This study analyzes the fresh produce packaging market in the US. Product segments covered include rigid (corrugated boxes; plastic containers; reusable plastic containers, or RPCs; trays, wood crates and molded pulp containers) and flexible (bags and liners, and film wrap) packaging as well as packaging accessories (e.g., labels). Applications include vegetables (e.g., potatoes, tomatoes, head lettuce, carrots, onions, celery and herbs), fruit (e.g., berries, apples, citrus fruit, melons and grapes) and salads. Nuts are excluded. End users of produce packaging include grower/shippers, repackers, retailers and others. Excluded from the scope of this study are plastic and paper retail bags, bag closures (e.g., twist ties) and rubber bands. Restaurant and other foodservice carryout containers are also excluded. Data for RPCs include new containers only, and not total RPCs in use.

INTRODUCTION ix

I. EXECUTIVE SUMMARY 1

II. MARKET ENVIRONMENT 4
General 4
Demographic Trends 5
Macroeconomic Environment 8
Consumer Income & Spending 11
Retail Trends 13
Food Industry Overview 15
Fresh Produce Industry Trends 18
Production Trends 20
Vegetables 21
Fruit 23
Shipping & Distribution Trends 25
Fresh-Cut Produce Trends 29
Salad 30
Vegetables 32
Fruit 32
Food Packaging Industry Overview 34
Raw Material Trends 37
Technology Overview 39
Pricing Trends 42
Environmental Issues 45
Regulatory Considerations 47

III. PACKAGING TYPES 50
General 50
Corrugated Boxes 54
Corrugated Common Footprint Boxes 58
Producers 59
Bags & Liners 61
Plastic 64
Applications 66
Producers 67
Mesh 69
Paper & Textile 71
Plastic Containers 73
Clamshells 75
Tubs, Cups & Bowls 78
Other 80
Reusable Plastic Containers 82
Other 86
Trays 87
Wood Crates 89
Plastic Film 90
All Other 92

IV. APPLICATIONS 95
General 95
Bulk 98
Ready-To-Eat 99
Vegetables 100
Potatoes 102
Tomatoes 105
Lettuce 109
Carrots 112
Onions 114
Celery 116
Other 118
Fruit 122
Berries 124
Apples 128
Melons 131
Citrus Fruit 135
Grapes 137
Other 140
Salads 143
Conventional 146
Specialty Mix 146

V. END USERS 148
General 148
Growers/Shippers 151
Repackers 154
Retail Stores & Other 157

VI. INDUSTRY STRUCTURE 160
General 160
Industry Composition 163
Market Share 165
Weyerhaeuser 167
Smurfit-Stone 168
Georgia-Pacific 169
International Paper 170
Temple-Inland 171
Pactiv 171
Other Leaders 172
Acquisitions & Divestitures 174
Marketing & Distribution 179
Manufacturing 181
Research & Development 182
Competitive Strategies 184
Cooperative Agreements 187
Company Profiles 190
AEP Industries Incorporated 191
Alcan Incorporated 193
Alcoa Incorporated 195
Amcor Limited 197
American Packaging Corporation 199
Apio Incorporated, see Landec Corporation
Applied Extrusion Technologies Incorporated 200
Bemis Company Incorporated 201
Brambles Group 202
Cascades Incorporated 204
Chantler Packaging Incorporated 206
CHEP, see Brambles Group
Conwed Plastics Incorporated, see Leucadia National Corporation
Cryovac Incorporated, see Sealed Air Corporation
Curwood Incorporated, see Bemis Company Incorporated
Decade Products LLC 208
Deluxe Packages 209
Diversapack LLC, see Printpack Incorporated
Dolco Packaging, see Tekni-Plex Incorporated
DuPont (EI) de Nemours 210
Earthcycle Packaging Limited 211
Emerald Packaging Incorporated 212
Firstline Corporation 213
Georgia-Pacific Corporation, see Koch Industries
Honeywell International Incorporated 214
IFCO Systems NV 215
Indian Valley Industries Incorporated 216
Innovia Films Limited 217
International Paper Company 218
Inventive Container Services, see Menasha Corporation
IPL Incorporated 220
Keyes Packaging Group Incorporated 222
Koch Industries Incorporated 224
Landec Corporation 226
Leucadia National Corporation 227
Norampac Incorporated, see Cascades Incorporated
NSW LLC, see Leucadia National Corporation
Menasha Corporation 229
ORBIS Corporation, see Menasha Corporation
Pacific Agricultural Packaging 231
Packaging Corporation of America 232
Pactiv Corporation 233
Peninsula Packaging Company 235
Pliant Corporation 236
Polynet Incorporated, see Leucadia National Corporation
Premier Boxboard Limited LLC, see Temple-Inland
Printpack Incorporated 238
Rehrig Pacific Company 240
Reusable Container Company LLC, see IFCO Systems
Reynolds Food Packaging LLC, see Alcoa Incorporated
Sacramento Bag Manufacturing Company 241
Sambrailo Packaging 242
Schoeller Arca Systems NV 243
Sealed Air Corporation 245
Smurfit-Stone Container Corporation 247
Tekni-Plex Incorporated 249
Temple-Inland Incorporated 250
Volm Bag Company Incorporated 251
Weyerhaeuser Company 253
Wilkinson Industries Incorporated 255
Wrap Pack Incorporated, see Keyes Packaging Group Incorporated
Additional Companies in Produce Packaging 257

LIST OF TABLES
TABLE NUMBER PAGE
SECTION I -- EXECUTIVE SUMMARY
Summary Table 3

SECTION II -- MARKET ENVIRONMENT
1 Population & Households 7
2 Macroeconomic Indicators 11
3 Consumer Income & Spending 13
4 Retail Sales Trends 15
5 Food Shipments 18
6 Fresh Produce Supply & Demand 21
7 Fresh Vegetable Supply & Demand 23
8 Fresh Fruit Supply & Demand 25
9 Fresh-Cut Produce Retail Sales 30
10 Food Packaging Demand 37
11 Produce Packaging Prices 44

SECTION III -- PACKAGING TYPES
1 Produce Packaging Demand by Type & Form 53
2 Corrugated Box Demand in Produce Packaging 58
3 Bag & Liner Demand in Produce Packaging 63
4 Plastic Bag & Liner Demand in Produce Packaging 66
5 Mesh Bag Demand in Produce Packaging 71
6 Paper & Textile Bag Demand in Produce Packaging 73
7 Plastic Container Demand in Produce Packaging 74
8 Clamshell Demand in Produce Packaging 77
9 Tub, Cup & Bowl Demand in Produce Packaging 80
10 Other Plastic Container Demand in Produce Packaging 82
11 Reusable Plastic Container (RPC) Demand in Produce Packaging 86
12 Other Produce Packaging Demand 87

SECTION IV -- APPLICATIONS
1 Produce Packaging Demand by Application & Format 97
2 Fresh Vegetable Packaging Demand by Type & Format 101
3 Potato Packaging Demand 105
4 Tomato Packaging Demand 109
5 Lettuce Packaging Demand 111
6 Carrot Packaging Demand 114
7 Onion Packaging Demand 116
8 Celery Packaging Demand 118
9 Other Fresh Vegetable Packaging Demand 121
10 Fresh Fruit Packaging Demand by Type & Format 123
11 Berry Packaging Demand 127
12 Apple Packaging Demand 131
13 Melon Packaging Demand 134
14 Citrus Packaging Demand 137
15 Grape Packaging Demand 140
16 Other Fresh Fruit Packaging Demand 142
17 Salad Packaging Demand 145

SECTION V -- END USERS
1 Produce Packaging Demand by End User 150
2 Grower/Shipper Market for Produce Packaging 154
3 Repacker Market for Produce Packaging 157
4 Retail Store & Other Markets for Produce Packaging 159

SECTION VI -- INDUSTRY STRUCTURE
1 US Produce Packaging Sales by Company, 2005 162
2 Selected Acquisitions & Divestitures 177
3 Selected Cooperative Agreements 189

LIST OF CHARTS
CHART NUMBER PAGE
SECTION II -- MARKET ENVIRONMENT
1 Produce Industry Flow Chart 28

SECTION III -- PACKAGING TYPES
1 Produce Packaging Demand by Type, 2005 54
2 Bag & Liner Demand in Produce Packaging, 2005 64

SECTION IV -- APPLICATIONS
1 Produce Packaging Demand by Application, 2005 98
2 Fresh Vegetable Packaging Demand by Type, 2005 102
3 Fresh Fruit Packaging Demand by Type, 2005 124

SECTION V -- END USERS
1 Produce Packaging Demand by End User, 2005 150

SECTION VI -- INDUSTRY STRUCTURE
1 US Produce Packaging Market Share, 2005 167