With recession hitting Europe in 2008, the PE film extrusion industry took a downturn. Between 2007 and 2009 PE film production fell by 1 mln tons. About half of this lost volume was recovered during 2010 and the industry continues to make steady progress in 2011, as per AMI. With a volume demand in excess of 7.5 mln tons for 2010, PE film extrusion still represents one of the largest plastics processing sectors, accounting for 19% of polymer consumption in Europe during 2010. Inevitably the recession has had an impact on the number of companies operating in Europe. Compared with the previous edition of AMI's report there are 5% fewer companies listed with France, the UK, Benelux and Scandinavia seeing the greatest decline in numbers. Producers of carrier bags, heavy duty sacks and building films were worst affected while food packaging suppliers generally performed better as there was less contraction in demand from this sector through the downturn. The PE film industry within Europe has had to adapt to these changing demands which in turn has seen a shift in the importance of end use applications. Stretch film still remains the largest single application in volume terms. This is due to stretch film becoming one of the most cost effective means of protecting goods while they are in transit. The market for bags and sacks has had differing trends between the various sectors. The demand for carrier bags has seen a steady decline due to environmental pressures, incentives for consumers to reuse bags, shops beginning to charge for carrier bags and increasing volumes of imported bags from Asia. In comparison, AMI indicate that the market for refuse sacks has continued to grow driven the move to more recycling and sorting of domestic waste. A significant change has been the growing demand for more sophisticated multi-layer films and technical co-extrusions which now account for 9% of PE film production in Europe, compared with just 5% in AMI's previous edition. Approximately 10% of the companies listed are capable of manufacturing 5 or more multilayer films. The distribution of PE film production in Europe has not radically changed from the figures quoted in AMI’s previous edition. Italy still has the largest amount of PE film production with Germany a close second. However, in terms of number of companies operating there are over 100 more in Italy compared with Germany, reflecting the more fragmented structure of the industry in Italy. Poland leads the way in Central Europe, accounting for around 50% of film production in the region and the largest number of film extruders. As the industry moves out of recession AMI forecasts that production will move in line with underlying GDP growth for Europe. An annual average growth of around 2-3% pa would result in an industry processing over 8.7 mln tons by 2015. Global plastic film and sheets market is forecast to reach 50.7 mln tons by 2015 driven by globalization, changing food consumption trends, and increasing demand from developing markets of Asia-Pacific, Latin America, the Middle East and Eastern Europe, as per Global Industry Analysts. Low per capita consumption and rapid economic growth combine to propel the plastic film and sheets market in Asia-Pacific, with China and India at the vanguard of growth. North America, Japan and Western Europe represent mature markets with high levels of per capita consumption. In addition to Asia-Pacific, future growth is likely to be driven by Africa/Middle East, Latin America and Eastern European countries due to rapid industrialization, burgeoning consumer economy, improvements in the standard of living, and strong construction, food and beverage and consumer packaging sectors in these regions, as stated by the new market research report on plastic film and sheets. Over the last decade, the Middle East has emerged as a serious player in the global plastics market owing to the twin benefits of low raw material and feedstock prices and proximity to the highly lucrative Asian market. This has led plastic players embarking on ambitious capacity enhancements in the region. Further, growing sophistication in the Russian market is paving way for uninterrupted growth in demand for plastic films in the region Plastic films, mostly used for packaging of food as well as non-food items, witnessed slump during the recession as demand in most end-use markets plummeted. The decline was more pronounced across the non-food category as compared to the food segment owing to food being a highly inelastic product. Though the contraction in plastic films market spread across all segments, but polypropylene (PP) films fared better as compared to other segments owing to the relatively better performance from the Biaxially Oriented Polypropylene (BOPP) Films market. Globally, the US, Europe, and Asia-Pacific represent the largest markets, collectively accounting for a major share of volume sales in the Plastic Film and Sheets market. Driven by enormous potential in China and India, Asia-Pacific is projected to be the fastest growing regional market with a CAGR of 4% over the analysis period. Segment-wise, polyethylene films represents the largest segment of the global demand. The segment is however ceding share due to increasing penetration of polypropylene into its hitherto established end-use markets. Within polyethylene segment, LDPE is losing share to its advanced form, linear low-density polyethylene (LLDPE) films. Market for HDPE film is also expanding at a consistent rate, though not as dynamic as LLDPE. Biaxially oriented polypropylene (BOPP) film, a sub-segment of polypropylene, represents the fastest growing segment in volume terms. Though the sector witnessed a slowdown in growth during the economic recession, particularly in 2008, the market bounced back quickly with a 3-4% growth rate in 2009. During 2010-2013, worldwide BOPP production capacity is estimated to expand by 2.2-2.4 million tons, with the Middle East accounting for the bulk of the capacity expansion. High-performance plastic films have emerged as a niche segment in the huge plastic films industry. These films are generally sold at a higher price and are used for specific applications, where other types of films fail to provide the desired results. In Asia, the market is witnessing a tussle of supremacy between Japanese and South Korean polyethylene terephthalate (PET) films producers owing to robust growth in the segment, which is driven by Flat panel displays and packaging applications. Since the plastic films industry is characterized by product diversity, competition in the market remains fragmented with the presence of both large-scale manufacturers and small producers. Major players profiled in the report include Achilles Corporation, AEP Industries Inc, Applied Extrusion Technologies (AET), Bemis Company, Inc., Berry Plastics Corporation, British Polythene Industries, DuPont Teijin Films, ExxonMobil Chemicals, Futamura Chemical Co. Ltd, Foshan Plastics Group Co Ltd, Inteplast Group Ltd., Nylex (Malaysia) Berhad, Okura Industrial Co. Ltd, Paragon Films, Polyplex Corporation Ltd, Reynolds Flexible Packaging, Rheinische Kunststoffwerke (RKW) AG, Quinn Plastics, SABIC Innovative Plastics, Sealed Air Corporation, SINOPEC Shanghai Petrochemical Co. Ltd., Spartech Corporation, Sumitomo Bakelite Company Limited, Toray Plastics, Toyobo Company Ltd., Treofan Group, Trioplast Industrier AB, Unitika Ltd and Vibac Group. The polyethylene film and bag market is fast-moving and ever-changing. The market is clearly facing major questions: the demand for product is continuing to advance in all regions of the world, although the more established countries are seeing a degree of maturity. An important influence on the market will be the increased competitive dynamic in the global marketplace, with capacity expanding rapidly in some geographic areas in a way which will influence the development of the market and producer companies’ abilities to evolve lasting market positions. It is clear that although the current market for polyethylene films is regional in nature, the dynamics of the market in the future will result in an industry global in scope. This is evidenced by more export oriented plants being established around the world and the way in which trade has an increasing influence on the market. Often the development of production in new regions is accompanied by significant cost advantages in raw material availability and price, low energy cost and low transport