APAC Flexible Packaging Market Size

APAC Flexible Packaging Market Analysis

The Asia Pacific Flexible Packaging Market is anticipated to grow with a CAGR of 2.76% during the forecast period. Flexible packaging across the Asia-Pacific region is expected to witness a stable growth rate for the forecast period. Some of the prominent vendors in the region are driving their focus toward the ever-growing concern regarding environmental sustainability by adopting efficient manufacturing techniques throughout the three stages of the packaging life cycle - manufacturing, transportation, and disposal process. There has been impact of the Russia-Ukraine war on the overall packaging ecosystem.

• The top R&D priority for packaging engineers across the region has constantly been developing the packaging product with lightweight material with thinner laminate structures without compromising upon the overall barrier, thereby maintaining its functional properties and required strength. Also, the increasing demand for geographically constrained food, which has a short shelf-life, has boosted the growth of new products, especially in the frozen food division, primarily realized through flexible packaging.
• Also, there is a considerable increase in domestic demand for flexible packaging in the Asia Pacific, owing to the rapid urbanization across emerging economies, such as China and India. Healthy growth from end-users across the region is further driving the need for producing higher flexible packaging products, primarily among the wraps and pouches segment, majorly to address the small quantity retailing needs of the rising middle-class population in the region.
• The demand for flexible packaging products is mainly driven by millennial consumers in the region, as they have an avid preference for single-serving and on-the-go style food and beverage products. As these products are generally designed to be portable, durable, and lightweight, flexible packaging stands to be a popular option for packing such products. The fastest-growing areas of snack foods, both in terms of fresh items and processed foods, are expected to govern the demand for flexible packaging from the food and beverage industry of the region.
• Further, the beverage industry offers potential growth opportunities for flexible packaging across the region. Food companies are expanding their businesses in terms of geography and product lines to cater to this rising demand. For instance, Shou Quan Zhai, founded in 1760 and one of the oldest food companies in China, is expanding into the beverage market with a new line of ready-to-drink products.
• With the outbreak of COVID-19, flexible packaging manufacturers have been flooded with a pool of issues that are expected to be only for the short -term. Some of the effects of the lockdown include lack of availability of raw materials used in the manufacturing process, supply chain disruptions, fluctuating prices, labor shortages that could cause shipping problems, production of the final product to inflate and go beyond budget, etc.
• With the outbreak of COVID-19, flexible packaging manufacturers have been flooded with a pool of issues that are expected to be only for the short -term. Some of the effects of the lockdown include lack of availability of raw materials used in the manufacturing process, supply chain disruptions, fluctuating prices, labor shortages that could cause shipping problems, production of the final product to inflate and go beyond budget, etc.