Market Trends of Canada Flexible Packaging Industry
This section covers the major market trends shaping the Canada Flexible Packaging Market according to our research experts:
Food Industry is Expected to Witness Significant Growth
- The Canadian Food industry is one of the major consumers of the flexible packaging market in the country, owing to increasing demand for easy-to-use and small packaging solutions, with consumer growing demand for ready-to-eat types. In recent years, the country has witnessed increasing demand for snack and convenience foods in small or single-size portions, increased spending on short-run ready meals and coffee or hot chocolate sticks and pouches, dehydrated foods, snack foods, and nuts, bakery products, among others. All these products are some of the major consumers of flexible packaging solutions in the country, hence expanding the studied market scope.
- The agriculture and Agri-Food Minister announced a CAD 376,200 (USD 299,869) investment in the Canadian Produce Marketing Association. The CPMA is a non-profit organization whose mission is to improve Canada's fresh produce market and make it easier for its member organizations to trade produce. The funds will be used to fund a national pilot project to assist in developing sustainable package design and material solutions that are more recyclable or compostable.
- According to StatCan, in October 2022, manufacturer sales of snack food totaled around CAD 383 million. In March 2022, manufacturer sales of sugar and confectionery items totaled around CAD 464.83 million. Such huge sales of food products would create an opportunity for the local and international flexible players to develop new products to cater to a wide range of customer needs and capture the market share.
- According to the Canadian Agri-Food Trade Alliance, Canada is the world's fifth largest exporter of agricultural and agri-food products, trailing only the EU, the United States, Brazil, and China. In agriculture and agri-food goods, Canada expects to export USD 82.2 billion by 2021. Half of our beef/cattle, 70% of our soybeans, 70% of our pork, 75% of our wheat, 90% of our canola, and 95% of our pulses are exported. Over 90% of Canadian farmers rely on exports, as does 40% of the food processing industry. Such huge exports would create an opportunity for the studied market to grow.
- Furthermore, stringent government regulations regarding food product safety and other information make flexible packing a preferred choice, owing to their connivance for printing and marketing purposes. The safety of all materials used for packaging foods is controlled under Division 23 of the Food and Drugs Act and Regulations, Section B.23.001. Flexible packaging is also gaining traction owing to the increasing number of product launches in the studied sector. As more and more food manufacturing companies increase investment in innovative and informative packaging, the scope of the studied market will also expand.
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Paper Packaging is Expected to Hold a Significant Share
- According to the FAO (Food and Agriculture Organization), in 2021, Canada's capacity for wrapping and packaging paper and paperboard will be 3.8 million metric tons. The capacity of Canada is predicted to remain stable until at least 2026.Forest Products Association of Canada (FPAC) provides the voice for Canada's wood, pulp, and paper producers nationally and internationally in government, trade, and environmental affairs. Further, the CAD 69-billion-a-year forest products industry represents 2% of Canada's GDP and is one of Canada's largest employers operating in more than 600 communities and providing around 230,000 direct jobs across the country.
- Further, to meet consumer demands, food, and beverage manufacturers are making greater efforts to provide sustainable materials and packaging, functional and convenient displays, and healthier food options. Paper bags are becoming increasingly popular in restaurants, hotels, and cafes, among other food establishments. Similarly, the growing popularity of on-the-go meals and online food delivery services has increased the demand for paper bags in food service. Additionally, Paper bags meet the consumer demand for secure, leak-proof, and recyclable packaging. Paper bags are gradually replacing plastic packaging solutions in areas where takeout and online food delivery are becoming popular. Paper Packaging will also cater to the increasing demand from the food and beverage sector.
- Moreover, WestRock Company, a developer of specialized paper and packaging solutions, partnered with Recipe Unlimited in April 2022 to adopt a recyclable paperboard packaging suite to divert 31 million plastic containers from landfills in Canada each year. Recently, the package first appeared in Swiss Chalet restaurants, which are currently available in all of the company's locations.
- To capture the market share in the country different paper packaging firms are providng new products. For instance, in August 2022, Duro, a Novolex brand, is releasing Load & Fold Shopping Bags and Load & Seal Shopping Bags, tamper-evident paper bags that provide restaurants and retailers with more secure transit and deliveries. Duro, a Novolex brand, has introduced Load & Fold and Load & Seal Shopping Bags. The tamper-evident paper bags provide restaurants and businesses with more secure transportation and delivery. The bags have a large aperture for convenient loading, a flat bottom for keeping objects secure, and robust paper twist handles for easy and dependable carrying.
- Further, in November 2022, Pet Valu, Canada's premier specialty retailer of pet food and pet-related goods, that will discontinue the sale and distribution of single-use plastic shopping bags at all corporate and franchised sites across the country, excluding Quebec. Customers are encouraged to bring their own reusable shopping bags, but they will also be able to purchase recyclable paper bags at the checkout.
