MARKET OVERVIEW: MULTILAYER FILMS, RAPRA, BRUSSELS 2005

Multilayer films 2005

Rapra International Conference
8th-9th November 2005, Brussels Belgium

Total world plastics consumption and plastics films

In order to put the market overview of multilayer films, the latest world consumption estimates of all plastics, all plastics films and substrates are tabulated in the next two pages.

World consumption of plastics, 2005-2015, and Europe
In thousands of metric tons

Source: Updated estimates from Pardos Marketing, from study Plastics in the world 2005-2015

This summarized consumption table shows the difference between the commodity plastics, altogether close to 190 million tons worldwide, the engineering plastics, close to 7 million tons in the world and the specialty plastics, around 300 000 tons, all in 2005, as forecast from the most recent figures and outlook.

Film consumption summary

Out of a total consumption of plastics in the world estimated at close to 200 million tons in 2005, for plastics that take concrete shapes, exclusive of polymers in liquid form for paints, adhesives and binders, films are a very large segment, about 45 million tons, dominated by commodity plastics, essentially PE and PP, together about 38 million tons.

A tentative summary of the estimates for global film consumption for 2005 is, in tons:

World consumption of films in 2005, in thousands of tons:

Source: Pardos Marketing estimates from plastics film study

Total world plastic film consumption

Out of the grand total rounded above, the aluminium foil and the multilayers that are double counted and include materials that are not plastics, like papers, should be subtracted.

Therefore, the total world plastic films consumption arrived at is about 45 million tons, which is, by far, the very largest end-use in the total world plastics of 196 million tons, or about 23% of the total.

This very high film proportion in the total is much weighed by the polyolefin films, and particularly PE. Conversely, films are the major use of PE, all types, about half of these plastics, and polyethylenes are the very largest plastics in world total, about 70 million tons out of 200 million tons.

Substrates

One distinct category is that of film substrates for multilayer films.

The total European consumption of film substrates, films, paper and foil was estimated at 2.4 million tons in 2000, 2.6 million tons in 2003, to reach 2.75 million tons in 2005. The main substrate materials are PE and OPP, followed by paper and foil.

European flexible packaging multilayer film substrates in 2005, total 2.75 million tons

Source: Pardos Marketing film study

Aluminium foil

Although aluminium foil is not a plastic, it is still associated with flexible films and increasingly competed, particularly with metallized films. However, aluminium foil was the very first barrier packaging material, back in the 1930s.

The mechanical properties of aluminium foil make it suitable for use on high speed packaging machinery.

The total European consumption of aluminium foil, 65 % used in packaging, is estimated at 600 000 tons. Of course, this total includes all foil from 200 µm down, hence including semi rigid foil for trays. This total also includes 100 000 tons of unprinted foil sold for household uses.

The average thickness of the thin foil for packaging and converting went down from 9 µm in the 1980s, to 7 and even 6 µm now. Hence, the stagnant tonnage still means some growth in the total of square meters.

In Europe, the largest single outlet for aluminium foil in packaging is bricks for milk and other beverages or liquid food products, fruit juice, soups. The foil used in bricks is about 45 000 tons, generally 6.35 µm thick, or less that 1.7 grams per brick.

The foil used for caps and lidding of fresh products is 35-37 µm thick, and 45 000 tons altogether.

Other large markets for foil in Europe are coffee, about 10 000 tons, butter, about 5 000 tons, and chocolate wrap with unprinted foil.

The general impression in the foil industry for packaging is that the substitution by metallized films is now practically completed and that aluminium foil is to keep the niches where it is still used. However, this is true for Europe, and the US, but not for the rest of the world where there is no strong tradition for aluminium foil and the packaging demand for a metal look is all for metallized films, very little aluminium foil.

Paper and board products

Paper and board products are widely used in association with plastics, particularly in packaging, as liners, wraps, bricks and cartons. Paper/board value and functionalities can be enhanced by the widespread use of coatings and treatments.

The most often used paper and board coatings are of polyolefins, water-based emulsion coatings, PVDC or acrylic, and wax-based coatings, declining. Other polymers, PP and PET are slowly competing with polyolefin coatings. Fluoropolymer coatings are also gaining ground. Since these coatings are suitable for direct food contact, this allows doing without the inside liners in cartons.

Geographical /economical consumption split

Out of these film totals, the consumption split between the major geographical/economical areas of the world closely follows that of the plastics total, in the same proportions as for the main commodities.

These relative proportions are blurring, as more and more films are transported over deep sea international trade, reels are easy to carry. Film consumption as a rule means where the raw materials are extruded, or otherwise fabricated, and not where they end up for use by industrial or distribution customers.

As a very general rule of thumb, the film consumption in Europe and in North America are about equivalent, and together account for about 60 % of total world consumption, dwindling down to 50 % in the next five-ten years.

The relative consumption of North America and Europe is more important for the higher value materials and films, multilayers, barriers, metallized, as most of the rest of the world is less sophisticated and diversified, but it is catching up very fast.

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