The global flexible packaging market is expected to grow at a CAGR of over 3% during the period 2018–2024.
Increased focus on sustainable flexible packaging, usage of high barrier plastic packing materials, increase in pouch packing across various end-users are likely to contribute to the growth of flexible packaging market during the forecast period.
Developing countries with low per capita offer increased opportunities for the flexible packaging market. The growth can be attributed to the availability of low-cost material and machinery for flexible packaging Further, mergers and acquisitions are expected to bring more opportunities for the market. The use of flexible packaging has increased due to lower environmental impact than other types of packing materials. Factors such as the cost of raw materials, low production expenditure, lightweight nature, which, in turn, reduces the transportation cost, are major factors that are driving the global flexible packaging market.
This research report on the global flexible packaging market covers market sizing and forecast, market share, industry trends, growth drivers, and vendor analysis. The study includes insights on segmentation by materials (flexible plastic, flexible paper, and foil), products (bags and sacks, pouches, and others), printing (flexographic and rotogravure, and others), packaging (consumer and industrial), end-user (F&B, healthcare, personal care, pet food, and others), and geography (APAC, Europe, North America, Latin America, and MEA).
The study considers the present scenario of the global flexible packaging market and its market dynamics for the period 2018?2024. It covers a detailed overview of several market growth enablers, restraints, and trends. The report covers both the demand and supply aspect of the market. It profiles and examines leading companies and other prominent companies operating in the global flexible packaging market.
Flexible Packaging Market: Segmentation
This research report includes detailed market segmentation by material, product, printing, packaging, end-users, and geography. The food industry, which constitutes a share of more than 60%, is the major demand contributor for flexible plastic pouch packaging. Pharmaceuticals and beverage industries are the other major application areas of flexible plastic pouches. Pouches have gained prominence in the flexible packaging market due to their ability to extend the shelf life of food products. The increasing application of four-sided sealed pouches in the packing of meat, poultry, and seafood is expected to witness the highest growth rate. Pouches and wraps constitute the highest share in the consumer flexible paper packaging market. The application of paper wraps in the foodservice industry is growing at an annual rate of 7%, which is driven by the demand from the dry and pet foods.
The consumer packaging segment is growing moderately on account of the increased consumption of ready to eat food and per capita incomes. The market in emerging economies is expected to fetch three-times more revenue than developed economies. Further, the market is witnessing the entry of new vendors with new technology, which will enhance performance and regulatory compliance. Also, the use of recycling content will be a new unique selling point in the mature market such as Europe and North America. The flexible packaging market by industrial packaging is driven by bulk demand from several end-users. Chemicals and pharmaceutical industries account for more than 40% of the industrial packing applications.
The growing need for increasing the barrier protection to increase the shelf life is one of the major factors for the adoption of flexible packaging in the food and beverage industry. In the food industry, modified atmosphere and vacuum packaging are currently used for the packing of meat, poultry, and seafood, which ensure that the products have a long shelf life. Hence, the introduction of new packing techniques is likely to increase the scope of the flexible packaging market.
Although the bakery industry is largely unorganized in the APAC, MEA, and Latin America regions, single-serving and smaller size packs are mainly used in the bakery packaging market to manage and control the portion intake. The medical devices industry highly depends on sterile packaging. High barrier protection is expected from flexible packaging so that medical devices maintain their functionalities and efficiency.
The cosmetic care industry is expected to influence the flexible packaging market positively. Increased per capita incomes and the expansion of the retail sector are likely to drive the flexible packaging market in South America, APAC, and MEA. Cost-effectiveness, in terms of material and machinery, is the major factor for the high percentage share of the bags and sacks segment in the global flexible packaging market. The increasing automation of the food processing industry in India, China, and Middle East countries is driving the pouch segment. Further, the replacement of traditional machinery with advanced technology equipment will contribute to the growth of the segment.
While flexographic printing is most widely adopted in North America and South America, rotogravure printing has a significant share in the APAC market. Factors such as low labor costs, low press footprint, and less energy requirements are the key factor for a high market share of flexographic printing.
Market Segmentation by Material
- Flexible Plastic
- Flexible Paper
Market Segmentation by Product
- Bags and Sacks
Market Segmentation by Printing
Market Segmentation by Packaging
- Consumer Packaging
- Industrial Packaging
Market Segmentation by End-user
- Personal Care
Flexible Packaging Market: Geography
The demand for flexible packaging from food, pharmaceuticals, and industrial secondary/tertiary packaging is expected to push the market in the APAC region. Japan is expected to provide high growth opportunities to the flexible packaging market due to the increased demand for packed food from the elderly population (above 65 years). Also, China, India, and other southeast Asian countries are emerging as growth drivers for the APAC region. Further, Indonesia is witnessing demand for flexible packaging mainly from small and medium-scale enterprises, which are likely to drive the flexible packaging market. The plastic packing industry in India is observing high demand for rigid packaging, and the market is expected to grow steadily in the coming years.
The expansion in supermarkets has led to the increased demand for shelf-ready packaging, thus driving the shrink packaging in Europe. The demand from F&B, pharmaceutical, personal care, and industrial application is expected to lead the market in North America. The flexible packaging market in Latin America is expected to witness high growth during the forecast period on account of a large middle-class population with high disposable incomes. The spend on the packaging is significantly higher than mature markets, North America and Europe. The market is largely dependent on overall economic performance. The flexible packaging market in MEA has huge potential as the per capita consumption is currently lower than in Europe and North America. The economic growth in Middle Eastern countries such as Turkey, UAE, and Saudi Arabia is driving the flexible plastic packaging market.
Market Segmentation by Geography
- ·South Korea
- ·New Zealand
- North America
- Latin America
- ·Saudi Arabia
- ·South Africa
Key Vendor Analysis
The global flexible packaging market has very few vendors who have breached the $1 billion in revenue. small and medium-scale enterprises dominate the flexible packaging market. Larger players have been aggressively adopting inorganic growth strategy to expand their operations in many regions. Key players’ technological strength and high-volume product lines have helped offset cost variations. Small companies’ focus has been on customization, as the competition in the market is mainly on two aspect - features and price. The niche segment, which does not have large volumes is largely dependent on smaller packaging companies. Many new companies have sprung up in APAC as the e-commerce industry has increased the demand for protective packaging. Stretch films, protective wraps, and pouches have witnessed high demand in the last few years. Also, China has a well-established plastics industry and is one of the major exporters of plastic resin. Regulatory policies will be favorable to vendors that have the infrastructure to recycle and reuse packaging materials. The penetration level of bio-based plastics in various end-use categories is expected to increase further and favorably impact early movers in the industry. The key competitive factors in the industry include – price, quality, adherence to newly evolving regulations, distribution network, and R&D investments.
- Berry Global
- Sealed Air
- TC Transcontinental
Other Prominent Vendors
- American Packaging Corp.
- Bischof + Klein
- Constantia Flexibles
- Innovia Films
- International Paper
- Reynolds Group
- RPC Group
- Sigma Plastics
- Smurfit Kappa
- Stora Enso
Key Market Insights
The report provides the following insights into the global flexible packaging market for the forecast period 2019–2024.
- Offers market sizing and growth prospects of the global flexible packaging market for the forecast period 2019–2024.
- Provides comprehensive insights on the latest industry trends, market forecast, and growth drivers in the global flexible packaging market.
- Includes a detailed analysis of market growth drivers, challenges, and investment opportunities.
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- Offers an exhaustive summary of the vendor landscape, competitive analysis, and key market strategies to gain a competitive advantage in the market.