In recent years thin walled packaging (TWP) has become an increasingly well delineated sub-segment of the rigid plastics market. In total, in Europe it accounted for over 2.5 mln tons of thermoplastics consumption in 2008, as per Applied Market Information. Thin walled packaging includes yoghurt pots, butter and margarine containers, meat and fruit trays, blister packaging and similar containers. It excludes CD and DVD packaging and blow moulded packaging. The largest single application is dairy product packaging accounting for 23% of the market, wherein the fastest growing applications are chilled ready meals and ambient foods which are both growing at around 6% pa. While some of the applications for TWP are mature, others are evolving rapidly such as ambient food packaging where the replacement of glass jars and tin cans is underway and will represent a substantial growth opportunity. TWP covers both thermoformed and injection moulded containers. Thermoforming of extruded rigid sheet accounts for nearly 90% of the market. In premium applications such as ready prepared meals and desserts (chilled, frozen and ambient), injection moulded packaging will continue to thrive, able to deliver a convenient, high quality package that can be micro waved or used as a serving vessel. Despite these developments, thermoforming technology will maintain its share within the TWP market because of its use in high growth segments such as meat and fish packaging and fruit and vegetable punnets (baskets), where cost is the most important criteria for selection of packaging. PP has grown more recently due to newer grades that can be used for tubs for microwavable food products. Recycled PET is also finding increasing use in TWP. PS and PVC will lose volume over the next five years partly due to the switch to recycled PET. Underlying industry volume has held up comparatively well during the recession, but still the industry has been buffeted by changing stock levels and strong price pressure from retailers and brand owners. Structural change is being driven too by rapid developments in polymer properties, pricing and sources. Grade development in retortable and microwaveable PP for instance has opened opportunities in prepared food packaging. PET too is highly dynamic with the success of rPET creating new players in the market and new propositions. The largest producers in Europe are Huhtamäki, KP (Klöckner Pentaplast), Linpac, RPC Group and Veriplast. According to AMI, they accounted for 25% of European production of TWP in 2008. The large producers have been in the vanguard of change as they fight to secure profitability in the face of the price and innovation requirements of their customers. Even before the onset of the global recession, leading players had been reviewing and evaluating their position within thin wall packaging markets in response to the buying power of the major customers. These strategic reviews are increasingly driving restructuring as leading producers look to rationalize and optimize the manufacturing footprint, reduce overheads, strengthen defensible business segments and exit from unprofitable or non-core ones. AMI’s study found that the polymer volume used for TWP in 2008 was 2.5 mln tons, maintaining steady levels, despite the economic recession. Thin wall packaging (TWP) has achieved a great significance for rigid plastic materials. Increasing demand of consumer for convenient packaging solutions has propelled the growth of thin wall packaging, increasing its penetration in food packaging. Expansion of centralized retail distribution across Europe and technical improvements in plastics engineering, food processing and packing have helped in the growth of TWP. Another driver for TWP is in its ability to enhance aesthetics, brand image & usability. Italy is the fourth largest market for fresh-chilled foods in Europe, and is developing to satisfy consumer demand for prepared meal components as opposed to ready-meals. Demand in Eastern Europe is forecast to grow at double-digit rates as a result of changing lifestyles, higher levels of disposable income, and increased household penetration of appliances such as microwave ovens and refrigerators. Barrier packaging undoubtedly offers superior functionality over traditional packaging media, but in the short-term innovation will be brand-led and developed in end use applications which can command a premium. Higher steel prices motivate major FMGC producers to increasingly convert to TWP for value for money. There are some limitations and challenges such as filling speeds that may restrict greater use of TWP against tin cans.