Trade Commission ............................................................................... 44 Better Business Bureau..................................................................................... 44 Setting Environmental Standards...................................................................... 45 Environmental Labels........................................................................................ 45
Marketing Resources for Food & Beverage Packaging........................46

Food Packaging Resources .............................................................................. 46 Environmental Packaging Resources ............................................................... 46
End Users .................................................................................................46

Demographic Profile of U.S. Adults Who Recycle............................................. 47 Ethnic Differences Among Those Who Recycle Very Often ............................. 47 Consumers on the Coasts Recycle Very Often................................................. 47 More Affluent Means More Recycling ............................................................... 47
Attitudes Toward Recycling....................................................................47

Older Population Feel More Strongly About Duty for the Environment ............. 48 Hispanics and Asians Feel a Duty to Recycle................................................... 48 Regional Differences in Attitudes Toward Recycling......................................... 48 Affluence and Attitudes Toward Recycling........................................................ 48
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Chapter 2: The Market ................................................................51

Scope of the Report ................................................................................ 51 Methodology ............................................................................................ 51 Definition of Sustainability ..................................................................... 53 Sustainability Issues............................................................................... 53
Reduce.............................................................................................................. 53 Reuse................................................................................................................ 54 Recycle ............................................................................................................. 54 Life Cycle Analysis ............................................................................................ 56
Packaging Materials................................................................................ 57
Table 2-1: Sustainability Comparison of Food & Beverage Packaging Materials.......................................................................................................... 58
A Mature Market ...................................................................................... 58

Figure 2-1: U.S. Market for Food & Beverage Packaging Materials, 2004-2008 (in billions of dollars) ..................................................................... 59 Figure 2-2: Global Market for Food & Beverage Packaging Materials (percent).......................................................................................................... 60 Composition of the Food & Beverage Packaging Market.................................. 60 Figure 2-3: U.S Market for Food and Beverage Packaging, by Type, 2008 (percent).......................................................................................................... 61 Table 2-2: U.S. Market Supply for Food & Beverage Packaging by Material, 2004-2008 (in billions of dollars) ..................................................................... 61
Paper Renewable and Recyclable....................................................... 61

Table 2-3: U.S. Food & Beverage Paperboard Grades..................................... 62 Popularity of Folding Boxes .............................................................................. 63 Milk Cartons and Aseptic Packaging................................................................. 63 Shipments of Paper Packaging ......................................................................... 63 Table 2-4: U.S. Shipments of Paper-Based Packaging, 2004-2008(E) (in thousands of dollars) .................................................................................. 64 Figure 2-4: Value of U.S. Shipments of Paper-Based Food Packaging, 2004-2008 (in billions of dollars) .................................................................... 65 Paper Imports and Exports ............................................................................... 65 Table 2-5: U.S. Imports and Exports of Paper Packaging, 2004-2008 (in thousands of dollars) .............................................................................66-67 Sustainability of Paper Renewable and Recyclable ....................................... 68 Paper and Paperboard Packaging Waste and Recycling ................................. 68 Table 2-6: Paper and Paperboard Containers and Packaging Waste, 2007 (in thousands of tons)...................................................................................... 68 Recycled Paperboard........................................................................................ 69 Figure 2-5: U.S. Value of Product Shipments of Recycled Paperboard, 2004-2008(E) (in billions of dollars) ................................................................ 69 Imports and Exports of Recycled Paper............................................................ 69 Table 2-7: U.S. Imports and Exports of Recovered Paper Packaging Materials, 2004-2008 (in thousands of dollars) ..........................................70-71 Sustainability of Beverage Cartons and Aseptic Packaging.............................. 71 International Aspects......................................................................................... 72 Figure 2-6: Global Paper and Paperboard Packaging Consumption by Region (percent) ............................................................................................. 72 Figure 2-7: Global Production of Recovered Paper, 2005 (in thousands of metric tons) ..................................................................................................... 73
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Chapter 2: The Market [cont.]

The Outlook for Paper ....................................................................................... 73 Figure 2-8: Projected U.S. Market for Paper Food Packaging Materials, 2009-2013 (in billions of dollars) ..................................................................... 74
Plastic Where the Growth Is.................................................................74

Table 2-8: Plastic Resins Used for Food & Beverage Packaging ..................... 75 Shipments of Plastic Packaging ........................................................................ 75 Table 2-9: U.S. Shipments of Plastic Packaging, 2004-2008(E) (in thousands of dollars) .................................................................................. 76 Figure 2-9: U.S. Shipments of Plastic Bottles, 2004-2008(E) (in billions of dollars)........................................................................................ 76
Plastic Imports and Exports....................................................................77

Table 2-10: U.S. Imports and Exports of Plastic Bottles, 2004-2008 (in thousands of dollars) .................................................................................. 77 The Sustainability of Plastic Packaging............................................................. 77 Recycling Plastics ............................................................................................. 77 Table 2-11: Plastic Containers and Packaging in U.S. Municipal Solid Waste, 2007 (in thousand tons)................................................................................... 78 Table 2-12: U.S. PET Bottle Recycling (in millions of pounds) ......................... 79 A Variety of Uses for Recycled Plastics ............................................................ 79 Table 2-13: Uses for Recycled Plastics............................................................. 79 Figure 2-10: Uses for Recycled PET, 2007 (percent) ....................................... 80 Table 2-14: U.S. Use of Reprocessed PET (RPET), 2003-2007 (in millions of pounds) ..................................................................................... 81 Exports of Recyclables...................................................................................... 81 Table 2-15: U.S. Imports and Exports of PET Bottles (in millions of pounds) ... 81 Table 2-16: U.S. Imports and Exports of Recovered PET................................ 81 International Aspects......................................................................................... 82 Figure 2-11: Global Consumption of Rigid Plastic Packaging by Region.......... 82 Figure 2-12: European End-Use Demand for Plastics ...................................... 83 Outlook for Plastic ............................................................................................. 83 Figure 2-13: Projected U.S. Market for Plastic Packaging Materials, 2009-2013 (in billions of dollars) ..................................................................... 84
Metal Packaging Rigid and Flexible ....................................................84

Figure 2-14: U.S. End-Use Demand for Aluminum ........................................... 85 Table 2-17: Beverage Can Variations ............................................................... 86 Shipments of Metal Packaging.......................................................................... 86 Figure 2-15: End Use Markets for Metal Can Packaging (percent)................... 87 Table 2-18: U.S. Value of Product Shipments of Metal Packaging, 2004-2008(E) (in thousands of dollars) ........................................................... 87 Can Imports and Exports................................................................................... 88 Table 2-19: U.S. Imports and Exports of Metal Packaging, 2004-2008 (in thousands of dollars) .............................................................................89-90 Sustainability of Metal Packaging...................................................................... 90 Can Recycling ................................................................................................... 91 Table 2-20: Metal Containers and Packaging in U.S. Municipal Solid Waste, 2007 (thousand tons) ...................................................................................... 91 Reuse of Aluminum ........................................................................................... 91
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Table 2-21: U.S. Imports and Exports of Metal Packaging, 2004-2008 (in thousands of dollars) .................................................................................. 92 International Markets for Metal Packaging ........................................................ 92 Figure 2-16: Use of Primary Aluminum by Region, 2007 (percent)................... 93 Figure 2-17: Global End-Use Demand for Aluminum........................................ 93 Figure 2-18: Global Consumption of Metal Packaging by Region..................... 94 Figure 2-19: Global Beverage Can Use Per Capita .......................................... 95 Outlook for Cans ............................................................................................... 95 Figure 2-20: Projected U.S. Market for Metal Food & Beverage Packaging, 2009-2013 (in billions of dollars) ..................................................................... 96
Glass The Smallest Category .............................................................. 96

Shipments of Glass Packaging ......................................................................... 96 Table 2-22: U.S. Shipments of Glass Containers by End Use, 2004-2008 (thousand gross) ............................................................................................. 97 Table 2-23: U.S. Value of Product Shipments of Glass Containers, 2004-2008(E) (in thousands of dollars) ........................................................... 97
Glass Imports and Exports..................................................................... 97

Figure 2-21: U.S. Imports and Exports of Glass Food & Beverage Packaging, 2004-2008 (in thousands of dollars)................................................................ 98 Table 2-24: U.S. Imports and Exports of Glass Packaging, 2004-2008 (in thousands of dollars) ...........................................................................99-100 Sustainability of Glass ..................................................................................... 100 Recycling Glass .............................................................................................. 101 Table 2-25: Glass Containers in U.S. Municipal Solid Waste, 2007 (thousand tons) ............................................................................................. 101 Reusing Glass ................................................................................................. 101 Imports and Exports of Waste and Scrap Glass ............................................. 102 Table 2-26: U.S. Imports and Exports of Glass Packaging, 2004-2008 (in thousands of dollars) ................................................................................ 102 International Markets....................................................................................... 102 Figure 2-22: Global Glass Packaging Consumption by Region (percent)....... 103 The Outlook for Glass ..................................................................................... 103 Figure 2-23: Projected U.S. Market for Glass Food & Beverage Packaging, 2009-2013 (in billions of dollars) .................................................................... 104
Flexible The Next Big Thing .............................................................. 104

Figure 2-24: U.S. End-Use Market for Flexible Packaging (percent) ............. 105 Shipments of Flexible Packaging .................................................................... 106 Table 2-27: U.S. Shipments of Flexible Packaging, 2004-2008(E) (in thousands of dollars) ................................................................................ 106 U.S. Imports and Exports of Flexible Packaging ............................................. 106 Table 2-28: U.S. Imports and Exports of Flexible Packaging, 2004-2008 (in thousands of dollars).......................................................107-108 Sustainability of Flexible Packaging ................................................................ 108 The Outlook for Flexible Packaging ................................................................ 109 Figure 2-25: Projected U.S. Market for Flexible Food & Beverage Packaging, 2009-2013 (in billions of dollars)................................................. 109
RECYCLING ........................................................................................... 110

Recycling is Not Accessible Everywhere ........................................................ 110
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Figure 2-26: Management of U.S. Municipal Solid Waste, 2007 (percent) ..... 110 Containers and Packaging in Municipal Solid Waste ...................................... 111 Figure 2-27: Categories of U.S. Municipal Solid Waste, 2007 (percent) ......... 111 Figure 2-28: U.S. Recovery of Containers and Packaging Products in Municipal Solid Waste, 2007 (percent of generation).................................... 112
Food Packaging Market Projections ....................................................112

Table 2-29: Projected U.S. Market for Food & Beverage Packaging by Segment, 2009-2013 (in billions of dollars) ................................................... 113
Chapter 3: Trends and Factors to Growth ............................. 115

The Economy .........................................................................................116
Figure 3-1: Average Annual Producer Price Index Industrial Electric Power (not seasonally adjusted), 2004-2008 ................................................ 117 Figure 3-2: Average Annual Producer Price Index Industrial Natural Gas (not seasonally adjusted), 2004-2008.................................................... 118 Figure 3-3: Average Annual Price for Gasoline and Diesel, 2004-2008.......... 119 Producer Price Indices Paper Packaging..................................................... 119 Figure 3-4: Average Annual Producer Price Index Paperboard Boxes (not seasonally adjusted), 2004-2008 ........................................................... 120 Producer Price Indices Plastic Packaging.................................................... 120 Figure 3-5: Average Annual Producer Price Index Plastic Bottles (NAICS 326160), not seasonally adjusted, 2004-2008 ................................. 121 Figure 3-6: Average Annual Producer Price Index Plastic Film and Sheet (NAICS 326111 and 326112), not seasonally adjusted, 2004-2008 ............. 122 Producer Price Indices Metal Packaging...................................................... 122 Figure 3-7: Average Annual Producer Price Index Metal Cans (NAICS 332431), not seasonally adjusted, 2004-2008 ................................. 123 Figure 3-8: Average Annual Producer Price Index Metal Crowns & Closures (NAICS 332115), not seasonally adjusted, 2004-2007 ................. 123 Figure 3-9: Average Annual Producer Price Index Converted Unmounted Aluminum Foil Packaging Products (NAICS 332992), not seasonally adjusted, 2004-2008...................................................................................... 124 Producer Price Index for Glass Containers ..................................................... 124 Figure 3-10: Average Annual Producer Price Index Glass Containers (NAICS 327213), not seasonally adjusted, 2004-2008 ................................. 125 Producer Price Indices Flexible Packaging .................................................. 125 Figure 3-11: Average Annual Producer Price Index Coated and Laminated Packaging Materials (NAICS 322221), not seasonally adjusted, 2004-2008...................................................................................... 126 Figure 3-12: Average Annual Producer Price Index Specialty Bags, Pouches & Liners, Multi-Web Laminations & Foil, Except Film-Film (NAICS 322223), not seasonally adjusted, 2004-2006 ................................. 126 Figure 3-13: Average Annual Producer Price Index Flexible Packaging Foil (NAICS 322225), not seasonally adjusted, 2004-2008 .......................... 127 Figure 3-14: Average Annual Producer Price Index Plastic Bags (NAICS 322221), not seasonally adjusted, 2004-2008 ................................. 128 Recycling Costs............................................................................................... 128
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Chapter 3: Trends and Factors to Growth [cont.]

Figure 3-15: Average Annual Producer Price Index Used Beverage Can Scrap, not seasonally adjusted, 2004-2008 .................................................. 129
Regulation.............................................................................................. 129
Regulation of Packaging Claims ..................................................................... 130 Deposit Laws/Bottle Bills ................................................................................. 132 Table 3-1: State Bottle Bills ......................................................................134-135 Extended Producer Responsibility .................................................................. 135
Consumer Attitudes and Behaviors .................................................... 136

Sustainable = Recyclable................................................................................ 136 Consumer Surveys.......................................................................................... 137 International Consumer Perspectives ............................................................. 138 Figure 3-16: Consumers More Likely to Purchase Products or Services from a Company with a Good Reputation for Environmental Responsibility, 2008 .............................................................................................................. 139 Consumer Behavior ........................................................................................ 139 Greenwashing ................................................................................................. 140
Technology/Innovation ......................................................................... 140

Lightweighting ................................................................................................. 141 Advances in Design ........................................................................................ 141 Bio-based Materials ........................................................................................ 142
The Wal-Mart Effect............................................................................... 143

Alcan Sustainability and Stewardship Evaluation Tool (ASSET)................. 143
International Aspects............................................................................ 144

International Differences Affect Package Design and Use.............................. 145 International Comparisons of Municipal Waste ............................................... 145 Table 3-2: Disposition of Municipal Waste Collected, by Country (percent) ... 146
Chapter 4: Company Profiles ..................................................147

Paper............................................................................................................... 147 Plastic.............................................................................................................. 147 Metal ............................................................................................................... 147 Glass ............................................................................................................... 148 Flexible............................................................................................................ 148
Alcan Packaging Food .............................................................149

Overview ................................................................................................ 149 Corporate Performance ........................................................................ 150
Figure 4-1: Annual Revenues of Alcan Packaging Business, 2004-2008 (in billions of dollars) ..................................................................................... 150 Figure 4-2: Alcan, Inc.s Packaging Revenue by End Use Market, 2008 (percent)........................................................................................................ 151
Product Portfolio ................................................................................... 151 Recent Developments........................................................................... 152 Environmental Sustainability ............................................................... 152
Amcor Limited ..........................................................................153

Overview ................................................................................................ 153
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Chapter 4: Company Profiles [cont.]

Corporate Performance .........................................................................154
Figure 4-3: Amcor Annual Revenues, 2004-2008 (in billions of A$) ............... 154
Product Portfolio....................................................................................155 Recent Developments ...........................................................................155 Environmental Sustainability................................................................155
Ball Corp.157
Overview .................................................................................................157 Corporate Performance .........................................................................158
Figure 4-4: Annual Revenues of Ball Corp., 2008-2008 (in billions of dollars)........................................................................................................... 158 Figure 4-5: Annual Revenues of Ball Corp. by Business Segment (excluding aerospace), 2006-2008 (in billions of dollars) ............................. 159
Product Portfolio....................................................................................159
Table 4-1: Ball Corp.s Food Packaging Product Portfolio .............................. 160
Recent Developments ...........................................................................160 Environmental Sustainability................................................................160
Bemis Co. Inc. .......................................................................... 162

Figure 4-6: Annual Revenues of Bemis Co. Inc., 2004-2008 (in billions of dollars)........................................................................................................... 163 Figure 4-7: Annual Revenues of Bemis Co. Inc. from Flexible Packaging Operations, 2006-2008 (in billions of dollars)................................................ 164
Caraustar Industries, Inc......................................................... 166

Figure 4-8: Annual Revenues of Caraustar, 2004-2008 (in millions of dollars)........................................................................................................... 167
Figure 4-9: Caraustar Revenues by Segment, 2007....................................... 168
Constar International Inc......................................................... 170

Figure 4-10: Annual Revenues of Constar, 2004-2008 (in millions of dollars) 171
Consolidated Container Company ......................................... 173

Overview .................................................................................................173
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Chapter 4: Company Profiles [cont.]

Corporate Performance ........................................................................ 173
Figure 4-11: Annual Revenues of Consolidated Container, 2004-2008 (in millions of dollars) .................................................................................... 174
Product Portfolio ................................................................................... 174

Figure 4-12: Consolidated Container Revenues by Segment (percent).......... 175
Crown Holdings, Inc.................................................................176

Figure 4-13: Annual Revenues of Crown Holdings, 2004-2008 (in billions of dollars) ...................................................................................................... 177

Figure 4-14: Crown Holdings Sales of Metal Food and Beverage Cans and Ends, 2006-2008 (in billions of dollars). ................................................. 178
Recent Developments........................................................................... 179 Environmental Sustainability ............................................................... 179
Graham Packaging Company, L.P. .........................................180

Figure 4-15: Annual Revenues of Graham Packaging, 2005-2008 (in billions of dollars) ..................................................................................... 181

Table 4-2: Graham Packagings Food Packaging Product Portfolio ............... 182
Graphic Packaging International ............................................183

Figure 4-16: Annual Revenues of Graphic Packaging, 2004-2008 (in billions of dollars) ..................................................................................... 184

Table 4-3: Graphic Packagings Packaging Product Portfolio......................... 185
MeadWestvaco..........................................................................187
Figure 4-17: Annual Revenues of MeadWestvaco, 2004-2008 (in billions of dollars) ..................................................................................... 188 Figure 4-18: Annual Revenues of MeadWestvacos Packaging Resources and Consumer Solutions Segments, 2006-2008 (in billions of dollars).. 189

Table 4-4: MeadWestvacos Food & Beverage Packaging Products Portfolio ......................................................................................................... 190
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Chapter 4: Company Profiles [cont.] Owens-Illinois, Inc. .................................................................. 192

Figure 4-19: Annual Revenues of Owens-Illinois, 2004-2008 (in billions of dollars)........................................................................................................... 193
Product Portfolio....................................................................................193 Recent Developments ...........................................................................193 Sustainability..........................................................................................193
Plastipak Holdings, Inc............................................................ 195

Figure 4-20: Annual Revenues of Plastipak, 2004-2008 (in billions of dollars)........................................................................................................... 196
Product Portfolio....................................................................................196 Significant Developments .....................................................................196 Sustainability..........................................................................................197
Printpack, Inc. .......................................................................... 198

Overview .................................................................................................198 Performance ...........................................................................................198
Figure 4-21: Annual Revenues of Printpack, Inc., 2004-2008 (in billions of dollars)........................................................................................................... 199
Product Portfolio....................................................................................199 Recent Developments ...........................................................................199 Sustainability..........................................................................................200
Rexam PLC.201
Overview .................................................................................................201 Performance ...........................................................................................201
Figure 4-22: Annual Revenues of Rexam PLC, 2004-2008 (in billions of ) ... 202 Figure 4-23: Annual Revenues of Rexam PLC by Segment, 2004-2008 (in billions of ) .............................................................................................. 202
Table 4-5: Rexams Food & Beverage Product Portfolio................................. 203
Rock-Tenn Company ............................................................... 205

Figure 4-24: Annual Revenues of Rock-Tenn Company, 2004-2008 (in billions of dollars)...................................................................................... 206 Figure 4-25: Annual Revenues of Rock-Tenns Consumer Packaging Segment, 2006-2008 (in billions of dollars) ................................................... 207
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Chapter 4: Company Profiles [cont.] Compagnie de Saint-Gobain ...................................................209

Figure 4-26: Annual Revenues of Compagnie de Saint-Gobain, 2004-2008 (in billions of ) .............................................................................................. 210 Figure 4-27: Annual Revenues of Saint-Gobains Packaging Sector, 2004-2008 (in billions of ) ............................................................................ 211
Sealed Air Corporation ............................................................213

Figure 4-28: Annual Revenues of Sealed Air, 2004-2008 (in billions of dollars) .......................................................................................................... 214 Figure 4-29: Annual Revenues of Sealed Air from Food Packaging, 2004-2008 (in billions of dollars) ................................................................... 215
Silgan Holdings Inc. .................................................................217

Figure 4-30: Annual Revenues of Silgan Holdings, 2004-2008 (in billions of dollars) ...................................................................................................... 218 Figure 4-31: Annual Revenues of Silgan Holdings by Segment, 2004-2008 (in billions of dollars) ..................................................................................... 219

Table 4-6: Silgan Holdings Food & Beverage Product Portfolio...................... 220
Sonoco Products Company ....................................................222

Figure 4-32: Annual Revenues of Sonoco Products Company, 2004-2008 (in billions of dollars) ..................................................................................... 223 Figure 4-33: Annual Revenues of Sonocos Consumer Packaging Segment, 2004-2008 (in billions of dollars) ..................................................................... 224

Table 4-7: Sonoco Products Companys Food & Beverage Packaging Product Portfolio............................................................................................ 225
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Chapter 4: Company Profiles [cont.] Other Companies ..................................................................... 228

Companies Noted for Their Sustainability Focus in Food & Beverage Packaging............................................................................228
Earthcycle Packaging...................................................................................... 228 EnviroPAK Corporation ................................................................................... 228 Innovia Films ................................................................................................... 228 NatureWorks LLC............................................................................................ 229 Plantic Technologies Ltd. ................................................................................ 229 Plastic Suppliers Inc. ....................................................................................... 230
Chapter 5: Marketing & Promotion......................................... 231

The Sustainability Learning Curve .......................................................231 The Message of Sustainability..............................................................232
The Message Within the Company ................................................................. 233 Industry Conferences and Trade Shows Promote Sustainability .................... 234 Schooling for Sustainability ............................................................................. 235 The Message for Consumers .......................................................................... 235 The Message to Investors ............................................................................... 236
Managing the Message..........................................................................237

Federal Trade Commission ............................................................................. 237 Better Business Bureau................................................................................... 237 Setting Environmental Standards.................................................................... 238 Environmental Labels...................................................................................... 239
Package Tags .........................................................................................240

Table 5-1: New Food & Beverage Product Selling Points, by Select Package Tag, 2008 ....................................................................................... 240 Recyclable....................................................................................................... 241 Figure 5-1: New Food & Beverage Product Use of Recyclable Package Tag, U.S. and Global, 2004-2008.................................................................. 241 Reusable ......................................................................................................... 242 Figure 5-2: New Food & Beverage Product Use of Reusable Package Tag, U.S. and Global, 2004-2008................................................................. 242 Recycled Material............................................................................................ 242 Figure 5-3: New Food & Beverage Product Use of Recycled Material Package Tag, U.S. and Global, 2004-2008................................................... 243 Reduced Packaging ........................................................................................ 243 Figure 5-4: New Food & Beverage Product Use of Reduced Packaging Package Tag, U.S. and Global, 2004-2008................................................... 244 Refill ................................................................................................................ 244 Figure 5-5: New Food & Beverage Product Use of Refill Package Tag, U.S. and Global, 2004-2008......................................................................... 245 Biodegradable ................................................................................................. 245 Figure 5-6: New Food & Beverage Product Use of Biodegradable Package Tag, U.S. and Global, 2004-2008................................................... 246
Marketing Resources for Food & Beverage Packaging......................246

Food Packaging Resources ............................................................................ 246 Table 5-2: Food Packaging Resources ....................................................247-428
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Table of Contents
Chapter 5: Marketing & Promotion [cont.]

Environmental Packaging Resources ............................................................. 249 Table 5-3: Environment-Related Packaging Resources ................................. 250 Paper Packaging Resources........................................................................... 250 Table 5-4: Paper Packaging Resources.......................................................... 251 Plastic Packaging Resources.......................................................................... 251 Table 5-5: Paper Packaging Resources.......................................................... 251 Metal Packaging Organizations ...................................................................... 252 Table 5-6: Metal Packaging Resources .......................................................... 252 Glass Packaging Organizations ...................................................................... 252 Table 5-7: Glass Packaging Resources .......................................................... 252 Flexible Packaging Organizations ................................................................... 253 Table 5-8: Flexible Packaging Resources....................................................... 253
Chapter 6: End Users ...............................................................255

Food Packaging A Stable Market...................................................... 255
Figure 6-1: U.S. Retail and Food Services Sales, 2004-2008 (in billions of dollars) .......................................................................................................... 255 Figure 6-2: Monthly U.S. Retail and Food Services Sales, 2008 (in billions of dollars) ...................................................................................................... 256
Value of Retail Food & Beverage Shipments ...................................... 256

Table 6-1: Value of Shipments (in thousands of dollars)..........................257-258
Largest Food & Beverage Packagers .................................................. 258

Table 6-2: Largest Food and Beverage Companies ................................260-265
Packaging Materials Used for New Products...................................... 266

Figure 6-3: Packaging Materials Used for Global Food & Beverage Product Introductions, 2008 .......................................................................... 266 Figure 6-4: Packaging Materials Used in U.S. Food & Beverage Product Introductions, 2008........................................................................................ 267
Demographic Profile of U.S. Adults Who Recycle.............................. 267

Figure 6-5: U.S. Retail and Food Services Sales, 2004-2008 (in billions of dollars) ...................................................................................................... 268 Figure 6-6: U.S. Retail and Food Services Sales, 2004-2008 (in billions of dollars). ..................................................................................................... 269 Figure 6-7: Recycling Very Often by Material, 2004-2008 (percent)............. 270 Ethnic Differences Among Those Who Recycle Very Often ........................... 270 Table 6-3: Indices for Recycle Very Often by Ethnic Group, 2008 ............... 271 Consumers on the Coasts Recycle Very Often............................................... 271 Table 6-4: Indices for Recycle Very Often by Geographic Region, 2008 ..... 271 More Affluent Means More Recycling ............................................................. 271 Table 6-5: Indices for Recycle Very Often by Household Income, 2008 ...... 272
Attitudes Toward Recycling ................................................................. 272

Figure 6-8: Any Agree: I Make a Conscious Effort to Recycle and People Have a Duty to Recycle, 2004-2008 (percent)................................ 273 Older Population Feel More Strongly About Duty for the Environment ........... 273 Table 6-6: Attitudes/Opinions About Recycling (agree a lot), by Age, 2008 ... 274 Hispanics and Asians Feel a Duty to Recycle................................................. 274
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Chapter 6: End Users [cont.]

Table 6-7: Attitudes/Opinions About Recycling (agree a lot), by Ethnic Group, 2008 .................................................................................................. 274 Regional Differences in Attitudes Toward Recycling....................................... 274 Table 6-8: Attitudes/Opinions About Recycling (agree a lot), by Region, 2008 .............................................................................................................. 275 Affluence and Attitudes Toward Recycling...................................................... 275 Table 6-9: Attitudes/Opinions About Recycling (agree a lot), by Region, 2008 .............................................................................................................. 275
Appendix: Addresses of Selected Marketers............................. i
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Chapter 1: Executive Summary
Chapter 1
Executive Summary
Scope of the Report

This Specialists in Business Information (SBI) report focuses on the market for sustainable packaging in the food and beverage industry worldwide. SBI examines the environmentally friendly nature of food and beverage packaging (excluding foodservice), including the following five packaging material categories: Paper Plastic Metal Glass Flexible
This report studies the materials in these categories as well as the packaging products themselves. In addition to presenting industry statistics, this report identifies key trends affecting the marketplace and profiles major manufacturers.
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Methodology
Report data were obtained from primary and secondary research including government sources, trade associations, business journals, company literature and websites, and research reports. Shipment statistics were derived from the U.S. Census of Manufacturers and the Annual Survey of Manufacturers, estimated and forecasted by SBI. Price trends were tracked from the Bureau of Labor Statistics Producer Price Index. Additional information was derived from data provided by Datamonitors Productscan. The consumer demographics analysis was developed using data from Simmons Market Research Bureaus (New York, NY) summer 2008 consumer survey. Several organizations were contacted for additional material. SBI conducted interviews with and received information from: The Aluminum Association (Stephen Gardner, Vice President, Communications) Beverage World (Andrew Kaplan, Managing Editor) Environmental Packaging International (Victor Bell, President) LOHAS Forum (Ted Ning, Director of Eco-Marketing) MeadWestvaco (Alison von Puschendorf, Director of Public Relations) National Advertising Review Council of the Better Business Bureau (Linda Bean) National Association of PET Container Resources (NAPCOR) (Dennis Sabourin, Executive Director) National Solid Wastes Management Association (Chaz Miller, State Programs Director) Rexam Beverage Can North America (Greg Brooke) Specialty Graphic Imaging Association (Marcia Kintner, Vice President, Government & Business Information) Steve Sterling, author of Field Guide to Sustainable Packaging and president of Sterling Public Relations
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The sustainable packaging in food and beverage market size (market supply) is defined as the amount of sustainable packaging products supplied to the total marketplace. In other words, market size is determined by supply rather than demand. The U.S. sustainable packaging for food and beverage market supply was calculated using Department of Commerce statistics on shipments from domestic plants. Also, note that the values are in net selling values, i.e., free on board (f.o.b.) from the manufacturing plants, and not the retail/wholesale price sold to the end consumer.
Definition of Sustainability
The first widely accepted definition of sustainability came in 1987, from Our Common Future, the Report of the World Commission on Environment and Development: development that meets the needs of today without compromising the ability of future generations to meet their needs The Sustainable Packaging Coalition uses the following criteria to describe sustainable packaging: Is beneficial, safe, and healthy for individuals and communities throughout its life cycle; Meets market criteria for performance and cost; Is sourced, manufactured, transported, and recycled using renewable energy; Maximizes the use of renewable or recycled source materials; Is manufactured using clean production technologies and best practices; Is made from materials healthy in all probable end-of-life scenarios; Is physically designed to optimize materials and energy; Is effectively recovered and utilized in biological and/or industrial cradle-to-cradle cycles.
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Sustainability Issues
On its most basic level, sustainability stems from the Three Rs: Reduce, Reuse, Recycle. Reduce Ideally, waste reduction is accomplished by pre-cycling preventing waste by producing less. Lightweighting, thinwalling, and down-gauging are methods used by packaging manufacturers to reduce the raw materials used to make cans, cartons, bags, and bottles. These methods reduce the overall weight of the packaging, thereby reducing the energy and associated costs of shipping and transport. Reduction in packaging must be done carefully so that the products/contents are still protected from loss or damage. Reuse The concept of cradle to cradle or C2C design is gaining attention and driving packagers to design with the idea of reusing the packaging and/or materials. Thus, everything is either returned to its original components or is up-cycled into other products. Recycle Packaging can be both recycled and recyclable. That is, it can be cleaned and reused or processed to be used again, either as packaging or for other purposes. It can also be made from recycled materials. Recycling aluminum cans into new cans uses 95% less energy than making cans from new materials. Making glass and plastic containers from recycled content uses 30% less energy. Life Cycle Analysis One tool used by businesses examining their product sustainability is life cycle analysis (also called life cycle assessment). Life cycle analysis (LCA) measures environmental inputs and outputs of a package through its every stage, starting with the acquisition of raw materials, through the manufacturing process, transportation/distribution, product use, and its ultimate disposal. LCA uniquely provides an all-inclusive view of the environmental trade-offs in product and process selection, helping identify materials and processes that have the least impact on the
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environment. It can help companies understand the economic and environmental tradeoffs of changes in various stages of the life cycle. Proper life cycle analysis is time consuming and can be expensive a strong deterrent for many businesses. However, such a comprehensive examination can head off many potential problems: Refining methods of raw material acquisitions may eliminate more greenhouse gas emissions than changes to the production and distribution stages combined. Packaging that does not protect the products integrity can lead to damage or spoilage wasting 100% of the resources used to manufacture and distribute both the product and the packaging. Lightweighting packaging or eliminating shipping cases may necessitate additional investment in palletizing equipment to adjust for weaker packages or different packaging units. Loads may be less stable, ironically requiring additional films and wrapping materials for shipping. Some products (such as wine) have containers that weigh more than the contents, with strong implications for their shipping stages. Larger packages are more efficient than smaller packages; smaller items, including single-serve, increase waste.
Packaging Materials
Food and beverage packaging is made from many kinds of raw materials: Paper is the most-used material in food and beverage packaging, and includes noncorrugated paperboard packaging and solid bleached sulfate (SBS) paperboard. Manufacturers have become more environment friendly in their use of paper by working to develop the forests from which they harvest wood to make paper pulp and by increasing the use of recycled paper. Plastic food and beverage packaging falls into two primary categories: bottles and film/sheet.
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Metals (steel and aluminum) are used for cans; aluminum is also used for metal closures and foil.
Glass containers are mostly used for beer, liquor, and wine, but are also used for a wide variety of foods and beverages.
Another important packaging type is flexible packaging, which includes bags and pouches and contrasts with rigid packaging. Flexible packaging may have a primary component of paper, metal, or plastic materials. Each type of material has advantages and disadvantages as packaging and in its sustainability. Companies make packaging decisions based on a variety of potentially conflicting bases consumer preferences, product safety, distribution requirements, product manufacturing capabilities and logistics, labeling requirements, economies, and more.
Table 1-1 Sustainability Comparison of Food & Beverage Packaging Materials Sustainability Renewable raw materials Use of recycled content Source reduction (lightweighting/ downgauging High ratio of product to packaging (weight) Light weight (for transport) Energy intensive manufacture Greenhouse gas emissions during manufacture Recyclable (commonly) Recoverable for food & beverage packaging Low landfill density High landfill density
Source: SBI
Paper X X X -X X X X X -X
Plastic Bottles --X -X X X X -X --
Plastic Film ---X X X X --X --
Metal Cans -X X --X X X X X --
Metal Foil ---X -X X --X --
Glass -X X --X X X X -X
Flexible ---X X X X --X --
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Packaging is a Mature Market

The U.S. market for packaging materials is about $130 billion, of which $34 billion is for food and beverages. Market growth in the food and beverages packaging sector from 20042008 was 5% CAGR, led by plastics and flexible packaging materials and containers.
Figure 1-1 U.S. Market for Food & Beverage Packaging Materials, 2004-2008 (in billions of dollars)
40 35 30 ($ billions) 25 20 15 10 5 0 2004 2005 2006 2007 2008 29.76 27.90 32.93 34.33
31.42
Source: SBI
The world market for food and beverage packaging is approximately $310 billion. Asia, North America, and Western Europe account for 90% of world packaging consumption.
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Figure 1-2 Global Market for Food & Beverage Packaging Materials (percent)
Oceania 1%
Western Europe 25%
Asia 29%
Eastern Europe 7%
Middle East 5% Africa 3%
South & Central America 4%
North America 26%
Source: World Packaging Organisation
Composition of the Food & Beverage Packaging Market The largest category of food and beverage packaging material based on 2008 U.S. value of product shipments is plastic (containers and films), representing 38%. Metal packaging makes up the second largest category (30%), which includes foils and metal cans. Flexible packaging represents 13% of the market, followed by paper (11%). Glass containers are the smallest category, representing 8% of food and beverage packaging.
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Figure 1-3 U.S Market for Food and Beverage Packaging, by Type, 2008 (percent)
Gla ss 8% Pa per 1 1% Me tal 30%
Flexible 13 %
Plastic 38%
Source: SBI
Paper Renewable and Recyclable Paper is the most-used material in food and beverage packaging, and includes non-corrugated paperboard packaging and solid bleached sulfate (SBS) paperboard. Manufacturers have become more environment friendly in their use of paper by working to develop the forests from which they harvest wood to make paper pulp and by increasing their use of recycled paper. Paper is used for boxes, cartons, pouches, and other food containers, and is the primary component in the following types of packages: Folding paperboard boxes, packaging, and packaging components (NAICS 322212) Paperboard is used for dry foods packaging (cereal, crackers, cookies, cake mixes, etc.), frozen food packaging, and both bottled and canned beverages. Milk and milk-type paperboard cartons, including juice, etc. (322215)
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These sanitary food containers include milk and other gabled cartons for beverages Paper packaging materials include: Coated and laminated packaging paper and plastics film manufacturing (322221) Surface-coated paperboard manufacturing (322226)
Shipments of Paper Packaging In 2008, the overall value of U.S. product shipments of paper-based food packaging was $5.8 billion, virtually unchanged from 2004 (CAGR 1.6%). While the value of shipments of surface-coated paperboard increased 8% (CAGR), the value of shipments of setup paperboard boxes decreased. The value of shipments of beverage cartons increased more than 5% (CAGR).
Figure 1-4 Value of U.S. Shipments of Paper-Based Food Packaging, 2004-2008 (in billions of dollars)
7 6 Shipments ($ billion) 5 4 3 2 1 0 2004 2005 2006 2007 2008 5.64 5.75 5.84
5.47
5.50
Sou rce: Specialists in Business Information.
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Paper Imports and Exports The $1.4 million worth of U.S. imports of paper packaging are predominately folding cartons and bags, notable for the food industry, which makes significant use of these. Corrugated packaging dominates U.S. paper packaging exports ($1.5 million); corrugated packaging is primarily a shipping medium. Sustainability of Paper Renewable and Recyclable Paperboards sustainability comes from its use of renewable resources and recycled materials as well as its recyclability. greenhouse gas emissions. Materials for paperboard packaging can be made from virgin fiber, recycled fiber, sustainably forested fiber or a combination. The Forest Stewardship Council and the Sustainable Forestry Initiative certify packaging made from sustainably forested fibers indicating they are from forests meeting specific standards. Paper and Paperboard Packaging Waste and Recycling Paper and paperboard make up the largest component of municipal solid waste (MSW) in the U.S., with 83 million tons representing 33% based on weight in 2007. Forty million tons of this was in the form of containers and packaging (16% of the total). This includes 500,000 tons of milk cartons, 4 million tons of folding cartons, and 1.4 million tons of other paper packaging. Imports and Exports of Recycled Paper The U.S. exported $2.6 billion worth of recovered paper materials in 2008, an increase of 18% (CAGR) since 2004. By far, most recovered paper exports were unbleached kraft paper or paperboard or corrugated paper. Exports of this category have increased 17% (CAGR) since 2004. U.S. imports of recovered paper materials were negligible compared to exports, at $65 million; this represents nearly 20% growth (CAGR) since 2004. As with exports, the leading category of recovered paper imports was unbleached kraft paper or paperboard or corrugated paper or paperboard ($47 million). Paper production is the most energy-intensive of all manufacturing industries in the U.S. and the production of paper results in significant
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International Aspects Global production of paper, carton, and board is nearly 390 billion tons; SBI estimates that half of this is used for various types of packaging. Outside of the U.S., the countries with the largest production are the China, Japan, Germany, and Canada. Global consumption of paper and paperboard packaging is dominated by Asia, North America, and Western Europe. Asia is the main growth market, due to the Chinese and Indian markets.
Figure 1-5 Global Paper and Paperboard Packaging Consumption by Region (percent)
Oceania 1% Western Europe 19%
Asia 36%
Eastern Europe 5%
South & Central Am erica 3%
North Am erica 28%
Source: World Packaging Organisation.
Paper is recycled worldwide in increasing amounts. In 2008, the World Business Council for Sustainable Development reported that 2005 production of recovered paper was more than 160 million metric tons, up from 104 million in 1995 and 140 million in 2000.
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The Outlook for Paper The market for paper packaging will continue to stagnate over the next few years, with a CAGR of 3%. Paper-based food packagings chief competition comes from flexible packaging, including foils, plastic, and mixed materials, and this is expected to increase. Companies using folding cartons will strengthen their emphasis on the packages recyclability and use of recycled content. Aseptic packaging shows strong growth potential, particularly in China, India, and Africa where refrigeration is not as readily available as in the U.S. Plastic Where the Growth Is Plastic is a much newer packaging material than paper, metal, or glass; the PET bottle was patented in 1973. Today, over 90% of plastic bottles are made from either polyethylene terephthalate (PET) or high-density polyethylene (HDPE). In addition to bottles, plastic film and sheet is also used for food packaging. Food and beverage containers account for approximately 75% of all plastic packaging, which utilizes every plastic resin.
Table 1-2 Plastic Resins Used for Food & Beverage Packaging Resin ID Code #1 #2 #3 #4 #5 #6 Resin Polyethylene terephthalate (PET) High density polyethylene (HDPE) Polyvinyl chloride (PVC) Low density polyethylene (LDPE) Polypropylene (PP) Polystyrene (PS) Other plastics invented after 1987, including polycarbonate (PC) and polylactide plastics (PLA), multiplayer plastics Food and Beverage Uses Water, soft drink, juice, and beer bottles; peanut butter jars; vegetable oil containers Milk containers, juice and water bottles, butter/margarine tubs, yogurt containers, cereal box liners Clear food wrap, cooking oil bottles, juice and mineral water bottles Cling/Shrink wrap, squeezable bottles, bread bags, frozen food bags Hot-fill bottles, yogurt cups/tubs, bottle caps, wrappers, syrup and ketchup bottles Egg cartons, meat trays
#7
Water bottles, certain food product bottles
Source: SBI
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There are three primary categories of plastic packaging: Plastic bottles (NAICS 326160) Plastic bottles are used for soft drinks, milk, juice and water, and food. Plastics bags (326111) While mainly composed of grocery bags, this category also includes food packaging bags. Plastics packaging film and sheet, including laminated (NAICS 326112) Plastic films are used by convenience food producers foods that go from freezer to microwave oven, for example. In addition to food packaging sacks and bags, this code includes grocery bags, dry cleaning bags, pallet wrap, and other bags. Shipments of Plastic Packaging The value of U.S. product shipments of plastic packaging was $31 billion in 2008, based on SBI estimates. Shipments of plastic bottles were more than $11 billion in 2008; food and beverage packaging accounts for approximately 80%. Plastics show the most growth of all food and beverage container materials, with 7% CAGR from 2004 to 2008.
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Figure 1-6 U.S. Shipments of Plastic Bottles, 2004-2008(E) (in billions of dollars)
12 10.08 10 Shipments ($ billion) 8.49 8 9.40 10.59
11.11
0 2004 2005 2006 2007(e) 2008(e)
Source: U.S. Dept. of Commerce. Compiled, calculated, and estimated by SBI
Plastic Imports and Exports Exports of plastic bottles increased to $641 million in 2008 from $427 million in 2004, an 11% CAGR increase. Imports increased at a faster rate during the period (18% CAGR), but were much lower overall -- $164 million in 2008. The Sustainability of Plastic Packaging The biggest downside for plastics is that it is petroleum-based. The biggest positive is its light weight, particularly compared to other packaging materials. Lighter-weight packaging reduces energy and costs related to transportation and distribution. Other positives from a sustainability point of view are its ability to be recycled, reused, and incinerated (valuable from a waste-to-energy perspective). Recycling Plastics In 2007, the EPA reported 30.7 million tons of plastics in products in municipal solid waste, of which only 7% was recovered and recycled. Containers and packaging represent the
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highest tonnage of plastic materials in municipal solid waste 44% or 13.6 million tons. More than one-third of all PET bottles in MSW were recovered, while 28% of HDPE bottles were recovered. The National Association for PET Container Resources reports a steady gross recycling rate since the year 2000, in spite of the pounds of PET bottles collected nearly doubling in that period. A Variety of Uses for Recycled Plastics All types of food and beverage plastics are recycled into other products from new food and beverage containers to plastic lumber and flowerpots to fibers for clothing and upholstery. PET is the most easily and commonly recycled plastic. Although less commonly recycled, there are a variety of uses for post-recycled plastics.
Table 1-3 Uses for Recycled Plastics Resin Type #1 (PET) Food & Beverage Uses Water, soft drink, juice, and beer bottles; peanut butter jars; vegetable oil containers Milk containers, juice and water bottles, butter/margarine tubs, yogurt containers, cereal box liners Clear food wrap, cooking oil bottles, juice and mineral water bottles Cling/Shrink wrap, squeezable bottles, bread bags, frozen food bags Hot-fill bottles, yogurt cups/tubs, bottle caps, wrappers, syrup and ketchup bottles Egg cartons, meat trays Post Recycled Product New PET food and non-food containers; polyester, fiberfill, and fleece for sleeping bags, clothing, carpeting, and upholstery; car parts; industrial strapping, sheet, and film; furniture; and luggage. Flowerpots, trashcans, traffic cones, detergent bottles, motor oil bottles, lumber, floor tile, and drainage pipes. Drainage and irrigation pipes, mats and flooring, decking, and paneling. Grocery bags, floor tile, plastic film and sheet, trashcans, lumber, furniture. Plastic lumber, car battery cases, brooms, brushes, scrapers, rakes, pallets and trays. Egg cartons, plastic lumber, flower pots, insulation, take-out food containers, foam packing.
#2 (HDPE) #3 (PVC) #4 (LDPE) #5 (PP) #6 (PS)

Source: SBI
Recycled PET is used food and beverage containers, non-food containers, fibers, film and sheet, and strapping. Half of all polyester carpet in the U.S. is made from recycled PET bottles. Dramatic increases in energy prices underscore the economic value of reprocessed PET (RPET), particularly compared to virgin PET (VPET).
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Figure 1-7 Uses for Recycled PET, 2007 (percent)
Strapping 16.0% Non-Food Bottles 6.7% Food & Beverage 15.1% Sheet & Film 14.2%
Other 4.2%
Fiber 42.6%
Engineered Resin 1.2%
Source: National Association for PET Container Resources (NAPCOR).
Exports of Recyclables Exports are becoming an important market for recycled PET. China and other Asian
countries are the primary drivers of export demand for U.S. PET recyclables; in December 2008, NAPCOR reported that 2007 was the first year in which China purchased more postconsumer PET bottles than did the U.S. and that overseas buyers bought 755 million pounds (54%) of the PET collected in 2007. International Aspects of Plastic Packaging Worldwide, consumption of PET plastics is nearly 18 million tons, a level nearly double the volume of five years ago. The World Packaging Organisation estimates worldwide consumption of rigid plastic packaging at nearly $120 billion, led by Western Europe, Asia, and North America.
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Figure 1-8 Global Consumption of Rigid Plastic Packaging by Region (percent)

North America 23% South & Central America 7%
Africa 3%
Middle East 4% Eastern Europe 7%
Asia 27%
Oceania 1%
Western Europe 28%
Outlook for Plastic Plastic is a key growth area for food and beverage packaging. SBI forecasts shipments to grow by 6% CAGR to 2013, when the market will be close to $18 billion in shipments. Two of the major drivers in the market for plastic packaging will be plastic bottling innovation and export markets. Alcoholic beverages, including liquor and beer, will move toward plastics. MillerCoors sites 10% annual sales growth of beer in plastic bottles. Innovative shapes and lightweighting will continue to be important priorities for plastic packaging. Away-from-home recycling efforts will expand, particularly in entertainment and sporting venues and corporate settings.
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Metal Packaging Rigid and Flexible There are two types of metal packaging: Metal cans (332431) Steel cans are used for food products, accounting for more than 90% of food cans. Aluminum is primarily used for beverage cans. Crowns and closures (332115) Metal crowns are used for glass and metal beverage, condiment, fruits and vegetable containers. Aluminum is the most common material used. Foil packaging (including candy wrappers and closures for bottles and yogurt) Flexible packaging foil manufacturing (322225) Converted unmounted aluminum foil packaging products (332992) More than 20% of aluminum shipments go to manufacture aluminum containers and packaging, and of that, 86% goes to beverage cans.
Figure 1-9 U.S. End-Use Demand for Aluminum (percent)
Construction 18% Transportation 3 1%
Electric al/ Electronic s 6%
Consumer Durable s 7% Pack aging 2 0%
Othe r 14%
Source: SBI
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Metal cans, both steel and aluminum, offer excellent preservative capabilities and provide protection from light. Over 90% of metal cans, made of steel and aluminum, are used in food and beverage packaging. Metal cans are a popular packaging choice because they can be made in a variety of sizes and shapes. Metals have lost some share of food and beverage containers to plastics, but innovations in technology and design have contributed to growth. Resealable cans, new can shapes and sizes (particularly for energy drinks), and metal bottles (in which contents stay colder longer than in plastic bottles) are some of the innovations in metal containers. Can makers are also working to develop microwavable and self-heating cans.
Table 1-4 Beverage Can Variations
Type Sleek cans
Characteristics Elongated 8.3- or 8.4-ounce volume
Uses New Age beverages Energy drinks Iced coffees
Squat/Shorty cans Maxi cans Lug cans Fresh cans

Source: SBI
8-ounce volume 16- and 24-ounce volume Resealable 23.5-ounce volume Wedge container within can releases additives into drink when can is opened
Soft-drinks (portion control) Beer and soft drinks JOLT energy drink Nutritional drinks
Shipments of Metal Packaging Metal can shipments have grown due to increases in soft drinks and more recently, by the introduction of energy drinks and development of aluminum bottles. Shipments of crowns and closures have been boosted by the wine industry. Data from the Can Manufacturers Institute show the beverage industrys dominance in use of metal cans; shares are virtually unchanged over the past five years.
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Figure 1-10 End Use Markets for Metal Can Packaging (percent)
Food 17%
Petfood 6% Other 3%
Beverages 74%
Source: Can Manufacturers Institute.
Can Imports and Exports In 2008, imports of aluminum packaging were more than $1 billion, an 8% CAGR increase from 2004. The fastest growing category were aluminum foil not over 0.2 mm thick (23% CAGR) and aluminum cans more than 355 ml but less than 2.8 liters, with 17% CAGR since 2004. Export values of aluminum packaging are about two-thirds those of imports, reaching $675 million in 2008. This represents 10% CAGR growth since 2004s $464 million exports. The largest category of exports is aluminum foil less than 0.2 mm thick. The largest category based on growth rate since 2004 is steel cans, at 36% CAGR. Sustainability of Metal Packaging Both steel and aluminum cans are easily recyclable and recycled products. Producing
aluminum from recycled materials requires 95% less energy than production from raw materials, making it economically preferable for manufacturers. Every ton of recycled steel saves 2.5 tons of iron ore and half a ton of coal.
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Aluminum foil is not so commonly recycled; most household recycling programs do not accept aluminum foil (which is usually dirty). Aluminum is very light, this helps to reduce transportation costs and means it is suitable for packaging applications where weight is important. Can Recycling Recycling rates for aluminum cans peaked at 67% in 1997. In 2003, aluminum can recycling rates reach a low of 50%; since then, they have grown to 54%, according to the Aluminum Association, the Can Manufacturers Association, and the Institute of Scrap Recycling Industries. The EPA (whose figures do not include imports/exports) reported that 49% of aluminum beer and soft drink cans were recovered in 2007. Also in 2007, 10% of aluminum foils and closures used in containers and packaging and nearly 65% of steel food cans were recovered. In 2008, the Aluminum Association announced a target of a 75% recycling rate for all used beverage cans by 2015. An estimated 1.7 million tons of steel packaging was recovered in 2007 65% of what was generated in municipal solid waste. Reuse of Aluminum Recycled aluminum is reused in a variety of products, including beverage containers and automotive engines. The steel industry also uses recycled aluminum for deoxidation during manufacture. Scrap aluminum, including recovered food packaging, accounts for about 30% of the total U.S. aluminum supply; 20% of U.S. supply is imported. In 2008, the U.S. imported $180 million worth of aluminum used beverage container scrap, up 13% CAGR since 2004. At the same time, the U.S. exported $35 million of aluminum used beverage container scrap a 60% CAGR increase since 2004. International Markets for Metal Packaging Worldwide aluminum production is approximately 45 million tons, of which one-third is recycled aluminum. The European Union and the U.S. are the largest producers of recycled aluminum; China, India, and Russia are the fastest growing producers. Primary aluminum is
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more commonly produced in the Middle East, Africa, and Australia. Globally, packaging accounts for 13% of aluminum use. World consumption of metal packaging is more than $90 billion, led by North America, Asia, and Europe. The fastest growing areas are the Middle East, Africa, and Eastern Europe.
Figure 1-11 Global Consumption of Metal Packaging by Region (percent)
Western Europe 27% Oceania 1% Eastern Europe 6% Middle East 4% Africa 3% Asia 24%
North America 31%

Outlook for Cans The market for metal-based food and beverage packaging is expected to grow about 4% (CAGR) from 2009-2013. Growth will come from consumer convenience products such as single-serve sizes, easy-open ends, resealable cans, aluminum bottles, and new food and beverage product introductions. Recycling of cans will increase as more away-from-home recycling is available, including retail and office environments. Manufacturers will continue to incorporate recycled products in new cans due to their cost savings and energy efficiency versus processing virgin materials.
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Glass The Smallest Category Glass containers (NAICS 327213), primarily used for beer, wine, liquor, and a variety of food products such as condiments, baby food, and jellies, are popular for their sturdiness, purity, and ability to maintain the flavor and integrity of their contents. Glass is the only packaging material rated generally regarded as safe (GRAS) by the U.S. Food & Drug Administration. Shipments of Glass Packaging Glass is the smallest category of sustainable packaging used for food and beverages. Over the last decade, glass has lost share to plastic bottles and cans, which are lighter weight and have less breakage. The most recent significant threat to glass packaging has come from the wine industry, which now offers wine in boxes (with plastic liners or pouches). Glass bottles used for foods and beverages make up more than 90% of shipments (by volume) of glass containers. Shipments of glass bottles for food and beverage purposes have decreased over the past five years greater than the rated for all glass containers. Glass bottles used for liquor is the strongest category, with 2% CAGR. U.S. value of product shipments of glass containers was $4 billion in 2008 virtually unchanged since 2004. Glass Imports and Exports Imports of glass containers have maintained a relatively constant ratio of three times the value of imports since 2004. In 2008, exports of glass containers were $247 million, up from $170 million in 2004 (10% CAGR). Glass container imports increased from $420 million in 2004 to $646 million in 2008 (11% CAGR). Sustainability of Glass The recyclability of glass is its main selling point for sustainability. In can be recycled repeatedly; glass packaging can use up to 90% recycled material with no loss of quality or purity. Raw materials used to manufacture glass are also all natural and sustainable. The downside for glass is its weight and breakability, which result in higher transportation costs and need for specialized secondary packaging to protect products during shipment.
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Recycling Glass The 11.5 million tons of glass containers that was generated as municipal solid waste in 2007 represents 5% of all municipal solid waste (MSW). Eighty-two percent (82%) of that more than 9 million tons came from beer, wine, liquor, and soda bottles. More than one-third of beer and soft drink bottles were recycled, compared to only 15% of wine/liquor and food/other bottles and jars. Reusing Glass Glass containers can be reused numerous times before being recycled or broken down for other purposes. On of the primary uses for recycled glass is building insulation. Fiberglass insulation may contain as much as 40% recycled glass. In September 2008, the North American Insulation Manufacturers Association (NAIMA) said that U.S. insulation manufacturers used almost 300,000 tons of recycled glass per year in the production of thermal and acoustical insulation. Imports and Exports of Waste and Scrap Glass Both imports and exports of waste and scrap glass have doubled in the past five years, though are at relatively low levels. In 2008, the U.S. exported nearly $30 million of scrap glass, about three times the value of scrap glass imports. International Markets for Glass Packaging The world market for container glass is approximately $35 billion. Asia is the largest region for glass packaging consumption, accounting for 32%; China is the largest market, followed by the U.S.
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Figure 1-12 Global Glass Packaging Consumption by Region (percent)
Africa 3%
North America 15%
Western Europe 22%
South and Central America 5%
Oceania 3% Asia 32%
The Outlook for Glass The market for glass packaging in the food and beverage industry will decline slightly over the next five years. The industry will continue to feel considerable pressure from plastics and aluminum manufacturers; aluminum cans and bottles and plastic bottles will continue to make inroads in areas that had been exclusive to glass. The liquor industry is turning to plastic; wine makers use a variety of package-types, including cans and flexible packaging (wine-in-a-box); and beer and soft-drink manufacturers have introduced aluminum bottles. The glass industry will be supported by the growth of organic and natural products. These are fast growing market segments for glass packaging, growing at an annual rate of 20%, according to the Organic Trade Association. While providing flavor protection and other functional benefits, glass conveys product quality and differentiates the product at retail with some innovative designs.
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Flexible The Next Big Thing Flexible packaging includes bags and pouches and may be made from paper, foil, plastic, or a combination of materials. The materials that make up flexible packaging include Coated and laminated packaging paper and plastics film (NAICS 322221) Although this is a paper-based code, materials include foil and plastic film. Plastics packaging film and sheet (including laminating) (NAICS 326112) Plastics films are generally defined as being less than 0.010 inches in thickness, whereas plastics sheet is thicker. Laminated Aluminum Foil Manufacturing for Flexible Packaging Uses (322225) These materials are used to produce: Plastics, foil, and coated paper bags (322223) Single-web film specialty bags, pouches, and liners (3261111) Multi-web film/film combination specialty bags, pouches, and liners (3261113)
Flexible packaging is designed to be space-saving, lightweight, tamper-evident, convenient and disposable. It is used for rice, meats and seafood, yogurt, pudding, fresh produce, snack foods, baked goods, nutritional bars, frozen foods, boil-in bag foods, ice, and cheese. The Flexible Packaging Association puts annual U.S. sales of flexible-packaging industry $26 billion, with value-added flexible packaging accounting for $20 billion. Value added packages are more highly converted manufactured products; they may have enhanced graphics, reclosable seals, stand-up structures, handles, etc. that differentiate them from simple bags and wraps. Retail food packaging accounts for 60% of value added flexible packaging and 46% of all flexible packaging.
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Figure 1-13 U.S. End-Use Market for Flexible Packaging (percent)

Institutional Institutional Non- Food Food 6% 5% Consumer Products 10% Retail Food 47%
Retail Poly Bags 7%
Industrial 9% Medical/ Pharma Retail Non-Food 7% 9%

Source: Flexible Packaging Association.
Shipments of Flexible Packaging U.S. shipments of flexible packaging materials have increased 5% (CAGR) since 2004, to nearly $12 million in 2008. Flexible packaging product shipments (bags, pouches, and liners) were just over $12 billion in 2008, up 9% CAGR since 2004. U.S. Imports and Exports of Flexible Packaging U.S. imports of flexible packaging are nearly $900 million per year, having grown at 12% (CAGR) since 2004. Exports of flexible packaging are nearly the same, with 10% CAGR since 2004. Sustainability of Flexible Packaging Products packaged in flexible packages, such as bags, pouches, wraps, and foils, are considered better environmental choices over rigid packaging forms, as less packaging material is used for their manufacture, reducing the volume that has to be recycled or discarded after use. Flexible packaging also uses less energy than paperboard, glass, or aluminum in the manufacturing process.
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Flexible packagings lightweight and flexibility reduce transportation costs by allowing higher product-to-packaging ratio, more product per shipment, and requiring less energy per shipment. Flexible packaging is not easily (and therefore not commonly) recycled, meaning most flexible packaging winds up as municipal solid waste. It can, however, be a positive contribution to waste-to-energy programs, providing high BTU fuel content. The Outlook for Flexible Packaging Flexible packaging will continue to expand its niche in food packaging, particularly for convenience, single-serve, and on-the-go foods. vegetables, for example) will also drive growth. Flexible packaging is the fastest growing food and beverage packaging material, projected to grow 6% (CAGR) over the next five years. Due to its lower cost and lighter weight, flexible packaging will continue to replace rigid packaging for a variety of foods, including rice, meats, and tuna. More and more foods will find stand-up pouches and retort packaging an attractive alternative to traditional packaging. Single-serve packaging, on-the-go foods, and convenience foods will also drive demand. Product innovation, such as bags and pouches in which food is both stored and cooked (microwaveable rice and steamed
Recycling
Recycling is Not Accessible Everywhere According to the 2007 AF&PA Community Survey by the American Forest & Paper Association, 87% of the U.S. population (268 million people) has access to curbside or dropoff recycling programs, although they may not necessarily use it. The latest report from the U.S. Environmental Protection Agency on municipal solid waste (issued December 2008) indicates that in 2007, one-third of all municipal solid waste 85 million tons was recycled.
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Containers and Packaging in Municipal Solid Waste Containers and packaging represent nearly one-third of all municipal solid waste products 78.5 million tons in 2007. The next largest category is nondurable goods (25%), followed by durable goods, yard trimmings, and food scraps.
Figure 1-14 Categories of U.S. Municipal Solid Waste, 2007 (percent)
Containers & Packaging 30.9%
Food Scraps 12.5%
Yard Trimmings 12.8%
Other Waste 1.5% Nondurable Goods 24.5%
Durable Goods 17.9%
Source: U.S. Environmental Protection Agency Office of Solid Waste.
Overall, 43% of containers and packaging (by weight) generated in municipal solid waste were recovered for recycling in 2007. Steel and paper packaging were the leading materials, although corrugated containers accounted for most of the paper content. The least recovered packaging was plastic.
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Figure 1-15 U.S. Recovery of Containers and Packaging Products in Municipal Solid Waste, 2007 (percent of generation)
70 60 50 (percent) 40 30 20 11.7 10 0
Steel Aluminum Glass Paper/Paperboard Plastics
64.6
62.4
39.0 28.1
Food Packaging Market Projections Even though the U.S. market for food packaging and packaging materials is a mature one, there are opportunities for growth. Function and convenient foods and packaging will lead growth. New product introductions can provide extraordinary opportunity, as was demonstrated by energy drinks. In the coming years, packagers will increase their emphasis on source reduction, such as lightweighting containers and closures, eliminating secondary packaging and replacing rigid packaging with flexible packaging. International markets, particularly India and China, offer potential as well as competition.
Trends and Factors to Growth

The basic function of packaging is product protection keeping product fresh, safe, and undamaged. Secondarily, it can serve as a marketing tool to draw consumers attention. Food and beverage packaging produced with sustainability considerations efforts to reduce the environmental impact of the packaging can also help sell a product.
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Thus, sustainability is driven by a number of concerns environmental, economic, social, and political. All are important and all of these play a role in the sustainability of food and beverage packaging. The basic premise of sustainability in packaging is attention to environmental concerns. At the same time, forces driving U.S. companies to focus on sustainability are primarily economic. Companies are managing raw materials, manufacturing, and distribution based on direct and indirect impact on the bottom line. Specific trends and drivers for the industry include: The economy energy and raw material prices are key factors Technology/Innovation Government Policy/Regulation/Legislation The Wal-Mart effect creating standards for suppliers Consumer attitudes and behaviors toward products, processes, and companies International perspectives
In 2008, the Flexible Packaging Association noted that that nearly two-thirds of U.S. consumer packaged goods (CPG) companies expected to change their packaging within the next year with sustainability being a key consideration. A 2007 study conducted by Deloitte Consulting LLP for the Grocery Manufacturers Association (GMA) found that 85% of companies surveyed have active sustainability initiatives. More than 60 percent of the companies surveyed said that those initiatives were based on internal priorities such as reducing costs and availability of supplies/raw materials; secondary concerns were regulatory compliance. The Economy Packaging requires significant amounts of energy to manufacture, and the costs of industrial electric power have risen steadily over the past several years. The average annual Producer Price Index for industrial electric power increased nearly 30% from 2004-2008; the average annual index was up 5% in 2008.
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Average annual prices for industrial natural gas have risen dramatically over the past several years. The unadjusted average annual PPI rose 39% from 2004-2008. In 2003, the index was at 180.5 making the change from 2003-2008 a remarkable 56%. Rising costs for gasoline and diesel fuel make shippers anxious to find ways to maximize the efficiency of product distribution. packagers. Increases in oil prices affect plastics packagers particularly and increase their demand for recycled materials. Producer Price Indices Paper Packaging The Producer Price Indices for food packaging reflect the overall inflationary price trends. Average annual price index increases (not seasonally adjusted) from 2004-2008 are: Folding paperboard boxes (322212) 3.8% Setup paperboard boxes (322213) 13.7% Surface-coated paperboard boxes (322226) 15.3% Minimizing load weights while still protecting the integrity of the product is a major concern and consideration of food and beverage product
Producer Price Indices Plastic Packaging The Producer Price Index for plastic bottles actually fell slightly in 2007, but increased 7% in 2008. Since 2004, the index for plastic bottles has increased 23%. The average annual Producer Price Index for single web plastic film increased 39% from 2004-2008. In 2008 alone, the index rose 15%. The index for multi-web film increased 11% in the 2004-2008 period, rising 8% in 2008. Producer Price Indices Metal Packaging The average annual Producer Price Index for aluminum cans increased 21% from 2004-2008, while the index for steel food and beverage cans increased by 29%. The index for steel cans rose 10% in 2008 alone. The average annual Producer Price Index for metal crowns and closures rose 18% from 154.5 in 2004 to 182.1 in 2007. As of this time, no post-2007 data is available.
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The average annual Producer Price Index for aluminum foil packaging rose 44 % from 109.6 in 2004 to 157.7 in 2008. The index rose 14% in 2005 and 13% in 2006 before slowing to 9% in 2007 and 2% in 2008. Producer Price Index for Glass Containers The average annual Producer Price Index for glass containers increased 19% from 20042008. The index rose more than 6% in 2008 to reach 169.5. Producer Price Indices Flexible Packaging The average annual Producer Price Index for single-web coated and laminated packaging materials increased 14% from 2004-2008. Data collection for multi-web laminated rolls and sheets began in July 2006 (not seasonally adjusted index of 109.6) and reached an annual average of 118.5 in 2008 (up 7% from 2007). The Producer Price Index for specialty bags, pouches, and liners, multi-web laminations and foil, except film was discontinued after June 2007. The index for June 2007 was 190.8. The Producer Price Index for flexible packaging foil increased 8%, from 114.7 in 2004 to 123.7 in 2008. Producer Price Index data for multi-web film/film combination specialty bags, pouches, and liners is only available after June 2007. In July 2007, the index was 115.3; the annual average for 2008 was 129.9. The average annual Producer Price Index for single-web film specialty bags, pouches, and liners rose from 161.1 in 2004 to 222.8 in 2008. This is a 32% increase over the period; 2008 represented a one-year 14% increase. Recycling Costs The market for recycled materials can be volatile and affected by general economic conditions as well. Prices for many recycled products were at all-time highs in 2008. With the dramatic downturn of the U.S. economy in the fourth quarter of 2008 came equally dramatic price drops of as much as 90%. In some markets, prices for mixed paper and cardboard were reported to have fallen to $25 or less per ton from $105 per ton. Prices for plastic bottles fell from 25 cents to 2 cents per pound. Aluminum can prices fell from 80 cents per pound to 40 cents.
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Regulation Environmental and recycling regulations are much stronger internationally than in the U.S., where most legislation occurs on a local level. There is no federal legislation in the U.S. that specifically addresses sustainability issues of packaging. In 1976, Congress enacted the Resource Recovery and Conservation Act (RCRA) to address problems from the growing volume of municipal and industrial waste. RCRA amended the Solid Waste Disposal Act of 1965 and set national goals for: Protecting human health and the environment from the potential hazards of waste disposal. Conserving energy and natural resources. Reducing the amount of waste generated. Ensuring that wastes are managed in an environmentally-sound manner.
Although federal legislation, RCRA leaves it to the states to develop comprehensive plans to manage nonhazardous industrial solid waste and municipal solid waste, set criteria for municipal solid waste landfills and other solid waste disposal facilities, and prohibit the open dumping of solid waste. Regulation of Packaging Claims The Federal Trade Commission regulates environment-related labeling and has very specific guidelines regarding terminology. Distinction between Product and Packaging Overstatement of Environmental Attributes Comparative Claims Environmental Claims Degradable/Biodegradable Recyclable Claims for recycled content
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Refillable Ozone Safe/Ozone Friendly
Deposit Laws/Bottle Bills The most stringent consumer packaging regulations in the U.S. are mandatory deposit laws, which are in place in 10 states. Bottle bills, also known as container deposit laws, require a deposit be paid by the consumer for beverages sold in bottles and cans, which is refunded when the container is returned for recycling. Eleven states have container deposit laws, and several states have active campaigns for new deposit laws. Extended Producer Responsibility The Organization for Economic Cooperation and Development (OECD) defines Extended Producer Responsibility (EPR) as a strategy designed to promote the integration of environmental costs associated with products throughout their life cycles into the market price of the products. EPR programs have been implemented in Europe, the U.S., Canada, Taiwan, Japan, and Korea. EPR is designed to reduce the consumer goods waste stream and to shift the responsibility for waste from government to private industry by requiring companies to be financially and/or physically responsible for their products after their useful life, ensuring their reuse, recycling or in energy production. The goal of EPR is to have companies considers the entire life cycle of a product, from design to disposal, to identify strategic opportunities for resource conservation and pollution prevention.
Consumer Attitudes and Behaviors

American consumers are fairly consistent in expressing their concern for the environment, including the importance of recycling, conserving energy and materials, reducing waste, and limiting pollution. Their behaviors often contradict their expressed concerns, however, as convenience and price (of both purchase and disposal) become inhibiting factors in purchasing products with a high sustainability factor. Ultimately, it seems that the producers have the most influence on the sustainability of packaging. Consumers are more likely to respond to product characteristics
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than to drive them; consumers feel that manufacturers bear primary responsibility for environmental packaging concerns. Sustainable = Recyclable Many consumers do not consider anything beyond the end of life stage of a product equating a products sustainability with its recyclability. They may lack the knowledge to make informed decisions about packagings sustainability based on the entire life cycle of the product and package. International Consumer Perspectives The World Business Council for Sustainable Development (WBCSD) surveyed European consumers in 2008 and found that 25% strongly agreed that they would buy environmentally friendly products even if they cost more. Overall, 75% of European consumers agreed. WBCSD asked consumers worldwide if they were more likely to purchase products from a company with a good environmental reputation. Chinese respondents were the most affirmative, with 67% more likely. More than 50% of Australians agreed, followed by Swedes (46%) and Americans (42%). Less than one-quarter of French consumers said the companys reputation would make them more likely to purchase its products or services. In another survey of consumers globally, The Nielsen Company found that nearly 50% would give up all forms of packaging designed for convenience purposes if it would benefit the environment. Conveniences included stackability, packaging used for cooking or doubling as a resealable container, and packaging designed for easy transport. Conversely, 10% of consumers were not willing to give up any aspect of packaging to benefit the environment. Consumer Behavior In spite of their good intentions, consumers attitudes and survey responses do not always correlate with their behavior. One example is the relatively low incidence and volume of household recycling give the general acknowledgement that recycling is a good thing. Greenwashing One of the new words in environmental lexicon is greenwashing, by which people and/or companies offer confusing or contradictory messages about sustainability and environmentfriendliness. Examples:
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Indicate a products recycled content but not other environmental impacts of the product
Indicate product characteristics that are irrelevant Exaggerate, mis-state, or fail to fully explain claims
Technology/Innovation
Packaging and consumer product manufacturers use technology and design to create stronger, lighter, more distinctive, and more environment-friendly packaging that appeals to the consumer, saves costs during production, and conforms to existing and pending regulations. Three of the major innovations in packaging are reduction of materials, new designs, and new materials. Lightweighting Lightweighting, also called thinwalling or downgauging, involves reducing the thickness of the packaging and therefore using less material to produce it. The challenge is to maintain the structural integrity of the packaging so that it fulfills its primary function of protecting the product. Advances in Design New packaging designs attract consumer attention and help sell the product as well as offer functional and cost advantages. Some notable recent design innovations: Bio-based Materials Biodegradable plastics are one of the most important innovations in the packaging industry today, particularly from the sustainability perspective. The most commonly referred to are polylactic acids, or PLA. These materials offer an alternative to petroleum-based plastics; their appeal lies in both their alternative resource and that they are biodegradable or compostable. The U.S. market for biodegradable plastics is said to be more than 550 million pounds, of which PLA accounts for 60%. Production is expected to increase more than 20% a year for the next several years at least. The European Union consumes approximately 110,000 tons of bioplastics annually.
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The Wal-Mart Effect

Demonstrating that economic concerns drive sustainability issues, Wal-Mart and other major retailers have developed standards and requirements for their suppliers. energy, and waste disposal costs. Wal-Marts sustainability initiative is the most visible and notable due to Wal-Marts sheer size and influence. The company indicated it expected the program help reduce overall packaging 5% by 2013, thereby saving in shipping and carbon dioxide emissions. In 2006, Wal-Mart introduced its Packaging Scorecard, through which it rates global suppliers and makes determinations about buying decisions. The company said it expects $3.4 billion in direct savings and $11 billion in savings across the supply chain. Alcan Sustainability and Stewardship Evaluation Tool (ASSET) Aluminum producer Alcan uses its Alcan Sustainability and Stewardship Evaluation Tool (ASSET) to statistically analyze and measure the sustainability impact of a packaging product. Alcan Packaging customers use ASSET to evaluate the environmental, social and economic sustainability of a packaging structure throughout its entire life cycle. Doing so allows consumer package goods companies to compare packaging options and weigh the sustainability performance, benefits, risks and costs of different types of packaging. In addition to highlighting environmental concerns, the strategy helps Wal-Mart control both product,
International Aspects
Unlike the U.S., European packaging and packaging waste policies are legislated and directed on a national basis as well as on a European Union-wide basis. Having to comply with foreign regulations has been a significant influence on U.S. companies adoption of sustainable policies and practices. The Packaging Council of Australia suggests that European and Australian companies are similar in their approach to sustainable packaging and differ slightly from the U.S. more specific focus on packaging design: There is no final goal of a perfect package, but simply a process of continuous improvement;
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Recycling needs to be optimized rather than maximized there will always be a place for landfill, if at a lower level than today;
There are few absolutes, since many design decisions will involve a trade-off between different environmental parameters (e.g. recyclability versus energyefficiency);
There are many environmental issues (e.g. the use of renewable energy) where an individual company may not always have the ability to make a meaningful choice;
The use of renewable resources (those that can be grown) may be but is not necessarily better for the environment than the use of renewable materials (those which after recycling retain their original properties with no degradation of performance) and there may be some applications for which the most resourceefficient solution is energy recovery;
Above all, European industry opinion-formers would prefer to address not sustainable packaging but a sustainable packaging strategy. Environmental improvement will come about through a mixture of better packaging design, more resource-efficient packaging itself.1 production and distribution and more resource-efficient management at end-of-life, so it is worth looking at the total system, not just the
International Differences Affect Package Design and Use Adhering to regulations can have important effects on package design. In places like Europe where laws require returnable or recyclable packaging, bottles are heavier to withstand multiple cycles. The tradeoff involves use of raw materials, transportation costs (to deliver and to recover the bottles), emissions and waste production during processing, etc. Canadas beer industry uses a closed-loop system, with some bottles being used as many as 15 times before they are crushed and recycled into new bottles. More than 95% of beer bottles sold are returned for reuse. In hot climates and those where refrigeration is an issue, aseptic packaging is important and unique in its ability to prevent product spoilage.
Packaging Council of Australia - http://www.pca.org.au/uploads/00589.pdf
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International Comparisons of Municipal Waste Data from the United Nations shows that Canada leads other countries in the percentage of waste that ends up in landfills, with 73%. Australia (70%) and the U.K. (64%) also landfill a higher percentage of their waste than does the U.S. (64%). Japan (74%) and Denmark (54%) are by far the leading countries in the incineration of waste. Sweden (34%), Germany (33%), and Australia lead in the percentage recycled. Less developed countries have an advantage in building their sustainability policies, outlook, and infrastructure in that they are starting from scratch. Countries with established systems and ideologies must break down old ideas and systems before they can build new ones. The economic costs of remaking a waste management can be prohibitive and particularly daunting in times of economic downturn. Because of this, countries such as India and China are quickly becoming significant players in package manufacturing and as users of recovered materials.
Company Information
Companies that manufacture food and beverage packaging compete principally on price, design, product innovation, quality, and service. The dominant players tend to be large and well-established. Acquisitions drive growth for many companies. Paper Food & Beverage Packaging Companies The leading folding carton producers are Caraustar, Graphic Packaging, MeadWestvaco, and Rock-Tenn. Many of the largest companies are vertically integrated and manufacture paperboard or containerboard from which they make folding cartons and other packaging. These companies compete with a significant number of national, regional and local packaging suppliers. Plastic Food & Beverage Packaging Companies Plastic packagers compete in several product categories: PET bottles and jars, plastic film, and rigid plastic containers. Competition in the plastic container industry is intense and includes several national and regional suppliers as well as some self-manufacturers. About a dozen players make PET beverage bottles. The leading companies are Amcor, Ball, Consolidated Container, Constar, Graphic Packaging, Plastipak, and Silgan.
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Metal Food & Beverage Packaging Companies Five companies manufacture substantially all of the metal beverage containers in the U.S. and Canada Ball, Crown, Metal Container Corp., Rexam, and Silgan. Metal Container Corp. is part of Anheuser-Busch, which was acquired by InBev in 2008. It is likely that InBev will divest the Metal Container business; one or more of its competitors is likely to express interest. Glass Food & Beverage Packaging Companies The glass container sector is the most concentrated packaging sector, with two major players. Owens-Illinois is the largest, followed by Saint-Gobain. Flexible Food & Beverage Packaging Companies Major flexible packaging competitors include Alcan, Amcor, Bemis, Printpack, Sealed Air, and Sonoco. Bio-Based Materials Producers and Packaging Manufacturers Several companies are notable in their manufacture of packaging from bio-based materials: Earthcycle Packaging EnviroPAK Corporation Innovia Films NatureWorks LLC Plantic Technologies Ltd. Plastic Suppliers Inc.
Marketing & Promotion

Sustainability and socially responsible image and behavior can be a competitive advantage for businesses. Taking advantage of the benefits of sustainability requires communication, particularly at this relatively early stage of definition and understanding. Successful sustainability policies depend on businesses developing and communicating clear goals, strategies, tactics, and procedures to employees, customers, stakeholders, and the general
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public. The effectiveness of the message plays an important role in the effectiveness of the strategy. The Sustainability Learning Curve The packaging industry is long-established, but the sustainability movement is relatively new. Packaging industry participants acknowledge that they are at the early stages of the learning curve in defining sustainability, understanding the implications, educating themselves and the public, implementing sustainability policies and standards, and optimizing their sustainability efforts. The Message Within the Company The importance of the sustainability message is a top-down business decision. Companies have created positions specifically dedicated to sustainability and green issues. Positions may rank at the highest level with c-level responsibilities, as Chief Sustainability Officer. Some have responsibilities related to sustainability without that designated title. Among the functions most directly related to sustainability are packaging, purchasing (materials), production (energy use and waste management), and transportation/shipping. Packaging Digest found that 39% of companies with sustainability initiatives link them to lean manufacturing programs; 36% link them with quality programs. Industry Conferences and Trade Shows Promote Sustainability The packaging industry has many trade shows and conferences offering opportunities to learn about the overall market, current issues, competition, and customers. Sustainability has become a major emphasis at packaging trade shows. Wal-Mart hosts an annual invitation-only Sustainable Packaging Exposition for its vendors and suppliers. Topics for the 2009 expo include Wal-Marts expansion of its Packaging Scorecard to its international locations and the adjustment of scorecard metrics to focus more on greenhouse gas reductions and on formulating more aggressive packaging weightreduction goals within specific product categories. Schooling for Sustainability As corporations are learning about sustainability, colleges and universities are teaching it. Business schools are incorporating courses about sustainability in their curricula. The
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University of North Carolinas Kenan-Flagler Business School established a Center for Sustainable Enterprise to help executives and future business leaders understand how social and environmental considerations are changing the competitive landscape of business. The Message for Consumers Consumers interest and concerns about environmental issues are often superceded by their preference for convenience. Single-serve packages vs. bulk purchases and heat-and-eat foods are examples of products designed for ease of use and not sustainability as the primary consideration. Even if sustainability is not of primary consideration, environmental impacts of their purchase decisions are important to many consumers. Thus, packaging is not just a practical necessity, but an opportunity to define a brand and companys image and to educate and persuade consumers. The Message to Investors Like other stakeholders, investors are interested in sustainable business practices that promote and result in cost savings and profitability, in addition to their environmental effects. They also see the potential risk of not addressing environmental issues. Worst-case scenarios might be fines or other penalties for non-compliance or loss of market share to more competitive products, situations that lead to lower shareholder values. Federal Trade Commission The Federal Trade Commission is legally empowered to regulate advertising claims and does so under the Guides for the Use of Environmental Market Claims, also called the Green Guides. From 1990 to 2000, the FTC brought nearly 40 involving environmental marketing claims; there have been no cases specific to the Green Guides since then. Better Business Bureau The National Advertising Division (NAD) of the Council of Better Business Bureaus investigates advertising claims to ensure that they are truthful, accurate, and not misleading. Between 1988 and 2008, NAD issued nearly 30 decisions involving a wide range of environmental marketing claims, often requiring that the claims be modified or discontinued.
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Each case involves consideration of the claims made in the advertising and labeling and the supporting evidence provided by the advertiser. Setting Environmental Standards Several organization offer certifications to distinguish product and/or packaging from an environmental perspective. The International Organization for Standardization (ISO) sets global industrial and commercial standards and is composed of representatives from various national standards organizations. ISO is a non-governmental organization, but many of its standards are adopted as national laws. Three of the most widely acknowledge environmental standards in the U.S. are those of EcoLogo, the Forest Stewardship Council, and Green Seal. EcoLogo and Green Seal both offer leadership standards that signify the top 20% of the respective category. Among other certifications are: Cradle-to-Cradle WasteWi$e Program The 100% Recycled Paperboard Alliance (RPA-100%)
Environmental Labels Companies use a variety of terms in their packaging to indicate environmental benefits. For many claims, there are no specific standards, which can be confusing for consumers. The situation is similar to the early stages of companies making nutritional and health claims. Among the most utilized terms: Biodegradable Eco-friendly Environmentally-friendly Green Recyclable Recycled content
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Reduced packaging Refillable Reusable
Marketing Resources for Food & Beverage Packaging

The most widely used resources for those looking to gain and impart industry information regarding food and beverage packaging are industry publications and associations. These resources range from very broad to very narrow topical and geographic scope. Food Packaging Resources Packaging is covered by various segments of the food and beverage industry, retailers, and in packaging-specific sources. Environmental Packaging Resources The most notable resource for environmental packaging issues is the Sustainable Packaging Coalition. The Sustainable Packaging Coalition is: an industry working group inspired by cradle to cradle principles and dedicated to transforming packaging into a system that encourages economic prosperity and a sustainable flow of materials. The Sustainable Packaging Coalition is dedicated to a more robust environmental vision for packaging. Through informed design practice, supply chain collaboration, education, and innovation, the Coalition strives to transform packaging into a system that encourages an economically prosperous and sustainable flow of materials, creating lasting value for present and future generations.
End Users
The market for food and beverage packaging is generally unaffected by economic cycles and grows through product innovation and expansion into geographic markets. During economic downturns, consumers tend to eat out less often, instead purchasing more packaged food and beverages from stores. Consumers are also likely to turn to budget items dinner mixes, cereals, and frozen foods.
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Demographic Profile of U.S. Adults Who Recycle The most notable differences between those who say they recycle very often regardless of material are in ethnicity, geographic region of the U.S., and household income. Ethnic Differences Among Those Who Recycle Very Often Asians are particularly more likely than the overall population to recycle very often, with indices of 130 for glass beverage containers, 141 for paper boxes, 132 for plastic beverage containers, and 110 for other metal cans. Blacks and Hispanics are much less likely than the overall population to recycle very often. Consumers on the Coasts Recycle Very Often Adults in the Northeast and Pacific regions index very high for recycling very often. Those in the Southeast and Southwest regions index particularly low, while the Central region is fairly close to average. This is consistent across all materials. More Affluent Means More Recycling Those with household incomes under $25,000 index very low in terms of recycling very often. Household income groups over $75,000 index above average, with the highest indices among those with the highest incomes.
Attitudes Toward Recycling

According to the Simmons data on general attitudes of consumers toward recycling, adults were asked if they agreed with the following statements: I make a conscious effort to recycle People have a duty to recycle
More than 60% of adults said they make a conscious effort to recycle; 37% agreed a lot. Nearly 60% agreed that people have a duty to recycle; 28% agreed a lot. These levels have shown a steady increase over the last five years.
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Older Population Feel More Strongly About Duty for the Environment U.S. adults most likely to agree strongly with the statement, I make a conscious effort to recycle are over 65 years of age, and concurrence increases with age. People in the 65 to 74 age group showed an index of 131; the high index was 146 for people aged 75 years and above. The lowest indices were for the lowest age groups. The index for 25-34 year-olds was 82; for 18-24 year-olds, it was 70. U.S. adults who agreed strongly with the statement people have a duty to recycle were also likely to be over 65 years of age. The index for people aged 65 to 74 was 134; and people aged 75 years and older indexed highest, at 144. The lowest indices were for those aged 18 to 24 (73) and 25 to 34 (86). The same pattern occurred for the statement packaging for products should be recycled: the index for adults 65 to 74 was 120, for adults 75 and older it was 129, for 18 to 24 yearolds it was 73. Hispanics and Asians Feel a Duty to Recycle The statement packaging for products should be recycled indexed highest among Asians (125) compared to adults of other ethnic groups. Hispanics also indexed above average (110), while blacks indexed well below average (62). Asians indexed higher than any group (index 138) as agreeing strongly with the idea that people have a duty to recycle. Again, Hispanics also indexed high (119) while indexed lowest 66. Regional Differences in Attitudes Toward Recycling On attitudes toward recycling by region, adults in the Pacific (index 135) Northeast (index 128) regions agreed the most with the statement I make a conscious effort to recycle. Those in the Pacific and Northeast regions also indexed above average in their strong agreement that people have a duty to recycle (indices of 128 and 122, respectively). Affluence and Attitudes Toward Recycling Income is generally not a factor in peoples attitudes toward recycling. Adults with
household income over $150,000 per year are more likely than the overall population to say they make a conscious effort to recycle and to believe that packaging for products should be
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recycled. The value of the residence is more likely to correlate with strong opinions about peoples duty to recycle.
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Chapter 2: The Market
Chapter 2
The Market
Scope of the Report

This Specialists in Business Information (SBI) report focuses on the market for sustainable packaging in the food and beverage industry worldwide. SBI examines the environmentally friendly nature of food and beverage packaging (excluding foodservice), including the following five packaging material categories: Paper Plastic Metal Glass Flexible
This report studies the materials in these categories as well as the packaging products themselves. In addition to presenting industry statistics, this report identifies key trends affecting the marketplace and profiles major manufacturers.
Methodology
Report data were obtained from primary and secondary research including government sources, trade associations, business journals, company literature and websites, and research reports. Shipment statistics were derived from the U.S. Census of Manufacturers and the Annual Survey of Manufacturers, estimated and forecasted by SBI. Price trends were tracked from the Bureau of Labor Statistics Producer Price Index. Additional information was derived from data provided by Datamonitors Productscan. The consumer demographics analysis was developed using data from Simmons Market Research Bureaus (New York, NY) summer 2008 consumer survey.
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Several organizations were contacted for additional material. SBI conducted interviews with and received information from: The Aluminium Association (Stephen Gardner, Vice President, Communications) Beverage World (Andrew Kaplan, Managing Editor) Environmental Packaging International (Victor Bell, President) LOHAS Forum (Ted Ning, Director of Eco-Marketing) MeadWestvaco (Alison von Puschendorf, Director of Public Relations) National Advertising Review Council of the Better Business Bureau (Linda Bean) National Association of PET Container Resources (NAPCOR) (Dennis Sabourin, Executive Director) National Solid Wastes Management Association (Chaz Miller, State Programs Director) Rexam Beverage Can North America (Greg Brooke) Specialty Graphic Imaging Association (Marcia Kintner, Vice President, Government & Business Information) Steve Sterling, author of Field Guide to Sustainable Packaging and president of Sterling Public Relations The sustainable packaging in food and beverage market size (market supply) is defined as the amount of sustainable packaging products supplied to the total marketplace. In other words, market size is determined by supply rather than demand. The U.S. sustainable packaging for food and beverage market supply was calculated using Department of Commerce statistics on domestic plants shipments. Also, note that the values are in net selling values, i.e., free on board (f.o.b.) from the manufacturing plants, and not the retail/wholesale price sold to the end consumer.
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Definition of Sustainability
The first widely accepted definition of sustainability came in 1987, from Our Common Future, the Report of the World Commission on Environment and Development: development that meets the needs of today without compromising the ability of future generations to meet their needs The Sustainable Packaging Coalition uses the following criteria to describe sustainable packaging: Is beneficial, safe, and healthy for individuals and communities throughout its life cycle; Meets market criteria for performance and cost; Is sourced, manufactured, transported, and recycled using renewable energy; Maximizes the use of renewable or recycled source materials; Is manufactured using clean production technologies and best practices; Is made from materials healthy in all probable end-of-life scenarios; Is physically designed to optimize materials and energy; Is effectively recovered and utilized in biological and/or industrial cradle-to-cradle cycles.
Sustainability Issues
On its most basic level, sustainability stems from the Three Rs: Reduce, Reuse, Recycle. Reduce Ideally, waste reduction is accomplished by pre-cycling preventing waste by producing less. Lightweighting, thinwalling, and down-gauging are methods used by packaging manufacturers to reduce the raw materials used to make cans, cartons, bags, and bottles.
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These methods reduce the overall weight of the packaging, thereby reducing the energy and associated costs of shipping and transport. Reduction in packaging must be done carefully so that the products/contents are still protected from loss or damage. Reduction also includes the energy used to make and distribute the packaging as well as the waste materials generated. Reduction occurs throughout the life cycle of the packaging through the use of recycled vs. virgin materials; minimizing production waste (trim); efficient use of energy and water; management of air emissions; reduction of facilities footprints to improve land use; logistical and transportation considerations. Examples of source reduction in packaging include use of beverage concentrates, cereals packaged in bags rather than folding cartons, and brick packaging for coffee. Reuse The concept of cradle to cradle or C2C design is gaining attention and driving packagers to design with the idea of reusing the packaging and/or materials. Thus, everything is either returned to its original components or is up-cycled into other products. Closed-loop systems, such as those for refillable bottles include on-site recovery or pick-up services by the product manufacturer. Beer companies in Canada using closed-loop systems may use common footprint bottles as many as 15 times before they are recycled. Providing bags and bottles that consumers can reuse or refill is another factor in waste reduction. Reusing materials decreases consumption of raw materials and reduces energy and emissions in the manufacturing process. Another form of reuse is packaging kept by the end-user. It may be refilled by products in lighter-weight packaging; it may also be repurposed or utilized in secondary ways (bottles as flower vases, for example). Recycle Packaging can be both recycled and recyclable. That is, it can be cleaned and reused or processed to be used again, either as packaging or for other purposes. It can also be made from recycled materials. Recycling aluminum cans into new cans uses 95% less energy than making cans from new materials. Making glass and plastic containers from recycled content uses 30% less energy.
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Biodegradable packaging is recyclable in its ability to break down or decompose into organic material in landfills and/or its being environmentally safe for incineration. polylactic acids, or PLA. biopolymers/bioplastics: Cost PLA is developed from corn, making its supplies competitive with agricultural and ethanol markets. Infrastructure - PLA requires a controlled composting environment in order to decompose. This is currently available in relatively few facilities, and is not generally accessible to consumers or municipal waste. PLA can also be incinerated, but there are barely 100 waste-to-energy facilities in the U.S. - only 26 states even have one facility. Awareness most PLA materials end up in landfills rather than being identified, separated from trash or traditional plastic products, with which they are not compatible, collected, and transported. Technical features PLA doesnt work well with soda or beer because it is slightly porous, allowing the carbonated/fermented gas inside the bottle to escape and the contents to go flat. Product shelf life is also a concern. Image global food shortages potentially position bio-resins in competition with food and feed supplies. Bio-based packagers look for incremental gains to expand their niche, such as the September 2008 introduction of water sold in corn-based bottles for the U.S. House of Representatives. Recycling of metals such as aluminum and steel can be cost effective as well as lucrative when the market value of recycled metal is good. In 2008, however, global market prices for aluminum, paper, plastic, and steel fell dramatically, resulting in depressed prices for recyclables. According to RecycleNet, aluminum prices fell 50% from June to December 2008, while steel and cardboard lost about 67% of their value. Fully biodegradable synthetic polymers have been commercially available since 1990, most notably There are several factors inhibiting the growth of
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Life Cycle Analysis One tool used by businesses examining their product sustainability is life cycle analysis (also called life cycle assessment). Life cycle analysis (LCA) measures environmental inputs and outputs of a package through its every stage, starting with the acquisition of raw materials, through the manufacturing process, transportation/distribution, product use, and its ultimate disposal. LCA uniquely provides an all-inclusive view of the environmental trade-offs in product and process selection, helping identify materials and processes that have the least impact on the environment. It can help companies understand the economic and environmental tradeoffs of changes in various stages of the life cycle. The National Renewable Energy Laboratory (NREL) manages the U.S. Life-Cycle Inventory (LCI) Database, which was created in 2001 and provides data for commonly used materials, products and processes following a single data development protocol consistent with international standards. In early 2009, Pepsico reported that the equivalent of 3.75 pounds of carbon dioxide is emitted in making a half-gallon of orange juice. Interestingly, the emissions come primarily from the nitrogen fertilizer used in growing the oranges not the processing and transportation stages. Proper life cycle analysis is time consuming and can be expensive a strong deterrent for many businesses. However, such a comprehensive examination can head off many potential problems: Refining methods of raw material acquisitions may eliminate more greenhouse gas emissions than changes to the production and distribution stages combined. Packaging that does not protect the products integrity can lead to damage or spoilage wasting 100% of the resources used to manufacture and distribute both the product and the packaging. Lightweighting packaging or eliminating shipping cases may necessitate additional investment in palletizing equipment to adjust for weaker packages or different packaging units. Loads may be less stable, ironically requiring additional films and wrapping materials for shipping.
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Some products (such as wine) have containers that weigh more than the contents, with strong implications for their shipping stages.
Larger packages are more efficient than smaller packages; smaller items, including single-serve, increase waste.
Packaging Materials
Food and beverage packaging is made from many kinds of raw materials: Paper is the most-used material in food and beverage packaging, and includes noncorrugated paperboard packaging and solid bleached sulfate (SBS) paperboard. Manufacturers have become more environment friendly in their use of paper by working to develop the forests from which they harvest wood to make paper pulp and by increasing the use of recycled paper. Plastic food and beverage packaging falls into two primary categories: bottles and film/sheet. Metals (steel and aluminum) are used for cans; aluminum is also used for metal closures and foil. Glass containers are mostly used for beer, liquor, and wine, but are also used for a wide variety of foods and beverages. Another important packaging type is flexible packaging, which includes bags and pouches and contrasts with rigid packaging. Flexible packaging may have a primary component of paper, metal, or plastic materials. Each type of material has advantages and disadvantages as packaging and in its sustainability. Companies make packaging decisions based on a variety of potentially conflicting bases consumer preferences, product safety, distribution requirements, product manufacturing capabilities and logistics, labeling requirements, economies, and more.
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Table 2-1 Sustainability Comparison of Food & Beverage Packaging Materials Sustainability Renewable raw materials Use of recycled content Source reduction (lightweighting/ downgauging High ratio of product to packaging (weight) Light weight (for transport) Energy intensive manufacture Greenhouse gas emissions during manufacture Recyclable (commonly) Recoverable for food & beverage packaging Low landfill density High landfill density
Source: SBI
Paper X X X
Plastic Bottles --X
Plastic Film ----
Metal Cans -X X
Metal Foil ----
Glass -X X
Flexible ----
-X X X X X -XS
-X X X X -X --
X X X X --X --
--X X X X X --
X -X X --X --
--X X X X
X X X X --X
--
A Mature Market
The U.S. market for packaging materials is about $130 billion, of which $34 billion is for food and beverages. Market growth in the food and beverages packaging sector from 20042008 was 5% CAGR, led by plastics and flexible packaging materials and containers.
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Figure 2-1 U.S. Market for Food & Beverage Packaging Materials, 2004-2008 (in billions of dollars)
40 35 30 ($ billions) 25 20 15 10 5 0 2004 2005 2006 2007 2008 27.90 29.76 31.42 32.93 34.33
Source: Specialists in Business Information.
The world market for food and beverage packaging is approximately $310 billion. Asia, North America, and Western Europe account for 90% of world packaging consumption.
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Figure 2-2 Global Market for Food & Beverage Packaging Materials (percent)
Oceania 1%
Western Europe 25%
Asia 29%
Eastern Europe 7% Middle East 5% Africa 3%
North America 26%
Source: World Packaging Organisation
Composition of the Food & Beverage Packaging Market The largest category of food and beverage packaging material based on 2008 U.S. value of product shipments is plastic (containers and films), representing 38%. Metal packaging is made up the second largest category (30%), which includes foils and metal cans. Flexible packaging represents 13% of the market, followed by paper (11%). Glass containers are the smallest category, representing 8% of food and beverage packaging.
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Figure 2-3 U.S Market for Food and Beverage Packaging, by Type, 2008 (percent)
Glass 8% Paper 11% Metal 30%
Flexible 13%
Plastic 38%
Source: Specialists in Business Information
Table 2-2 U.S. Market Supply for Food & Beverage Packaging by Material, 2004-2008 (in billions of dollars) Segment Paper Plastic Metal Glass Flexible Total 2004 $3.38 10.06 8.55 2.58 3.33 $27.90 2005 $3.45 11.22 8.95 2.54 3.61 $29.76 2006 $3.62 11.99 9.36 2.68 3.76 $31.42 2007 $3.75 12.67 9.84 2.64 4.03 $32.93 2008 $3.85 13.25 10.31 2.59 4.32 $34.33 CAGR 2004-2008 3.32% 7.15 4.78 0.07 6.78 5.32%
Paper Renewable and Recyclable

Paper is the most-used material in food and beverage packaging, and includes non-corrugated paperboard packaging and solid bleached sulfate (SBS) paperboard. Manufacturers have become more environment friendly in their use of paper by working to develop the forests from which they harvest wood to make paper pulp and by increasing their use of recycled paper.
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Paper is used for boxes, cartons, pouches, and other food containers, and is the primary component in the following types of packages: Folding paperboard boxes, packaging, and packaging components (NAICS 322212) Paperboard is used for dry foods packaging (cereal, crackers, cookies, cake mixes, etc.), frozen food packaging, and both bottled and canned beverages. Milk and milk-type paperboard cartons, including juice, etc. (322215) These sanitary food containers include milk and other gabled cartons for beverages Paper packaging materials include: Coated and laminated packaging paper and plastics film manufacturing (322221) Surface-coated paperboard manufacturing (322226)
Table 2-3 U.S. Food & Beverage Paperboard Grades Paper/Paperboard Grades Characteristics Contains at least 80% virgin bleached wood pulp. May be coated with polyethylene (PE) resin for wet strength food packaging. Contains at least 80% virgin unbleached, natural wood pulp. Most is coated with a thin layer of kaolin clay to improve its printing surface and may be also coated with polyethylene (PE) resin for wet strength food packaging. Multiply material produced from 100% recovered paperboard and typically coated with a thin layer of kaolin clay over a top ply of white recovered fiber to improve its printing surface. Food & Beverage Uses Milk and juice gable top cartons Aseptic drink boxes Frozen food packaging Candy boxes
Bleached Paperboard/Solid Bleached Sulfate (SBS)
Coated Unbleached Kraft Paperboard (CUK)
Frozen food packaging Milk cartons
Coated Recycled Paperboard
Cookies and crackers Cake mixes Cereal Other dry foods
Source: Paperboard Packaging Alliance.
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Popularity of Folding Boxes Folding paperboard boxes are widely used for both food and beverage packaging, from cereals and crackers to soft drinks. Papers major competition comes from plastics, although paper is often used in combination with plastic to make flexible packaging. There are three grades of folding boxboard: solid bleached sulfate (SBS), which is bleached white for high brightness; unbleached kraft, which retains the natural brown color of paperboard; and recycled. SBS is used commonly for frozen food packaging; recycled paperboard is used for cereals. Milk Cartons and Aseptic Packaging Gable top cartons and aseptic packaging are used for milk, juices, teas, soups and broths, energy drinks, and wine. Cartons and aseptic containers account for about 20% of milk sales primarily in the half-pint, pint, and quarter-pint sizes. Plastic containers dominate the larger sizes of milk packaging. Among the innovative features of gable top containers are pouring spouts and creative shapes. Cartons are the most common packaging use of polycoating or multi-ply barriers to improve quality and freshness and/or extend shelf life. Aseptic packaging (primarily drink boxes), introduced in the 1980s, is also made of a combination of materials, generally 70% percent paper, 24% polyethylene, and 6% aluminum (foil). Extended shelf life is the primary feature of aseptic packaging, maintaining freshness for up to a year before being opened without refrigeration or preservatives. Milk sold in aseptic containers is not pasteurized; it is processed using higher temperatures, which gives the milk a different flavor. Because of this, consumers in the U.S. have been slow to accept milk in aseptic containers, although flavored dairy and other beverages have gained acceptance. Shipments of Paper Packaging In 2008, the overall value of U.S. product shipments of paper-based food packaging was $5.8 billion, virtually unchanged from 2004 (CAGR 1.6%). While the value of shipments of surface-coated paperboard increased 8% (CAGR), the value of shipments of setup paperboard boxes decreased. The value of shipments of beverage cartons increased more than 5% (CAGR).
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Table 2-4 U.S. Shipments of Paper-Based Packaging, 2004-2008(E) (in thousands of dollars) Materials Folding paperboard boxes, packaging, and packaging components (322212) Setup paperboard box manufacturing (322213) Milk and milk-type paperboard cartons, including juice, etc. (322215) Coated and laminated packaging paper and plastics film manufacturing (322221) Surface-coated paperboard manufacturing (322226) Total 2004 2005 2006 2007(e) 2008(e) CAGR 2004-2008
$7,968,051
$8,041,763
$8,424,500
$8,592,990
$8,721,885
2.29%
563,496
621,473
555,089
560,640
532,608
-1.40%
692,047
700,804
748,137
800,507
848,537
5.23%
1,435,273
1,321,566
1,483,497
1,587,342
1,666,709
3.81%
799,496 $11,458,363
903,272 $11,588,878
967,279 $12,178,502
1,025,316 $12,566,794
1,107,341 $12,877,080
8.48% 2.96%
Source: U.S. Dept. of Commerce. Compiled, calculated, and estimated by Specialists in Business Information.
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Figure 2-4 Value of U.S. Shipments of Paper-Based Food Packaging, 2004-2008 (in billions of dollars)
7 6 Shipments ($ billion) 5 4 3 2 1 0 2004 2005 2006 2007 2008 5.64 5.75 5.84
5.47
5.50
Paper Imports and Exports The $1.4 million worth of U.S. imports of paper packaging are predominately folding cartons and bags, notable for the food industry, which makes significant use of these. Corrugated packaging dominates U.S. paper packaging exports ($1.5 million); corrugated packaging is primarily a shipping medium.
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Table 2-5 U.S. Imports and Exports of Paper Packaging, 2004-2008 (in thousands of dollars) Imports Sanitary food and beverage containers of corrugated paper or paperboard (HTS 4819100020) Sanitary food and beverage containers of paper, paperboard, cellulose wadding or webs of cellulose fibers (HTS 4819502000) Sanitary food and beverage containers of noncorrugated paper or paperboard (HTS 4819200020) Folding cartons, boxes and cases of non-corrugated paper and paperboard except sanitary food and beverage containers (HTS 4819200040) Cartons, boxes and cases of corrugated paper or paperboard except sanitary food and beverage containers (HTS 4819100040) Sacks and bags, including cones, having a base width of less than 40 cm, of paper, nesoi (HTS 4819400040) Total 2004 2005 2006 2007 2008 CAGR 2004-2008 32.19%
$3,813
$5,068
$6,580
$7,669
$11,643
5,175
6,476
8,751
11,131
11,746
22.74%
109,008
99,447
61,455
72,092
89,464
-4.82%
434,811
471,409
565,792
572,202
535,450
5.34%
199,604
219,141
250,102
267,070
257,388
6.56%
342,928
381,305
420,392
438,383
440,634
6.47%
$1,095,339
$1,182,845
$1,313,070
$1,368,547
$1,346,325
5.29%
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Table 2-5 [cont.] Exports Sanitary food and beverage containers of corrugated paper or paperboard (HTS 4819100020) Sanitary food and beverage containers of paper, paperboard, cellulose wadding or webs of cellulose fibers (HTS 4819502000) Sanitary food and beverage containers of non-corrugated paper or paperboard (HTS 4819200020) Folding cartons, boxes and cases of non-corrugated paper and paperboard except sanitary food and beverage containers (HTS 4819200040) Cartons, boxes and cases of corrugated paper or paperboard except sanitary food and beverage containers (HTS 4819100040) Shipping sacks and multiwall bags, other than grocers' bags, having a base width of 40 cm or more, of paper (HTS 4819300020) Shipping sacks and multiwall bags, other than grocers' bags, having a base width of less than 40 cm, of paper (HTS 4819400020) Sacks and bags, including cones, having a base width of less than 40 cm, of paper, nesoi (HTS 4819400040) Rigid boxes and cartons of paper or paperboard, nesoi (HTS 4819504040) Total 2004 2005 2006 2007 2008 CAGR 2004-2008 9.25%
$86,604
$104,284
$116,512
$117,536
$123,391
6,521
5,509
7,783
22,374
20,598
33.31%
93,895
108,189
93,474
73,599
72,234
-6.35%
223,610
215,603
238,374
257,725
267,477
4.58%
889,516
868,710
959,579
932,877
908,796
0.54%
16,323
13,002
13,892
12,898
13,454
-4.72%
27,129
20,660
19,245
19,246
26,591
-0.50%
42,561
52,870
57,879
58,414
64,296
10.86%
34,318 $1,420,475
36,005 $1,424,831
36,928 $1,543,668
39,773 $1,534,442
36,789 $1,533,626
1.75% $1.93%
Source: U.S. Dept. of Commerce, International Trade Administration.
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Sustainability of Paper Renewable and Recyclable Paperboards sustainability comes from its use of renewable resources and recycled materials as well as its recyclability. greenhouse gas emissions. Materials for paperboard packaging can be made from virgin fiber, recycled fiber, sustainably forested fiber or a combination. Manufacture of paperboard made from virgin fiber requires two times the energy as the production of 100% recycled paperboard; it also, by definition, involves harvesting natural resources. The Forest Stewardship Council and the Sustainable Forestry Initiative certify packaging made from sustainably forested fibers indicating they are from forests meeting specific standards. Recycled paper is used in a variety of paper grades, with some limitations. Recycling reduces the strength of paper fiber; paper recycled multiple times becomes unfit for papermaking. Paper and Paperboard Packaging Waste and Recycling Paper and paperboard make up the largest component of municipal solid waste (MSW), with 83 million tons representing 33% based on weight in 2007. Forty million tons of this was in the form of containers and packaging (16% of the total). This includes 500,000 tons of milk cartons, 4 million tons of folding cartons, and 1.4 million tons of other paper packaging. Overall, paper and paperboard containers and packaging account for 12% of discards (nonrecovered/recycled materials) in municipal solid waste. Milk cartons, folding cartons, and other paperboard packaging are 5% by weight of all discards. Although relatively negligible volume of milk cartons is recycled, 27% of folding cartons were recycled in 2007.
Table 2-6 Paper and Paperboard Containers and Packaging Waste, 2007 (in thousands of tons) Type of Paper and Paperboard Containers Milk Cartons Folding Cartons Other Paper Packaging Total Generated 500 5,530 1,390 7,420 Discarded 500 4,020 1,390 5,910 Recovered Neg. 1,510 Neg. 1,510 Recovered as Percent of Generated Neg. 27.3% Neg. 20.4%
Paper production is the most energy-intensive of all
manufacturing industries in the U.S. and the production of paper results in significant
Neg.: Less than 5,000 tons or 0.05% of total. Source: U.S. Environmental Protection Agency.
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Recycled Paperboard The value of product shipments of recycled paperboard has remained virtually unchanged over the past several years. Manufacturing capacity for recycled paperboard began declining in 2001, with reductions of 4.7% in 2005 and 3.1% in 2006. The American Forest & Paper Association projects increases in capacity in 2009 and 2010.
Figure 2-5 U.S. Value of Product Shipments of Recycled Paperboard, 2004-2008(E) (in billions of dollars)
8 7 6 6.42 6.54 6.58(e) 6.61(e) 6.67(e)
($ billion)
5 4 3 2 1 0 2004 2005 2006 2007 2008
Source: U.S. Census Bureau; Specialists in Business Information estimates.
Imports and Exports of Recycled Paper The U.S. exported $2.6 billion worth of recovered paper materials in 2008, an increase of 18% (CAGR) since 2004. By far, most recovered paper exports were unbleached kraft paper or paperboard or corrugated paper. Exports of this category have increased 17% (CAGR) since 2004. U.S. imports of recovered paper materials were negligible compared to exports, at $65 million; this represents nearly 20% growth (CAGR) since 2004. As with exports, the leading category of recovered paper imports was unbleached kraft paper or paperboard or corrugated paper or paperboard ($47 million).
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Table 2-7 U.S. Imports and Exports of Recovered Paper Packaging Materials, 2004-2008 (in thousands of dollars) Imports Pulps of fibers derived from recovered (waste and scrap) paper or paperboard (HTS 4706200000) Waste and scrap of unbleached kraft paper or paperboard or of corrugated paper or paperboard (HTS 4707100000) High-grade deinking waste paper and paperboard (HTS 4707200020) Waste and scrap of other paper or paperboard, nesoi, made mainly of bleached chemical pulp, not colored in the mass (HTS 4707200040) Waste and scrap of paper or paperboard made mainly of mechanical pulp, nesoi (HTS 4707300040) Total 2004 2005 2006 2007 2008 CAGR 2004-2008
$1,302
$1,132
$1,004
$1,466
$1,380
1.47%
21,607
20,954
17,467
45,311
46,520
21.13%
3,301
5,398
5,280
7,955
8,461
26.53%
4,255
4,646
3,953
3,152
4,253
-0.01%
1,318
1,562
1,286
3,200
4,054
32.43%
$31,783
$33,692
$28,990
$61,084
$64,668
19.43%
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Table 2-7 [cont.] Exports Pulps of fibers derived from recovered (waste and scrap) paper or paperboard (HTS 4706200000) Recovered (waste and scrap) paper and paperboard: unbleached kraft paper or paperboard or corrugated paper or paperboard (HTS 4707100000) High-grade deinking waste paper and paperboard (HTS 4707200020) Waste and scrap of other paper or paperboard, nesoi, made mainly of bleached chemical pulp, not colored in the mass (HTS 4707200040) Waste and scrap of paper or paperboard made mainly of mechanical pulp, nesoi (HTS 4707300040) Waste and scrap of paper or paperboard, nesoi, including unsorted waste and scrap (HTS 4707900000) Total 2004 2005 2006 2007 2008 CAGR 2004-2008
15,960
18,735
15,972
14,101
17,026
1.63%
502,643
600,868
657,726
829,661
942,238
17.01%
102,686
130,789
129,940
165,154
140,650
8.18%
121,592
120,150
144,150
220,964
259,371
20.85%
174,652
180,090
182,129
267,240
279,488
12.47%
391,573
412,185
704,697
924,772
916,725
23.70%
$1,309,106
$1,462,817
$1,834,614
$2,421,892
$2,555,498
18.20%
Sustainability of Beverage Cartons and Aseptic Packaging Aseptic packages are lightweight, strong, pack well for shipping, and reduce the need for product refrigeration during shipping, at the retailer, and by the consumer. Their downside from a sustainability perspective for both aseptic packaging and beverage cartons is their recyclability. Although a relatively small component of the waste stream,
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virtually all aseptic packaging ends up in landfills. Only a relatively few facilities in the U.S. offer hydrapulping processes to separate and break down the paper, plastic, and foil components of aseptics and the paperboard and polyethylene film polycoating of beverage cartons. International Aspects Global production of paper, carton, and board is nearly 390 billion tons; SBI estimates that half of this is used for various types of packaging. Outside of the U.S., the countries with the largest production are the China, Japan, Germany, and Canada. Global consumption of paper and paperboard packaging is dominated by Asia, North America, and Western Europe. Asia is the main growth market, due to the Chinese and Indian markets.
Figure 2-6 Global Paper and Paperboard Packaging Consumption by Region (percent)
Oceania 1% Western Europe 19%
Asia 36%
Eastern Europe 5%
North Am erica 28%
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Paper is very recycled worldwide and in increasing amounts. In 2008, the World Business Council for Sustainable Development reported that 2005 production of recovered paper was more than 160 million metric tons, up from 104 million in 1995 and 140 million in 2000.
Figure 2-7 Global Production of Recovered Paper, 2005 (in thousands of metric tons)
60,000
52,078
50,000 40,000 30,000 20,000 10,000
54,775 47,807
4,868 1,516
0 Africa Asia Europe North and Central America South America
Source: World Business Council for Sustainable Development, 2008.
The Outlook for Paper The market for paper packaging will continue to stagnate over the next few years, with a CAGR of 3%. Paper-based food packagings chief competition comes from flexible packaging, including foils, plastic, and mixed materials, and this is expected to increase. Companies using folding cartons will strengthen their emphasis on the packages recyclability and use of recycled content. Aseptic packaging shows strong growth potential, particularly in China, India, and Africa where refrigeration is not as readily available as in the U.S.
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73
Figure 2-8 Projected U.S. Market for Paper Food Packaging Materials, 2009-2013 (in billions of dollars)
5 4.01 4.13 4.28 4.35
3.87
($ billions)
0 2009 2010 2011 2012 2013
Plastic Where the Growth Is

Plastic is a much newer packaging material than paper, metal, or glass; the PET bottle was patented in 1973. Today, over 90% of plastic bottles are made from either polyethylene terephthalate (PET) or high-density polyethylene (HDPE). In addition to bottles, plastic film and sheet is also used for food packaging. Food and beverage containers account for approximately 75% of all plastic packaging, which utilizes every plastic resin. Plastic bottles, containers, and packaging have a symbol either printed or molded on that indicates the type of plastic resin from which the item was made. The resin coding system was introduced in 1988 by the Society of the Plastics Industry (SPI). The presence of the symbol does not mean that the item is recyclable; it only identifies the plastic resin from which the item was made.
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Table 2-8 Plastic Resins Used for Food & Beverage Packaging Resin ID Code #1 Resin Polyethylene terephthalate (PET) Food and Beverage Uses Water, soft drink, juice, and beer bottles; peanut butter jars; vegetable oil containers Milk containers, juice and water bottles, butter/margarine tubs, yogurt containers, cereal box liners Clear food wrap, cooking oil bottles, juice and mineral water bottles Cling/Shrink wrap, squeezable bottles, bread bags, frozen food bags Hot-fill bottles, yogurt cups/tubs, bottle caps, wrappers, syrup and ketchup bottles Egg cartons, meat trays Water bottles, certain food product bottles
#2 #3 #4
High density polyethylene (HDPE) Polyvinyl chloride (PVC) Low density polyethylene (LDPE)
#5 #6 #7
Polypropylene (PP) Polystyrene (PS) Other plastics invented after 1987, including polycarbonate (PC) and polylactide plastics (PLA), multiplayer plastics
There are three primary categories of plastic packaging: Plastic bottles (NAICS 326160) Plastic bottles are used for soft drinks, milk, juice and water, and food. Plastics bags (326111) While mainly composed of grocery bags, this category also includes food packaging bags. Plastics packaging film and sheet, including laminated (NAICS 326112) Plastic films are used by convenience food producers foods that go from freezer to microwave oven, for example. In addition to food packaging sacks and bags, this code includes grocery bags, dry cleaning bags, pallet wrap, and other bags. Shipments of Plastic Packaging The value of U.S. product shipments of plastic packaging was $31 billion in 2008, based on SBI estimates. Shipments of plastic bottles were more than $11 billion in 2008; food and
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beverage packaging accounts for approximately 80%. Plastics show the most growth of all food and beverage container materials, with 7% CAGR from 2004 to 2008.
Table 2-9 U.S. Shipments of Plastic Packaging, 2004-2008(E) (in thousands of dollars) Plastic Packaging Plastics bottle manufacturing (326160) Plastics bag manufacturing (326111) Plastics packaging film and sheet (including laminated) manufacturing (326112) Total 2004 $8,486,507 2005 $9,401,294 2006 $10,081,451 2007(e) $10,585,524 2008(e) $11,114,800 CAGR 2004-2008 6.98%
8,263,473
9,201,094
10,012,501
10,813,501
11,246,041
8.01%
6,497,902
7,474,925
7,713,378
8,099,047
8,423,009
6.70%
$23,247,882
$26,077,313
$27,807,330
$29,498,072
$30,783,850
7.27%
Figure 2-9 U.S. Shipments of Plastic Bottles, 2004-2008(E) (in billions of dollars)
12 10.08 10 Shipments ($ billion) 8.49 8 9.40 10.59
11.11
0 2004 2005 2006 2007(e) 2008(e)
Source: U.S. Dept. of Commerce. Compiled, calculated, and estimated by SBI
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Plastic Imports and Exports

Exports of plastic bottles increased to $641 million in 2008 from $427 million in 2004, an 11% CAGR increase. Imports increased at a faster rate during the period (18% CAGR), but were much lower overall -- $164 million in 2008.
Table 2-10 U.S. Imports and Exports of Plastic Bottles, 2004-2008 (in thousands of dollars) Carboys, bottles, flasks and similar articles of plastic (HTS 3923300010) Imports Exports 2004 $85,252 427,332 2005 $106,497 471,176 2006 $110,024 570,374 2007 $135,866 595,445 2008 $164,363 641,380 CAGR 2004-2008 17.84% 10.68
The Sustainability of Plastic Packaging The biggest downside for plastics is that it is petroleum-based. The biggest positive is its light weight, particularly compared to other packaging materials. Lighter-weight packaging reduces energy and costs related to transportation and distribution. Other positives from a sustainability point of view are its ability to be recycled, reused, and incinerated (valuable from a waste-to-energy perspective). An important innovation in plastic packaging is the development of a square milk jug. By creating a recessed spout with a closure flush to the surface, the jugs can be stacked and shipped with reduced secondary packaging, offering more capacity per shipment, and reducing the number of shipments (affecting related consumption of fuel and emissions). Recycling Plastics Plastic bottles, containers, and packaging have a symbol either printed or molded on that indicates the type of plastic resin from which the item was made. The resin coding system was introduced in 1988 by the Society of the Plastics Industry (SPI). The presence of the symbol does not mean that the item is recyclable; it only identifies the plastic resin from which the item was made. The items recyclability depends on acceptance by the local recycling system or agency. Type 1 (PET) and Type 2 (HDPE) plastic containers are widely accepted by municipal recycling programs. HDPE (Type 4) is sometimes accepted in bag form by recycling
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programs. Type 5 (PP) recycling is less common, and there is virtually no recycling for mixed/layered plastic (Type 7). In 2007, the EPA reported 30.7 million tons of plastics in products in municipal solid waste, of which only 7% was recovered and recycled. Containers and packaging represent the highest tonnage of plastic materials in municipal solid waste 44% or 13.6 million tons. More than one-third of all PET bottles in MSW were recovered, while 28% of HDPE bottles were recovered.
Table 2-11 Plastic Containers and Packaging in U.S. Municipal Solid Waste, 2007 (in thousand tons) Type of Plastic Container or Packaging PET Bottles HDPE Bottles Plastic Wraps Total Total Plastics by Resin PET HDPE PVC LDPE/LLDPE PP PS Other resins Generated 1,010 820 3,180 5,010 13,630 2,960 4,150 410 3,000 2,040 300 770 Discarded 640 590 Neg. 1,230 12,040 2,280 3,580 410 2,690 2,030 280 770 Recovered 370 230 380 980 1,590 680 570 Neg. 310 10 20 Neg. Recovered as Percent of Generated 36.6% 28.0% 11.9% 19.6% 11.7% 23.0% 13.7% Neg. 10.3% 0.5% 6.7% Neg.
Neg. = Less than 5,000 tons or 0.05% of total Source: U.S. Environmental Protection Agency.
The National Association for PET Container Resources reports a steady gross recycling rate since the year 2000, in spite of the pounds of PET bottles collected nearly doubling in that period.
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Table 2-12 U.S. PET Bottle Recycling (in millions of pounds) Year 2000 2001 2002 2003 2004 2005 2006 2007 Total U.S. Bottles Collected 769 834 797 841 1003 1,170 1,272 1,396 Bottles on U.S. Shelves 3,445 3,768 4,007 4,292 4,637 5,075 5,424 5,683 Gross Recycling Rate 22.3% 22.1 19.9 19.6 21.6 23.1 23.5 24.6
A Variety of Uses for Recycled Plastics All types of food and beverage plastics are recycled into other products from new food and beverage containers to plastic lumber and flowerpots to fibers for clothing and upholstery. PET is the most easily and commonly recycled plastic. Although less commonly recycled, there are a variety of uses for post-recycled plastics.
Table 2-13 Uses for Recycled Plastics Resin Type Food and Beverage Uses Water, soft drink, juice, and beer bottles; peanut butter jars; vegetable oil containers Milk containers, juice and water bottles, butter/margarine tubs, yogurt containers, cereal box liners Clear food wrap, cooking oil bottles, juice and mineral water bottles Cling/Shrink wrap, squeezable bottles, bread bags, frozen food bags Hot-fill bottles, yogurt cups/tubs, bottle caps, wrappers, syrup and ketchup bottles Egg cartons, meat trays Post Recycled Product New PET food and non-food containers; polyester, fiberfill, and fleece for sleeping bags, clothing, carpeting, and upholstery; car parts; industrial strapping, sheet, and film; furniture; and luggage. Flowerpots, trashcans, traffic cones, detergent bottles, motor oil bottles, lumber, floor tile, and drainage pipes. Drainage and irrigation pipes, mats and flooring, decking, and paneling. Grocery bags, floor tile, plastic film and sheet, trashcans, lumber, furniture. Plastic lumber, car battery cases, brooms, brushes, scrapers, rakes, pallets and trays. Egg cartons, plastic lumber, flower pots, insulation, take-out food containers, foam packing.
#1 (PET)
#2 (HDPE) #3 (PVC) #4 (LDPE)
#5 (PP)
#6 (PS)
Source: Compiled by Specialists in Business Information.
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Recycled PET is used food and beverage containers, non-food containers, fibers, film and sheet, and strapping. Half of all polyester carpet in the U.S. is made from recycled PET bottles. Dramatic increases in energy prices underscore the economic value of reprocessed PET (RPET), particularly compared to virgin PET (VPET).
Figure 2-10 Uses for Recycled PET, 2007 (percent)
Strapping 16.0% Non-Food Bottles 6.7% Food & Beverage 15.1% Sheet & Film 14.2%
Other 4.2%
Engineered Resin 1.2%
Fiber 42.6%
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Table 2-14 U.S. Use of Reprocessed PET (RPET), 2003-2007 (in millions of pounds) Uses for RPET Fiber Sheet & Film Strapping Engineered Resin Food & Beverage Bottles Non-Food Bottles Other Total 2003 296 32 77 10 106 24 7 552 2004 479 58 116 12 126 63 24 878 2005 463 71 131 8 115 63 13 864 2006 422 74 132 9 139 49 30 855 2007 383 128 144 11 136 60 38 900 CAGR 2003-2007 6.65% 41.42% 16.94% 2.41% 6.43% 25.74% 52.64% 13.00%
Exports of Recyclables Exports are becoming an important market for recycled PET. China and other Asian
countries are the primary drivers of export demand for U.S. PET recyclables; in December 2008, NAPCOR reported that 2007 was the first year in which China purchased more postconsumer PET bottles than did the U.S. and that overseas buyers bought 755 million pounds (54%) of the PET collected in 2007.
Table 2-15 U.S. Imports and Exports of PET Bottles (in millions of pounds) Type Post Consumer Bottle Imports Purchased by Exporters 2003 62 321 2004 106 372 2005 109 489 2006 97 653 2007 100 755 CAGR 2003-2007 12.69% 23.84%
Table 2-16 U.S. Imports and Exports of Recovered PET Waste, parings, and scrap of polyethylene terephthalate (PET) plastics (HTS 3915900010) Imports Exports 2004 25,511 35,413 2005 34,474 48,576 2006 36,198 71,231 2007 33,045 123,636 2008 47,988 149,807 CAGR 2004-2008 17.11% 43.41%
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International Aspects Worldwide, consumption of PET plastics is nearly 18 million tons, a level nearly double the volume of five years ago. The World Packaging Organisation estimates worldwide consumption of rigid plastic packaging at nearly $120 billion, led by Western Europe, Asia, and North America.
Figure 2-11 Global Consumption of Rigid Plastic Packaging by Region
North America 23% South & Central America 7% Africa 3%
Asia 27%
Oceania 1%
Western Europe 28%
Europe is one of the largest plastics producers, with overall production of approximately 40 tons of per year. Packaging is the biggest end-use for plastics in Europe, with 37% of demand.
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Figure 2-12 European End-Use Demand for Plastics
Other 28%
Packaging 37%
Electrical/ Electronics 6% Automotive 8% Building & Construction 21%
Source: PlasticEurope Market Research Group (PEMRG).
Outlook for Plastic Plastic is a key growth area for food and beverage packaging. SBI forecasts shipments to grow by 6% CAGR to 2013, when the market will be close to $18 billion in shipments. Two of the major drivers in the market for plastic packaging will be plastic bottling innovation and export markets. Alcoholic beverages, including liquor and beer, will move toward plastics. MillerCoors sites 10% annual sales growth of beer in plastic bottles. Innovative shapes and lightweighting will continue to be important priorities for plastic packaging. Away-from-home recycling efforts will expand, particularly in entertainment and sporting venues and corporate settings.
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Figure 2-13 Projected U.S. Market for Plastic Packaging Materials, 2009-2013 (in billions of dollars)
20 18 16 14.02
($ billions)
17.52 14.86 15.68 16.56
14 12 10 8 6 4 2 0 2009 2010 2011 2012 2013
Metal Packaging Rigid and Flexible

There are two types of metal packaging: Metal cans (332431) Steel cans are used for food products, accounting for more than 90% of food cans. Aluminum is primarily used for beverage cans. Crowns and closures (332115) Metal crowns are used for glass and metal beverage, condiment, fruits and vegetable containers. Aluminum is the most common material used. Foil packaging (including candy wrappers and closures for bottles and yogurt) Flexible packaging foil manufacturing (322225) Converted unmounted aluminum foil packaging products (332992)
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More than 20% of aluminum shipments go to manufacture aluminum containers and packaging, and of that, 86% goes to beverage cans.
Figure 2-14 U.S. End-Use Demand for Aluminum
Construction 18% Transportation 31%
Electrical/ Electronics 6%
Consum er Durables 7% Packaging 20%
Other 14%
Source: Compiled from several sources by Specialists in Business Information.
Metal cans, both steel and aluminum, offer excellent preservative capabilities and provide protection from light. Over 90% of metal cans, made of steel and aluminum, are used in food and beverage packaging. Metal cans are a popular packaging choice because they can be made in a variety of sizes and shapes. Metals have lost some share of food and beverage containers to plastics, but innovations in technology and design have contributed to growth. Resealable cans, new can shapes and sizes (particularly for energy drinks), and metal bottles (in which contents stay colder longer than in plastic bottles) are some of the innovations in metal containers. Can makers are also working to develop microwavable and self-heating cans.
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Table 2-17 Beverage Can Variations Type Sleek cans Characteristics Elongated 8.3- or 8.4-ounce volume 8-ounce volume 16- and 24-ounce volume Resealable 23.5-ounce volume Wedge container within can releases additives into drink when can is opened Uses New Age beverages Energy drinks Iced coffees Soft-drinks (portion control) Beer and soft drinks JOLT energy drink
Squat/Shorty cans Maxi cans Lug cans
Fresh cans
Nutritional drinks
Shipments of Metal Packaging Metal can shipments have grown due to increases in soft drinks and more recently, by the introduction of energy drinks and development of aluminum bottles. Shipments of crowns and closures have been boosted by the wine industry. Data from the Can Manufacturers Institute show the beverage industrys dominance in use of metal cans; shares are virtually unchanged over the past five years.
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Figure 2-15 End Use Markets for Metal Can Packaging (percent)
Food 17%
Petfood 6% Other 3%
Beverages 74%
Source: Can Manufacturers Institute.
Table 2-18 U.S. Value of Product Shipments of Metal Packaging, 2004-2008(E) (in thousands of dollars) Materials Metal cans (332431) Steel cans and tinware products (3324311) Aluminum (including lids, ends, and parts shipped separately) (3324313) 332115 Crowns and closures (332115) Converted unmounted aluminum foil packaging (332992) Total 2004 $11,251,174 4,477,024 2005 $11,594,842 4,750,658 2006 $12,070,638 4,838,177 2007(e) $12,625,150 4,934,941 2008(e) $13,130,156 5,082,989 CAGR 2004-2008 3.94% 3.22%
6,674,853
6,795,656
7,187,016
7,618,237
7,999,149
4.63%
911,056
977,153
1,035,147
1,097,256
1,174,064
6.55%
858,074 $24,172,181
1,040,908 $25,159,217
1,137,251 $26,268,229
1,250,976 $27,526,560
1,376,074 $28,762,432
12.53% 4.44%
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Can Imports and Exports In 2008, imports of aluminum packaging were more than $1 billion, an 8% CAGR increase from 2004. The fastest growing category were aluminum foil not over 0.2 mm thick (23% CAGR) and aluminum cans more than 355 ml but less than 2.8 liters, with 17% CAGR since 2004. The largest categories of imports were aluminum foil between 0.01 and 0.15 mm thick ($220 million) and aluminum foil less than 0.01 mm thick ($196 million). Export values of aluminum packaging are about two-thirds those of imports, reaching $675 million in 2008. This represents 10% CAGR growth since 2004s $464 million exports. The largest category of exports is aluminum foil less than 0.2 mm thick. The largest category based on growth rate since 2004 is steel cans, at 36% CAGR.
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Table 2-19 U.S. Imports and Exports of Metal Packaging, 2004-2008 (in thousands of dollars) Imports Steel cans closed by soldering or crimping, circular cross section, iron or steel, less than 50 liters, nesoi (HTS 7310210050) Aluminum foil of a thickness not exceeding 0.01mm not backed, rolled but not further worked (HTS 7607113000) Aluminum foil not backed, rolled, not further worked over 0.01mm but not over 0.15mm thick (HTS 7607116000) Aluminum foil can stock, not backed, body stock (HTS 7607119030) Aluminum foil can stock, not backed, lid stock (HTS 7607119060) Aluminum foil not over 0.2 mm thick, not backed, nesoi (HTS 7607119090) Aluminum foil nesoi not backed (HTS 7607196000) Aluminum foil of a thickness not exceeding 0.2mm backed, covered or decorated with a character, design, fancy effect or pattern (HTS 7607201000) Aluminum foil of a thickness not exceeding 0.2mm backed, other than covered or decorated with a character, design, fancy effect or pattern (HTS 7607205000) Other aluminum cans not exceeding 355ml capacity (HTS 7612901030) Other aluminum cans of a capacity exceeding 355ml but less than 3.8 liters (HTS 7612901060) Total 2004 2005 2006 2007 2008 CAGR 2004-2008 -6.92%
$122,164
$112,708
$106,144
$91,852
#91,700
132,761
171,424
192,066
199,295
195,766
10.20%
116,180
144,568
197,198
182,272
219,585
17.25%
73
579
187
52
-8.13%
2,120
112
211
276
395
-34.30%
22,863 93,765
53,642 124,849
55,667 145,789
48,546 146,746
52,108 125,399
22.87% 7.54%
47,901
54,684
48,899
57,623
60,990
6.23%
114,153
128,104
149,251
153,531
142,155
5.64%
73,743
111,591
104,929
96,065
91,727
5.61%
13,989 $739,712
4,402 $906,086
16,809 $1,017,542
14,496 $990,889
25,947 $1,005,824
16.70% 7.99%
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Table 2-19 [cont.] Exports Aluminum cans of a capacity exceeding 355ml but less than 3.8 liters (HTS 7612901060) Aluminum foil of a thickness not exceeding 0.01mm not backed, rolled but not further worked (HTS 7607113000) Steel cans which are to be closed by soldering or crimping, of iron or steel, capacity less than 50 liters, not fit w mechanical or thermal equip not for gas (HTS 7310210000) Aluminum foil not backed, rolled, not further worked, over 0.01mm but not over 0.15mm thick (HTS 7607116000) Aluminum foil, not backed, not over 0.2mm thick, worked (HTS 7607190000) Aluminum foil not over 0.2mm thick, backed (HTS 7607200000) Aluminum foil of a thickness not exceeding 0.2mm not backed, rolled but not further worked nesoi (HTS 7612901030) Total 2004 $13,350 2005 $19,227 2006 $16,240 2007 $1,628 2008 $652 CAGR 2004-2008 -52.99%
38,701
35,641
64,436
55,097
50,308
6.78%
23,396
49,322
67,606
75,959
80,541
36.21%
61,787
61,952
62,924
72,261
92,711
10.68%
70,024 116,317
82,674 124,353
97,527 150,696
90,371 142,248
106,317 145,145
11.00% 5.69%
140,257 $463,832
162,086 $535,255
198,414 $657,843
206,085 $643,649
199,022 $674,696
9.14% 9.82%
Source: U.S. Dept. of Commerce, International Trade Administration. Compiled, calculated, and estimated by Specialists in Business Information.
Sustainability of Metal Packaging Both steel and aluminum cans are easily recyclable and recycled products. Producing
aluminum from recycled materials requires 95% less energy than production from raw materials, making it economically preferable for manufacturers. Every ton of recycled steel saves 2.5 tons of iron ore and half a ton of coal. Aluminum foil is not so commonly recycled; most household recycling programs do not accept aluminum foil (which is usually dirty). Aluminum is very light, this helps to reduce transportation costs and means it is suitable for packaging applications where weight is important.
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Can Recycling Recycling rates for aluminum cans peaked at 67% in 1997. In 2003, aluminum can recycling rates reach a low of 50%; since then, they have grown to 54%, according to the Aluminum Association, the Can Manufacturers Association, and the Institute of Scrap Recycling Industries. The EPA (whose figures do not include imports/exports) reported that 49% of aluminum beer and soft drink cans were recovered in 2007. Also in 2007, 10% of aluminum foils and closures used in containers and packaging and nearly 65% of steel food cans were recovered. In 2008, the Aluminum Association announced a target of a 75% recycling rate for all used beverage cans by 2015. An estimated 1.7 million tons of steel packaging was recovered in 2007 65% of what was generated in municipal solid waste.
Table 2-20 Metal Containers and Packaging in U.S. Municipal Solid Waste, 2007 (thousand tons)
Type of Metal Container or Packaging Steel Food and Other Cans Aluminum Beer and Soft Drink Cans Other Aluminum Cans Aluminum Foil and Closures Total Aluminum Packaging Total
Generated 2,440 1,420 40 410 1,870 6,180
Discarded 870 730 40 370 1,140 3,150
Recovered 1,570 690 Neg. 40 730 3,030
Recovered as Percent of Generated 64.3% 48.6% Neg. 9.8% 39.0% 49.0%
Neg. = Less than 5,000 tons or 0.05% of total Source: U.S. Environmental Protection Agency.
Reuse of Aluminum Recycled aluminum is reused in a variety of products, including beverage containers and automotive engines. The steel industry also uses recycled aluminum for deoxidation during manufacture. Scrap aluminum, including recovered food packaging, accounts for about 30% of the total U.S. aluminum supply; 20% of U.S. supply is imported.
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91
In 2008, the U.S. imported $180 million worth of aluminum used beverage container scrap, up 13% CAGR since 2004. At the same time, the U.S. exported $35 million of aluminum used beverage container scrap a 60% CAGR increase since 2004.
Table 2-21 U.S. Imports and Exports of Metal Packaging, 2004-2008 (in thousands of dollars) Imports Aluminum used beverage container scrap (HTS 7602000030) Exports Aluminum used beverage container scrap (HTS 7602000030) 2004 $110,238 2004 5,370 2005 $130,432 2005 18,834 2006 $177,736 2006 25,097 2007 $154,450 2007 17,816 2008 $179,932 2008 34,918 CAGR 2004-2008 13.03% CAGR 2004-2008 59.69%
International Markets for Metal Packaging Worldwide aluminum production is approximately 45 million tons, of which one-third is recycled aluminum. The European Union and the U.S. are the largest producers of recycled aluminum; China, India, and Russia are the fastest growing producers. Primary aluminum is more commonly produced in the Middle East, Africa, and Australia.
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Figure 2-16 Use of Primary Aluminum by Region, 2007 (percent)

Asia (China excluded) 20% China 32% Rest of the World 9%
North America 18%

Source: European Aluminum Association.
Europe (Russia excluded) 21%
Globally, packaging accounts for 13% of aluminum use.

Figure 2-17 Global End-Use Demand for Aluminum
Packaging 13% Building 25%
Engineering 18%
Transport 28%
Others 16%
Source: The Global Aluminum Recycling Committee.
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World consumption of metal packaging is more than $90 billion, led by North America, Asia, and Europe. The fastest growing areas are the Middle East, Africa, and Eastern Europe.
Figure 2-18 Global Consumption of Metal Packaging by Region
Western Europe 27% Oceania 1% Eastern Europe 6% Middle East 4% Africa 3% Asia 24%
North America 31%

Worldwide, individuals use 26 beverage cans per person per year, with 63% of them being recycled. The U.S. is by far the country with the highest per capita consumption (334 cans), followed by Australia (153) and Japan (140). The countries with the lowest per capita beverage can use are Argentina (5), Germany (6), and France (12). The highest collection/recycling rates are in Brazil (96%), Norway (93%), and Japan (92%), while Portugal (35%), Greece (36%), and France (38%) have the lowest rates.
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Figure 2-19 Global Beverage Can Use Per Capita

400 350 300 250 200 153 150 100 50 0 34 12 6 140 102 99 334
Fr an ce
pa n
al ia
ly
en
A us tr
er m
Ja
Source: The Global Aluminum Recycling Committee.
Outlook for Cans The market for metal-based food and beverage packaging is expected to grow about 4% (CAGR) from 2009-2013. Growth will come from consumer convenience products such as single-serve sizes, easy-open ends, resealable cans, aluminum bottles, and new food and beverage product introductions. Recycling of cans will increase as more away-from-home recycling is available, including retail and office environments. Manufacturers will continue to incorporate recycled products in new cans due to their cost savings and energy efficiency versus processing virgin materials.
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Sw
ed
U .K .
Ita
U .S .
an y
95
Figure 2-20 Projected U.S. Market for Metal Food & Beverage Packaging, 2009-2013 (in billions of dollars)
14 12 10.69 10 ($ billions) 8 6 4 2 0 2009 2010 2011 2012 2013 11.53 11.96 12.4
11.12
Source: SBI.
Glass The Smallest Category

Glass containers (NAICS 327213) primarily used for beer, wine, liquor, and a variety of food products such as condiments, baby food, and jellies, are popular for their sturdiness, purity, and ability to maintain the flavor and integrity of their contents. Glass is the only packaging material rated generally regarded as safe (GRAS) by the U.S. Food & Drug Administration. Shipments of Glass Packaging Glass is the smallest category of sustainable packaging used for food and beverages. Over the last decade, glass has lost share to plastic bottles and cans, which are lighter weight and have less breakage. The most recent significant threat to glass packaging has come from the wine industry, which now offers wine in boxes (with plastic liners or pouches).
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Glass bottles used for foods and beverages make up more than 90% of shipments (by volume) of glass containers. Shipments of glass bottles for food and beverage purposes have decreased over the past five years greater than the rated for all glass containers. Glass bottles used for liquor is the strongest category, with 2% CAGR.
Table 2-22 U.S. Shipments of Glass Containers by End Use, 2004-2008 (thousand gross) End Use of Glass Containers Food Beverages Beer Liquor Ready-to-drink alcoholic coolers and cocktails Wine Total food & beverage Total glass containers 2004 44,919 20,918 135,853 7,449 8,470 12,582 230,191 239,654 2005 43,956 22,340 137,050 8,015 8,458 12,890 232,709 244,892 2006 40,898 21,275 141,353 7,882 6,808 13,091 231,307 241,507 2007 38,380 21,443 147,349 7,741 7,372 13,199 235,484 242,205 2008 36,480 18,878 137,424 8,012 3,546 11,060 215,400 237,648 CAGR 2004-2008 -5.07% -2.53 0.29 1.84 -19.56 -3.17 -1.65% -0.21%
U.S. value of product shipments of glass containers was $4 billion in 2008 virtually unchanged since 2004.
Table 2-23 U.S. Value of Product Shipments of Glass Containers, 2004-2008(E) (in thousands of dollars) Product Shipments of Glass Containers Glass containers (327213) 2004 4,308115 2005 4,225,613 2006 4,459,014 2007(e) 4,403,727 2008(e) 4,320,873 CAGR 2004-2008 0.07%
Glass Imports and Exports

Imports of glass containers have maintained a relatively constant ratio of three times the value of imports since 2004. In 2008, exports of glass containers were $247 million, up from $170 million in 2004 (10% CAGR). Glass container imports increased from $420 million in 2004 to $646 million in 2008 (11% CAGR).
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Figure 2-21 U.S. Imports and Exports of Glass Food & Beverage Packaging, 2004-2008 (in thousands of dollars)
700 574 497 500
($ thousands
646
600
420 400
429
300
222
200
247
170
172
175
100
0 2004 2005 Imports 2006 Exports 2007 2008
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Table 2-24 U.S. Imports and Exports of Glass Packaging, 2004-2008 (in thousands of dollars) Imports Glass containers with or without closures having a mouth with an outside diameter of 38mm or more, of a capacity exceeding 1 liter, nesoi (HTS 7010905005) Glass containers with or without their closures of a capacity exceeding 1 liter, nesoi (HTS 7010905009) Other glass containers with or without closures, over 0.473 liter but not over 1 liter, wide mouth (HTS 7010905015) Other glass containers with or without closures, not wide mouth, over 0.473 liter but not over 1 liter (HTS 7010905019) Other glass containers, with or without closures, wide mouth, over 0.33 liter but not over 0.473 liter (HTS 7010905025) Other glass containers with or without closures, not wide mouth, over 0.33 liter but not over 0.473 liter (HTS 7010905029) Other glass containers with or without closures, wide mouth, over 0.15 liter but not over 0.33 liter (HTS 7010905035) Other glass containers with or without closures, not wide mouth, over 0.15 liter but not over 0.33 liter (HTS 7010905039) Other glass containers with or without closures, wide mouth, over 0.118 liter but not over 0.15 liter (HTS 7010905045) Other glass containers with or without closures, not wide mouth, over 0.118 liter but not over 0.15 liter (HTS 7010905049) Other glass containers with or without closures, not over 0.118 liter (HTS 7010905055) Total 2004 2005 2006 2007 2008 CAGR 2004-2008
$14,747
$10,646
$9,582
$13,493
$11,590
-5.84%
18,871
26,688
32,646
36,346
36,855
18.22%
24,916
23,212
19,313
27,464
15,381
-11.36%
139,233
157,855
197,632
251,780
291,424
20.28%
27,510
14,217
16,497
15,802
21,802
-5.65%
73,202
87,866
113,362
110,664
139,740
17.54%
35,320
14,611
8,111
8,887
15,070
-19.18%
45,384
58,547
66,436
73,473
73,724
12.90%
3,595
4,202
3,973
4,285
3,310
-2.04%
6,092
4,595
4,892
4,327
6,089
-0.01%
31,161 $420,031
26,267 $428,706
24,287 $496,731
27,485 $574,006
30,777 $645,762
-0.31% 11.35%
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Table 2-24 [cont.] Exports Glass containers with or without closures having a mouth with an outside diameter of 38mm or more, of a capacity exceeding 1 liter, nesoi (HTS 7010905005) Glass containers with or without their closures of a capacity exceeding 1 liter, nesoi (HTS 7010905009) Glass containers with or without their closures having a mouth with an outside diameter of 38mm or more, over 0.33 l but not over 1 l capacity, nesoi (HTS 7010905027) Glass containers with or without their closures, of a capacity exceeding 0.33 liter but not exceeding 1 liter, nesoi (HTS 7010905037) Glass containers with or without their closures having a mouth with an outside diameter of 38mm or more, capacity of over 0.15 - 0.33 liter, nesoi (HTS 7010905047) Glass containers with or without their closures, of a capacity exceeding 0.15 liter but not exceeding 0.33 liter, nesoi (HTS 7010905057) Glass containers with or without their closures, of a capacity not exceeding 0.15 liter, nesoi (HTS 7010905060) Total 2004 2005 2006 2007 2008 CAGR 2004-2008
10,374
12,050
14,075
12,521
13,890
7.57%
136,756
136,567
138,097
156,539
186,073
8.00%
421
290
306
22,205
2,260
52.21%
4,693
7,476
1,993
3,108
2,952
-10.94%
244
295
158
190
99
-20.19%
3,297
2,606
2,709
5,514
1,995
-11.80%
2,444 170,071
2,659 172,289
3,639 174,737
6,994 221,831
12,152 246,736
49.33% 9.75%
Sustainability of Glass The recyclability of glass is its main selling point for sustainability. In can be recycled repeatedly; glass packaging can use up to 90% recycled material with no loss of quality or purity. Raw materials used to manufacture glass are also all natural and sustainable. The downside for glass is its weight and breakability, which result in higher transportation costs and need for specialized secondary packaging to protect products during shipment.
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Recycling Glass The 11.5 million tons of glass containers that was generated as municipal solid waste in 2007 represents 5% of all municipal solid waste (MSW). Eighty-two percent (82%) of that more than 9 million tons came from beer, wine, liquor, and soda bottles. More than one-third of beer and soft drink bottles were recycled, compared to only 15% of wine/liquor and food/other bottles and jars. More than 3 million tons or 28% of glass in MSW was recovered in 2007.
Table 2-25 Glass Containers in U.S. Municipal Solid Waste, 2007 (thousand tons) Type of Glass Container Beer and Soft Drink Bottles Wine and Liquor Bottles Food and Other Bottles and Jars Total Glass Containers Generated 7,710 1,670 2,090 11,470 Discarded 5,050 1,420 1,780 8,250 Recovered 2,660 250 310 3,220 Recovered as Percent of Generated 34.5% 15.0 14.8 28.1%
Source: U.S. Environmental Protection Agency.
In late 2008, members of the Glass Packaging Institute (GPI) set a goal of using at least 50% recycled glass in the manufacture of new glass bottles and jars by the year 2013, citing potential energy savings as enough to power 45,000 U.S. households for one year. Reusing Glass Glass containers can be reused numerous times before being recycled or broken down for other purposes. The logistics and direct financial costs of a closed-loop system can be prohibitive, requiring proper sorting, collection, and transport. returned by consumers. Insulation manufacturers rely heavily on recycled glass; fiberglass insulation may contain as much as 40% recycled glass. In September 2008, the North American Insulation Manufacturers Association (NAIMA) said that U.S. insulation manufacturers used almost 300,000 tons of recycled glass per year in the production of thermal and acoustical insulation. Canadas beer industry maintains a closed-loop return system, reporting 97% of returnable/reusable bottles being
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Imports and Exports of Waste and Scrap Glass Both imports and exports of waste and scrap glass have doubled in the past five years, though are at relatively low levels. In 2008, the U.S. exported nearly $30 million of scrap glass, about three times the value of scrap glass imports.
Table 2-26 U.S. Imports and Exports of Glass Packaging, 2004-2008 (in thousands of dollars) Imports Cullet and other waste and scrap of glass (HTS 7001005000) Exports Cullet and other waste and scrap of glass; glass in the mass (HTS 7001000000) 2004 $5,290 2004 11,842 2005 $5,822 2005 10,346 2006 $7,373 2006 13,760 2007 $9,527 2007 14,760 2008 $10,150 2008 27,315 CAGR 2004-2008 17.69% CAGR 2004-2008 23.24%
International Markets The world market for container glass is approximately $35 billion. Asia is the largest region for glass packaging consumption, accounting for 32%; China is the largest market, followed by the U.S.
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Figure 2-22 Global Glass Packaging Consumption by Region (percent)

Africa 3%
North America 15%
Western Europe 22%
South and Central America 5%
Oceania 3% Asia 32%

The Outlook for Glass Given that the majority of conversion to plastic packaging is assumed to have occurred already, the market for glass packaging in the food and beverage industry will remain decline slightly over the next five years. The industry will continue to feel considerable pressure from plastics and aluminum manufacturers; aluminum cans and bottles and plastic bottles will continue to make inroads in areas that had been exclusive to glass. The liquor industry is turning to plastic; wine makers use a variety of package-types, including cans and flexible packaging (wine-in-a-box); and beer and soft-drink manufacturers have introduced aluminum bottles. The glass industry will be supported by the growth of organic and natural products. These are fast growing market segments for glass packaging, growing at an annual rate of 20%, according to the Organic Trade Association. While providing flavor protection and other functional benefits, glass conveys product quality and differentiates the product at retail with some innovative designs.
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The value of shipments of glass packaging is expected to decrease 1% (CAGR) from 20092013, reaching $2.5 billion in 2013.
Figure 2-23 Projected U.S. Market for Glass Food & Beverage Packaging, 2009-2013 (in billions of dollars)
3 2.60 2.58 2.57 2.53 2.48
($ billions)
0 2009 2010 2011 2012 2013
Flexible The Next Big Thing

Flexible packaging includes bags and pouches and may be made from paper, foil, plastic, or a combination of materials. The materials that make up flexible packaging include Coated and laminated packaging paper and plastics film (NAICS 322221) Although this is a paper-based code, materials include foil and plastic film. Plastics packaging film and sheet (including laminating) (NAICS 326112) Plastics films are generally defined as being less than 0.010 inches in thickness, whereas plastics sheet is thicker. Laminated Aluminum Foil Manufacturing for Flexible Packaging Uses (322225) These materials are used to produce: Plastics, foil, and coated paper bags (322223)
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Single-web film specialty bags, pouches, and liners (3261111) Multi-web film/film combination specialty bags, pouches, and liners (3261113)
Flexible packaging is designed to be space-saving, lightweight, tamper-evident, convenient and disposable. It is used for rice, meats and seafood, yogurt, pudding, fresh produce, snack foods, baked goods, nutritional bars, frozen foods, boil-in bag foods, ice, and cheese. The Flexible Packaging Association puts annual U.S. sales of flexible-packaging industry $26 billion, with value-added flexible packaging accounting for $20 billion. Value added packages are more highly converted manufactured products; they may have enhanced graphics, reclosable seals, stand-up structures, handles, etc. that differentiate them from simple bags and wraps. Retail food packaging accounts for 60% of value added flexible packaging and 46% of all flexible packaging.
Figure 2-24 U.S. End-Use Market for Flexible Packaging (percent)
Institutional Institutional Food Non-Food 6% 5% Consumer Products 10%
Retail Poly Bags 7%
Retail Food 47%
Industrial 9% Medical/ Pharma 7%
Retail NonFood 9%
Source: Flexible Packaging Association
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Shipments of Flexible Packaging U.S. shipments of flexible packaging materials have increased 5% (CAGR) since 2004, to nearly $12 million in 2008. Flexible packaging product shipments (bags, pouches, and liners) were just over $12 billion in 2008, up 9% CAGR since 2004.
Table 2-27 U.S. Shipments of Flexible Packaging, 2004-2008(E) (in thousands of dollars) Materials Coated and laminated packaging materials (322221) Laminated Aluminum Foil Manufacturing for Flexible Packaging Uses (322225) Plastics packaging film and sheet (including laminated) manufacturing (326112) Total Products Plastics, foil, and coated paper bags (322223) Single-web film specialty bags, pouches, and liners (3261111) Multi-web film/film combination specialty bags, pouches, and liners (3261113) Total 2004 $1,435,273 2005 $1,321,566 2006 $1,483,497 2007(e) $1,587,342 2008(e) $1,587,342 CAGR 2004-2008 3.81%
1,369,534
1,419,309
1,350,791
1,418,331
1,482,155
2.00%
6,497,902 $9,302,709 2004 596,435 7,339,118
7,474,925 $10,215,800 2005 654,182 8,099,765
7,713,378 $10,547,666 2006 646,642 8,536,710
8,099,047 $11,104,720 2007(e) 659,575 8,792,811
8,423,009 $11,492,506 2008(e) 672,766 9,056,596
6.70% 5.43% CAGR 2004-2008 3.06% 5.40%
659,492 $8,595,045
776,459 $9,530,406
1,162,189 $10,345,541
1,743,284 $11,195,670
2,440,597 $12,169,959
38.70% 9.08%
U.S. Imports and Exports of Flexible Packaging U.S. imports of flexible packaging are nearly $900 million per year, having grown at 12% (CAGR) since 2004. Exports of flexible packaging are nearly the same, with 10% CAGR since 2004.
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Table 2-28 U.S. Imports and Exports of Flexible Packaging, 2004-2008 (in thousands of dollars) Imports Reclosable sacks and bags (including cones) of polymers of ethylene with no single side exceeding 75mm in length (HTS 3923210011) Reclosable sacks and bags (including cones) of polymers of ethylene with integral extruded closure, nesoi (HTS 3923210019) Sacks & bags(including cones) of polymers of ethylene, with on single side exceeding 75mm in length, nesoi (HTS 3923210080) Shipping sacks and multi-wall bags, other than grocers' bags, having a base width of 40 cm or more, of paper (HTS 4819300020) Shipping sacks and multi-wall bags, other than grocers' bags, having a base width of less than 40 cm, of paper (HTS 4819400020) Sacks and bags, including cones, having a base width of less than 40 cm, of paper, nesoi (HTS 4819400040) Reclosable sacks and bags (including cones) of polymers of ethylene with no single side exceeding 75mm in length (HTS 3923210011) Reclosable sacks and bags (including cones) of polymers of ethylene with integral extruded closure, nesoi (HTS 3923210019) Total 2004 2005 2006 2007 2008 CAGR 2004-2008
$4,648
$7,390
$6,810
$8,936
$10,499
22.59%
125,794
168,891
180,267
241,571
299,025
24.17%
16,945
25,427
15,108
11,408
10,482
-11.31%
42,414
51,417
74,099
70,571
77,574
16.29%
27,804
29,720
32,956
38,027
39,212
8.98%
342,928
381,305
420,393
438,383
440,634
6.47%
4,648
7,390
6,810
8,936
10,499
22.59%
125,794 $560,533
168,891 $664,151
180,267 $729,631
241,571 $808,896
299,025 $877,426
24.17% 11.85%
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Table 2-28 [cont.] Exports Sacks & bags (including cones) of polymers of ethylene (HTS 3923210000) Sacks & bags (including cones) of other plastics (HTS 3923290000) Shipping sacks and multi-wall bags, other than grocers' bags, having a base width of 40 cm or more, of paper (HTS 4819300020) Shipping sacks and multi-wall bags, other than grocers' bags, having a base width of less than 40 cm, of paper (HTS 4819400020) Sacks and bags, including cones, having a base width of less than 40 cm, of paper, nesoi (HTS 4819400040) Total 2004 $318,786 205,875 2005 $375,583 220,912 2006 $467,355 257,490 2007 $477,240 262,744 2008 $508,896 278,912 CAGR 2004-2008 12.40% 7.89%
16,323
13,001
13,893
12,898
13,454
-4.72%
27,128
20,660
19,245
19,247
26,591
-0.50%
42,561
52,870
57,880
58,415
64,296
10.86%
$610,673
$683,027
$815,860
$830,543
$892,149
9.94%
Sustainability of Flexible Packaging Products packaged in flexible packages, such as bags, pouches, wraps, and foils, are considered better environmental choices over rigid packaging forms, as less packaging material is used for their manufacture, reducing the volume that has to be recycled or discarded after use. Flexible packaging also uses less energy than paperboard, glass, or aluminum in the manufacturing process. Flexible packagings light weight and flexibility reduce transportation costs by allowing higher product-to-packaging ratio, more product per shipment, and requiring less energy per shipment. Flexible packaging is not easily (and therefore not commonly) recycled, meaning most flexible packaging winds up as municipal solid waste. It can, however, be a positive contribution to waste-to-energy programs, providing high BTU fuel content.
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The Outlook for Flexible Packaging Flexible packaging will continue to expand its niche in food packaging, particularly for convenience, single-serve, and on-the-go foods. vegetables, for example) will also drive growth. Flexible packaging is the fastest growing food and beverage packaging material, projected to grow 6% (CAGR) over the next five years. Due to its lower cost and lighter weight, flexible packaging will continue to replace rigid packaging for a variety of foods, including rice, meats, and tuna. More and more foods will find stand-up pouches and retort packaging an attractive alternative to traditional packaging. Single-serve packaging, on-the-go foods, and convenience foods will also drive demand.
Figure 2-25 Projected U.S. Market for Flexible Food & Beverage Packaging, 2009-2013 (in billions of dollars)
Product innovation, such as bags and
pouches in which food is both stored and cooked (microwaveable rice and steamed
9 8 7 ($ billions) 6 5 4 3 2 1 0 2009 2010 2011 2012 2013 4.6 4.88 5.18 5.48 5.78
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RECYCLING
Recycling is Not Accessible Everywhere According to the 2007 AF&PA Community Survey by the American Forest & Paper Association, 87% of the U.S. population (268 million people) has access to curbside or dropoff recycling programs, although they may not necessarily use it. The U.S. Environmental Protection Agency (EPA) indicates regional variations in populations served by curbside recycling. In 2007, there were 8,659 curbside recycling programs in the U.S., with 3,299 in the Northeast and 3,749 in the Midwest. The West was served by 814 programs; the South had the fewest, with 797. Nearly 85% of the population of the Northeast had curbside recycling (the highest rate), while only 30% of people in the South had curbside recycling. Every two years, the U.S. Environmental Protection Agency issues its detailed report on municipal solid waste. The latest report, issued in December 2008, indicates that in 2007, one-third of all municipal solid waste 85 million tons was recycled.
Figure 2-26 Management of U.S. Municipal Solid Waste, 2007 (percent)
Recovery 33%
Discarded 54%
Combustion with Energy Recovery 13%
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Containers and Packaging in Municipal Solid Waste Containers and packaging represent nearly one-third of all municipal solid waste products 78.5 million tons in 2007. The next largest category is nondurable goods (25%), followed by durable goods, yard trimmings, and food scraps.
Figure 2-27 Categories of U.S. Municipal Solid Waste, 2007 (percent)
Containers & Packaging 30.9%
Food Scraps 12.5%
Yard Trimmings 12.8%
Other Waste 1.5% Nondurable Goods 24.5%
Durable Goods 17.9%
Source: U.S. Environmental Protection Agency Office of Solid Waste
Overall, 43% of containers and packaging (by weight) generated in municipal solid waste were recovered for recycling in 2007. Steel and paper packaging were the leading materials, although corrugated containers accounted for most of the paper content. The least recovered packaging was plastic.
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Figure 2-28 U.S. Recovery of Containers and Packaging Products in Municipal Solid Waste, 2007 (percent of generation)
70 60 50 (percent) 40 30 20
64.6
62.4
39.0
28.1
11.7 10 0
Steel Aluminum Glass Paper/Paperboard Plastics
Source: U.S. Environmental Protection Agency Office of Solid Waste
Prices of recyclables track closely to economic cycles and can be very volatile. This was demonstrated in 2008, when the Chinese cut back on purchases due to factory shutdowns for the 2008 Olympics. Weakened demand weakened prices for materials. The expanding economies of India and China are expected to strain demand for materials, increase the value and price of both raw and recycled materials.
Food Packaging Market Projections

Even though the U.S. market for food packaging and packaging materials is a mature one, there are opportunities for growth. Function and convenient foods and packaging will lead growth. New product introductions can provide extraordinary opportunity, as was demonstrated by energy drinks. In the coming years, packagers will increase their emphasis on source reduction, such as lightweighting containers and closures, eliminating secondary packaging and replacing rigid packaging with flexible packaging.
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International markets, particularly India and China, offer potential as well as competition.
Table 2-29 Projected U.S. Market for Food & Beverage Packaging by Segment, 2009-2013 (in billions of dollars) Segment Paper Plastic Metal Glass Flexible Total 2009 $3,869,140 14,015,185 10,692,254 2,595,116 4,599,510 $35,771,205 2010 $4,008,237 14,856,096 11,116,835 2,582,141 4,880,382 $37,443,690 2011 $4,126,011 15,684,877 11,530,105 2,569,230 5,179,241 $39,089,464 2012 $4,276,052 16,560,882 11,959,850 2,530,691 5,484,566 $40,812,042 2013 $4,352,389 17,520,690 12,395,050 2,480,078 5,777,008 $42,525,215 CAGR 2009-201 2.99% 5.74 3.76 -1.13 5.86 4.42%
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Chapter 3: Trends & Factors to Growth
Chapter 3
Trends and Factors to Growth
The basic function of packaging is product protection keeping product fresh, safe, and undamaged. Secondarily, it can serve as a marketing tool to draw consumers attention. Food and beverage packaging produced with sustainability considerations efforts to reduce the environmental impact of the packaging can also help sell a product. Thus, sustainability is driven by a number of concerns environmental, economic, social, and political. All are important and all of these play a role in the sustainability of food and beverage packaging. The basic premise of sustainability in packaging is attention to environmental concerns. At the same time, forces driving U.S. companies to focus on sustainability are primarily economic. Companies are managing raw materials, manufacturing, and distribution based on direct and indirect impact on the bottom line. In 2008, consulting firm A.T. Kearney issued a report, Rattling Supply Chains: The Effect of Environmental Trends on Input Costs to the Fast Moving Consumer Goods Industry, predicting that environmental factors would lead to price increases that would dramatically reduce the bottom lines of food and beverages companies. The report describes ecoflations effect on commodities such as oil, natural gas, electricity, timber, and others and recommends more attention to environmental consequences in policies and practices. Specific trends and drivers for the industry include: The economy energy and raw material prices are key factors Technology/Innovation Government Policy/Regulation/Legislation The Wal-Mart effect creating standards for suppliers Consumer attitudes and behaviors toward products, processes, and companies International perspectives
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Packaging and food and beverage companies are in business to make money. They manage their businesses toward that goal, from the top down. In 2008, the Flexible Packaging Association noted that that nearly two-thirds of U.S. consumer packaged goods (CPG) companies expected to change their packaging within the next year with sustainability being a key consideration. A 2007 study conducted by Deloitte Consulting LLP for the Grocery Manufacturers Association (GMA) found that 85% of companies surveyed have active sustainability initiatives. More than 60 percent of the companies surveyed said that those initiatives were based on internal priorities such as reducing costs and availability of supplies/raw materials; secondary concerns were regulatory compliance.
The Economy
Virtually every sector of the economy is affected by energy and transportation costs. These are factored into the cost of production, ultimately affecting the cost of packaging and the cost of the product. Packaging requires significant amounts of energy to manufacture, and the costs of industrial electric power have risen steadily over the past several years. The average annual Producer Price Index for industrial electric power increased nearly 30% from 2004-2008; the average annual index was up 5% in 2008.
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Figure 3-1 Average Annual Producer Price Index Industrial Electric Power (not seasonally adjusted), 2004-2008
200 180 160 140 120 100 80 60 40 20 0 2004 2005 2006 2007 2008 147.2 156.2 172.8 189.3
180.4
Source: U.S. Dept. of Commerce.
Average annual prices for industrial natural gas have risen dramatically over the past several years. The unadjusted average annual PPI rose 39% from 2004-2008. In 2003, the index was at 180.5 making the change from 2003-2008 a remarkable 56%.
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Figure 3-2 Average Annual Producer Price Index Industrial Natural Gas (not seasonally adjusted), 2004-2008
300
281.0 249.4 246.2 242.3
250
201.7
200 150 100 50 0 2004 2005 2006 2007 2008
Rising costs for gasoline and diesel fuel make shippers anxious to find ways to maximize the efficiency of product distribution. packagers. From 2004-2008, consumer prices for regular unleaded gasoline increased 74%, reaching an average annual price of $3.27 in 2008. Diesel prices more than doubled during the period, from $1.92 to $3.93. Minimizing load weights while still protecting the integrity of the product is a major concern and consideration of food and beverage product
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Figure 3-3 Average Annual Price for Gasoline and Diesel, 2004-2008
$5.00
$4.00 3.27 $3.00 2.52 2.30 $2.00 1.88 1.92 2.59 2.81 2.80 2.96
3.93
$1.00
$0.00 2004 2005 Gasoline

2006 Diesel
2007
2008
Increases in oil prices affect plastics packagers and increase their demand for recycled materials. Producer Price Indices Paper Packaging The Producer Price Indices for food packaging reflect the overall inflationary price trends. Average annual price index increases (not seasonally adjusted) from 2004-2008 are: Folding paperboard boxes (322212) 3.8% Setup paperboard boxes (322213) 13.7% Surface-coated paperboard boxes (322226) 15.3%
Recent and current Producer Price Index data is not available for milk and milk-type paperboard cartons.
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Figure 3-4 Average Annual Producer Price Index Paperboard Boxes (not seasonally adjusted), 2004-2008
250 197.9 189.1 148.7 206.3 194.8 151.5
200
179.0 171.4 145.9
175.9 147.4
184.7
187.4 183.8 146.2
150
100
50
0 2004 2005 Folding

2006 Setup
2007 Surface-coated
2008
Producer Price Indices Plastic Packaging The Producer Price Index for plastic bottles actually fell slightly in 2007, but increased 7% in 2008. Since 2004, the index for plastic bottles has increased 23%.
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Figure 3-5 Average Annual Producer Price Index Plastic Bottles (NAICS 326160), not seasonally adjusted, 2004-2008
160 143.2 140 120 100 80 60 40 20 0 2004 2005 2006 2007 2008 116.2 129.4 134.7 133.4
The average annual Producer Price Index for single web plastic film increased 39% from 2004-2008. In 2008 alone, the index rose 15%. The index for multi-web film increased 11% in the 2004-2008 period, rising 8% in 2008.
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Figure 3-6 Average Annual Producer Price Index Plastic Film and Sheet (NAICS 326111 and 326112), not seasonally adjusted, 2004-2008
200 180 160 140 120 100 80 60 40 20 0 2004 2005 Single web
182.6 144.7 131.2 147.8 148.2 157.5 150.1 159.3 161.3 149.7
2006
2007 Multi-web
2008
Producer Price Indices Metal Packaging The average annual Producer Price Index for aluminum cans increased 21% from 2004-2008, while the index for steel food and beverage cans increased by 29%. The index for steel cans rose 10% in 2008 alone.
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Figure 3-7 Average Annual Producer Price Index Metal Cans (NAICS 332431), not seasonally adjusted, 2004-2008
160 140 120 100 80 60 40 20 0 2004 2005 Aluminum cans
137.5 117.5 106.2 94.7 98.7 99.9 121.9 124.9 109.4 114.8
2006 Steel cans
2007
2008
The average annual Producer Price Index for metal crowns and closures rose 18% from 154.5 in 2004 to 182.1 in 2007. As of this time, no post-2007 data is available.
Figure 3-8 Average Annual Producer Price Index Metal Crowns & Closures (NAICS 332115), not seasonally adjusted, 2004-2007
185 180 175 170 165 160 155 150 145 140 2004 2005 2006 2007
182.1
171.4 164.7
154.5
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The average annual Producer Price Index for aluminum foil packaging rose 44 % from 109.6 in 2004 to 157.7 in 2008. The index rose 14% in 2005 and 13% in 2006 before slowing to 9% in 2007 and 2% in 2008.
Figure 3-9 Average Annual Producer Price Index Converted Unmounted Aluminum Foil Packaging Products (NAICS 332992), not seasonally adjusted, 2004-2008
180 160
140.5 154.2 124.6 109.6 157.7
140 120 100 80 60 40 20 0 2004
2005
2006
2007
2008
Producer Price Index for Glass Containers The average annual Producer Price Index for glass containers increased 19% from 20042008. The index rose more than 6% in 2008 to reach 169.5.
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Figure 3-10 Average Annual Producer Price Index Glass Containers (NAICS 327213), not seasonally adjusted, 2004-2008
175 170 165 160 155 150.2 150 145 140 135 130 125 2004 2005 2006 2007 2008 142.0 143.9 159.3 169.5
Producer Price Indices Flexible Packaging The average annual Producer Price Index for single-web coated and laminated packaging materials increased 14% from 2004-2008. Data collection for multi-web laminated rolls and sheets began in July 2006 (not seasonally adjusted index of 109.6) and reached an annual average of 118.5 in 2008 (up 7% from 2007).
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Figure 3-11 Average Annual Producer Price Index Coated and Laminated Packaging Materials (NAICS 322221), not seasonally adjusted, 2004-2008
180 160 140 120 100 80 60 40 20 0 2004 2005 Single web
164.3 146.7 155.0
165.5
167.1
110.9
118.5
2006 Multi-web
2007
2008
The Producer Price Index for specialty bags, pouches, and liners, multi-web laminations and foil, except film was discontinued after June 2007. The index for June 2007 was 190.8.
Figure 3-12 Average Annual Producer Price Index Specialty Bags, Pouches & Liners, Multi-Web Laminations & Foil, Except Film-Film (NAICS 322223), not seasonally adjusted, 20042006
195 190 185 180 175 170 165 160 155 150 145 140 2004 2005 2006
160.5 184.2 192.1
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The Producer Price Index for flexible packaging foil increased 8%, from 114.7 in 2004 to 123.7 in 2008.
Figure 3-13 Average Annual Producer Price Index Flexible Packaging Foil (NAICS 322225), not seasonally adjusted, 2004-2008
126 124
122.1 123.7
122 120 118 116 114 112 110 2004 2005 2006 2007 2008
115.5 114.7 119.6
Producer Price Index data for multi-web film/film combination specialty bags, pouches, and liners is only available after June 2007. In July 2007, the index was 115.3; the annual average for 2008 was 129.9. The average annual Producer Price Index for single-web film specialty bags, pouches, and liners rose from 161.1 in 2004 to 222.8 in 2008. This is a 32% increase over the period; 2008 represented a one-year 14% increase.
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Figure 3-14 Average Annual Producer Price Index Plastic Bags (NAICS 322221), not seasonally adjusted, 2004-2008
250
222.8 198.2 182.9 161.1 195.0
200
150
129.9
100
50
0 2004 2005
Single web
2006
Multi-web
2007
2008
Recycling Costs The market for recycled materials can be volatile and affected by general economic conditions as well. Prices for many recycled products were at all-time highs in 2008. With the dramatic downturn of the U.S. economy in the fourth quarter of 2008 came equally dramatic price drops of as much as 90%. In some markets, prices for mixed paper and cardboard were reported to have fallen to $25 or less per ton from $105 per ton. Prices for plastic bottles fell from 25 cents to 2 cents per pound. Aluminum can prices fell from 80 cents per pound to 40 cents. The average annual Producer Price Index for used beverage can scrap was virtually unchanged in 2007 and 2008 after a 35% increase in 2006 and a 12% increase in 2004.
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Figure 3-15 Average Annual Producer Price Index Used Beverage Can Scrap, not seasonally adjusted, 2004-2008
300 253.3 250 187.9 168.3 150 255.7 256.2
200
100
50
0 2004 2005 2006 2007 2008
Regulation
Environmental and recycling regulations are much stronger internationally than in the U.S., where most legislation occurs on a local level. There is no federal legislation in the U.S. that specifically addresses sustainability issues of packaging. In 1976, Congress enacted the Resource Recovery and Conservation Act (RCRA) to address problems from the growing volume of municipal and industrial waste. RCRA amended the Solid Waste Disposal Act of 1965 and set national goals for: Protecting human health and the environment from the potential hazards of waste disposal. Conserving energy and natural resources. Reducing the amount of waste generated. Ensuring that wastes are managed in an environmentally sound manner.
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Although federal legislation, RCRA leaves it to the states to develop comprehensive plans to manage nonhazardous industrial solid waste and municipal solid waste, set criteria for municipal solid waste landfills and other solid waste disposal facilities, and prohibit the open dumping of solid waste. In 2002, the U.S. Environmental Protection Agency issued the Resource Conservation Challenge (RCC) to prevent pollution and conserve natural resources and energy by managing materials more efficiently. The RCC is a national program that reinforces the EPAs message of reducing, reusing, and recycling valuable materials habitually discarded by American industry and the general public by linking the importance of these activities to energy conservation and greenhouse gas (GHG) reductions. Regarding municipal solid waste, the challenge is to recycle 35% of America's municipal solid waste. This is in contrast to a 2004 directive issued by the European Union that by December 31, 2008, Europeans must recover 60% of all packaging waste and have an overall recycling level of 55%. Regulation of Packaging Claims The Federal Trade Commission regulates environment-related labeling and has very specific guidelines regarding terminology. Distinction between Product and Packaging: Any claim of eco-friendliness should indicate whether it refers to the product itself, the packaging, or a part of both. If the property is applicable to the entire product or its packaging except incidental components, claims need not be backed. However, if these incidental components hamper the recycling property of the packaging or the product, then the claim is deemed deceptive. Overstatement of Environmental Attributes: The environmental benefits of a product or packaging material may not be stated literally or implied in a way that misrepresents or grossly exaggerates the true benefits; for instance, marketers claiming doubling or tripling of recycled packaging material, although the original proportion itself is negligible. Comparative Claims: If a claim is being made, it should be clear whether the comparison is with respect to a competitor or a product previously introduced by the
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same marketer. For instance, the claim 20% more recyclable does not reveal a clear comparison. Environmental Claims: General environmental benefits may include various
aspects including recycling or composting. Claims such as environment-friendly, eco-safe, non-toxic, environmentally-preferable, do not indicate how exactly a packaging material or product is environmentally responsible and is confusing and deceptive to the consumer. Hence, unless substantiated, general unqualified claims cannot be made. Degradable/Biodegradable: If a packaging material or product is claimed to be degradable or biodegradable, the rate of degradation and the readiness of the product to decompose in an environment where it would be generally disposed, should prove the same. Claims of degradability that do not support both these aspects can be deemed deceptive. Claims for composting are treated similarly. Marketers must state if the packaging or product is compostable in a home composting arrangement or a municipal composting facility. It is possible that certain materials will not readily compost in a home compost setup, which would indicate the labeling as deceptive. Recyclable: A packaging material or a product can be deemed recyclable only if it can be recovered from solid waste for reuse in the making of another packaging material or product. A marketer may make unqualified claims about the packaging materials or products ability to be recycled only if it can be recycled entirely excluding incidental components. However, if incidental components thwart the recycling properties of the product then it can be deemed deceptive. In addition, the shape or size of the product should not hamper the recycling process in a recycling facility. Claims for recycled content must specify whether the entire product is made from recycled materials or only certain components. Moreover, it is essential to disclose if the material is recycled pre-consumer or post-consumer use. Refillable: A packaging material cannot be deemed refillable if consumers themselves have to establish ways in which they may refill the package. Unqualified claims for the same can be made only if the marketer can offer facilities for the collection of the packaging so that it may be refilled.
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Ozone Safe/Ozone Friendly: A product can be deemed ozone safe or ozone friendly only if it does not contain any ozone-depleting substances or chemicals listed in the Clean Air Act Amendment, 1990. For instance, a product may be classified as ozone friendly since it does not contain chlorofluorocarbons (CFC). Yet, if it contains hydro chlorofluorocarbons (HCFC), which is listed as an ozone-depleting substance, it is deceptive to label it ozone friendly.2
Deposit Laws/Bottle Bills The most stringent consumer packaging regulations in the U.S. are mandatory deposit laws, which are in place in 10 states. Bottle bills, also known as container deposit laws, require a deposit be paid by the consumer for beverages sold in bottles and cans, which is refunded when the container is returned for recycling. Eleven states have container deposit laws: California Hawaii Massachusetts Oregon Connecticut Iowa Michigan Vermont Delaware Maine New York
FTC: Environmental Marketing Claims - www.ftc.gov/bcp/conline/pubs/buspubs/epaclaims.htm
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Several states have active campaigns for new deposit laws: Florida Maryland New Hampshire New Jersey New Mexico Tennessee West Virginia
The deposit system in California comes closest to European producer-pays systems. In California, consumer-goods manufacturers have to pay recycling fees to the state Department of Conservation. These fees are roughly based on the cost of recycling minus the value of the collected material. Retailers who accept used packaging and waste haulers who pick it up curbside are eligible for reimbursement from the state.
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Table 3-1 State Bottle Bills State Beverages Covered

Beer, malt, wine & distilled spirits, coolers, all nonalcoholic beverages except milk Beer, malt, carbonated soft drinks, carbonated mineral water Beer, malt, ale, soft drinks, mineral water, soda water Beer, mixed spirits, mixed wine, coffee & teas, carbonated soft drinks, water. Excludes dairy, wine, and liquor Beer, carbonated soft drinks & mineral water, wine coolers, wine & liquor Beer, malt, carbonated soft drinks, & mineral water
Containers Covered
Aluminum, glass, plastic and bimetal. Exempts refillables Any individual, separate, sealed glass, metal or plastic bottle, can, jar or carton containing a beverage. All beverage containers under 2 quart Excludes aluminum
Deposit
Reclamation System
State certified redemption centers, registered curbside operations, drop-offs
Unredeemed Deposits
Property of state; used for program administration and grants to non-profits
Redemption Rates
Overall 61%; aluminum 73%; glass 58%; PET 46%; HDPE 51%
California
10: >24oz. 5: <24oz.
Connecticut
Retail stores and redemption centers
Retained by distributor/ bottler
No statistics available
Delaware
Retained by distributor/ bottlers
Hawaii
Metal, glass, PET, or HDPE container containing 64 fluid ounces or less any sealed glass, plastic, or metal bottle, can, jar or carton containing a beverage Any sealable bottle, can, jar, or carton of glass, metal, plastic, or combo. Excludes biodegradables. All sealed containers made of glass, metal or plastic, containing 4 liters or less, excluding aseptics
State certified redemption centers (RC), [c]
Property of state; used for program administration
Iowa
Overall 93%
Massachusetts
Retail stores and redemption centers Retail stores and redemption centers; Dealers may refuse containers if they have an agreement with a nearby redemption center
Property of state general fund
Overall 68.6%
Maine
All beverages except dairy products and unprocessed cider
Wine/liquor: 15 All others: 5
Property of state
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Table 3-1 [cont.] State Beverages Covered

Beer, soft drinks, carbonated & mineral water, wine coolers, canned cocktails
Containers Covered
Any airtight metal, glass, paper, or plastic container, or a combination, under 1 gallon Airtight metal, glass, paper, plastic, or combination of the above, under 1 gallon Any individual, separate, sealed glass, metal or plastic bottle, can, jar containing a beverage
Deposit
Reclamation System
Unredeemed Deposits
75% to state for environmental programs, 25% to retailers
Redemption Rates
Michigan
10
Retail stores
Overall 97.3%
New York
Beer, malt, carbonated soft drinks & mineral water, wine coolers
Beer - 77.4% Soft drink 61.6% Overall - 70.2%
Oregon
Beer, malt, carbonated soft drinks. Bottled water beginning in 2009
Standard refillable: 2; All others 5
Retail stores
Overall 84%
Vermont
Beer, malt, carbonated soft drinks, mixed wine drinks; liquor
Any bottle, can, jar or carton composed of glass, metal, paper, plastic or any combination (biodegradables excluded)
Liquor: 15 All others: 5
Retail stores and redemption centers. If retailer is located conveniently near a licensed center and thereby gains state approval, retailer may refuse containers
Overall 90-95%
Source: BottleBill.org.
Extended Producer Responsibility The Organization for Economic Cooperation and Development (OECD) defines Extended Producer Responsibility (EPR) as a strategy designed to promote the integration of environmental costs associated with products throughout their life cycles into the market price of the products. EPR programs have been implemented in Europe, the U.S., Canada, Taiwan, Japan, and Korea. EPR is designed to reduce the consumer goods waste stream and to shift the responsibility for waste from government to private industry by requiring companies to be financially and/or
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physically responsible for their products after their useful life, ensuring their reuse, recycling or in energy production. The goal of EPR is to have companies considers the entire life cycle of a product, from design to disposal, to identify strategic opportunities for resource conservation and pollution prevention. In some areas, mostly on the local level in the U.S., EPR is being enacted to shift waste management costs away from local governments.
Consumer Attitudes and Behaviors

American consumers are fairly consistent in expressing their concern for the environment, including the importance of recycling, conserving energy and materials, reducing waste, and limiting pollution. Their behaviors often contradict their expressed concerns, however, as convenience and price (of both purchase and disposal) become inhibiting factors in purchasing products with a high sustainability factor. Ultimately, it seems that the producers have the most influence on the sustainability of packaging. Consumers are more likely to respond to product characteristics than to drive them; consumers feel that manufacturers bear primary responsibility for environmental packaging concerns. Sustainable = Recyclable Manufacturers and retailers are increasingly offering and publicizing eco-friendly products. Eco-friendly labels appeal to consumers, but they may not consider why it is eco-friendly or if there is or could have been a more eco-friendly alternative. Many consumers do not consider anything beyond the end of life stage of a product equating a products sustainability with its recyclability. They may lack the knowledge to make informed decisions about packagings sustainability based on the entire life cycle of the product and package. Research by Perception Research Services found that consumers consider paperboard cereal boxes to be better for the environment than a cereal bag considering that paperboard is recyclable or made of recycled materials while a plastic bag is. Consumers do not seem to take into account the energy and materials used and waste emitted during to manufacture or transport the product.
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This may offer an opportunity for manufacturers in developing both their package design and the message to consumers. Consumer Surveys Numerous surveys have been conducted regarding consumers environmental awareness, concerns, and activities. Among the findings reported: Nine of ten Americans believe that environmental responsibility is important enough to modify their buying behaviors. Those respondents said corporations were primarily accountable for the environmental impact of their products. More than 50% of consumers (age 18-49) consider a companys social and environmental activities into their purchasing decisions. Among those who think a company is environmentally friendly, 57% are likely to trust it, 60% are likely to purchase its products, and 58% are likely to recommend the company or its products to others. More than 75% of consumers stated that they were not willing to spend more than 10% to purchase a green product over a traditional choice in almost all of the categories offered. Ninety percent (90%) said that a green product must work just as well as or better than a traditional product in order to make the switch Forty 40% of consumers stated that they learned that a company is environmentally friendly because of its packaging, although 44% said they soemtimes, but not often, believe the environmentally friendly claims on product packages. (Green AMPlified by AMP AGENCY) 70% of U.S. shoppers are motivated to buy products that are better for the environment, but only 40% are willing to pay more for those products. 75% believe that some companies are exploiting environmentally friendly claims for marketing purposes. 78% believe that manufacturers have a long way to go to reduce the amount of packaging.
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(American Grocery Shopper Study of 50,000 U.S. shoppers by BrankSpark International). Simmons data shows that 61% of Americans say that packaging for products should be recycled. Fewer Americans, 55%, say they make a conscious effort to recycle. Only about half (51%) say that recycling is a duty, while 48% say using recycled products is a responsibility. (Simmons Market Research Bureau) Nearly three-quarters of consumers check labels as a source for environmental information about the product and its package. Sixty-four percent (64%) of consumers say it is very important for companies to use environment-friendly or biodegradable packaging. Consumers want information eco-labels that describe the environmental impacts caused by product manufacture (73%), use (73%) and disposal (79%). (2007 GfK Roper Green Gauge Report) Several surveys have addressed the issue of whether consumers would pay more for environment-friendly packaging, and if so, how much more. Some surveys indicate a majority said they would be willing to pay five to ten cents more or at least 5% more (depending on the survey) for environment-friendly packaging. Others disagree; a Going Green poll by Yankelovich found that consumers are becoming less willing to help marketers pay for the greening of their business and products. International Consumer Perspectives The World Business Council for Sustainable Development (WBCSD) surveyed European consumers in 2008 and found that 25% strongly agreed that they would buy environmentally friendly products even if they cost more. Overall, 75% of European consumers agreed. WBCSD asked consumers worldwide if they were more likely to purchase products from a company with a good environmental reputation. Chinese respondents were the most
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affirmative, with 67% more likely. More than 50% of Australians agreed, followed by Swedes (46%) and Americans (42%). Less than one-quarter of French consumers said the companys reputation would make them more likely to purchase its products or services.
Figure 3-16 Consumers More Likely to Purchase Products or Services from a Company with a Good Reputation for Environmental Responsibility, 2008
100 90 80 70 60 50
40 52 46 34 28 23 27 33 30 32 42 67
40 30 20 10 0
Fr an ce G er m an y
Au st ra lia Ca na da
It a ly
Ja pa n No rw ay Ru ss ia Sw ed en
Ch in a
U. K.
Source: World Business Council for Sustainable Development.
In another survey of consumers globally, The Nielsen Company found that nearly 50% would give up all forms of packaging designed for convenience purposes if it would benefit the environment. Conveniences included stackability, packaging used for cooking or doubling as a resealable container, and packaging designed for easy transport. Conversely, 10% of consumers were not willing to give up any aspect of packaging to benefit the environment. Consumer Behavior In spite of their good intentions, consumers attitudes and survey responses do not always correlate with their behavior. One example is the relatively low incidence and volume of household recycling give the general acknowledgement that recycling is a good thing. Only one-third of the more than 200 billion beverage containers are sold in the U.S. each year are recycled. The Container Recycling Institute estimates that only 45% of aluminum cans and 33% of plastic bottles are recycled each year.
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A 2008 Gallup poll indicated that 39% of Americans are recycling more and 14% are buying biodegradable products to help protect the environment. Two percent of Americans report making no changes in their shopping and living habits and 12% had no opinion. Greenwashing One of the new words in environmental lexicon is greenwashing, by which people and/or companies offer confusing or contradictory messages about sustainability and environmentfriendliness. A company may tout a products recycled content without acknowledging other environmental impacts of the product. They may also be deceptive about the amount of recycled content and what the other materials that are used to manufacture it. Another example of greenwashing is indicating product characteristics that are irrelevant. An example of this is a company claiming to have no mercury or chlorofluorocarbons in its product, even though those materials are illegal. Manufacturers of bioplastics have come under fire for their claims that their products are biodegradable and/or compostable. The products can be broken down, but must have very controlled conditions. A typical landfill or backyard compost pile is insufficient. The idea of packaging materials in landfills biodegrading is also misleading. Landfills are designed to seal in the contents; oxygen and moisture do not circulate, which prevents the microbial conditions for materials to break down. Creating packaging from materials that can be recycled, without the infrastructure or logistics to actually recycle them is another example. The opposite of this is a closed-loop system, which addresses the entire product life cycle.
Technology/Innovation
Packaging and consumer product manufacturers use technology and design to create stronger, lighter, more distinctive, and more environment-friendly packaging that appeals to the consumer, saves costs during production, and conforms to existing and pending regulations. Three of the major innovations in packaging are reduction of materials, new designs, and new materials.
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Lightweighting Lightweighting, also called thinwalling or downgauging, involves reducing the thickness of the packaging and therefore using less material to produce it. The challenge is to maintain the structural integrity of the packaging so that it fulfills its primary function of protecting the product. Lightweighting addresses source reduction in the sustainability equation. It also results in lower shipping costs by reducing the load weight and/or allowing more product to be shipped per load. Lightweighting is used by all types of packaging metal cans, paper boxes, plastic containers, and glass bottles. Recent examples of lightweighting include: Pepsicos introduction of half-liter bottles for non-carbonated beverages, including Lipton Iced Tea, Tropicana juice drinks, Aquafina FlavorSplash and Aquafina Alive brands, that use 20% less PET. The company claims that the new designs will save 20 million pounds of plastic a year. Mars Inc. reduced the weight of the glass jar for its Uncle Bens sauce sold in the Netherlands by 6%. The company expects to save 450 tons of glass per year, which it claims will save more than 1,200 tons of carbon dioxide emissions. Advances in Design New packaging designs attract consumer attention and help sell the product as well as offer functional and cost advantages. Food and beverage packaging advances offer convenience (as in heat-and-eat foods, functionality (aluminum bottles that stay colder than plastic and are less breakable than glass). Some advances come with new product introductions, as the use of small drink cans used by energy drinks. Some notable recent design innovations: Resealable aluminum cans Microwavable steel cans (Ball Corp.) Rigid foil-sealed paperboard canisters instead of bag in a box cereal containers
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Reconfiguration of cereal boxes to reduce the size, while maintaining the same volume content. One of its major appeals to consumers is that the boxes are more filled to the top.
Bio-based Materials Biodegradable plastics are one of the most important innovations in the packaging industry today, particularly from the sustainability perspective. Biodegradable synthetic polymers have been commercially available for about 20 years; the most commonly referred to are polylactic acids, or PLA. These materials offer an alternative to petroleum-based plastics; their appeal lies in both their alternative resource and that they are biodegradable or compostable. Producing PLA consumes significantly less energy and produces as much as 80% less greenhouse gases than producing conventional plastic.
Bioplastics are made from corn, as well as sugarcane, wheat and other crops. They are perceived as controversial in their use of these ingredients because the crops are often genetically modified and they are considered competitive with resources for food crops and/or use for biofuels (ethanol). PLA can substitute for plastic or paper in certain food packaging applications, although it has limitations. PLA bottles have not been as effective as PET in retaining carbonation, and therefore have been primarily used for water, juice, dairy products, and edible oils. The most significant objection to bio-based packaging is its disposal. While bioplastics claim to be biodegradable, they require very specific conditions to break down. They are not compostable in typical residential systems. Bioplastics require a unique recycling infrastructure that is not in place and that will take some time to establish. The U.S. market for biodegradable plastics is said to be more than 550 million pounds, of which PLA accounts for 60%. Production is expected to increase more than 20% a year for the next several years at least. The European Union consumes approximately 110,000 tons of bioplastics annually.
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The Wal-Mart Effect

Demonstrating that economic concerns drive sustainability issues, Wal-Mart and other major retailers have developed standards and requirements for their suppliers. energy, and waste disposal costs. Wal-Marts sustainability initiative is the most visible and notable due to Wal-Marts sheer size and influence. The company indicated it expected the program help reduce overall packaging 5% by 2013, thereby saving in shipping and carbon dioxide emissions. In 2006, Wal-Mart introduced its Packaging Scorecard, through which it rates global suppliers and makes determinations about buying decisions. The company said it expects $3.4 billion in direct savings and $11 billion in savings across the supply chain. Wal-Mart has also held meetings with hundreds of consumer packaged goods companies and packaging suppliers to highlight the need to reduce packaging. In aat least one case, this led not only to redesigning packages, but to redesigning product: General Mills reduced the packaging of Hamburger Helper reduced its packaging after deciding to use straight noodles that took up less space/air space than curved noodles. Doing so saved nearly 450 tons of paper fiber and eliminated 500 truck trips per year. Alcan Sustainability and Stewardship Evaluation Tool (ASSET) Aluminum producer Alcan uses its Alcan Sustainability and Stewardship Evaluation Tool (ASSET) to statistically analyze and measure the sustainability impact of a packaging product. Alcan Packaging customers use ASSET to evaluate the environmental, social and economic sustainability of a packaging structure throughout its entire life cycle. Doing so allows consumer package goods companies to compare packaging options and weigh the sustainability performance, benefits, risks and costs of different types of packaging. ASSET takes into consideration the raw materials used in a packaging product, the manufacturing and filling of the package, the energy and greenhouse gas (GHG) emissions that the package will consume or emit throughout its life, and end-of-life such as landfill, incineration, or compost. In addition to highlighting environmental concerns, the strategy helps Wal-Mart control both product,
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International Aspects
Unlike the U.S., European packaging and packaging waste policies are legislated and directed on a national basis as well as on a European Union-wide basis. Having to comply with foreign regulations has been a significant influence on U.S. companies adoption of sustainable policies and practices. The Packaging Council of Australia suggests that European and Australian companies are similar in their approach to sustainable packaging and differ slightly from the U.S. more specific focus on packaging design: There is no final goal of a perfect package, but simply a process of continuous improvement; Recycling needs to be optimized rather than maximized there will always be a place for landfill, if at a lower level than today; There are few absolutes, since many design decisions will involve a trade-off between different environmental parameters (e.g. recyclability versus energyefficiency); There are many environmental issues (e.g. the use of renewable energy) where an individual company may not always have the ability to make a meaningful choice; The use of renewable resources (those that can be grown) may be but is not necessarily better for the environment than the use of renewable materials (those which after recycling retain their original properties with no degradation of performance) and there may be some applications for which the most resourceefficient solution is energy recovery; Above all, European industry opinion-formers would prefer to address not sustainable packaging but a sustainable packaging strategy. Environmental improvement will come about through a mixture of better packaging design, more resource-efficient packaging itself.3 production and distribution and more resource-efficient management at end-of-life, so it is worth looking at the total system, not just the
Packaging Council of Australia - http://www.pca.org.au/uploads/00589.pdf
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A 1994 European Union directive set recovery targets, which are revised every five years. The target for December 31, 2008 was recovery of 60% of all packaging waste and an overall recycling level of 55%. The EU puts the responsibility for recovery and recycling on the producer as opposed to the consumer, as in the U.S. This means that producers pay to have packaging collected and then reused or recycled. Consequently, most countries have a similar system of collecting household packaging waste. In Japans system, companies pay into a fund based on container shipment weights. The funds are then used in the collection and recycling process. International Differences Affect Package Design and Use Adhering to regulations can have important effects on package design. In places like Europe where laws require returnable or recyclable packaging, bottles are heavier to withstand multiple cycles. The tradeoff involves use of raw materials, transportation costs (to deliver and to recover the bottles), emissions and waste production during processing, etc. Canadas beer industry also uses a closed-loop system, with some bottles being used as many as 15 times before they are crushed and recycled into new bottles. More than 95% of beer bottles sold are returned for reuse. In hot climates and those where refrigeration is an issue, aseptic packaging is important and unique in its ability to prevent product spoilage. International Comparisons of Municipal Waste Data from the United Nations shows that Canada leads other countries in the percentage of waste that ends up in landfills, with 73%. Australia (70%) and the U.K. (64%) also landfill a higher percentage of their waste than does the U.S. (64%). Japan (74%) and Denmark (54%) are by far the leading countries in the incineration of waste. Sweden (34%), Germany (33%), and Australia lead in the percentage recycled.
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Table 3-2 Disposition of Municipal Waste Collected, by Country (percent) Country Australia Canada China Denmark France Germany Italy Japan Sweden U.K. U.S.
Source: United Nations
Landfilled 69.7% 73.3 43.1 5.1 36.0 17.7 54.4 3.4 4.8 64.3 54.3%
Incinerated --2.5% 54.0 33.8 24.6 12.1 74.0 50.2 8.4 13.6%
Recycled 30.3% 26.8 -25.6 15.8 33.1 -16.8 33.9 17.4 23.8%
.Less developed countries have an advantage in building their sustainability policies, outlook, and infrastructure in that they are starting from scratch. Countries with established systems and ideologies must break down old ideas and systems before they can build new ones. The economic costs of remaking a waste management can be prohibitive and particularly daunting in times of economic downturn. Because of this, countries such as India and China are quickly becoming significant players in package manufacturing and as users of recovered materials. In 2008, China announced plans to require lightweighting of packaging, forbid packaging that is neither recyclable nor biodegradable, introduce post-consumer waste household sorting, set up waste collection systems, build recycling and reprocessing plants nationwide, and monitor and control recycled material quality, and establish a commodity exchange for recyclables.
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Chapter 4: Company Profiles
Chapter 4
Company Profiles
In this chapter, SBI profiles the top companies in each category of food and beverage packaging: paper, plastic, metal, glass, and flexible. Competitors in each category compete principally on price, design, product innovation, quality, and service. The dominant players tend to be large and well-established. Acquisitions drive growth for many companies. Paper The leading folding carton producers are Caraustar, Graphic Packaging, MeadWestvaco, and Rock-Tenn. Many of the largest companies are vertically integrated and manufacture paperboard or containerboard from which they make folding cartons and other packaging. These companies compete with a significant number of national, regional and local packaging suppliers. Graphic Packaging acquired Altivity Packaging in 2007, significantly raising Graphic Packagings profile. Plastic Plastic packagers compete in several product categories: PET bottles and jars, plastic film, and rigid plastic containers. Competition in the plastic container industry is intense and includes several national and regional suppliers as well as some self-manufacturers. About a dozen players make PET beverage bottles. The leading companies are Amcor, Ball, Consolidated Container, Constar, Graphic Packaging, Plastipak, and Silgan. Metal Five companies manufacture substantially all of the metal beverage containers in the U.S. and Canada Ball, Crown, Metal Container Corp., Rexam, and Silgan. Metal Container Corp., not profiled here, is part of Anheuser-Busch, which was acquired by InBev in 2008. It is likely that InBev will divest the Metal Container business; one or more of its competitors is likely to express interest.
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Glass The glass container sector is the most concentrated packaging sector, with two major players. Owens-Illinois is the largest, followed by Saint-Gobain. Anchor Glass, not profiled here, emerged from Chapter 11 bankruptcy in 2006 and is now a privately held company with 8 plants in the U.S. Flexible Major flexible packaging competitors include Alcan, Amcor, Bemis, Printpack, Sealed Air, and Sonoco.
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Alcan Packaging Food
Company Details Company Type
Descriptions Subsidiary (Rio Tinto) Rio Tinto plc 5 Aldermanbury Square London EC2V 7HR United Kingdom Alcan Packaging Food America 8770 West Bryn Mawr Ave. Chicago, IL 60631
Company Address
Phone URL Employees Key Executives Fiscal Year End Revenue (2007)
Rio Tinto: 011 44 20 7781 2000 Alcan Food Packaging Food Americas: 773 399 8000 www.alcanpackaging.com 5,000 (Alcan Packaging Food Americas) Ilene Gordon, President and Chief Executive Officer Mike Schmitt, President of Alcan Packaging Food Americas December $1.4 billion (Alcan Packaging Food Americas)
Overview
Alcan was incorporated in Canada in 1902 as the Northern Aluminum Company. In 1925, it became the Aluminum Company of Canada, and in 1945, took the name Alcan. In 2007, Rio Tinto, a mining company headquartered in the U.K., acquired Alcan for $39 billion and subsequently announced plans to divest the Alcan Packaging operations. Alcan Packaging Food manufactures packaging using plastics, engineered film, aluminum, paper, paperboard, and glass and is the worlds largest manufacturer of flexible food packaging. Its U.S. headquarters are in Chicago, IL and world headquarters in Paris, France. Alcan Packaging Food Americas operates 23 locations in 6 countries: the U.S., Mexico, Brazil, Argentina, Canada, and New Zealand. Alcan Packaging Food Europe has 31
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locations in 18 countries and 7,300 employees. Alcan Packaging Food Asia has 10 locations in 4 countries and 2,800 employees.
Corporate Performance
Alcan Packaging has annual revenues of approximately $6.2 billion.
Figure 4-1 Annual Revenues of Alcan Packaging Business, 2004-2008 (in billions of dollars)
7 6.0 6 5 4 3 2 1 0 2004 2005 2006 2007 2008 6.0 6.1 6.2 6.2
Source: Alcan corporate documents, Alcan Packaging web site.
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Food packaging represents about 63% of Alcan Packaging revenues, or just under $4 billion.
Figure 4-2 Alcan, Inc.s Packaging Revenue by End Use Market, 2008 (percent)
Tobacco 8%
Food 63%
Beauty 14%
Pharmaceutical 15%
Source: Alcan Packaging web site as viewed March 2009.
Product Portfolio
Alcan Packaging Products include stand up pouches, stand up bags, pouches with spouts, shrink bags for meat, high barrier films, biodegradable films, lidding materials and applications, bag-in-box packaging, and various thermoformable and vacuum pack laminates. Alcans food packaging is made up of plastic, aluminum, paper, carton and other materials: plain and converted barrier foils and films, high barrier materials, container strips and containers, capsules and closures, labels, pouches, steel cans and decorated tins. Alcan provides packaging for beverages, biscuits, cereals, condiments, confectionery, cookies, dairy products, dry food, fresh and frozen food, instant products, retorted foods and snacks. It also produces caps and over-caps for wine, champagne and liquor bottles.
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Recent Developments
In February 2009, Amcor Ltd. confirmed its interest in acquiring the Alcan packaging business from Rio Tinto. Amcor indicated it was considering potential acquisition of part but not all of the Alcan packaging business.
Environmental Sustainability
Alcan published its first sustainability report in 2002. Alcan Packaging is a member of the Sustainable Packaging Coalition. Alcan Packaging focuses on generating profitable and sustainable growth. We strive to develop the highest quality packaging solutions, while also supporting sustainable product development and reducing environmental impacts during the manufacturing process and after product use. We are constantly investing in initiatives to reduce air emissions, waste from processes, as well as packaging material content and weight. We also strive to develop solutions that eliminate harmful chemical components or additives. Alcan has developed the Alcan Sustainability and Stewardship Evaluation Tool (ASSET) to measure the overall sustainability profile of potential new products. ASSET evaluates the product innovations performance against 30 criteria which consider the full environmental, social and economic life cycle impacts and benefits based on a variety of internationally recognized standards.
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Amcor Limited
Company Details Company Type
Descriptions Public 109 Burwood Road Hawthorn Victoria 3000 Australia
Company Address Amcor PET Packaging 935 Technology Drive, Suite 100 Ann Arbor, MI 48108 61-3-9226-9000 Phone 734-428-9741 URL Employees www.amcor.com 21,000 C.I. Roberts, Independent Non-Executive Director and Chairman K.N. MacKenzie, Managing Director and Chief Executive Officer William Long, President, Amcor PET Packaging Grard Blatrix, Managing Director, Amcor Flexibles Food June A$9.3 billion
Key Executives
Fiscal Year End Revenue (2008)
Overview
Amcor is based in Australia and does business internationally in the following key market segments: PET containers, closures and specialty packaging, flexible plastic packaging, and specialty printed cartons. Amcor packaging products include folding cartons, aluminum and steel cans, glass wine bottles, flexible and film packaging, PET bottles and jars, and metal and plastic closures. Amcor PET Packaging is headquartered in Ann Arbor, MI and employs more than 5,100 people at 45 sites comprising 34 manufacturing locations and 11 on-site injection and blowing facilities in 12 countries.
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Amcor Flexibles is headquartered in the United Kingdom and operates 46 manufacturing plants throughout the world. In 2005, sales for Amcor Flexibles stood at $2.42 billion, accounting for 28.7% of the companys overall revenues. Flexible packaging accounts for 26% of Amcors global product mix. Amcor Flexibles has three operating divisions: Amcor Flexibles Food (headquartered in Brussels), Amcor Flexibles Healthcare, and Amcor Rentsch. The business has 7,800 employees and 48 manufacturing plants (23 of which are for food packaging).
Amcor annual revenues for the fiscal year ending June 2008 were A$9.3 billion, down from A$10.9 billion in 2007.
Figure 4-3 Amcor Annual Revenues, 2004-2008 (in billions of A$)
12 10.4 10 Sales (A$ Billion) 11.4 10.9 9.3
11.1
0 2004 2005 2006 2007 2008
Source: Amcor annual reports.
In the fiscal year ending June 2008, Amcor PET container volume production increased 3.7% to 28.7 billion units. Amcor PET Packaging net sales were down slightly in 2008 A$2.9 billion from A$3.1 billion in 2007.
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Net sales for Amcor Flexibles decreased in 2008 to A$2.9 billion from A$3.0 billion in 2007. For the six-month period ending December 2008, Amcor reported that profits before interest and tax were down 2.9% for continuing businesses. The flexibles business had a strong half with earnings up 15.7%. The PET packaging operations faced due to significant destocking in the supply chain.
Product Portfolio
Amcor PET Packaging produces PET containers for a variety of beverage and food products, including carbonated soft drinks, water, juices, sports drinks, milk-based beverages, spirits and beer, sauces, dressings, and spreads. Amcor PET also makes plastic caps for a wide variety of applications. PET Packaging accounted for 33.8% of Amcors business in 2008. Amcor Australasia makes corrugated boxes, cartons, folding cartons; aluminum beverage cans, flexible packaging, plastic and metal closures, glass wine bottles, multi-wall sacks; and cartonboard. Australasia represented 29.8% of company revenues in FY 2008. Amcor Flexibles manufactures flexible and film packaging for confectionery, coffee, fresh food (meat, fish, bread, produce, and dairy), snack foods, and ready meals as well as specialty folding cartons for confectionery. Flexibles accounted for 26.1% of Amcors business in FY 2008.
Recent Developments
In February 2009, Amcor confirmed its interest in acquiring the Alcan packaging business from Rio Tinto. Amcor indicated it was considering potential acquisition of part but not all of the Alcan packaging business.
Amcors definition of sustainability is where development meets the needs of the present without compromising the ability of future generations to meet their needs. Amcors published its first sustainability report was published in 2002. to the Dow Jones Sustainability Index. Amcor PET
Packaging is a member of the Sustainable Packaging Coalition. In 2008, Amcor was named
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In the fiscal year ending June 2008, Amcor implemented an environmental reporting system that provides detailed reporting and analysis of energy, greenhouse gas (GHG), waste, and water use at each Amcor site. Amcors Board of Directors approved environmental targets to reduce emissions, cut waste, and conserve water. Each business group has an appointed Sustainability Champion to ensure action is taken and coordinated to achieve the targets. One particular sustainability focus of Amcors is the reduction of food waste. Amcor states: The vast majority of the energy required to provide food to consumers is in its growing and processing. Packaging only represents around 10% of the total energy used in the food supply chain. If the packaging fails to protect the product and the food is spoiled before being consumed, there is a considerable environmental cost. Packagings primary function therefore, is to protect food through the supply chain and reduce spoilage. Approximately 3% to 5% of food is spoiled in the US and Europe and up to 50% in developing countries. Amcors focus is to work with customers to reduce this wastage. Amcor understands the critical role packaging plays and is committed to making a difference. This requires working with customers to better understand how food spoilage occurs and what are the most energy efficient options to reduce this spoilage. Dedicated teams, including food scientists and polymer chemists, are at the forefront of this effort to develop innovative new solutions.
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Ball Corp.
Company Details Company Type Company Address Phone URL Employees Key Executives Fiscal Year End Revenue (2008)
Descriptions Public 10 Longs Peak Drive Broomfield, CO 80021-2510 303-469-3131 www.ball.com 14,500 R. David Hoover, Executive Chairman, Chief Executive Officer, President John R. Friedery, President of Metal Beverage Packaging, Americas & Asia December $7.6 billion
Overview
Ball Corp. (NYSE: BLL) is based in Broomfield, CO and has locations in more than 90 countries. Ball Corp. manufactures metal and plastic packaging for the food and beverage industry. Ball also supplies has an aerospace and technologies business segment, which accounts for 10% of revenues. In 2008, Ball produced more than 30 billion recyclable beverage cans in the U.S. and Canada about 30% of the total market. Ball shipped more than 5.6 billion steel food containers in North America in 2008, approximately 19% of all industry shipments. With 10% of the U.S. market for PET container shipments, Balls production was 5.5 billion plastic bottles and 750 million polypropylene food and specialty containers in 2008. Ball produced more than 2.6 billion beverage cans in China; through joint ventures, Ball produced another 1.6 billion. In Europe, Ball claims 29%of metal beverage container shipments approximately 5 billion cans.
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Balls net sales were $7.6 billion in 2008, up slightly from $7.4 billion in 2007. The company expects its future growth in the medium and long term to come from the European, Chinese, and Brazilian can markets; the North American market is relatively mature.
Figure 4-4 Annual Revenues of Ball Corp., 2008-2008 (in billions of dollars)
6 5.44 5.75
Sales ($ Billion)
0 2004 2005 2006 2007 2008
Source: Ball Corp. 2008 10-K Report
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Figure 4-5 Annual Revenues of Ball Corp. by Business Segment (excluding aerospace), 2006-2008 (in billions of dollars)
5 4.12 4 Sales ($ Billion)
4.67
4.66
2 1.14 1 0.69 1.18 0.75 1.22 0.74
0 2003 Metal Beverage

Source: Ball Corp. 2008 10-K Report
2004 Metal Food & HH Products
2005 Plastic
Product Portfolio
Ball supplies metal and plastic packaging to the beverage, food, and household products industries worldwide. Its largest product lines are aluminum and steel beverage cans, which accounted for 65% of 2008 sales and 75% of profits. Ball manufactures beverage cans for beer, carbonated soft drinks, mineral water, fruit juices, energy drinks, and other beverages. The company also produces two-piece and three-piece steel food containers for packaging vegetables, fruit, soups, meat, seafood, and nutritional products. Balls plastic products include polyethylene terephthalate (PET) and polypropylene plastic containers used primarily in beverage and food packaging, as well as plastic containers for industrial and household product applications.
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Table 4-1 Ball Corp.s Food Packaging Product Portfolio Category Product Line Cans Ends Tabs Can Graphics Two-piece cans Three-piece cans PET Water Bottles PETCSD Bottles PET Dairy Bottles PET Wine Bottles PET Beer and FAB Bottles Heat-Tek Bottles and Brick Bottles PET Preforms Polypropylene Beverage Bottles Gamma Retort Bottles Gamma Juice Bottles Condiment Bottles Dual Grip Can ECONOLITE I & II Gamma-Clear Ketchup - Multilayer PET Ketchup - Multilayer Polypropylene Wide Mouth Jar Open Head Plastic Pails Screw-Top Plastic Pails and Drums Ball Steeltin
Metal Beverage Cans
Metal Food Cans
Plastics
Decorative Metal Tins

Source: Ball Corp. Company Website.
Recent Developments
In the fourth quarter of 2008, Ball announced the closure of two North American metal beverage can plants. A plant in Kansas City, MO, which primarily manufactured specialty beverage cans, would be closed by the end of the first quarter of 2009. A plant in Puerto Rico, which manufactured 12-ounce beverage cans, was closed at the end of 2008.
Ball is a member of the Sustainable Packaging Coalition. The company issued its first sustainability report in 2008, covering the years 2006 and 2007 with available baseline information for 2005.
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Each Ball-made aluminum beverage container is composed of an average of 40% recycled aluminum. Balls steel cans include approximately 31% recycled steel. Ball cites the following key issues regarding sustainability: Reducing use of electricity and natural gas Reducing waste and increasing recycling at its facilities Analyzing and reducing its water consumption Reducing its existing volatile organic compounds (VOCs) Further improving safety performance at its facilities
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Bemis Co. Inc.
Descriptions Public One Neenah Center P.O. Box 669 Neenah, WI 54957 920-727-4100 www.bemis.com 15,400 Henry J. Theisen, President and Chief Executive Officer December $3.6 billion
Overview
Wisconsin-based Bemis Company, Inc. (NYSE: BMS) is a manufacturer of flexible packaging products and pressure sensitive materials. In 2008, approximately 83% of the companys sales were derived from the flexible packaging segment and 17% were from the pressure sensitive materials segment. Nearly two-thirds of Bemis packaging is used in the food industry, with the balance used in markets including medical, pharmaceutical, chemical and agribusiness. Bemis annual revenues were more than $3.6 billion in 2008. Its operations include nearly 60 locations in 10 countries, in areas around the world, including the U.S., Canada, Mexico, Europe, South America, and Asia.
Bemis reported net sales for 2008 of $3.78 billion, up from $3.65 billion in 2007. This 4% increase reflected reflecting increased raw material costs incorporated into higher selling prices during the year. Unit volume sold into certain food packaging markets increased compared to 2007.
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Figure 4-6 Annual Revenues of Bemis Co. Inc., 2004-2008 (in billions of dollars)
4 3.47 2.83 3.78
3.64
3.65
3 Sales ($ billion)
0 2004 2005 2006 2007 2008
Source: Bemis Co. Inc. 2008 10-K Report
In 2008, net sales Bemis flexible packaging business segment increased 5%, principally reflecting the impact of higher selling prices. Increases in net sales of packaging for meat and cheese, dairy and liquids, bakery products, and medical products markets reflected higher unit volume. These markets represent approximately 48% of total flexible packaging net sales. Net sales also increased in packaging for dry foods, health and hygiene, and industrial product markets, driven primarily by higher selling prices. approximately 22 percent of flexible packaging net sales. Bemis experienced lower net sales in the remaining 30% of its flexible packaging market categories as a result of lower unit volume. lawn and garden, and protective display films. These lower volume markets include confectionery and snack markets, pet products, overwrap film for bottled water, frozen foods, These markets represent
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Figure 4-7 Annual Revenues of Bemis Co. Inc. from Flexible Packaging Operations, 2006-2008 (in billions of dollars)
3.00 3.00
Sales ($ Billion)
0 2006 2007 2008
Source: Bemis Co. Inc. 2008 10-K Report
Product Portfolio
Bemis products are used by a variety of end-use markets within the food industry: processed and fresh meat, liquids, frozen foods, cereals, snacks, cheese, coffee, condiments, candy, bakery, and fresh produce. Its flexible packaging products include multi-layer flexible polymer film structures and laminates, blown and cast stretch film products, carton sealing tapes and application equipment, custom thermoformed plastic packaging, multi-wall and single-ply paper bags, printed-paper roll stock, and bag closing materials.
Recent Developments
Early in 2009, Bemis President and CEO Henry Theisen noted: The multi-pack product line used to overwrap bottles and cans had been growing at a double-digit pace for the past few years. In 2008, and particularly in the fourth
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quarter, we saw volumes drop substantially, reflecting a sharp decline in consumer demand for bottled water. We believe this reflects a combination of change in consumer attitude, and economic pressure on the family food budget. On the other hand our meat and cheese packaging products did well. We have all read about the challenges being experienced by our fresh meat customers. With high raw material costs and inventory supply levels. Their challenges have impacted our fresh meat programs. However, we continue to enjoy growth in processed meat packaging, which represents the majority of our meat packaging product. Our food customers are focusing their efforts on mid priced takehome meals and meal kits. Frozen foods, pizza and baker products have also been good markets for us in this environment. In these challenging economic times we believe that consumers will spend more of their family food budget on home meals and less on restaurant meals.
Bemis is a member of the Sustainable Packaging Coalition. Bemis environmental sustainability philosophy is based on reducing Bemiss impact on the planet and conserving our resources. Areas of focus include helping stakeholders to use less packaging overall; developing effective new sustainable materials; reducing waste in the food distribution chain through enhanced protective packaging; minimizing manufacturing waste; and producing materials efficiently through responsible use of energy and resources. Bemis efforts involve minimizing raw materials during the manufacturing process, thereby minimizing toxicity, waste, production processes, and energy consumption. In its flexible packaging business, Bemis resells or reprocesses a majority of in-plant polyethylene trim materials. Energy efficiency has been a major area of focus in Bemis environmental sustainability initiatives worldwide. Approximately 18% of the energy we use globally is generated from renewable sources, including wind, biomass and other power.
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Caraustar Industries, Inc.
Descriptions Public 5000 Austell-Powder Springs Road Suite 300 Austell, GA 30106-3227 770-948-3101 www.caraustar.com 3,570 Michael J. Keough, President and Chief Executive Officer Steven L. Kelchen, Vice President, Converted Products Group December $820 million
Overview
Austell, GA-based Caraustar Industries (NASDAQ: CSAR) manufactures 100% recycled paperboard and converted paperboard products. Its products are made primarily from recovered fiber, which is derived from recycled paper. Caraustar has four business segments: folding carton, paperboard, tube and core, and recovered fiber.
Caraustars annual revenues were $819.7 million in 2008, down from $854.2 million in 2007 and $933 million in 2006.
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Figure 4-8 Annual Revenues of Caraustar, 2004-2008 (in millions of dollars)

960 940 920 Sales ($ Million) 900 880 860 840 819.7 820 800 780 760 2004 2005 2006 2007 2008 854.2 905.9 905.7 933.0
Source: Caraustar 8-K and 10-K Reports.
Product Portfolio
Folding cartons represent 25% of Caraustar annual revenues. The companys largest segment is tube and core (34%).
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Figure 4-9 Caraustar Revenues by Segment, 2007

Paperboard 24%
Folding Carton 25%
Recovered Fiber 17%
Tube & Core 34%
Source: Caraustar 2007 10-K Report.
Caraustars folding cartons and rigid set-up boxes are used for food and beverage products such candy and confectionery, specialty dry foods, and frozen foods.
Recent Developments
In the fourth quarter of 2008, Caraustar announced the closure of its Richmond, VA paperboard mill and the indefinite idling of its Charlotte, NC uncoated recycled boxboard mill. Earlier in 2008, the company announced the permanent closure of its Chattanooga, TN uncoated recycled boxboard paperboard mill.
Caraustar joined the Sustainable Packaging Coalition in 2008. Caraustar's Sustainability Commitment:
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Caraustar is a socially responsible corporation and is committed to environmentally sound practices.
We will continue to develop partnerships with our vendors and customers so we may all achieve our sustainability goals.
Caraustar is committed to the strategic use of the "cradle-to-cradle" manufacturing processes which are built into our corporate culture. We are continually investigating new ways to expand upon this commitment.
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Constar International Inc.
Descriptions Public One Crown Way Philadelphia, PA 19154 215-552-3700 www.constar.net 2,150 Michael J. Hoffman, President and Chief Executive Officer December $875 million
Overview
Philadelphia-based Constar International Inc. is a global producer of polyethylene terephthalate (PET) plastic containers for food and beverages. The Company is one of the largest North American suppliers of PET containers for soft drinks and water, and has an expanding position in the custom PET market for food, juices, teas, sport drinks, new age beverages, beer and flavored alcoholic beverages. The company also manufactures limited quantities of HDPE and polypropylene containers, which accounts for less than 5% of sales. Constar has 13 plants in the U.S. and four in Europe. In December 2008, Constar filed for Chapter 11 protection as part of a plan to cut its debt. The company, previously spun off and still partially owned by Crown Holdings, hoped to complete the restructuring by early spring of 2009.
Net sales in 2008 were $875.4 million, down slightly from $881.6 million in 2007. Sales in the U.S. were $696.3 million vs. $689.1 million the prior year. EU sales were $179.1 million in 2008 vs. $192.5 million in 2007.
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Figure 4-10 Annual Revenues of Constar, 2004-2008 (in millions of dollars)

1,000 900 801.1 800
Sales ($ million)
928.1
923.1
881.6
875.4
700 600 500 400 300 200 100 0 2004 2005 2006 2007 2008
Source: Constar 10-K and 8-K Reports.
Product Portfolio
Constars primary market for its conventional PET bottle sales is the U.S.; this represents about 78% of the companys revenues. In Europe, Constar primarily sells performs (test tube-shaped intermediate products in the manufacturing process for bottles). Constar believes that custom PET applications represent significant growth opportunities and generally provide greater profitability than conventional PET applications.
Recent Developments
Under its Chapter 11 arrangements, all of Constars global operations would remain open and operating on normal schedules; the company expected to continue to fulfill all customer orders as usual and provide uninterrupted customer service. In October 2008, Constar and PepsiCo Inc., which accounts for nearly 40% of Constar's business, signed a new four-year agreement effective Jan. 1, 2009. Constar indicated that the
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new contract would result in 30% lower sales, which would be offset by cost savings resulting from a series of 2008 plant closings and layoffs.
Constar is a member of the Sustainable Packaging Coalition. Constar endorses the mission of National Association of PET Container Resources (NAPCOR) to promote PET usage and facilitate PET plastic recycling. recycle, and reuse. Constar recycles its own internally generated post industrial recycled (PIR) material and provides the technology and support for our customers to incorporate post consumer recycled (PCR) material in their containers to the levels they require. Constars commitment focuses on the three elements of recyclability promoted by NAPCOR: reduce,
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Consolidated Container Company
Company Details Company Type Company Address Phone URL Employees
Descriptions Private 3101 Towercreek Parkway Suite 300 Atlanta, GA 30039 678-742-4600 www.cccllc.com 3,400 Jeffrey M. Greene, President and Chief Executive Officer Robert Walton, Senior Vice President, Beverage & Industrial Container Group Eustace M. Horton, Senior Vice President, Consumer Packaging Group December $936 million
Key Executives
Fiscal Year End Revenue (2008)
Overview
Consolidated Container Company LLC manufactures rigid plastic containers for the dairy, water, juice and other beverage, household chemicals and personal care, agricultural and industrial, food and automotive sectors. Its container product line ranges in size from twoounce to six-gallon containers and consists of single and multi-layer containers made from a variety of plastic resins, including high-density polyethylene (HDPE), polycarbonate (PC), polypropylene (PP) and polyethylene terephthalate (PET).
Consolidated Container is privately held and is not required to report financial results. Industry estimates indicate company sales at $936 million.
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Figure 4-11 Annual Revenues of Consolidated Container, 2004-2008 (in millions of dollars)
1,000 900 800
Sales ($ million)
900.0 844.5 758.6
900.0
936.0
700 600 500 400 300 200 100 0 2004 2005 2006 2007 2008
Source: Consolidated Container 10-K Reports, Plastics News.
Product Portfolio
Consolidated Container has seven principal product categories: Dairy one gallon and one-half gallon HDPE bottles and similar products Water one and two-and-one-half gallon HDPE bottles and three, five and six gallon PC bottles for the bulk packaging of water for water coolers Juice & Other Beverage HDPE and PP bottles ranging from six to 128 ounce HDPE bottles for fruit drinks and multiple layer one-gallon HDPE and PP containers for fruit juice Household Chemicals & Personal Care mainly HDPE and PET Agricultural, Industrial & Other Food HDPE, PP and PET for a variety of food products, such as mustard, maple syrup, edible oils and salsa.
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Automotive primarily one quart HDPE bottles for motor oil and one gallon HDPE containers for anti-freeze and windshield washer solvent.
Figure 4-12 Consolidated Container Revenues by Segment (percent)

Other Beverages 15% Household Chemicals/ Personal Care 16% Food 9%
Agricultural/ Industrial/ Other 8%
Water 17%
Automotive 6%
Dairy 27%
Source: Consolidated Container Web Site.
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Crown Holdings, Inc.
Descriptions Public One Crown Way Philadelphia, PA 19154-4599 215-698-5100 www.crowncork.com 21,300 John W. Conway, Chairman and Chief Executive Officer December $8.3 billion
Overview
Crown Holdings, Inc. (NYSE: CCK) is based in Philadelphia, PA and does business in 41 countries designing and manufacturing packaging products. producer of beverage cans. The companys products include aluminum and steel food cans and ends, metal closures and caps, beverage cans and ends, specialty packaging, polyethylene containers, and tinplate containers for cookies and cakes, tea and coffee, confectionery, and wine and spirits, as well as non-processed food products. Crown is the largest metal packaging company in the world, the largest producer of food cans, and the third largest
Revenues for Crown Holdings were $8.3 billion in 2008, of which 33% were in the U.S. and Canada and 42% were in Western Europe. Crown does business in Latin America, Eastern Europe, the Middle East, Africa, and China.
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Figure 4-13 Annual Revenues of Crown Holdings, 2004-2008 (in billions of dollars)
8 6.68 6.29 6 Sales ($ Billion) 6.98 7.73
0 2004 2005 2006 2007 2008
Source: Crown Holdings 2008 10-K Report.
The increase in net sales during 2008 reflects higher sales unit volumes, the pass-through of material cost increases to customers, and favorable foreign currency translation. Net sales from U.S. operations accounted for 26% of consolidated net sales in 2008, 27% in 2007 and 28.3% in 2006. Net sales in the Americas Beverage segment increased 6.5% from $1,751 in 2007 to $1,865 in 2008, primarily due to the pass-through of increased aluminum costs to customers in the form of higher selling prices. Net sales in the North America Food segment increased 3.7% from $873 in 2007 to $905 in 2008, and net sales during 2007 increased 4.3% from $837 in 2006. The increase in 2008 was primarily due to the pass-through of increased steel costs to customers in the form of higher selling prices, partially offset by lower sales unit volumes. Net sales in the European Beverage segment increased 11.9% from $1,436 in 2007 to $1,607 in 2008, primarily due to increased sales unit volumes, the pass-through of higher material costs to customers, and foreign currency translation.
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Net sales in the European Food segment increased 9.9% from $1,991 in 2007 to $2,188 in 2008, primarily due to the favorable impact of foreign currency translation and increased sales unit volumes primarily due to improved weather conditions and the resulting improved harvest compared to the prior year.
Product Portfolio
Crown supplies beverage cans and ends and other packaging products to a variety of beverage and beer companies. Sales of beverage cans and ends accounted for 47.4% of net sales in 2008 compared to 46.5% of net sales in 2007 and 44.5% of net sales in 2006. Crown also manufactures a variety of food cans and ends, including two-and three-piece cans in numerous shapes and sizes, and sells food cans to food marketers. Crown also provides metal vacuum closures and sealing equipment. Sales of food cans and ends accounted for 33.8% of net sales in 2008, 33.5% in 2007 and 35.0% in 2006.
Figure 4-14 Crown Holdings Sales of Metal Food and Beverage Cans and Ends, 2006-2008 (in billions of dollars)
5 4 3.60 4 3.10 Sales ($ Billion) 3 3 2 2 1 1 0 2006 Beverage Cans
Source: Crown Holdings 2008 10-K Report.
3.94
2.81 2.45 2.59
2007 Food Cans
2008
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Recent Developments
Crowns key strategies for expanding sales include targeting geographic markets with strong growth potential, such as the Middle East, Asia, South America, and southern and central Europe. In December 2008, Crown Holdings announced that Alan W. Rutherford had resigned as Chief Financial Officer and would be replaced by Timothy J. Donahue. Rutherford was expected to remain a member of the companys Board of Directors after his retirement. In November 2008, Crown announced plans to close its food can plant in Dorval, Canada and its beverage can and crown (bottle cap) plant in Montreal, Canada.
Crown Holdings is a member of the Sustainable Packaging Coalition. Crowns environmental policy declares respect for the environment and a commitment to environmentally sound business practices, taking into account the need to preserve natural resources (including lightweighting), energy savings, reducing emissions, recycling and using recycled products, managing waste, and using environment friendly technologies.
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Graham Packaging Company, L.P.
Descriptions Private 2401 Pleasant Valley Road York, PA 17402 717-849-8500 www.grahampackaging.com 8,700 Warren Knowlton, Chairman Mark Burgess, Chief Executive Officer December $2.4 billion
Overview
Graham Packaging, based in York, PA, designs and manufactures customized blow-molded plastic containers for the branded food and beverage, household, personal care/specialty, and automotive lubricants product categories. It produces more than 20 billion container units annually at more than 80 plants in North America, Europe, and South America. The Blackstone Group of New York is the majority owner of Graham Packaging.
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Figure 4-15 Annual Revenues of Graham Packaging, 2005-2008 (in billions of dollars)
3 2.52 3 3
Sales ($ Billion)
2.49 2.47
2 2 2
2.42 2 2 2 2 2005 2006 2007 2008
Source: Graham Packaging 2008 Investor Presentation.
Product Portfolio
Graham Packaging supplies plastic containers to the food and beverage, household products, personal care, and automotive lubricants and chemicals industries. In the food and beverage product category, the Graham Packaging produces containers for shelf-stable, refrigerated and frozen juices, non-carbonated juice drinks, teas, sports drinks/isotonics, beer, liquor, yogurt drinks, nutritional beverages, snacks, toppings, sauces, jellies and jams. The company estimates that it has the leading domestic position in plastic containers for hotfill juice and juice drinks, sports drinks, drinkable yogurt and smoothies, nutritional supplements, wide-mouth food, dressings, condiments and beer, and the leading global position in plastic containers for yogurt drinks.
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Table 4-2 Graham Packagings Food Packaging Product Portfolio Category Product Lines Shelf stable juice Sports drinks Ketchup Sauces Ready-to-drink teas Yogurt drinks Smoothies Nutritional beverages Juices Drinks Teas
PET
POLY
Source: Graham Packaging 2008 Investor Presentation.
Recent Developments
In July 2008, Graham Packaging executed an equity purchase agreement with Hicks Acquisition Company under which Graham Packaging would combine with Hicks Acquisition in partnership with the Blackstone Group and other Graham equity holders. The agreement would result in a publicly traded company was expected to close in the fourth quarter 2008. In January 2009, the agreement was amended such that Hicks Acquisition and Blackstone would each have the right to terminate the agreement by giving written notice to the other; and each party would be released from the agreement's exclusivity provisions and will be permitted to consider other possible transactions. The amendment indicated that there was no assurance that the transaction would be completed, nor that if the transaction is completed that the potential benefits of combining the companies will be realized.
Graham Packaging operates one of the largest HDPE bottles-to-bottles recycling plants in the world. The company also works with its clients to develop packaging that uses recycled plastic and to produce packages that are recyclable.
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Graphic Packaging International
Descriptions Public 814 Livingston Court Marietta, GA 30067 770-644-3000 www.graphicpkg.com 15,000 David W. Scheible, President and Chief Executive Officer December $4.1 billion
Overview
Graphic Packaging International (NYSE:GPK), headquartered in Marietta, GA and with 60 locations worldwide, provides packaging to food, beverage, and other consumer products companies. The companys products include folding cartons, coated-recycled boxboard, bags, flexible packaging, as well as labels, inks, coatings, paperboard grades, packaging machinery, and services. In 2008, Graphic Packaging acquired Altivity Packaging, LLC, whose products included folding cartons and paperboard, multi-wall bags, flexible packaging and labels.
In 2008, Graphic Packaging completed its acquisition of Altivity. For the year, the combined companies had more than $4 billion in revenues.
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Figure 4-16 Annual Revenues of Graphic Packaging, 2004-2008 (in billions of dollars)
5 4.08 4 Sales ($ Billion)
3 2.30 2 2.30 2.32 2.42
0 2004 2005 2006 2007 2008
Source: Graphic Packaging Corporate Documents and Press Release.
Product Portfolio
Graphic Packagings products include beverage packaging, consumer folding cartons, bags, labels, inks, coatings, flexible and specialty packaging, as well as a range of paperboard grades, high performance packaging machinery, and services. The companys packaging is used for a variety of food and beverage products: beer, soft drinks (carbonated and non-carbonated), water, juices, cereal, desserts, refrigerated and frozen foods, microwavable foods, snacks, cookies, crackers, prepared and fresh foods, powdered/dry/dehydrated foods, and confectionery. Graphic Packaging produces coated unbleached kraft (CUK) and coated recycled paperboard as well as uncoated recycled paperboard and containerboard.
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Table 4-3 Graphic Packagings Packaging Product Portfolio Category Bags Product Line Multi-wall Consumer Specialty Rigid Flexible Laminated folding cartons Corrugated mini-flute cartons Natural kraft and recycled folding cartons Consumer Industrial Decorative metalized laminations Extrusion and adhesive lamination Aqueous release coatings Specialty coatings Extrusion melted resins SUS coated unbleached kraft PaceSetter coated recycled paperboard Uncoated recycled paperboard Containerboard
Barrier packaging
Cartons
Flexible Plastic Packaging
Laminations & Coatings
Paperboard
Source: Graphic Packaging Web Site.
Recent Developments
Late in 2008, Graphic Packaging announced the closure of four manufacturing facilities. The closures were part of the companys planned integration efforts with Alivity to optimize the combined companys manufacturing system.
Graphic Packaging is a member of the Sustainable Packaging Coalition. In September 2008, the company signed up to the U.S. Environmental Protection Agencys Energy Star Program, committing it to improving its energy efficiency and offsetting it energy costs. As a global leader and manufacturer of innovative packaging solutions, Graphic Packaging is committed to developing new and exciting sustainable packaging that delivers superior product performance along the entire packaging value chain. We ensure our packaging solutions are not only right for the world-class brands we
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support, but also use renewable energy, recycled content, and re-usable properties to sustain our world.
Additionally:
Graphic Packagings mission is to provide packaging that improves the world in which we live. For our customers. For our communities. For ourselves. This means shifting the balance from consuming to conserving, as we work to put back more than we use.
186
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May 2009
MeadWestvaco
Descriptions Public 11013 West Broad St. Glen Allen, VA 23060 804-327-5200 www.meadwestvaco.com 22,000 John A. Luke, Jr., Chairman and Chief Executive Officer James A. Buzzard, President December $6.6 billion
Overview
MeadWestvaco (NYSE: MWV) operates in more than 30 countries, serving the food and beverage, media and entertainment, personal care, home and garden, cosmetics and healthcare industries. MeadWestvacos other business operations serve the consumer and office products, specialty chemicals, forestry and real estate markets. MWVs business segments are: Packaging Resources; Consumer Solutions; Consumer & Office Products; Specialty Chemicals; and Community Development and Land Management.
MeadWestvacos 2008 sales were $6.6 billion, up slightly from $6.4 billion in 2007.
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Figure 4-17 Annual Revenues of MeadWestvaco, 2004-2008 (in billions of dollars)

7 6.05 6 5 4 3 2 1 0 2004 2005 2006 2007 2008 5.62 5.72 6.64
6.41
Source: MeadWestvaco 10-K Report.
Sales for the Packaging Resources segment increased to $2.67 billion in 2008 compared to $2.50 billion in 2007. Increased sales were driven by improved pricing and product mix in key paperboard grades and by volume growth in bleached board. Shipments of bleached paperboard in 2008 were 1,646,000 tons, up 5% from 2007 reflecting, in part, a shift by the company away from lower value grades. Shipments of CNK in 2008 were 1,043,000 tons, down 5% from 2007, mainly reflecting declines in beverage and general packaging grades in late 2008 as customers de-stocked inventories in response to weak economic conditions. In 2008, bleached paperboard prices were up 5% and CNK prices were up 4% compared to 2007. Sales for the Consumer Solutions segment increased to $2.51 billion in 2008 compared to $2.43 billion in 2007. In 2008, higher sales were driven by growth in global beverage, home and garden and healthcare markets, and from the impact of favorable foreign currency exchange compared to 2007.
188
Sales ($ Billion)
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May 2009
Figure 4-18 Annual Revenues of MeadWestvacos Packaging Resources and Consumer Solutions Segments, 2006-2008 (in billions of dollars)
3 2.67 2.46 2.17 Sales ($ Billion) 2 2.50 2.43 2.51
0 2006 Packaging Resources

Source: MeadWestvaco 10-K Report.
2007 Consumer Solutions
2008
Product Portfolio
MeadWestvacos Packaging Resources segment produces bleached paperboard, Coated Natural Kraft paperboard (CNK), linerboard, and packaging for consumer products including packaging for beverage and dairy, produce, cosmetics, tobacco, pharmaceuticals and healthcare products and media. Bleached paperboard is used for packaging high-value consumer products such as pharmaceuticals, personal and beauty care, cosmetics, tobacco, food service and aseptic cartons. CNK paperboard is used for a range of packaging applications, the largest of which for MeadWestvaco is multi-pack beverage packaging. The Consumer Solutions segment produces multi-pack cartons and packaging systems primarily for the beverage take-home market. This segment also serves the tobacco, pharmaceutical, personal and beauty care, cosmetics, fragrance, and home and garden
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markets; and provides packaging for media products such as DVDs, CDs, video games and software.
Table 4-4 MeadWestvacos Food & Beverage Packaging Products Portfolio
Category
Finished Packaging
Multi-Packs and Packaging Machinery
Paperboard
Product Line Cluster-Pak single-serve beverage pack Duodozen multi-piece corrugate replacement flexiTECH pack for beverage pouches FridgeMaster dispenser carton for canned beverages BasketWrap Cluster-Clip Cluster-Pak Duodozen flexiTECH FridgeMaster Aseptic liquid packaging paperboard Carrier Kote paperboard Corrugated paperboard Crescendo C1S paperboard Crescendo C2S paperboard Custom Kote paperboard KlaFold paperboard Printkote C1S paperboard Printkote HMR (high moisture resistance) Printkote Litho Lam paperboard Printkote Ovenable paperboard Printkote PET paperboard Printkote Release paperboard
Source: MeadWestvaco Web Site.
Recent Developments
In January 2009, MeadWestvaco announced plans to close or restructure 12 to 14 of its manufacturing facilities and to lay off about 10 percent of its worldwide work force. In July 2008, the company completed the sale of its North Charleston, SC kraft paper mill and related assets (collectively, the Kraft business).
MeadWestvaco is a member of the Sustainable Packaging Coalition. certification standards, and is part of the Dow Jones Sustainability Indexes. MeadWestvaco
manages all of its forestlands in accordance with internationally recognized forest
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Additionally, MeadWestvaco states that it: Meets the carbon reduction targets of the Chicago Climate Exchange (CCX), the worlds first and North Americas only legally binding rules-based greenhouse gas emissions allowance trading system. Ensures compliance and drives best practices through environmental management systems developed on an ISO 14001 framework. Requires all international and domestic suppliers to comply with applicable laws and domestic suppliers to comply with regulations, and in many cases, meet higher performance standards. Holds leadership positions in and actively supports several key initiatives, including: o o o o o o o Sustainable Packaging Coalition Cerflor Chicago Climate Exchange World Business Council for Sustainable Development Abundant Forests Alliance Duke University Climate Change Policy Partnership Sustainable Forestry Initiative
Does not own or accept wood from old growth forests, rainforests or forests of exceptional conservation value. We also scrutinize our fiber supply carefully to ensure that our products contain only legally harvested and properly obtained wood and chips.
Partners with leading conservation groups, including The Nature Conservancy and The Conservation Fund.
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Owens-Illinois, Inc.
Descriptions Public One Micheal Owens Way Perrysburg, OH 43551-2999 567-336-5000 www.o-i.com 23,000 Albert P.L. Stroucken, Chairman, President, and Chief Executive Officer L. Richard Crawford, Vice President, President of Global Glass December $7.9 billion
Overview
Established in 1903, Owens-Illinois is the worlds largest manufacturer of glass containers. The company has 80 glass manufacturing plants in 22 countries. O-I is the leading glass container manufacturer in 17 of the 22 countries where it competes in the glass container segment of the rigid packaging market, including the U.S., and the sole manufacturer of glass containers in 8 of these countries. O-I produces glass containers for beer, ready-to-drink low alcohol refreshers, spirits, wine, food, tea, juice and pharmaceuticals. The company also produces glass containers for soft drinks and other non-alcoholic beverages, principally outside the U.S.
Net sales from continuing operations were $7.9 billion in 2008; the $318.0 million increase over 2007 was due to improved pricing and favorable product mix across all regions, as well as favorable foreign currency exchange rates, principally the Euro. Lower unit shipments partially offset these increases.
192
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May 2009
Figure 4-19 Annual Revenues of Owens-Illinois, 2004-2008 (in billions of dollars)

8 6.27 Sales ($ Billion) 6 5.36 6.65 7.57 7.88
0 2004 2005 2006 2007 2008
Source: Owens-Illinois 2008 10-K Report.
Product Portfolio
Owens-Illinois produces glass containers for food and beverage products in categories such as food, tea, juice, malt beverages, including beer and ready-to-drink low-alcohol refreshers, liquor, wine. Other O-I glass containers are used by the pharmaceutical industry.
Recent Developments
In 2008, Owens-Illinois permanently closed three plants in Canada and an additional two furnaces. Also in 2008, the company announced plans to expand its Auckland, New Zealand, plant by adding an additional furnace and two glass container forming machines.
Sustainability
Owens-Illinois is a member of the Sustainable Packaging Coalition. The company states that its environmental commitment is:
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to sustainable packaging solutions that are safe, recyclable, non-toxic and add value to both people and the environment. Our approach will enable us to sustain our business in all economic regions of the world, for present and future generations, while protecting the consumer and the environment. We take measurable actions to reduce our impact on the environment, while supplying quality products that are pure, safe, healthy and infinitely recyclable to our customers. O-I has implemented a program of continuous improvement appropriate to the nature, scale and location of its activities, products and services.
194
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May 2009
Plastipak Holdings, Inc.
Descriptions Private 41605 Ann Arbor Road Plymouth, MI 48107 734-455-3600 www.plastipak.com 4,700 William C. Young, President and Chief Executive Officer October $2 billion
Overview
Plastipak is a privately held manufacturer of plastic bottles and containers. It was founded by the W.P. Young family in 1967 and is located in Plymouth, MI. The company has 12 manufacturing plants operating throughout the U.S. as well as two plants each in Brazil and Europe. Plastipak products are used for beverages, consumer laundry detergent and household cleaning products, food products, and industrial and automobile products.
Plastipak is a privately held company and not required to disclose financial information. The company regularly appears on Forbes magazines list of the largest private companies. In November 2008, Plastipak ranked number 241, with $2 billion in sales for 2007.
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Figure 4-20 Annual Revenues of Plastipak, 2004-2008 (in billions of dollars)

3 2.20 2.00 2 Sales ($ Billion) 1.49 2 1.00 1 1.26
0 2004 2005 2006 2007 2008*
*Estimated by SBI Source: Forbes, Specialists in Business Information.
Product Portfolio
Plastipaks beverage containers range ranges from 8-ounce water bottles to 3-liter carbonated soft drink bottles. It provides food and beverage jars and bottles for a variety of products: salad dressings, mayonnaises, sauces, grated cheese, coffee creamers, relishes, vegetable oils, sports drinks, and juices.
Significant Developments
In 2008, Plastipak opened a new factory near Blois, France to produce packaging for its biggest client, Procter & Gamble. Plastipak acquired two Italian corporations, Europa Preforme S.r.l., and Preforme Sud S.r.l. in the spring of 2008, adding an integrated resin and preform facility in Verbania and an additional preform facility in Anagni.
196
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May 2009
Sustainability
Plastipaks corporate values statement reads: We Value (the) Public we are concerned with the environment and stay involved with our communities. We prove this both as a good corporate neighbor and as an industry leader. Together as a corporation and as individual employees, Plastipak stays involved with our local communities. Together with our recycling affiliate Clean Tech, we conduct and manage targeted collection and recycling education programs in schools, stadiums and various other venues. We believe that being a good corporate neighbor helps both the greater community and our company. As an industry leader in plastic packaging, and with the help of Clean Tech, Plastipak leads the way in using recycled content in new containers. Having received two letters of no objection from the U.S. FDA, Clean Tech now produces Post Consumer Recycled (PCR) PET material for use in both food and beverage containers. Additionally, Plastipak has earned a letter of no objection for its Multi-layer technology that utilizes PCR material in food and non-food containers.
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Printpack, Inc.
Descriptions Private 2800 Overlook Parkway, NE Atlanta, GA 300339 404-460-7000 www.printpack.com 4,400 Dennis M. Love, President and Chief Executive Officer June $1.3 billion
Overview
Printpack, headquartered in Atlanta, GA, is a privately held manufacturer of flexible and specialty rigid packaging. The company operates 25 manufacturing facilities around in the U.S., U.K., and Mexico. Printpack is the second largest U.S. flexible packaging manufacturer; its key markets are food and beverage, pet food, personal care, and tissue/towel overwrap. For the food industry, Printpack makes packaging for bakery products, cereal, cheese, condiments, confectionery, cookies, crackers, dairy products, desserts and puddings, frozen foods, fruit, ice cream, meats, pasta, processed foods, and snacks. Printpack serves industrial packaging needs: converter films, co-packing services, health care, industrial films, lawn and garden, photographic, ream wrap, and thermoformed rollstock.
Performance
Printpack is a privately held company and not required to disclose financial information. The company regularly appears on Forbes and Atlanta Business Chronicles lists of the largest private companies; Printpacks web site states that company sales exceed $1.3 billion.
198
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May 2009
Figure 4-21 Annual Revenues of Printpack, Inc., 2004-2008 (in billions of dollars)
1.5 1.36 1.27 1.10 Sales ($ Billion) 1.0 1.30
1.40
0.5
0.0 2004 2005 2006 2007 2008*
*SBI Estimate Source: Forbes, Atlanta Business Chronicle, Specialists in Business Information
Product Portfolio
Printpacks flexible packaging includes stand-up pouches, flat bottom bags, and resealable bags. The Seal-It division makes shrink sleeves for labeling, tamper evident bands, and multi-packs. Seal-It is a co-branding partner for EarthFirst PLA in bio-based shrink films. Plastipack also makes stickpacks tubular shaped packages used for hand-held dry and liquid convenience foods. Viscopack is Platipacks system for producing pillow style pouches of condiments, sauces, soups and other pumpable food products.
Recent Developments
In 2008, Printpack announced that it would build a full-range flexible packaging converting manufacturing plant near Warsaw, Poland. Start-up for the plant was expected to be early in 2009.
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Sustainability
Printpack is a member of the Sustainable Packaging Coalition. Regarding its environmental considerations, Printpack states: Printpack is committed to incorporate best sustainability practices in our material choices and converting. We use natural renewable resources wherever possible. We are partners with our suppliers and customers in providing sustainable packaging options that meet market needs. We focus on materials source reduction and energy conservation. We continue to refine our converting practices to reduce waste and energy consumption.
200
SBI
May 2009
Rexam PLC
Descriptions Public 4 Millbank London SW1P 3XR U.K. 44-0-20-7227-4100 www.rexam.com 22,300 Leslie Van de Walle, Chief Executive Officer December 4.6 billion
Overview
Rexam PLC is Rexam is the worlds second largest consumer packaging company, making beverage cans and rigid plastic packaging. business to Ardagh Glass (Ireland). In addition to making products for the food and beverage industry, Rexam makes packing for the beauty and pharmaceutical markets. Rexam has approximately 110 manufacturing facilities in more than 20 countries in Europe, North America, South America, and the Asia-Pacific rim. Rexam purchased Owens-Illinois Plastic Products, the rigid plastics unit of O-I, in 2007. Also in 2007, Rexam sold its glass container
Performance
Rexams 2008 revenues of 4.6 billion represented a 28% increase over 2007s 3.6 billion.
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Figure 4-22 Annual Revenues of Rexam PLC, 2004-2008 (in billions of )

5
4.62
4 Sales ( Billion) 3.30 3 2.60 2.81
3.61
0 2004 2005 2006 2007 2008
Source: Rexam PLC Company Web Site.
Beverage can sales were 3.3 billion in 2008, up from 2.7 in 2007.
Figure 4-23 Annual Revenues of Rexam PLC by Segment, 2004-2008 (in billions of )
4 3.29 Sales ( Billion) 3 2.49 2.07 2 1.27 1 0.53 0.47 0.72 0.88 2.24 2.69
0 2004 2005 Beverage

Source: Rexam PLC Company Web Site
2006 Plastic
2007
2008
202
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Product Portfolio
Rexams makes aluminum and steel beverage cans in 18 sizes, which are used for beer, carbonated drinks, juices, sports and energy drinks, water, wine, spirit mixers, flavored alcoholic beverages, tea, and iced coffee. Features include large opening ends, shaping and embossing, promotional tabs and ends, thermo-sensitive inks, and fluting. Rexams plastic packaging for the food industry includes closures, PET bottles (both refillable and non-refillable), plastic containers, and high barrier food containers. They are used for soft drinks, juices, isotonic beverages, and water. Food containers are used for baby foods, ready meals, fruits and vegetables, soups, sauces, and snack products.
Table 4-5 Rexams Food & Beverage Product Portfolio Selected Products Description 8 ounce 8.4 ounce 9 ounce SLEEK 10.5 ounce SLEEK 12 ounce 12 ounce SLEEK 14 ounce 16 ounce 16 ounce Cap Can 24 ounce 24 ounce Cap Can 200mm 202mm 206mm 209mm Colored ends .33 liter .5 liter (23.5g and 28g) 1.0 liter 2.0 1.5 liter Single wall jars Double wall jars Continuous thread closures Dispensing closures Ambient shelf-stable food containers
Beverage Cans
Beverage Can Ends
Beverage PET Bottles
Closures and Containers
High Barrier Containers

Source: Rexam PLC Company Web Site.
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Recent Developments
In 2008, Rexam reduced its U.S. capacity for 12-ounce can production due to overcapacity in the North American market. The company announced closures for plants in Forest Park, GA and Oklahoma City, OK as well as a line at its Longview, TX, plant.
Rexam has had environmental management programs in place since 1990 and published its first corporate responsibility report in 2003. Rexam states three broad environmental objectives: Reducing the consumption of resources Minimising our impact on nature Increasing product value
204
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May 2009
Rock-Tenn Company
Descriptions Public 504 Thrasher St. Norcross, GA 30071 770-448-2193 www.rocktenn.com 10,700 James Rubright, Chairman and Chief Executive Officer Michael E. Kiepura, Executive Vice President, Consumer Packaging September $2.8 billion
Overview
Norcoss, GA-based Rock-Tenn Company is one of North Americas leading manufacturers of paperboard, containerboard, consumer and corrugated packaging and merchandising displays. The company operates approximately 100 manufacturing facilities in the U.S., Canada, Mexico, Argentina, and Chile. Rock-Tenn reports its results of operations in four industry segments: Consumer Packaging, Corrugated Packaging, Merchandising Displays, and Specialty Paperboard Products. The Consumer Packaging segment is a leading producer of 100% coated recycled paperboard and solid bleached sulfate paperboard, and the second largest North American manufacturer of folding cartons. In addition to serving the food and beverage market, Rock-Tenn provides folding cartons for automotive products, hardware, health care and nutritional food supplement products, household goods, health and beauty aids, recreational products, and apparel.
Rock-Tenn reported net sales for fiscal 2008 increased 236% to $2.8 billion compared to $2.3 billion in fiscal 2007. The increase was primarily due to the companys acquisition of
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Southern Container in March 2008, which contributed net sales of $376 million and increased volume and pricing across Rock-Tenns segments.
Figure 4-24 Annual Revenues of Rock-Tenn Company, 2004-2008 (in billions of dollars)
2.84
2.32 2.14 Sales ($ Billion) 2 1.58 1.73
0 2004 2005 2006 2007 2008
Source: Rock-Tenn Company 2008 10-K Report.
Rock-Tenns Consumer Packaging segment had a 6% increase in net sales in fiscal 2008 compared to fiscal 2007, primarily due to higher sales of folding cartons due to increases in volume and prices and higher pricing across all coated paperboard grades. Coated recycled paperboard and bleached paperboard tons shipped increased 1.5% and 1.9%, respectively, and market pulp tons decreased 0.9%.
206
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May 2009
Figure 4-25 Annual Revenues of Rock-Tenns Consumer Packaging Segment, 2006-2008 (in billions of dollars)
2 1.55
1.42 Sales ($ Billion)
1.46
0 2006 2007 2008
Source: Rock-Tenn Company 2008 10-K Report.
Product Portfolio
Rock-Tenns folding cartons are used to package beverages and dry, frozen and perishable foods for the retail sale and quick-serve markets.
Recent Developments
In March 2008, Rock-Tenn acquired Southern Container Corp. The acquisition included a recycled containerboard mill, eight integrated corrugated box plants, two corrugated sheet plants, and four high impact graphics facilities. In October 2008, Rock-Tenn announced the closure of its Baltimore, MD folding carton plant.
Rock-Tenn is a member of the Sustainable Packaging Coalition.
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The company achieved Fiber Sourcing Certification to the Sustainable Forestry Initiative standard in 2008. Rock-Tenns folding carton division is a founding member of the Recycled Paperboard Alliances RPA 100 and is involved with the American Forest & Paper Association and the National Council for Air and Stream Improvements.
208
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May 2009
Compagnie de Saint-Gobain
Descriptions Public Les Miroirs 18, avenue dAlsace 92400 Courbevoie France 011-33-47-62-30-00 www.saint-gobain.com 206,000 Pierre-Andr d Chalendar, Chief Executive Officer Jrme Fessard, Senior Vice President; Director, Packaging Sector December 43.8 billion
Overview
Compagnie de Saint-Gobain is a global manufacturer of building and construction products, flat glass, and glass packaging. The companys Building Distribution group produces Innovative Materials includes flat glass and highplumbing, windows, and other building materials. Construction Products makes insulation, gypsum, pipe, and other products. performance materials ceramics, polymers, and glass textiles. Saint-Gobain has more than 209,000 employees in 59 countries around the world, generating 43.8 billion in 2008. Although it accounts for less than 10% of company revenue, Saint-Gobains packaging sector is the number one provider of glass packaging in Europe and second to Owens-Illinois in the world. Saint-Gobain Packaging has 15,000 employees and operates 60 plants in nearly 50 countries in Europe, North America, and Latin America.
Total sales were flat for Saint-Gobain in 2008, largely due to difficulties in the building, construction, and auto industries.
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209
Figure 4-26 Annual Revenues of Compagnie de Saint-Gobain, 2004-2008 (in billions of )

50 45 40 35.11 Sales ($ Billion) 35 30 25 20 15 10 5 0 2004 2005 2006 2007 2008 32.17 41.60 43.42 43.80
Source: Compagnie de Saint-Gobain Press Releases, Web Site, and Annual Report.
Sales of Saint-Gobains packaging sector were 3.5 billion in 2008, unchanged from 2007. The sectors decrease in sales in 2007 was primarily due to the sale of Desjonqures.
210
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May 2009
Figure 4-27 Annual Revenues of Saint-Gobains Packaging Sector, 2004-2008 (in billions of )
5 4.01 4.08 3.55 Sales ( Billion) 3.55
3.88
0 2004 2005 2006 2007 2008
Source: Compagnie de Saint-Gobain Press Releases, Web Site, and Annual Report.
Product Portfolio
Saint-Gobain containers range from 2.23-fluid-ounce capacity to 7.84-fluid-ounce capacity and their uses include beer, soft drinks, mineral waters, juices, condiments, fruits, sauces, vegetables, bouillon cubes and granules, wines and spirits, dairy products, dressings, syrups, jams and jellies, baby food, and more.
Recent Developments
In December 2008, Saint-Gobain announced it had put off the sale of its packaging unit due to difficulties in the credit sector.
In 2003, Saint-Gobain joined the U.N.s Global Compact, which is committed to defending the environment, human rights, labor standards, and the fight against corruption worldwide.
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Member organizations include corporations, agencies, labor unions, and non-governmental organizations. The groups mission is to develop a humane and sustainable economy. Saint-Gobains undertakes to exceed regulatory demands to: Limit emissions into the air Manage natural resources Reduce waste and promote recycling
212
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May 2009
Sealed Air Corporation
Descriptions Public 200 Riverfront Boulevard Elmwood Park, NJ 07407-1033 201-791-7600 www.sealedair.com 17,000 William V. Hickey, President and Chief Executive Officer December $4.8 billion
Overview
New Jersey-based Sealed Air manufactures and sells a wide range of food and protective packaging products. The company operates in the U.S. and more than 50 other countries, with 17,000 employees. The companys principal food packaging products include flexible materials, associated packaging equipment systems, rigid containers and absorbent pads. These products package a broad range of perishable foods and are marketed globally. Sealed Airs other products serve industrial, medical, and consumer applications. Its brand names include Bubble Wrap brand cushioning, Jiffy protective mailers, Instapak foamin-place systems and Cryovac packaging technology.
Total 2008 revenues for Sealed Air were more than $4.8 billion. The 4% increase in net sales was due to product price increases; unit volumes were slightly lower for food packaging (down 1%), food solutions (down 1%), and protective packaging (down 5%).
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213
Figure 4-28 Annual Revenues of Sealed Air, 2004-2008 (in billions of dollars)
5 4.33 4.09 4 Sales ($ Billion) 3.80 4.65 4.84
0 2004 2005 2006 2007 2008
Source: Sealed Air 2008 10-K Report.
The Food Packaging segment represents about 40% of Sealed Air sales. Food Solutions accounts for about 20%; Protective Packaging is about 30% and Other is 8%.
214
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Figure 4-29 Annual Revenues of Sealed Air from Food Packaging, 2004-2008 (in billions of dollars)
3 2.53 2.35
Sales ($ Billion)
2.83 2.58
2.96
0 2004 2005 2006 2007 2008
Source: Sealed Air 2008 10-K Report.
Product Portfolio
Sealed Airs packaging for the food industry is used for fresh and processed meats, cheeses, fresh seafood, ready meals, case-ready foods, baked goods, pasta, pizza, soups, stews, condiments, and sauces. Packaging products are shrink bags and films and vertical pouch packaging, primarily sold under the Cryovac trademark.
Recent Developments
In December 2008, Sealed Air announced that it will close its manufacturing facility located in Cedar Rapids, IA.
Sealed Airs strategic focus on environmental sustainability includes the following commitments: Invest twice the industry average in new product development
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Begin at the point of design, where we can prevent waste, optimize our use of resources, select safer materials and plan for the recyclability or recoverability of our packaging.
Utilize Life Cycle Management tools in the development of new products and as part of a review for existing products
Keep customers and the public informed on all the environmental attributes of a product and the importance of meeting demands for price and performance
Reduce waste find practical uses for 98% of our raw materials by the end of 2009 Reduce greenhouse gas emissions by 12% between 2006 and 2010 Reduce energy intensity by 2% between 2006 and 2010 Increase the use of renewable energy
216
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May 2009
Silgan Holdings Inc.
Descriptions Public 4 Landmark Square Stamford, CT 06901 203-975-7110 www.silganholdings.com 7,700 Anthony J. Allott, President and Chief Executive Officer Thomas J. Snyder, President, Silgan Containers Corporation Peter Konieczny, President, Silgan White Cap Alan H. Koblin, President Silgan Plastics Corporation December $3.1 billion
Overview
Silgan Holdings operates in three businesses: metal food containers, closures, and plastic container business. Silgans metal and plastic packaging products are used by consumer product companies for goods such as foods and beverages, pet foods, personal care, healthcare and pharmaceutical, household products, industrial and agricultural chemicals, automotive, and marine chemicals. Silgan is the largest manufacturer of metal food containers in North America, with a unit volume market share for the year ended December 31, 2008 of approximately half of the market in the U.S. The company operates 66 manufacturing facilities in 10 countries, with 7,700 employees and annual sales of more than $3 billion.
Silgan Holdings 2008 sales were $3.1, 7% increase vs. 2007. The increase was principally due to higher average selling prices across all businesses primarily as a result of the pass through of higher raw material and other manufacturing costs, favorable foreign currency
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translation and increased volumes in the metal food container and closure businesses, partially offset by a decline in volumes in the plastic container business.
Figure 4-30 Annual Revenues of Silgan Holdings, 2004-2008 (in billions of dollars)
3 2.67 2.42 Sales ($ Billion) 2.50 2.92
0 2004 2005 2006 2007 2008
Source: Silgan Holdings, Inc. 2005 Annual Report
Net sales for the metal food container business were $1.8 billion in 2008, an increase of6% compared to 2007. Net sales for the closures business in 2008 increased 11% in 2008, to $680 million. Net sales for the plastic container business in 2008 increased 4% to more than $650 million.
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Figure 4-31 Annual Revenues of Silgan Holdings by Segment, 2004-2008 (in billions of dollars)
2 1.79 1.59 1.61 1.62 1.68
Sales ($ Billion)
0.58 0.25
0.61 0.28
0.59 0.45
0.62 0.63
0.68
0.65
0 2004 2005 2006 2007 2008
Metal Food Containers

Source: Silgan Holdings Inc. 2005 Annual Report
Closures
Plastic Containers
Product Portfolio
Silgan Holdings businesses are: steel and aluminum containers for human and pet food metal, composite and plastic vacuum closures for food and beverage products custom designed plastic containers, tubes and closures for personal care, health care, pharmaceutical, household and industrial chemical, food, pet care, agricultural chemical, automotive and marine chemical products
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Table 4-6 Silgan Holdings Food & Beverage Product Portfolio Business Segment Products Adult nutritional drinks Coffee Fruit Meat Seafood Soups Tomato-based products Vegetables Baby food Cooking sauces Dairy products Fruit Gravies Infant formula Juices and juice drinks Ketchup Pickles Preserves Ready-to-drink tea Salsa Soup Sports and energy drinks Tomato sauce Vegetables Condiments Liquor Peanut butter Salad dressings Liquid margarine Peanut butter Powdered drink mixes Salad dressings Spices
Metal Food Containers
Metal, Composite, and Vacuum Closures
PET Plastic Containers
Plastic Containers, Closures, Caps, Sifters, Fitments
Source: Silgan Holdings Company Web Site.
Recent Developments
In 2008, Silgan acquired acquired Vem, the metal vacuum closures operations of Grup Vemsa 1857, S.L.. This acquisition adds to Silgans position in the Southern European and Asian markets.
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Silgan Holdings is a member of the Sustainable Packaging Coalition. The company states its commitment to managing its operations in an environmentally responsible manner by preventing pollution and achieving continual improvement in environmental performance through economically viable practices.
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Sonoco Products Company
Descriptions Public One North Second St. Hartsville, SC 29550 843-383-7000 www.sonoco.com 17,500 Harris E. DeLoach, Jr., Chairman, President, and Chief Executive Officer Charles Sullivan, Executive Vice President, Consumer December $4.1 billion
Overview
Founded in 1899, Sonoco is a global manufacturer of paper, plastic, and flexible packaging, as well as metal closures. The company has both industrial and consumer product clients in more than 80 countries, which it serves with more than 330 operations in 35 countries, 17,500 employees, and annual sales of more than $4 billion. The companys operations are organized and reported in three major segments, Consumer Packaging, Tubes and Cores/Paper and Packaging Services. Sonoco makes rigid paper packaging, rigid plastic containers, steel and aluminum ends and closures, printed flexible packaging, paper tubes and cores, recycled paperboard, and point-of-purchase displays. In addition, the company makes paper-based protective packaging, wire and cable reels, molded and extruded plastics, and paperboard specialties.
Sonocos 2008 sales were a record $4.1 billion, up 2% from $4.0 billion in 2007.
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Figure 4-32 Annual Revenues of Sonoco Products Company, 2004-2008 (in billions of dollars)
5 4.04 4 4.12
Sales ($ billion)
3.53 3.16
3.66
0 2004 2005 2006 2007 2008
Source: Sonoco Products Company 2008 10-K Report
Consumer Packaging segment sales increased to $1.6 billion, primarily due to higher selling prices and the effects of the companys 2007 acquisition of Matrix Packaging. Volumes were down in flexible packaging, closures, and rigid plastic packaging.
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Figure 4-33 Annual Revenues of Sonocos Consumer Packaging Segment, 2004-2008 (in billions of dollars)
2 1.57 1.44
Sales ($ billion)
1.25 1.13 1
1.30
0 2004 2005 2006 2007 2008
Source: Sonoco Products Company 2008 10-K Report
Product Portfolio
Sonocos Consumer Packaging segment includes rigid packaging products made from paper and plastic, closures made from plastic and metal, and printed flexible packaging products. Flexible packaging products are made from thin-gauge, high value-added rotogravure, flexographic, and combination printed film. Products are used for confectionery and gum, baked goods, coffee, beverages, and snack foods.
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Table 4-7 Sonoco Products Companys Food & Beverage Packaging Product Portfolio Product Line Markets Served Cereal Coffee Confectionery Cookies Crackers Frozen concentrates Nutritional supplements Nuts Powdered beverages and infant formulas Refrigerated dough Snacks Spices/Seasonings Condiments Noncarbonated high-barrier beverages Ready-to-drink products Desserts Fresh-cut produce Nuts Processed foods Sauces and dips Snacks Coffee Dairy Fruit Pasta Poultry Powdered infant formula Seafood Soup Vegetables Beverages Coffee Confectionery and gum Hard-baked goods Processed foods Snack foods
Rigid Paper Packaging
Blow Molded Plastics
Thermoformed Plastic
Ends and Closures
Printed Flexible Packaging
Source: Sonoco Products 2008 10-K Report.
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Recent Developments
In 2008, Sonoco announced a realignment that would result in the closing of approximately 15 plants globally and the reduction of approximately 700 positions. In 2008, Sonoco closed three rigid packaging plants in the U.S.; three paper mills, one each in the U.S., Canada and China; a specialty paper machine in the U.S.; a metal ends plant in Brazil; and three tube and core plants, one each in Canada, Spain and China. The company completed two acquisitions during 2008: Amtex Packaging, Inc., a packaging fulfillment company included in the Packaging Services segment, and VoidForm International Ltd., a Canada-based construction tube business included in the Tubes and Cores/Paper segment.
Sonoco is a member of the Sustainable Packaging Coalition. Sonoco has the Rainforest Alliances SmartWood Chain-of-Custody certification at 14 Sonoco paper mills, indicating that the mills are using only responsibly harvested wood products from well-managed forests. Sonoco created an in-house Sustainability Council in 2005 to develop company-wide metrics and to monitor progress on its economic, social, and environmental goals.
In its sustainability statement, Sonoco says:

Sonocos strategic mission statement is to be the low-cost global leader in providing customer-preferred packaging solutions to selected value-added segments, where we expect to be either number one or two in market share. Shareholder return, customer and employee satisfaction, commitment to excellence, integrity, environmental stewardship and a safe workplace will be the hallmarks of our culture. The companys focus on sustainability is directly linked to and in support of its mission statement. We believe that initiatives around enhancing our reputation, being a strong corporate citizen, providing a good place to work and being a good steward of our environmental resources will make us a stronger, more competitive company, better able to support and satisfy our broad customer base and provide shareholders with average annual double-digit total returns.
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In todays competitive global marketplace, the issues relevant to supporting sustainability are directly linked to Sonocos long-term profitability and viability. We believe that sustainability and business success are not only compatible but are inextricably linked and that by embracing both, we will benefit our shareholders for the long term.
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Other Companies
Companies Noted for Their Sustainability Focus in Food & Beverage Packaging
The following companies are notable because of their focus on sustainability in food packaging. However, their operations are either relatively small or not packaged-goods related. Earthcycle Packaging Founded in November, 2005, and based in Vancouver, British Columbia, Earthcycle has developed sustainable packaging made from a renewable resource, called palm fiber, which composts in less than 90 days. Earthcycles palm fiber packaging is made from a waste product, discarded when the palm fruit is harvested throughout the year for its oil. Earthcycles packaging includes: fresh produce packs for fruits and vegetables; food service packs and take-out containers for sandwiches, salads, dinners, etc.; NatureFlex film (a heat sealable bag or wrap); and the company is currently developing a line of fresh meat, poultry, and seafood trays. Earthcycle is a member of the Sustainable Packaging Coalition. EnviroPAK Corporation St. Louis, MO-based EnviroPAK manufactures molded pulp packaging made of 100% recycled content and recyclable. The company was founded in 1996. In addition to beverage (including wine) packaging, EnviroPAK provides packaging for the electronics, computer, consumer goods, automotive, medical, candle, and telecommunication markets. EnviroPAK is a member of the Sustainable Packaging Coalition. Innovia Films With U.S. main offices in Smyrna, GA and a European base in Wigton, England, Innovia Films is the worlds leading supplier of specialty biaxially oriented polypropylene (BOPP) and cellulose films for specialty packaging, labeling, graphic arts and industrial products.
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The company has annual sales of more than 400m and employs about 1,400 people worldwide. Total annual film capacity is more than 120,000 tons. Innovias products are used for beverages, fresh produce packaging, cookie and bakery overwrap, confectionery twist-wrap, convenience food on the move applications, dairy products. Innovias biodegradable/compostable films, transparent NatureFlex films, are derived from renewable wood pulp sourced from managed plantations. They have been tested and certified to the harmonized European and American Composting norms for packaging materials, EN13432 and ASTM D6400, plus the OK Compost schemes. The companys Cellophane brand is used for specialty markets including twist-wrapped confectionery, breathable packaging for baked goods, live yeast and cheese products and CelloTherm ovenable and microwavable packaging. Innovia Films is a member of the Sustainable Packaging Coalition. NatureWorks LLC NatureWorks LLC is a product of a joint venture between Cargill Incorporated and Teijin Limited of Japan. Founded in 1997, NatureWorks manufactures polymers derived entirely from 100% annually renewable resources, such as corn and other plant sugars. The companys biopolymers use 65% less fossil fuel resources to produce, and reduces greenhouse gas emissions by 80-90% compared to traditional petroleum-based polymers. The company applies its unique technology to the processing of natural plant sugars to create a proprietary polylactide biopolymer (PLA) under the NatureWorks brand name, which is then marketed globally as Ingeo. Ingeo is used for flexible packaging, shrink sleeves, window cartons, and labels.
NatureWorks is a member of the Sustainable Packaging Coalition.

Plantic Technologies Ltd. Founded in Australia in 2002, Plantic Technologies is a leading developer and producer of bio-based materials. amylose corn-starch. Its Plantic product is made from non-genetically modified high
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Plantics chemical properties allow for a diverse range of applications, from the production of resin for on sale to materials manufacturers to the extrusion of sheets for use in food, cosmetic and pharmaceutical packaging. Plantic Technologies also owns the technology which allows this bioplastic to be modified to suit an even broader range of needs across the complete spectrum of conventional plastics conversion and end user applications, including thermoforming, injection molding, film extrusion and blow molding, as well as rigid and flexible packaging. Plastic Suppliers Inc. Headquartered in Columbus, OH, Plastic Suppliers manufactures EarthFirst polylactide polymer (PLA) films from corn. The company is also a converter/distributor of a range of other films sold into the envelope, flexible packaging, folding carton, shrink film, thermoforming and printing markets. Plastic Suppliers manufactures EarthFirst film, using NatureWorks PLA resin. Applications for EarthFirst film include label face stock, shrink film, floral wrap, envelope window film, flexible packaging, and release liners. In the food and beverage industry, EarthFirst films are used for windows in folding cartons, bag windows, bag lamination, lidding, bacon board, twist wrap, and chocolate interleave. Plastic Suppliers is a member of the Sustainable Packaging Coalition.
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Chapter 5: Marketing & Promotion
Chapter 5
Marketing & Promotion
Environmental and sustainability oriented business practices can benefit companies in several ways. By definition, they are ecological; they aim to better the planet and society. Improvements in sustainability can lead to cost cutting from more efficient processes and reductions in source materials. Sustainability and socially responsible image and behavior can also be a competitive advantage for businesses. Taking advantage of the benefits of sustainability requires communication, particularly at this relatively early stage of definition and understanding. Successful sustainability policies depend on businesses developing and communicating clear goals, strategies, tactics, and procedures to employees, customers, stakeholders, and the general public. The effectiveness of the message plays an important role in the effectiveness of the strategy.
The Sustainability Learning Curve

The packaging industry is long-established, but the sustainability movement is relatively new. Packaging industry participants acknowledge that they are at the early stages of the learning curve in defining sustainability, understanding the implications, educating themselves and the public, implementing sustainability policies and standards, and optimizing their sustainability efforts. In October 2008, Kevin T. Higgins, Senior Editor of Food Engineering magazine, wrote, The connection between sustainable practices and good business still isnt being made by many food professionals, some of whom relegate cuts in package waste to outside pressures rather than as contributors to positive change in their companies cost structures. A 2008 survey of packaging professionals by Packaging Digest and the Sustainable Packaging Coalition indicated that 67% were moderately (36%) or very (31%) familiar with sustainability issues. Four percent said they were not at all familiar with sustainability issues, while 29% were somewhat familiar.
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Only 17% of executives said their company had a formal policy in place regarding sustainability. Thirty-eight percent said they had no policy; 12% did not know whether their company had a policy. In 2007, consulting firm A.T. Kearney surveyed Fortune 100 companies regarding their sustainable practices related to economic development, environmental stewardship, and social well-being and found that fewer than 60% had adopted sustainable practices to strengthen brand names or differentiate their products. Only 12% of international companies rated green issues among their top three supply chain priorities, according to a 2007 survey of senior level executives of large ($1 billion or more in sales) companies conducted by Ernst & Young and the Economist Intelligence Unit. The survey also noted that 44% of respondents said they were confident they can deal with sustainability issues. Yet this is matched by an alarming amount of inactivity on the part of many large global companies, who have yet to realize the full potential of the savings and benefits that can be achieved by integrating sustainability issues into their supply chain management.
The Message of Sustainability

In the U.S., the year 1970 is a major milestone in national efforts and concerns about protecting the environment. In addition to the first Earth Day, 1970 saw the signing into law of The National Environmental Policy Act of 1969 (NEPA). The purposes of NEPA were To declare a national policy which will encourage productive and enjoyable harmony between man and his environment; to promote efforts which will prevent or eliminate damage to the environment and biosphere and stimulate the health and welfare of man; to enrich the understanding of the ecological systems and natural resources important to the Nation; and to establish a Council on Environmental Quality. Since the 1970s, companies have found that the management of environmental concerns can lead to efficiencies in production and materials use as well as reduction in waste. This led to proactive corporate responsibility strategies that address environmental, social, and ethical concerns. Still, in mid-1990s, it was estimated that less than 20% of North American and
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European companies were proactive in their commitment to improving environmental performance in alignment with sustainable development objectives.4 In recent years, economic conditions have made decisions about the selection and use of resources and energy critical. economic benefit. Companies are beginning to realize and take advantage of the combination of benefits that come with sustainable policies and practices: Preserving natural resources Ensuring positive economic growth and profitability Building positive corporate and brand images Access to geographic markets in compliance with local/national/international regulations Product, packaging, and process development and innovation Competitive distinction in the marketplace Maximizing efficiencies, conserving resources, source reduction, and controlling costs have inadvertently led to environmental advantages as well as
Even companies that are not convinced of the all of the advantages of sustainability recognize the need to consider the risks of not adopting formal policies and considerations. The Message Within the Company The importance of the sustainability message is a top-down business decision. Companies have created positions specifically dedicated to sustainability and green issues. Positions may rank at the highest level with c-level responsibilities, as Chief Sustainability Officer. Some have responsibilities related to sustainability without that designated title. Among the functions most directly related to sustainability are packaging, purchasing (materials), production (energy use and waste management), and transportation/shipping. Packaging Digest found that 39% of companies with sustainability initiatives link them to lean manufacturing programs; 36% link them with quality programs.
World Resources Institute (http://earthtrends.wri.org/features/view_feature.php?fid=2&theme=5)
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Sustainability programs have much in common with quality management programs, something many companies have in place and are familiar with. They both emphasize longterm considerations, focus on both economic and social benefits, continuous improvement, and involvement/empowerment of all employees. Both issues have had their skeptics and problems with defining measures and standards. Like quality management programs, sustainability initiatives may be postponed or discontinued due to poor economic conditions. While formal initiatives may suffer, programs that reduce oil, gas, and energy consumption (and thereby costs) will proceed, with a concurrent positive environmental impact. Industry Conferences and Trade Shows Promote Sustainability The packaging industry has many trade shows and conferences offering opportunities to learn about the overall market, current issues, competition, and customers. Sustainability has become a major emphasis at packaging trade shows. One particularly targeted annual conference is produced by IntertechPira Sustainability in Packaging. BNP Media sponsors The Sustainable Packaging Forum, which is officially endorsed by the Sustainable Packaging Coalition and GreenBlue and imparts how to deliver returns to shareholders by embracing sustainability and sustainable packaging as a core strategy. Interpack is the worlds largest packaging trade show and is held every three years. In 2008, Interpack marked its 50th anniversary with its show in Dsseldorf, Germany with more than 2,700 exhibitors and 179,000 visitors from 121 countries (62% of visitors were from outside of Germany). Sustainable Life Media sponsors the Sustainable Brands International conference includes representatives of companies from different market sectors, geographic regions, company sizes and business responsibilities. The theme of Pack Expo 2008, sponsored by the Packaging Machinery Manufacturers Institute, was Change, Innovation, and Sustainability. Among the sessions: Conservation The First Step to Sustainability The Road to Zero Landfill Waste
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Sustainability: What Brand Owners Expect from their Packaging Suppliers New Technologies for Lightweighting Polyolefins Transforming Waste into Resources Tradeoffs in Sustainability in Wrapping Minimizing Packaging without Compromising Integrity
Wal-Mart hosts an annual invitation-only Sustainable Packaging Exposition for its vendors and suppliers. Topics for the 2009 expo include Wal-Marts expansion of its Packaging Scorecard to its international locations and the adjustment of scorecard metrics to focus more on greenhouse gas reductions and on formulating more aggressive packaging weightreduction goals within specific product categories. Schooling for Sustainability As corporations are learning about sustainability, colleges and universities are teaching it. Business schools are incorporating courses about sustainability in their curricula. The University of North Carolinas Kenan-Flagler Business School established a Center for Sustainable Enterprise to help executives and future business leaders understand how social and environmental considerations are changing the competitive landscape of business. In 2008, Green Mountain College graduated its first class of its MBA program in sustainable business. The program emphasizes the triple bottom line approach to business: people, planet and profit in a two-year course of study. The Message for Consumers Consumers interest and concerns about environmental issues are often superceded by their preference for convenience. Single-serve packages vs. bulk purchases and heat-and-eat foods are examples of products designed for ease of use and not sustainability as the primary consideration. Even if sustainability is not of primary consideration, environmental impacts of their purchase decisions are important to many consumers. Thus, packaging is not just a practical necessity, but an opportunity to define a brand and companys image and to educate and persuade consumers.
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Consumers respond particularly well to efforts by brands and companies to address environmental concerns when they already have confidence in the quality and image of the product. One example is when in 2008, Boisset Family Estates became the first winery to package its Beaujolais Nouveau wines imported to the U.S. in lightweight PET plastic bottles instead of glass. The company felt that its reputation would lead customers to trust the decision and the quality of the product. In the U.S., companies have the lead role in setting their sustainability policies and practices and communicating them to the consumer. Consumer interest is high, and the general public is also relatively uneducated about environmental claims. environmental quality. At the same time, they must carefully balance and temper their environmental message, understanding that consumers are often skeptical of claims that seem unverifiable, too general, or in contradiction to other company actions/products/viewpoints/etc. The Message to Investors Company shareholders are also demanding more disclosure regarding environmental concerns and policies. In the 2009 proxy season, the use of Bisphenol A (BPA) in packaging was raised as an issue to 15 major food packaging companies who were urged to find alternatives to BPA for their products. In 2005, Coca-Cola and Pepsico faced shareholder resolutions asking them to set goals for increasing beverage container recovery and recycling in the U.S. In 2005, the resolutions were withdrawn after the companies committed to working with the Beverage Packaging Environmental Council to set quantitative and national goals to increase recycling. In January 2009, Coca-Cola announced the opening of a recycling plant in Spartanburg, SC that would play an important role in the companys goal of increasing the recycled content of its PET bottles by 10% by the end of 2010 and 25% by 2015 (Coke achieved the 10% goal in 2004 and 2005, but then fell back to 5% in 2007 and 3% or less in later years). Like other stakeholders, investors are interested in sustainable business practices that promote and result in cost savings and profitability, in addition to their environmental effects. They also see the potential risk of not addressing environmental issues. Worst-case scenarios Companies have a great opportunity to build their brand and corporate image based on both product quality and
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might be fines or other penalties for non-compliance or loss of market share to more competitive products, situations that lead to lower shareholder values.
Managing the Message

As businesses expand the communication of their sustainable policies and practices, they face a growing concern about greenwashing making misleading or unsubstantiated claims about the environmental benefits. Packaging Digest reported that 77% of executives surveyed in 2008 say standards are needed for sustainability marketing, yet respondents are mixed on which organization should set those standards. Federal Trade Commission The Federal Trade Commission is legally empowered to regulate advertising claims and does so under the Guides for the Use of Environmental Market Claims, also called the Green Guides. The Green Guides were introduced in 1992; in 2008, the FTC held workshops to get input on potential revision to the guides. These guides apply to environmental claims included in labeling, advertising, promotional materials and all other forms of marketing, whether asserted directly or by implication, through words, symbols, emblems, logos, depictions, product brand names, or through any other means, including marketing through digital or electronic means, such as the Internet or electronic mail. The guides apply to any claim about the environmental attributes of a product, package or service in connection with the sale, offering for sale, or marketing of such product, package or service for personal, family or household use, or for commercial, institutional or industrial use. From 1990 to 2000, the FTC brought nearly 40 involving environmental marketing claims; there have been no cases specific to the Green Guides since then. Better Business Bureau The National Advertising Division (NAD) of the Council of Better Business Bureaus investigates advertising claims to ensure that they are truthful, accurate, and not misleading. Between 1988 and 2008, NAD issued nearly 30 decisions involving a wide range of environmental marketing claims, often requiring that the claims be modified or discontinued.
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Each case involves consideration of the claims made in the advertising and labeling and the supporting evidence provided by the advertiser. Setting Environmental Standards Several organization offer certifications to distinguish product and/or packaging from an environmental perspective. The International Organization for Standardization (ISO) sets global industrial and commercial standards and is composed of representatives from various national standards organizations. ISO is a non-governmental organization, but many of its standards are adopted as national laws. ISO standard 14020 establishes the key principles for environmental labeling, requiring that labels be accurate and based on scientific results. the packaging). ISO standards identify four types of labels that can be issued by governments or independent third parties: Type I product seals based on multiple criteria Type II self-declarations about environmental product qualities (such as, contains 75% recycled paper) Type III quantified product information based on life cycle assessment Type IV seals that address single issues and are licensed by companies or organizations (such as the Forest Stewardship Council seal) Three of the most widely acknowledge environmental standards in the U.S. are those of EcoLogo, the Forest Stewardship Council, and Green Seal. EcoLogo and Green Seal both offer leadership standards that signify the top 20% of the respective category. EcoLogo is the oldest set of environmental standards in North America, and covers more than 3,000 products. Forest Stewardship Council certifies wood products obtained from sustainably harvested forests as well as environmentally preferable papers. ISO 14021 addresses self-declared environmental claims. Claims must be specific and clear as to their subject (the product vs.
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Green Seals standards include requirements to reduce the environmental and health impacts associated with the manufacture, use, and end-of-life or life cycle of products. Standards are set on a category-by-category basis.
Among other certifications are: Cradle-to-Cradle based on a concept developed in the 1970s by Swiss architect Walter R. Stahel, cradle-to-cradle (C2C) is the idea of designing products with the entire product life in mind. Thus, the end of a products useful life was not the grave, but its recycle or reuse in another life. German chemist Michael Braungart and William McDonough further developed the idea, and founded McDonough Braungart Design Chemistry (MBDC) in 1995 to offer their consulting to businesses. MBDC awards C2C Certification to qualifying companies. Their assessment is based on five criteria: materials (using safe and healthy materials); design for material reuse and recycling; production that makes efficient use of energy and water; and social responsibility. WasteWi$e Program started in 1994 by U.S. Environmental Protection Agencys (EPA) Office of Solid Waste and Emergency Response, WasteWi$e is aimed at reducing municipal solid wastes by promoting waste minimization, recycling collection and the manufacturing and purchase of recycled products. Members agree to identify and implement actions to reduce their solid wastes and must provide EPA with their waste reduction goals along with yearly progress reports. EPA in turn provides technical assistance to member companies and allows the use of the WasteWi$e logo for promotional purposes. The 100% Recycled Paperboard Alliance (RPA-100%) is the main industry advocate for recycled paperboard and sponsors a 100% recycled paperboard licensing program. Consumer packaged goods companies using 100% recycled paperboard packaging pay a fee, based on annual sales volume, to display the RPAs symbol on their paperboard packaging. Environmental Labels Companies use a variety of terms in their packaging to indicate environmental benefits. For many claims, there are no specific standards, which can be confusing for consumers. The
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situation is similar to the early stages of companies making nutritional and health claims. Among the most utilized terms: Biodegradable Eco-friendly Environmentally-friendly Green Recyclable Recycled content Reduced packaging Refillable Reusable
Package Tags
According to Productscan Online data, recyclable was by far the top sustainable package tags used by marketers for new food and beverage products in 2008. This is true in the U.S. and globally.
Table 5-1 New Food & Beverage Product Selling Points, by Select Package Tag, 2008 Package Tags Recyclable Reusable Recycled Materials Reduced Packaging Biodegradable Refill Total
Source: Productscan Online.
U.S. Brands 157 79 51 11 14 5 317
Global Brands 408 105 80 36 32 24 685
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Recyclable According to the Federal Trade Commission, recyclable means that products can be collected, separated or recovered from the solid waste stream and used again, or reused in the manufacture or assembly of another package or product through an established recycling program. Global use of recyclable on new food and beverage products has been a dominant theme in recent years. In 2006, more than 3,000 products identified that feature on their packaging. Since 2006, use of recyclable has fallen off dramatically; Productscan reported only 408 food and beverage product introductions featuring recyclable in 2008. In the U.S., use of recyclable has been fairly steady over the last five years.
Figure 5-1 New Food & Beverage Product Use of Recyclable Package Tag, U.S. and Global, 2004-2008
3,500 3,040 3,000 2,500 2,000 1,500 1,000 666 500 52 0 2004 2005 U.S.
1,194 787 408 58 165 138 157
2006 Global
2007
2008
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Reusable From 2004 to 2008, food and beverage products introduced in the U.S. represented the highest global share of products introduced featuring the reusable package tag.
Figure 5-2 New Food & Beverage Product Use of Reusable Package Tag, U.S. and Global, 2004-2008
120 100 100 86 81 80 69 64 60 79 94 94 113 105
40
20
0 2004 2005 U.S.

2006 Global
2007
2008
Recycled Material In 2006, there was a spike in the number of food and beverage new product introductions globally that used the recycled material package tag. Use of recycled material claims on new products has been fairly consistent in the U.S. in the past five years.
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Figure 5-3 New Food & Beverage Product Use of Recycled Material Package Tag, U.S. and Global, 2004-2008
160 140 120 100 80 80 60 40 40 19 20 0 2004 2005 U.S.
137
50 27 19 7 20
51
2006 Global
2007
2008
Reduced Packaging Reduced packaging is an unusual package tag for food and beverage products, having been used only in two of the last five years (2006 and 2008). In 2008, 11 of the worlds 36 food and beverage product introductions using the phrase were U.S. introductions.
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Figure 5-4 New Food & Beverage Product Use of Reduced Packaging Package Tag, U.S. and Global, 2004-2008
40 36 35 30 25 20 15 11 10 5 0 2004 2005 U.S.
2006 Global
2007
2008
Refill Globally, refill package tags have been used on about 25 new food and beverage product introductions per year from 2004 to 2008.
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Figure 5-5 New Food & Beverage Product Use of Refill Package Tag, U.S. and Global, 2004-2008
30 27 25 25 22 20 16 15 10 10 5 5 11 10 23 24
0 2004 2005 U.S.

2006 Global
2007
2008
Biodegradable The Federal Trade Commission limits the use of biodegradable to products that are degradable when exposed to air, moisture, bacteria or other organisms and that the materials will break down and return to nature within a reasonably short time after customary disposal. The American Chemistry Council sites specifications of the American Society for Testing and Materials (ASTM) regarding the biodegradability of plastics: Products must disintegrate in a 12-week period under composting conditions Products must achieve significant amounts of biodegradation within 180 days o o 60% conversion to carbon dioxide for homopolymers 90% conversion to carbon dioxide for blends
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The years 2007 and 2008 showed high levels of food and beverage product introductions using biodegradable labeling compared to previous years. Introductions in the U.S. were 78% of those globally in 2007 and 44% in 2008.
Figure 5-6 New Food & Beverage Product Use of Biodegradable Package Tag, U.S. and Global, 2004-2008
40 36 35 30 25 20 15 10 5 5 0 2004 2005 U.S.
32 28
17 12 13 14
2006 Global
2007
2008
Marketing Resources for Food & Beverage Packaging

The most widely used resources for those looking to gain and impart industry information regarding food and beverage packaging are industry publications and associations. These resources range from very broad to very narrow topical and geographic scope. Food Packaging Resources Packaging is covered by various segments of the food and beverage industry, retailers, and in packaging-specific sources.
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Table 5-2 Food Packaging Resources Publications Beer Marketers Insights Beverage Digest Beverage Industry Beverage World Brand Marketing Brand Packaging The Can Maker Chain Store Age Convenience Store News Discount Store News Drug Store News Food & Beverage Packaging Food Processing Frozen Food Age Modern Brewery Age Package Design Packaging Digest Packaging Horizons Packaging Strategies Packaging World Progressive Grocer Supermarket Business Supermarket News U.S. Associations American Beverage Association American Dairy Association and Dairy Council American Frozen Food Institute Beer Institute Contract Packaging Association Converting Equipment Manufacturers Association Food Institute Food Marketing Institute Food Processing & Machinery Supplies Association Foodservice & Packaging Institute Frozen Food Association Websites www.beerinsights.com www.beverage-digest.com www.bevindustry.com www.beverageworld.com www.brandmarket..com www.brandpackaging.com www.canmaker.com www.chainstoreage.com www.csnews.com www.discountstorenews.com www.drugstorenews.com www.foodandbeveragepackaging.com www.foodprocessing.com www.frozenfoodage.com www.breweryage.com www.packagedesignmag.com www.packagingdigest.com www.packaginghorizonsmag.com www.packstrat.com www.packworld.com www.progressivegrocer.com www.supermarketbusiness.com www.supermarketnews.com Websites www.ameribev.org www.adadc.com www.affi.com www.beerinst.org www.contractpackaging.org www.cema-converting.org www.foodinstitute.com www.fmi.org www.fpmsa.org www.fpi.org www.nffa.org
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Table 5-2 [cont.] U.S. Associations Grocery Manufacturers Association/ Food Products Association Institute of Packaging Professionals International Association of Food Industry Suppliers International Beverage Packaging Association International Bottled Water Association International Dairy Foods Association National Association of Chain Drug Stores National Association of Convenience Stores National Beer Wholesalers Association National Beverage Packaging Association National Confectioners Association National Food Processors Association National Frozen Food Association National Grocers Association National Retail Federation National Soft Drink Association North American Packaging Association Produce Marketing Association Retail Packaging Manufacturers Association Snack Food Association Wine Institute International Associations Alliance for Beverage Cartons and the Environment Australian Institute of Packaging Confederation of the Food and Drink Industries of the EU European Dairy Association European Federation of Bottled Water European Food Service and Packaging Association European Spirits Organisation Pack2Go Europe Union of European Beverage Associations World Packaging Organisation
Source: SBI
Websites www.gmaonline.org www.fpa-food.org www.iopp.org www.iafis.org www.ibpa.org www.bottledwater.org www.idfa.org www.nacds.org www.cstorecentral.com www.nbwa.org -www.candyusa.org www.nfpa-food.org www.nffa.org www.nationalgrocers.org www.nrf.com www.nsda.org www.paperbox.org www.pma.com www.rpma.org www.sfa.org www.wineinstitute.org Websites www.beveragecarton.eu www.aipack.com.au www.ciaa.eu www.euromilk.org www.efbw.eu www.efpa.com www.europeanspirits.org www.pack2go-europe.com/en/ www.unesda.org www.worldpackaging.org
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Environmental Packaging Resources The most notable resource for environmental packaging issues is the Sustainable Packaging Coalition. The Sustainable Packaging Coalition is: an industry working group inspired by cradle to cradle principles and dedicated to transforming packaging into a system that encourages economic prosperity and a sustainable flow of materials. The Sustainable Packaging Coalition is dedicated to a more robust environmental vision for packaging. Through informed design practice, supply chain collaboration, education, and innovation, the Coalition strives to transform packaging into a system that encourages an economically prosperous and sustainable flow of materials, creating lasting value for present and future generations.
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Table 5-3 Environment-Related Packaging Resources Publications GreenBiz MSW Management Recycling Policy News Recycling Today Resource Recycling Scrap Waste Age Waste News U.S. Associations Association of Post-Consumer Plastic Recyclers Green Seal GreenBlue Institute of Scrap Recycling Industries National Recycling Coalition National Resources Defense Council Reusable Packaging Association Solid Waste Association of North America Steel Recycling Institute Sustainable Packaging Coalition International Associations Association for the Sustainable Use & Recovery of Resources in Europe European Bioplastics European Federation of Waste Management & Environmental Services European Organization for Packaging and the Environment Industry Council for Packaging and the Environment Waste Watch (U.K.)
Source: SBI
Websites www.greenbiz.com www.mswmanagement.com www.raymond.com www.recyclingtoday.com www.resource-recycling.com www.scrap.org www.wasteage.com www.wastenews.com Websites www.plasticsrecycling.org www.greanseal.org www.greenblue.org www.isri.org www.nrc-recycle.org www.nrdc.org www.choosereusables.org www.swana.org www.recycle-steel.org www.sustainablepackaging.org Websites www.assurre.org www.european-bioplastics.org www.fead.be www.europen.be www.incpen.org www.wastewatch.org.uk
Paper Packaging Resources In addition to the associations here, there are several sources for other types of paper most notably corrugated paper, which is primarily used for shipping containers.
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Table 5-4 Paper Packaging Resources Publications Paper, Film & Foil Converter U.S. Associations 100% Recycled Paperboard Alliance American Forest & Paper Association Aseptic Packaging Council Fibre Box Association Forest Certification resource Center Forest Stewardship Council North American Packaging Association Paperboard Packaging Council Technical Association of the Pulp and Paper Industry International Associations Alliance for Beverage Cartons and the Environment Confederation of European Paper Industries European Association of Carton Manufacturers and Cartonboard Mills European Carton Makers Association International Confederation of Paper and Board Converters in Europe
Source: SBI
Websites www.pffc-online.com Websites www.rpa100.com www.afandpa.org www.aseptic.org www.fibrebox.org www.certifiedwood.org www.fscus.org www.paperbox.org www.ppcnet.org www.tappi.org Websites www.ace.be www.cepi.org www.procarton.com www.ecma.org www.citpa-europe.org
Plastic Packaging Resources Plastic packaging resources include discussions of biopolymers as well as petroleum-based plastics.
Table 5-5 Paper Packaging Resources Publications Modern Plastics Plastics News U.S. Associations American Chemistry Council/Plastics Division Association of Post-Consumer Plastic Recyclers Biodegradable Plastics Society Society of Plastics Engineers Society of the Plastics Industries International Associations European Plastics Converters PlasticsEurope
Source: SBI
Websites www.modplas.com www.plasticsnews.com Websites www.americanchemistry.com/plastics www.plasticsrecycling.org www.bpiworld.org www.4spe.org www.socplas.org Websites www.eupc.org www.plasticseurope.org
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Metal Packaging Organizations In addition to metal packaging publications, publications such as American Metal Market cover issues related to primary metal products. It is important to note the use of aluminum by some U.K. and European publications and associations.
Table 5-6 Metal Packaging Resources Publications The Can Maker U.S. Associations American Iron & Steel Institute Aluminum Association Aluminum Foil Container Manufacturers Association Can Manufacturers Institute Closure Manufacturers Association Composite Can & Tube Institute Steel Recycling Institute International Associations Association of European Producers of Steel for Packaging Beverage Can Makers Europe European Aluminum Association European Aluminum Foil Association European Secretariat of Manufacturers of Light Metal Packaging Metal Packaging Manufacturers Association (U.K.)
Source: SBI
Websites www.spg-can.com Websites www.steel.org www.aluminum.org www.afcma.org www.cancentral.com www.closuremanufacturers.org www.cctiwdc.org www.recycle-steel.org Websites www.apeal.org www.bcme.org www.aluminium.org www.alufoil.org www.sefel.net www.mpma.org.uk
Glass Packaging Organizations Glass industry publications focus on glass manufacturing particularly for plate and automotive uses. manufacturing.
Table 5-7 Glass Packaging Resources U.S. Associations Glass Packaging Institute International Associations European Container Glass Federation
Source: SBI.
There is no industry publication dedicated to glass container
Websites www.gpi.org Websites www.feve.org
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Flexible Packaging Organizations Issues and interests of the flexible packaging industry overlap with and are covered by publications and organizations related to the materials used by the industry. So while there are publications and trade associations specific to the industry, flexible packaging is also a topic in paper, plastic, foil, and general packaging publications.
Table 5-8 Flexible Packaging Resources Publications Converting Flexible Packaging Paper, Film & Foil Converter U.S. Associations Flexible Packaging Association International Associations European Federation for the Flexible Packaging Industry Flexible Packaging Europe
Source: SBI
Websites www.convertingmagazine.com www.flexpackmag.com www.pffc-online.com Websites www.flexpack.org Websites www.fedes.com www.flexpack-europe.org
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Chapter 6: End Users
Chapter 6
End Users
Food Packaging A Stable Market

The market for food and beverage packaging is generally unaffected by economic cycles and grows through product innovation and expansion into geographic markets. During economic downturns, consumers tend to eat out less often, instead purchasing more packaged food and beverages from stores. Consumers are also likely to turn to budget items dinner mixes, cereals, and frozen foods. From 2004 to 2008, spending at food and beverage stores increased 4% (CAGR), while spending at food services and drinking places increased 5% (CAGR).
Figure 6-1 U.S. Retail and Food Services Sales, 2004-2008 (in billions of dollars)
700 589.4 560.6 495.0 515.0 533.8 459.3
600
500
420.4
442.3
($ billions)
400
372.0
393.6
300
200
100
0 2004 2005 2006 2007 2008 Food & Beverage Stores

Source: U.S. Census Bureau.
Food Services & Drinking Places
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Figure 6-2 Monthly U.S. Retail and Food Services Sales, 2008 (in billions of dollars)
60 51.4 50 47.0 48.6 45.4 46.9 48.9 51.1 50.9 47.8 52.5 49.5 49.4
40 40.8 ($ billions) 38.5 30 34.9 35.6 37.9 39.0 40.0 40.9 37.5 38.8 36.9 38.4
20
10
0 J F M A M J J A S O N D
Food & Beverage Stores

Value of Retail Food & Beverage Shipments

The total value of shipments for retail (non-institutional) food and beverages was over $532 billion in 2008, growing at 3% CAGR. The largest categories are meat products, dairy, and beverages. Leading growth categories were bottled water, roasted nuts, wines, and coffee and tea. Declining categories include dried and dehydrated foods, pasta, and cereals.
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Table 6-1 Value of Shipments (in thousands of dollars) Category Fats and oils Breakfast cereals Confectionery Frozen fruit, juice, and vegetables Frozen specialty foods Fruit and vegetable canning Specialty canning Dried and dehydrated foods Fluid milk Creamery butter Cheese manufacturing Dry, condensed, and evaporated dairy products Ice cream and frozen desserts Animal (except poultry) slaughtering Meat processed from carcasses Poultry processing Seafood (canning; fresh and frozen seafood processing) Commercial bakeries Frozen cakes, pies, and other pastries Cookies and crackers 2004 $9,975,199 9,606,264 19,814,978 8,795,957 12,918,767 18,292,859 6,899,820 3,883,781 24,459,440 2,300,597 23,526,137 10,029,063 7,798,524 62,435,724 31,940,502 42,792,631 2005 $10,152,739 9,143,051 21,250,619 9,583,669 13,685,893 18,825,924 6,609,866 3,020,366 25,447,295 2,263,925 24,395,524 10,180,698 8,678,276 63,518,963 31,333,638 47,018,574 2006 $9,622,999 8,394,883 21,081,385 9,877,764 14,055,102 19,418,350 6,676,657 3,006,109 24,813,562 2,203,523 23,115,626 10,445,564 8,600,886 65,693,406 31,174,656 45,106,964 2007 (e) $9,911,689 8,646,729 21,713,827 10,174,097 14,476,755 20,000,901 6,876,957 3,096,292 25,557,969 2,269,629 23,809,095 10,758,931 8,858,913 67,664,208 32,109,896 46,460,173 2008 (e) $10,209,040 8,906,131 22,365,241 10,479,320 14,911,058 20,600,928 7,083,265 3,189,181 26,324,708 2,337,718 24,523,368 11,081,699 9,124,680 69,694,134 33,073,193 47,853,978 CAGR 2004-2008 0.58% -1.87% 3.07% 4.48% 3.65% 3.02% 0.66% -4.81% 1.85% 0.40% 1.04% 2.53% 4.00% 2.79% 0.88% 2.83%
8,749,786
9,531,403
10,229,827
10,536,722
10,852,823
5.53%
21,277,475 4,204,763 9,786,180
22,720,761 4,596,143 10,163,604
22,918,425 4,833,148 9,668,807
23,605,978 4,978,142 9,958,871
24,314,157 5,127,487 10,257,637
3.39% 5.09% 1.18%
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Table 6-1 [cont.] Category Flour mixes and dough Dry pasta Tortillas Roasted nuts and peanut butter Other snack food Coffee and tea Flavoring syrup and concentrate Mayonnaise, dressing, and other prepared sauces Spices and extracts All other miscellaneous foods Soft drinks Bottled water Breweries Wineries Distilleries Total 2004 5,534,857 1,786,918 1,762,010 5,286,916 13,067,449 5,431,217 9,540,703 2005 4,503,614 1,638,252 1,914,458 6,874,900 14,500,805 5,813,206 9,498,762 2006 5,023,665 1,543,085 1,993,612 7,307,329 14,998,728 6,538,784 9,769,627 2007 (e) 5,174,375 1,589,378 2,053,420 7,526,549 15,448,690 6,734,948 10,062,716 2008 (e) 5,329,606 1,637,059 2,115,023 7,752,345 15,912,151 6,936,996 10,364,597 CAGR 2004-2008 -0.94% -2.17% 4.67% 10.04% 5.05% 6.31% 2.09%
5,602,614
5,642,643
5,643,515
5,812,820
5,987,205
1.67%
6,048,388 13,518,342 33,433,834 3,616,823 20,185,122 9,137,338 4,861,301 $478,302,279
6,361,047 13,097,245 35,415,968 5,086,936 20,672,590 9,945,069 5,432,430 $498,518,856
6,642,351 13,671,609 33,390,638 5,726,380 21,490,482 11,258,241 5,647,946 $501,583,635
6,841,622 14,081,757 34,392,357 5,898,171 22,135,196 11,595,988 5,817,384 $516,631,144
7,046,870 14,504,210 35,424,128 6,075,117 22,799,252 11,943,868 5,991,906 $532,130,078
3.89% 1.78% 1.46% 13.84% 3.09% 6.93% 5.37% 2.70%
Source: U.S. Dept. of Commerce, compiled, calculated, and estimated by SBI.
Largest Food & Beverage Packagers

The food and beverage industry includes some of the largest companies in the United States. The largest food and beverage packagers include approximately 30 Fortune 1000 companies. Several of the largest companies are members of the Sustainable Packaging Coalition, including ConAgra, Coca-Cola, Kellogg, Kraft, Pepsico, Nestle, and Unilever. Many food and beverage companies are on the Climate Counts scorecard, a measure of companies attention to climate change and environmental issues. Clean Air-Cool Planet. Climate Counts is a nonprofit organization funded by Stonyfield Farm, Inc. and launched in collaboration with
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Climate Counts use a 0-to-100 point scale and 22 criteria to determine if companies have: Measured their climate "footprint" Reduced their impact on global warming Supported (or suggest intent to block) progressive climate legislation Publicly disclosed their climate actions clearly and comprehensively
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Table 6-2 Largest Food and Beverage Companies Company Products Selected Brands
Azteca Bacardi Budweiser Busch King Cobra Michelob ODouls Rolling Rock Tequiza Barq's Canada Dry Coke Dasani Fanta Fresca Glaceau Hi-C Mello Yello Minute Maid Mr. Pibb Nestea Powerade Schweppes Seagrams Simply Orange Sprite
Sustainability Score*
Anheuser-Busch
Beer
50
Coca-Cola
Beverages
61
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Table 6-2 [cont.] Company Products Selected Brands

Act II Banquet Blue Bonnet Chef Boyardee Crunch N Munch Egg Beaters Fiddle Faddle Fleischmanns Guldens Healthy Choice Hebrew National Hunts Jiffy Pop Kid Cuisine La Choy Libbys Manwich Marie Callenders Orville Redenbachers PAM Parkay Peter Pan Reddi-wip Slim Jim Swiss Miss Van Camps Wesson Alta Dena Brown Dairy Country Fresh Creamland Deans Garelick Horizon Organic International Delight Land-O-Sun Lehigh Valley Mayfield Meadow Gold Natures Pride PET Shenandoahs Silk Skinny Cow Strohs Swiss Tuscan Verifine
ConAgra
Condiments Dairy Frozen foods Sauces Snack foods Frozen foods
21
Dean Foods
Dairy
Not available
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Bac-Os Betty Crocker Bisquick Bugles Cheerios Chex Colombo Fruit Roll-Ups Gardettos Green Giant Haagen-Dazs Hungry Jack Jenos Lloyds Lucky Charms Nature Valley Old El Paso Pillsbury Pop Secret Progresso Total Totinos Wheaties Yoplait Cheez-It Club Eggo Famous Amos Fruit Loops Kashi Keebler Kelloggs Morningstar Farms Mueslix Nutri-Grain Pop-Tarts Product 19 Rice Krispies Smart Start Special K Wheatables
General Mills
Baking products Cereals Prepared foods Snacks Yogurt
39
Kellogg
Breakfast foods Cereals Cookies & crackers Snack foods Vegetarian/Soy products
35
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Breakstone Cheez Whiz Chips Ahoy Cool Whip Country Time Cracker Barrell Crystal Light DiGiorno General Foods Good Seasons Grey Poupon Jell-o Kool-Aid Kraft Louis Rich Lunchables Maxwell House Miracle Whip Oreo Oscar Mayer Philadelphia Cream Cheese Post Ritz Shake N Bake Stove Top Toblerone Tombstone Pizza Triscuit Velveeta Wheat Thins 3 Musketeers Combos Dove Kudos M&Ms Mars Milky Way Skittles Snickers Starburst Twix Uncle Bens
Kraft Foods Inc.
Beverages Cereals Cheese Convenience foods Frozen Foods Snack foods
39
Mars Inc.
Confectionery Frozen novelties Ice cream Packaged foods Snack foods
Not available
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Baby Ruth Buitoni Butterfinger Carnation Coffee Mate Contadina Dreyers Deer Park Haagen-Dazs Juicy Juice Kit Kat Libbys Nescafe Nestle Ortega Perrier Poland Spring PowerBar San Pellegrino Stouffers Aquafina Aunt Jemima Chee-tos Dole Doritos Fritos Gatorade Lipton Pepsi Quaker Rice-A-Roni Ruffles Sierra Mist Slice Smartfoods SoBe SunChips Tostitos Tropicana Armour Butterball Cooks Cumberland Gap Curlys Eckrich Farmland John Morrell Smithfield
Nestle
Beverages Canned foods Confectionery Dairy Frozen foods
61
Pepsico
Bottled water Cookies Snack foods Soft drinks
37
Smithfield Foods
Meats
Not available
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Table 6-2 [cont.] Company

Tyson Foods Inc.
Products
Meats Frozen foods Prepared foods
Selected Brands
Thorn Apple Valley Tyson Weaver Ben & Jerrys Bertolli Breyers Country Crock Good Humor Hellmanns Knorr Lipton Slim-Fast
Not available
Unilever
Condiments Dairy Ice cream
75
*Note: Anheuser-Busch was acquired by InBev in 2008 Source: Specialists in Business Information; ClimateCounts.org.
Several of the top food and beverage companies participate in the Sustainable Asset Management (SAM) corporate sustainability assessment. SAM classifies companies using sector-specific criteria for sustainability performance: SAM Gold Class SAM Silver Class SAM Bronze Class SAM Sector Leader best score within its sector SAM Sector Mover best proportional improvement within the top 15% of its sector
Food and beverage companies noted by SAM: Coca-Cola Helenic Bottling SAM Bronze Class Groupe Danone SAM Silver Class H.J. Heinz top 15% of sector Heineken SAM Sector Leader; SAM Sector Mover Kraft SAM Bronze Class Nestle SAM Gold Class
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Pepsico top 15% of sector SABMiller top 15% of sector Unilever SAM Sector Leader; SAM Gold Class
Packaging Materials Used for New Products

Globally in 2008, one-third of all food and beverage product introductions featured plastic packaging. Paper was the next common packaging material (22%).
Figure 6-3 Packaging Materials Used for Global Food & Beverage Product Introductions, 2008
Metal 7.4% Glass 11.5% Plastic 32.9%
Combination 12.4%
Other 13.5% Paper 22.4%

Source: Productscan.
In 2008, paper and plastics were the materials most-used for new food and beverage product introductions. Paper materials include paper, cardboard, and paperboard. Combination materials (9%) include laminates, metalized film, and other combinations.
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Figure 6-4 Packaging Materials Used in U.S. Food & Beverage Product Introductions, 2008
Metal 7.4% Plastic 31.9%
Glass 13.7%
Combination 10.0%
Paper 25.9%
Source: Productscan.
Other 11.2%
Demographic Profile of U.S. Adults Who Recycle

This section is based on consumer data gathered by Simmons Market Research Bureau, Inc., located in New York City. Each spring and autumn, the firm surveys thousands of U.S. adults concerning their own or their households purchasing habits. The respondents represent a statistically accurate cross-section of the population; the summer, 2008 survey data cited here were projected from the answers given by 24,898 persons who spoke on behalf of the nations 218.7 million adults.
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700 600 500 495.0 515.0 533.8 442.3 459.3 589.4 560.6
420.4
($ billions)
400 300 200 100 0
372.0
393.6
2004
2005
2006
2007
2008

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700 600 500 495.0 515.0 533.8 560.6 589.4
($ billions)
400 300 200 100 0
372.0
393.6
420.4
442.3
459.3
2004
2005
2006
2007
2008

Regarding recycling behavior, Simmons asks whether respondents recycle a variety of materials very often: glass beverage containers, paper boxes, plastic beverage containers, metal beverage containers, and other metal cans. For each of these materials, the 2008 percentage reporting they recycle very often was the highest of the past five years. More respondents recycle plastic beverage containers very often than any other container type.
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Figure 6-7 Recycling Very Often by Material, 2004-2008 (percent)
44 43 42 41 40 39 38 37 36 35 34 34 34 36 35 34 35 34 38 37 39 38 37 39 38 37
32
32 31 31 2005 Paper Boxes 2006 Plastic 2007 Metal 2008 Other cans
30 2004 Glass
Source: Simmons Market Research Bureau, Summer 2008 Study of Media and Markets. This material is reprinted with permission.
The most notable differences between those who say they recycle very often regardless of material are in ethnicity, geographic region of the U.S., and household income. 5 Ethnic Differences Among Those Who Recycle Very Often Asians are particularly more likely than the overall population to recycle very often, with indices of 130 for glass beverage containers, 141 for paper boxes, 132 for plastic beverage containers, and 110 for other metal cans. Blacks and Hispanics are much less likely than the overall population to recycle very often. Indices of Black respondents were 64 for glass beverage containers, 56 for paper boxes, 59 for plastic beverage containers, 50 for metal beverage containers, and 54 for other metal cans. Hispanics were particularly low for glass (86), paper boxes (82), and metal beverage containers (78).
Generally speaking, SBI considers an index of 110 or higher to be significant an indicator of aboveaverage levels. Similarly, an index of 90 or lower is significant in its indication of below-average levels.
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Table 6-3 Indices for Recycle Very Often by Ethnic Group, 2008 Ethnicity White and Not Hispanic Hispanic Origin Black Asian Glass Beverage Containers 107 86 64 130 Paper Boxes 108 82 56 141 Plastic Beverage Containers 106 90 59 132 Metal Beverage Containers 112 78 50 105 Other Metal Cans 107 95 54 110
Consumers on the Coasts Recycle Very Often Adults in the Northeast and Pacific regions index very high for recycling very often. Those in the Southeast and Southwest regions index particularly low, while the Central region is fairly close to average. This is consistent across all materials.
Table 6-4 Indices for Recycle Very Often by Geographic Region, 2008
Region Northeast Southeast Central Southwest Pacific
Glass Beverage Containers 155 67 90 41 127
Paper Boxes 134 73 88 59 135
Plastic Beverage Containers 135 72 92 52 133
Metal Beverage Containers 125 72 103 65 120
Other Metal Cans 138 72 94 58 124
More Affluent Means More Recycling Those with household incomes under $25,000 index very low in terms of recycling very often. Household income groups over $75,000 index above average, with the highest indices among those with the highest incomes.
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Table 6-5 Indices for Recycle Very Often by Household Income, 2008 Region Under $25,000 $25,000 - $49,999 $50,000 - $74,999 $75,000 - $99,999 $100,000 - $149,999 $150,000 + Glass Beverage Containers 63 89 99 113 110 140 Paper Boxes 67 92 94 110 111 138 Plastic Beverage Containers 72 90 98 111 112 128 Metal Beverage Containers 63 94 98 115 110 129 Other Metal Cans 66 92 100 112 105 136
Attitudes Toward Recycling

According to the Simmons data on general attitudes of consumers toward recycling, adults were asked if they agreed with the following statements: I make a conscious effort to recycle People have a duty to recycle
More than 60% of adults said they make a conscious effort to recycle; 37% agreed a lot. Nearly 60% agreed that people have a duty to recycle; 28% agreed a lot. These levels have shown a steady increase over the last five years.
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Figure 6-8 Any Agree: I Make a Conscious Effort to Recycle and People Have a Duty to Recycle, 2004-2008 (percent)
63 61 59 58 57 55 53 51 49 47 45 2004 2005 Conscious effort

61
58 57
57 56
53 51 51
53
2006
2007
2008 Duty
Older Population Feel More Strongly About Duty for the Environment U.S. adults most likely to agree strongly with the statement, I make a conscious effort to recycle are over 65 years of age, and concurrence increases with age. People in the 65 to 74 age group showed an index of 131; the high index was 146 for people aged 75 years and above. The lowest indices were for the lowest age groups. The index for 25-34 year-olds was 82; for 18-24 year-olds, it was 70. U.S. adults who agreed strongly with the statement people have a duty to recycle were also likely to be over 65 years of age. The index for people aged 65 to 74 was 134; and people aged 75 years and older indexed highest, at 144. The lowest indices were for those aged 18 to 24 (73) and 25 to 34 (86). The same pattern occurred for the statement packaging for products should be recycled: the index for adults 65 to 74 was 120, for adults 75 and older it was 129, for 18 to 24 yearolds it was 73.
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Table 6-6 Attitudes/Opinions About Recycling (agree a lot), by Age, 2008 Age Group 18 24 25 34 35 44 45 54 55 64 65 74 75+ People Have a Duty to Recycle 73 86 92 99 102 134 144 Packaging for Products Should be Recycled 73 91 98 100 104 120 129 I Make a Conscious Effort to Recycle 70 82 98 101 100 131 146
Hispanics and Asians Feel a Duty to Recycle The statement packaging for products should be recycled indexed highest among Asians (125) compared to adults of other ethnic groups. Hispanics also indexed above average (110), while blacks indexed well below average (62). Asians indexed higher than any group (index 138) as agreeing strongly with the idea that people have a duty to recycle. Again, Hispanics also indexed high (119) while indexed lowest 66.
Table 6-7 Attitudes/Opinions About Recycling (agree a lot), by Ethnic Group, 2008 Ethnic Group White non-Hispanic Hispanic Black Asian People Have a Duty to Recycle 100 119 66 138 Packaging for Products Should be Recycled 102 110 62 125 I Make a Conscious Effort to Recycle 103 102 67 139
Regional Differences in Attitudes Toward Recycling On attitudes toward recycling by region, adults in the Pacific (index 135) Northeast (index 128) regions agreed the most with the statement I make a conscious effort to recycle. Those in the Pacific and Northeast regions also indexed above average in their strong agreement that people have a duty to recycle (indices of 128 and 122, respectively).
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Table 6-8 Attitudes/Opinions About Recycling (agree a lot), by Region, 2008 Region Northeast Southeast Central Southwest Pacific People Have a Duty to Recycle 122 89 85 71 128 Packaging for Products Should be Recycled 110 90 88 83 126 I Make a Conscious Effort to Recycle 128 80 85 64 135
Affluence and Attitudes Toward Recycling Income is generally not a factor in peoples attitudes toward recycling. Adults with
household income over $150,000 per year are more likely than the overall population to say they make a conscious effort to recycle and to believe that packaging for products should be recycled. The value of the residence is more likely to correlate with strong opinions about peoples duty to recycle.
Table 6-9 Attitudes/Opinions About Recycling (agree a lot), by Region, 2008 Household Income Under $25,000 $25,000 - $49,999 $50,000 - $74,999 $75,000 - $99,999 $100,000 - $149,999 $150,000+ Value of Residence Under $100,000 $100,000 - $199,999 $200,000 - $299,999 $300,000 - $499,999 $500,000 - $749,999 $750,000+ People Have a Duty to Recycle 101 109 96 97 90 104 People Have a Duty to Recycle 81 89 99 119 137 142 Packaging for Products Should be Recycled 96 105 93 100 95 112 Packaging for Products Should be Recycled 81 91 101 121 138 137 I Make a Conscious Effort to Recycle 93 100 94 104 97 115 I Make a Conscious Effort to Recycle 74 92 102 129 149 154
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Appendix
Appendix:
Addresses of Selected Marketers
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Appendix
Alcan Packaging Food Rio Tinto plc 5 Aldermanbury Square London EC2V 7HR United Kingdom Tel: 011-44-20-7781-2000 Fax: 011-44-20-7781-1800 www.riotinto.com Alcan Packaging Food America 8770 West Bryn Mawr Ave. Chicago, IL 60631 Tel: (773) 399-8000 Fax: (773) 399-8648 www.alcanpackaging.com Amcor Limited 109 Burwood Road Hawthorn Victoria 3000 Australia Tel: 61-3-9226-9000 Amcor PET Packaging 935 Technology Drive, Suite 100 Ann Arbor, MI 48108 Tel: (734) 428-9741 Fax: (734) 302-2810 www.amcor.com Ball Corp. 10 Longs Peak Drive Broomfield, CO 80021-2510 Tel: (303) 469-3131 Fax: (303) 460-2315 www.ball.com
Bemis Co. Inc. One Neenah Center P.O. Box 669 Neenah, WI 54957 Tel: (920) 727-4100 Fax: (920) 527-7600 www.bemis.com Caraustar Industries, Inc. 5000 Austell-Powder Springs Road Suite 300 Austell, GA 30106-3227 Tel: (770) 948-3101 Fax: (770) 732-3401 www.caraustar.com Constar International Inc. One Crown Way Philadelphia, PA 19154 Tel: (215) 552-3700 Fax: (215) 552-3707 www.constar.net Consolidated Container Company 3101 Towercreek Parkway Suite 300 Atlanta, GA 30039 Tel: (678) -742-4600 Fax: (678) 742-4750 www.cccllc.com Crown Holdings, Inc. One Crown Way Philadelphia, PA 19154-4599 Tel: (215) 698-5100 Fax: (215) 698-7050 www.crowncork.com
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Appendix
Earthcycle Packaging #210-1200 West 73rd Ave. Vancouver, BC V6P 6G5 Tel: (604) 899-0928 Fax: (604) 682-4133 www.earthcycle.com EnviroPAK Corporation 4203 Shoreline Dr. St. Louis, MO 63045 Tel: (314) 739-1202 Fax: (314) 739-2422 Graham Packaging Company, L.P. 2401 Pleasant Valley Road York, PA 17402 Tel: (717) 849-8500 Fax: (717) 854-4269 www.grahampackaging.com Graphic Packaging International 814 Livingston Court Marietta, GA 30067 Tel: (770) 644-3000 Fax: (770) 644-2623 www.graphicpkg.com Innovia Films P.O. Box 341 19 Potter St. Craigieburn Melbourne Victoria 2064 Australia Tel: 011-61-3-9303-0600 Fax: 066-61-3-9303-0670
MeadWestvaco 11013 West Broad St. Glen Allen, VA 23060 Tel: (804) 327-5200 Fax: (804) 327-6363 www.meadwestvaco.com NatureWorks LLC 15305 Minnetonka Blvd. Minnetonka, MN 55345 Tel: (952) 742-0440 Fax: (952) 930-0943 www.natureworksllc.com Owens-Illinois, Inc. One Micheal Owens Way Perrysburg, OH 43551-2999 Tel: (567) 336-5000 Fax: (419) 247-1132 www.o-i.com Plantic Technologies Ltd. 51 Burns Rd. Altona, 3018, Victoria Australia Tel: 011-61-3-9353-7900 Fax: 011-61-3-9353-7901 www.plantic.com.au Plastic Suppliers Inc. 2887 Johnstown Rd. Columbus, OH 43219 Tel: (800) 722-5577 or (614)471-9100 Fax: (614) 471-9033 www.plasticsuppliers.com
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Appendix
Plastipak Holdings, Inc. 41605 Ann Arbor Road Plymouth, MI 48107 Tel: (734) 455-3600 Fax: (734) 354-7391 www.plastipak.com Printpack, Inc. 2800 Overlook Parkway, NE Atlanta, GA 300339 Tel: (404) 460-7000 Fax: (404) 696-6389 www.printpack.com Rexam PLC 4 Millbank London SW1P 3XR U.K. Tel: 011-44-20-7227-4100 Fax: 011-44-20-7227-4109 www.rexam.com Rock-Tenn Company 504 Thrasher St. Norcross, GA 30071 Tel: (770) 448-2193 Fax: (770) 263-3582 www.rocktenn.com
Compagnie de Saint-Gobain Les Miroirs 18, avenue dAlsace 92400 Courbevoie France Tel: 011-33-47-62-30-00 Fax: 011-33-47-62-41-73 www.saint-gobain.com Sealed Air Corporation 200 Riverfront Boulevard Elmwood Park, NJ 07407-1033 Tel: (201) 791-7600 Fax: (201) 703-4205 www.sealedair.com Silgan Holdings Inc. 4 Landmark Square Stamford, CT 06901 Tel: (203) 975-7110 Fax: (203) 975-7902 www.silganholdings.com Sonoco Products Company One North Second St. Hartsville, SC 29550 Tel: (843) 383-7000 Fax: (843) 383-7008 www.sonoco.com
May 2009
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SBI

Sustainable ("Green") Packaging Market for Food and Beverage Worldwide

11200 Rockville Pike Rockville, Maryland

Why Buy From Us?

About the Author

SUSTAINABLE ("GREEN") PACKAGING MARKET FOR FOOD

Sustainable Packaging Market Worldwide

Packaging Materials ..................................................................................5

Packaging is a Mature Market...................................................................7

Sustainable Packaging Market Worldwide

Chapter 1: Executive Summary [cont.]

Trends and Factors to Growth ............................................................... 31

Sustainable Packaging Market Worldwide

Chapter 1: Executive Summary [cont.]

Consumer Attitudes and Behaviors .......................................................36

The Wal-Mart Effect .................................................................................39

International Aspects ..............................................................................39

Company Information ..............................................................................41

Marketing & Promotion............................................................................42

Marketing Resources for Food & Beverage Packaging........................46

End Users .................................................................................................46

Attitudes Toward Recycling....................................................................47

Sustainable Packaging Market Worldwide

Chapter 2: The Market ................................................................51

A Mature Market ...................................................................................... 58

Paper Renewable and Recyclable....................................................... 61

Sustainable Packaging Market Worldwide

Chapter 2: The Market [cont.]

Plastic Where the Growth Is.................................................................74

Plastic Imports and Exports....................................................................77

Metal Packaging Rigid and Flexible ....................................................84

Sustainable Packaging Market Worldwide

Chapter 2: The Market [cont.]

Glass The Smallest Category .............................................................. 96

Glass Imports and Exports..................................................................... 97

Flexible The Next Big Thing .............................................................. 104

RECYCLING ........................................................................................... 110

Sustainable Packaging Market Worldwide

Chapter 2: The Market [cont.]

Food Packaging Market Projections ....................................................112

Chapter 3: Trends and Factors to Growth ............................. 115

Sustainable Packaging Market Worldwide

Chapter 3: Trends and Factors to Growth [cont.]

Consumer Attitudes and Behaviors .................................................... 136

Technology/Innovation ......................................................................... 140

The Wal-Mart Effect............................................................................... 143

International Aspects............................................................................ 144

Chapter 4: Company Profiles ..................................................147

Alcan Packaging Food .............................................................149

Amcor Limited ..........................................................................153

Sustainable Packaging Market Worldwide

Chapter 4: Company Profiles [cont.]

Product Portfolio....................................................................................155 Recent Developments ...........................................................................155 Environmental Sustainability................................................................155

Recent Developments ...........................................................................160 Environmental Sustainability................................................................160

Bemis Co. Inc. .......................................................................... 162

Product Portfolio....................................................................................164 Recent Developments ...........................................................................164 Environmental Sustainability................................................................165

Caraustar Industries, Inc......................................................... 166

Recent Developments ...........................................................................168 Environmental Sustainability................................................................168

Constar International Inc......................................................... 170

Product Portfolio....................................................................................171 Recent Developments ...........................................................................171 Environmental Sustainability................................................................172

Consolidated Container Company ......................................... 173

Sustainable Packaging Market Worldwide

Chapter 4: Company Profiles [cont.]