Pira International forecasts growth in plastic packaging, especially flexible plastic packaging and bioplastics. Flexible plastic packaging is replacing materials like metal, glass, and rigid plastics in applications like meat and produce due to properties like low cost and weight. Bioplastics are increasing for food service items and film. Beer companies are interested in PET bottles but consumer acceptance remains uncertain. Overall plastic packaging growth is predicted to outpace other materials due to properties, new markets, and developing economies, though recycling and sustainability issues persist.

1. Pira Futures Forecast – plastic packagingPira Packaging Summit, Nice, France, 3-4 October 2011Adam Page, Business Manager, Reports and Consultancy, Pira InternationalPira International, Cleeve Road, Leatherhead, Surrey, KT22 7RUmembership@pira-international.com+44 (0)1372 802000

2. AgendaPlastic’s share of the marketRise of BioplasticsFlexible packagingRigid packagingBeer in PETSustainabilityOutlook

3. Plastic’s Share of the Market3Source: Pira International Ltd

4. Plastic’s Share of the MarketSource: Pira International Ltd4

5. Rise of bioplasticsxxxxxxxxxx:xxxxxxxxxxxThe Rise of Bioplastics5

6. The Rise of BioplasticsRetail and foodservice trays and containers are the largest single pack type for bioplastic packaging, followed by flexible film.Flexible packaging to take a growing share of the bioplastic packaging market over the next five to ten years. Demand will be driven by the commercialisation of bio-derived PE and PHA, and the wider availability and improved properties for biaxially oriented PLA (BOPLA) film.Other factors:Green consumersNew production capacities Price and availability of crude oilGovernment initiativesComposting infrastructure6

7. 7Flexible Packaging Flexible packaging is replacing traditional pack types such as metal cans, glass and plastic bottles

8. Flexible packaging trendsSource: Pira International Ltd8

9. Brand owner perceptionsVersatilityComparative low costPotential for innovation/replacementLighter weight pack format Need for barrier9

10. End-use trendsHighest growth:Meat, fish & poultryChilled foodFresh fruit & vegetables10

11. End-use trendsSource: Pira International Ltd11

12. Material trendsHigh polymer prices - driver for customers demanding even thinner films Flexible plastics substituting paper and aluminium foil in some applicationsHighest forecast growth rates for higher-barrier plastics such as BOPET, EVOH and PA 12

13. Geographic trendsAsia is the fastest-growing market for consumer flexible packaging, with a forecast CAGR for 2011-16 of 7.9%.13

14. 14Rigid PackagingRigid packaging growth lies in new categories - food, personal care, etc. - and improving barrier properties

15. Rigid packaging trendsSource: Pira International Ltd15

16. Brand owner perceptionsPET – huge success storyPET has excellent performance properties such as good transparency and its resistance to breaking (unlike glass)Rigids have high level of penetration in key end-use sectors including soft drinks, fresh foods and non-food sectors, such as household care, personal care and healthcare productsHigh penetration in the advanced industrial countries of Western Europe, North America and Japan16

17. End-use trendsPlastic bottles have achieved a high penetration for carbonated soft drinks and mineral waterTechnology developments are paving the way for rigid plastic packaging in other drinks, including juices, sports and energy drinks, RTD teas and alcoholic drinks17

18. Huge potential for beer in PET – but will consumers will accept it?18

19. Beer in PETExciting opportunity for brewers and brand ownerslighter in weight than competing pack typescan be further light-weighted like glass and cans, PET bottles can also be recycled Driversgrowing events marketfaster growth in off-trade beer salesdeveloping barrier technologiesemerging markets: opportunities to influence consumption behaviours, rather than battle with established consumer attitudes such as glass is best19

20. Beer in PETGlobal PET beer bottle consumption by geographic region, (millions of bottles)Source: Pira International LtdMain advantages of using PET bottles for beer20

21. What’s holding back beer in PET?Note: a score of 1 = unimportant, 2 = not very important, 3 = fairly important, 4 = important, 5 = very importantSource: Pira International Ltd21

22. Material trendsPET has overtaken PE as the leading polymer for rigid packaging Bioplastics and barrier polymers such as EVOH are gaining market sharePET and PE dominate blow mouldingInjection moulding is dominated by PP22

23. Geographic trendsAsia overtakes both North America and Western Europe - one-quarter of world market tonnageEmerging and developing countries of Asia, Central & Eastern Europe, South & Central America and the Middle East & Africa will be the main growth drivers 23

24. LightweightingAverage weight of a single serve 500ml PET still water bottle had declined by 26.7% to 13.83grs over the 2000 to 2008 period** Source: International Bottled Water Association24

25. Sustainable packaging25

26. RecyclingThe overall recycling rate for plastics is generally considerably smaller than the rate for metals, glass and paper.shorter history of plastics recycling;established recycling infrastructure for metals, glass and paper;complexity in recycling plastics due to the necessity for separating plastics of different types26

27. Outlook for Plastic PackagingHigher growth than overall packaging marketBioplastics – disruptive technologyBarrier, lightweighting issues remain importantNew markets – beer in PET?27

28. Thank you for listening.Adam PageBusiness Manager, Reports and ConsultancyPira International+44 (0) 1372 802 113adam.page@pira-international.com

29. 29The worldwide authority on the packaging, paperandprintindustry supply chainsEventsBusiness IntelligenceTesting ServicesWe provide a wide range of high-quality strategic, technical and regulatory events on a diverse range of topics and end markets:• Market leading congresses• Technical conferences• Strategic market summits• Expert seminars• Training courses• Tailor-made tutorials• Webcasts and online presentationsWhatever your business issue, we have a solution that will help you tap into new market opportunities, identify new innovations, recognise competitive threats and respond to your individual needs. We help companies with a comprehensive portfolio of services:• Market reports• Strategic consulting services• Information databases• Technology scoutingWe provide clients with highlysophisticated testing supportthroughout the product lifecycle:• Food packaging migration• FCN/EU dossiers• Chemical investigations• Material testing• Packaging testing• Print/security testing• Distribution testing• Dangerous goods testing• Environmental testing