Canada Flexible Packaging Market Size

Canada Flexible Packaging Market Analysis

The Canada Flexible Packaging Market size is estimated at USD 8.55 billion in 2024, and is expected to reach USD 12.53 billion by 2029, growing at a CAGR of 7.94% during the forecast period (2024-2029).

One of the primary aspects driving the growth of the Canadian flexible packaging industry is the growing consumer inclination for convenience products. Consumer tastes are changing due to hectic lifestyles and smaller home units, necessitating products that are easy to open, store, use, transport, and dispose of, as well as those that appeal to their on-the-go lifestyles.

• The Canadian flexible packaging market is witnessing a trend of eco-friendly packaging types from consumers and manufacturers. More than 40 Canadian companies recently unveiled the Canada Plastics Pact, a plan to recycle or compost 50% of Canada's plastic packaging by 2025. Fiber-based flexible packaging is also gaining traction in the Country and supporting a brand's effort to use more sustainable packaging. Even certain flexible packaging has now been engineered to be more environmentally friendly.
• The government of Canada is taking initiatives for plastic packaging in the Country. For instance, In April 2022, Circular Plastics Taskforce received funding from the Canadian government's Ministry of Economy and Innovation (MEI) to support projects that will optimize the recycling of all plastic packaging. The Organisation has received more than USD 399,904 from MEI for the start of the project's second phase.
• The recent municipal, provincial, and federal legislative action in Canada has especially focused on single-use plastics. Following the approach set out in the EU's 2018 Plastics Strategy, the Canadian government recently announced its intention to ban single-use plastics. Also, the Canadian province of Ontario is expanding the extended producer responsibility (EPR) scheme for paper packaging from covering half of the recycling cost to the full cost by 2023. The bill would establish a free program similar to Maine's and be applied to packaging, printing, writing paper, and food service ware.
• According to Statistics Canada, monthly sales of grocery stores in Canada hit a high of CAD 10.39 billion during the pandemic. The spread of COVID-19 and the consequent panic buying can explain this jump in sales. Such sale has increased manifold in demand for flexible packaging during the crisis. The COVID-19 pandemic has given a new foothold to single-use plastics previously criticized for the waste they generate. Flexible packaging has benefitted because of increased concerns around hygiene and the protection it provides. Specific bans on plastic shopping bags have been overturned or fees lifted due to the initial concerns reusable alternatives could spread the virus.
• On the flip side, flexible packaging products are typically made of soft plastics (various plastic polymers). The increasing awareness about the environmental effect of single-use plastic and unsustainable business practices has empowered consumers to demand a higher standard of product with a positive ecological impact. Further, initiatives such as promoting sustainable packaging by some companies in the packaging market across the country are expected to hurt the market growth during the forecast period.