Flexible Packaging Market
The flexible packaging market was valued at USD 230.97 billion in 2017, and is expected to reach a value of USD 291.96 billion by 2023 at a CAGR of 3.86%, over the forecast period (2018—2023). The regions considered in the scope of the report include North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa.
With growing focus on sustainability, traditional rigid packaging solutions are being replaced by innovative, flexible packaging. Increasing market demands for consumer-friendly packages and an enhanced product protection have propelled flexible packaging as a viable and cost-effective alternative. Modern developments in the packaging industry have led to an unprecedented rise in the flexible packaging market. New product designs working toward gaining consumer attention, while minimizing waste and reducing costs, without compromising on the quality of packaging, have been the major factors positively impacting the growth of the flexible packaging market. The emergence of sustainable and recyclable alternative materials based on polymers in the flexible packaging industry, in line with the existing demand for environment-friendly packaging, has majorly benefited the pharmaceutical and food industries. Furthermore, with increasing sales through e-commerce have given a strong momentum to the market growth. In 2016, an estimated 1.61 billion people purchased goods online, globally. In 2016, worldwide e-retail sales amounted to USD 1.9 trillion and projections show a growth of up to USD 4.06 trillion by 2020.
However, the stringent regulatory environment in the packaging industry has been a major limiting factor for growth of the flexible packaging market.
Increasing Industrial Demand for Down Gauging to Drive the Flexible Packaging Market Growth
The world of flexible packaging for commodity goods and services is a high volume, low margin world of product polymer manufacturers. The price of plastic feed stocks is subjected to the variability of the global hydrocarbon market. To counter this, packaging manufacturers have searched for alternatives, to provide a much better solution — “down gauging”, which refers to reducing the amount of material in a product while still maintaining or even improving the properties of the material. Improved plastics have been recognized to offer tremendous down gauging opportunities in flexible packaging. A gram or two saved in the weight of a package has been identified to have an enormous impact on the environment, and the energy efficiency obtained when considering millions of individual packages produced each year.
Over the years, companies globally, have been identified to implement down gauging and replacement of less desirable materials to significantly reduce packaging costs, and lower package weight has, in turn, resulted in the reduction of the amounts and types of materials used and processing steps required to manufacture a flexible package. Recently, SABIC, a diversified manufacturing company, showcased new products and technologies, which may reduce the environmental impact of packaging by enabling down gauging. The down gauging technology has reduced thicknesses by up to 20% compared to current film concepts. This move, in turn, is expected to increase the market for flexible packaging.
Increased Food Consumption to Generate Huge Demands for Flexible Packaging
Flexible packaging offers the best and most affordable packaging option to the food industry, by adding packaging value and marketability to the food products. It ensures food protection and extends the shelf life of the product by use of various materials, such as plastics, metals, and tyvek, providing an adequate protection from heat and other elements. Food products purchased through retail outlets need to be packaged in convenient and lightweight boxes, to ease the amount of effort required by consumers while carrying them. Owing to the versatility of the materials, custom qualities and efficiency in conserving resources, combined with their sustainability, the flexible packaging has emerged as the preferred form of packaging in the food industry.
Food consumption has witnessed a high growth in the recent past, creating a demand for the packaged food products with an extended shelf life and sterility. The United States accounts for a significant share in demand for packaged food, owing to consumers being immensely pressed for time due to busy schedules, and frequently purchasing packaged ready-to-eat food items, instead of conventional meals. The necessity for labeling of the products to list the nutrient information, due to the laws implemented by FDA, has further laid emphasis on flexible packaging and functional coatings in the packaging systems. Health-focused and organic food consumers are other unnoticed heavy users of flexible packaging, particularly in the segments of fresh fruits, health bars, salads, and other health-related products.
Asia-Pacific Accounted for a Significant Share in the Flexible Packaging Market
The current wave of economic expansion in APAC is being seen from all over the world. With infrastructure, manufacturing, agriculture, and services sectors, the packaging industry is also showing great variety and depth in its growth. India has the second largest population in the world, behind China. Because of this, the demand for products is much greater when compared to other countries, which are offering growth opportunities for the packaging industry. Variations in demand for different products with different features, such as availability of soap in solid and liquid formats, have led to the launch of varying pack types, for instance, laundry detergents have become available in flexible packaging and plastic packaging. In addition to the demographic shifts, the packaging industry in APAC, specifically India, is also adapting to changes in the way consumers shop. Different strategies are being tailored to suit urban and rural areas and even across various regions in India. Thus, increasing population, rising consumption of packaged food (processed and frozen food), and growing retail e-commerce sales are augmenting the market growth in the region.
However, higher inflation rates and inadequate supply chain are some of the major challenges for this market in the Asia-Pacific region.
Key Developments in the Flexible Packaging Market
- August 2017 - Sealed Air Corporation acquired Deltaplam Embalagens Indústria e Comércio Ltda (Deltaplam), a family-owned-and-operated Brazilian flexible packaging manufacturer. Combined with Sealed Air’s leading global expertise and packaging solutions, this acquisition strengthened their position in Latin America and enhanced their portfolio of innovative, value-added solutions for customers. It also expanded their portfolio of consumer unit package solutions and extended their reach into several new market segments.
- July 2017 - American Packaging had invested in a digital system for flexible packaging that was designed to enable greater choice in surfaces, substrates and technical performance. This APC Digital Tool Kit enabled new product launches and tests.
- May 2017 - Sealed Air Corporation launched the first wave of European flexible healthcare printing investments, which enables the access of healthcare companies in Europe to more responsive, flexible printing services for the packaging needs.
Flexible Packaging Market Major Players: Amcor Limited, Bemis Company, Inc., Berry Plastics Corporation, Clondalkin, Mondi Group, Sealed Air Corporation, Sonoco Products Company, among others.
Reasons to Purchase Flexible Packaging Market Report
- Impact of governmental regulations on use of plastic on the flexible packaging market
- Analyzing various perspectives of the market with the help of Porter’s Five Forces analysis
- Growth of various products, such as pouches, bags and wraps
- Regional analysis of the market
- Identify the latest developments, market shares, and strategies employed by the major market players
- 3-month analyst support, along with the Market Estimate sheet (in excel)
Customization of Flexible Packaging Market Report
- This report can be customized to meet your requirements. Please connect with our representative, who will ensure you get a report that suits your needs.
1.1 Scope of the Study
1.2 Executive Summary
2. Research Approach and Methodology
2.1 Key Deliverables of the Study
2.2 Study Assumptions
2.3 Analysis Methodology
2.4 Research Phases
3. Flexible Packaging Market Dynamics
3.1 Flexible Packaging Market Overview
3.2 Flexible Packaging Market Drivers
3.2.1 Increasing Industrial Demand for Down Gauging
3.2.2 Consumer and Producer Preference towards Convenience and Increased Shelf Life
3.3 Flexible Packaging Market Restraints
3.3.1 Stringent Environmental Regulations
3.4 Industry Attractiveness – Porter's Five Forces Analysis
3.4.1 Bargaining Power of Suppliers
3.4.2 Bargaining Power of Consumers
3.4.3 Threat of New Entrants
3.4.4 Threat of Substitute Products or Services
3.4.5 Competitive Rivalry Among Existing Competitors
3.5 Industry Value Chain Analysis
3.6 Supply Chain Analysis
4. Technology Snapshot
4.1 Technology Overview
4.2 Innovations in the Market
5. Global Flexible Packaging Market Segmentation
5.1 By Material
5.1.2 Flexible Foam
5.1.4 Aluminium Foils
5.2 By Product
5.3 By End-User Industry
5.3.3 Pharmaceutical and Medical
5.3.4 Personal Care and Household Care
5.4 By Region
5.4.1 North America Flexible Packaging Market (2018-2023)
22.214.171.124 United States Flexible Packaging Market (2018-2023)
126.96.36.199 Canada Flexible Packaging Market (2018-2023)
5.4.2 Europe Flexible Packaging Market (2018-2023)
188.8.131.52 United Kingdom Flexible Packaging Market (2018-2023)
184.108.40.206 Germany Flexible Packaging Market (2018-2023)
220.127.116.11 France Flexible Packaging Market (2018-2023)
18.104.22.168 Rest of Europe
5.4.3 Asia-Pacific Flexible Packaging Market (2018-2023)
22.214.171.124 China Flexible Packaging Market (2018-2023)
126.96.36.199 India Flexible Packaging Market (2018-2023)
188.8.131.52 Japan Flexible Packaging Market (2018-2023)
184.108.40.206 Rest of Asia-Pacific
5.4.4 Latin America Flexible Packaging Market (2018-2023)
220.127.116.11 Brazil Flexible Packaging Market (2018-2023)
18.104.22.168 Mexico Flexible Packaging Market (2018-2023)
22.214.171.124 Argentina Flexible Packaging Market (2018-2023)
126.96.36.199 Rest of Latin America
5.4.5 Middle East & Africa Flexible Packaging Market (2018-2023)
188.8.131.52 UAE Flexible Packaging Market (2018-2023)
184.108.40.206 Saudi Arabia Flexible Packaging Market (2018-2023)
220.127.116.11 South Africa Flexible Packaging Market (2018-2023)
18.104.22.168 Rest of Middle East & Africa
6. Competitive Intelligence – Company Profiles
6.1 Amcor Limited
6.2 Bemis Company, Inc.
6.3 Berry Plastics Corporation
6.5 Mondi Group
6.6 Sealed Air Corporation
6.7 Sonoco Products Company
6.8 American Packaging Corporation
6.9 ProAmpac LLC
6.10 Coveris Holdings S.A.
6.11 Novolex Holding Inc.
6.12 Winpak Ltd
6.13 Printpack, Inc.
6.14 Sigma Plastics Group
6.15 Huhtamaki Oyj
*List not Exhaustive
7. Investment Analysis
8. Future of Flexible Packaging Market