Consumer appetite grows for injection molded disposable dinnerware.

* The increase in single-parent and dual-income families means that Americans today have less time to cook. More of us than ever are eating out. It is estimated that more than half of all food in North America is consumed outside the home. This change in eating habits has led to increased sales of disposable cutlery, bowls, cups, and plates. Manufacturers of disposable foodservice products, both paper and plastic, are quite busy trying to keep up with demand.

According to Mastio and Company's latest injection molding market study, molders of disposable plastic cutlery, bowls, cups, and plates consumed an estimated 413 million lb of resin in 2001. With an average annual growth rate of 7.2%, that volume is projected to reach 584.5 million lb by 2006. Most injection molding companies and foodservice distributors feel that this market will continue to experience a healthy growth rate exceeding 7% annually.

[GRAPHIC OMITTED]

Single-use packaging gains

According to the Beverage Marketing Association, 51 cents of every dollar for food is now spent eating away from home. And when people do go home to eat, they are carrying already prepared meals that they can assemble in their kitchens in a few minutes. More and more restaurants offer "to-go" service at what were formerly sit-down facilities. As a result, injection molding companies and other manufacturers are expanding capacity to gain share of the expanding demand for single-use packaging.

Over the last decade, the injection molded foodservice business has increased each year. Thermoformed solid and foamed plastics have grown even faster. Company consolidation has attributed to some of the growth by creating economies of scale and more competitive pricing. That leaves many smaller companies struggling to survive as big companies become larger and more dominant through acquisitions. However, some restaurants and other end-users feel that close proximity is critical to their choice of suppliers, which gives smaller manufacturers a fighting chance.

According to the Foodservice & Packaging Institute, there were approximately 100 billion disposable cups produced in North America during 2001, including paper, polystyrenefoam, and other plastics. Paper still represents more than half of that volume. Some 28 billion plates, platters, and bowls were also produced in North America during 2001. Of that total, PS foam plates hold more than 50% of the market. Plastic dinnerware--both injection molded and thermoformed--is growing at a faster rate than paper. Cutlery is the most common disposable product made by injection molding; approximately 40 billion units were produced in North America in 2001.

Six major producers of injection molded cutlery, cups, bowls, and plates captured approximately 64% of the injection molded disposable market in North America. They are Solo Cup Co., WNA Inc., Georgia-Pacific Corp. (Dixie Products), Sweetheart Cup Co., Dispoz-O-Plastics, and Jet Plastica Industries, Inc.

PS is preferred resin

PS resin is typically used to produce bowls and cups made by thermoforming foam sheet. Polystyrene is also the most frequently used resin for the production of injection molded disposable cutlery, cups, bowls, and plates. PS constituted 72% of this plastics market in 2001. Crystal PS predominates, at 67% of the market, and HIPS accounts for only 5%. Polypropylene constituted virtually all the remaining resin poundage in this market.

Mastio & Company, based in St. Joseph, Mo., is a consulting firm specializing in industrial-consumer opinion research and market trends in the plastics industry. For more information, call [phone] or visit www.mastio.com/pt/outlook.html.