Market Trends of France Packaging Industry
This section covers the major market trends shaping the France Packaging Market according to our research experts:
Flexible Packaging to Have a Significant Share
- The packaging industry has, over the years, experienced substantial demand in France. As cheap and lightweight packaging is gaining popularity in the country, manufacturers are encouraged to use flexible packaging for different products. Hence, these factors are responsible for boosting the growth of the market.
- Flexible packaging is a type whose shape can be readily changed, e.g., bags and pouches. This leads the way in packaging innovation, ensuring food safety and extending shelf life. It also follows some of the most important trends in the packaging industry, including product protection, packaging design and performance, consumer convenience, and sustainability that positively impacts the environment, consumers, and businesses.
- Factors stimulating the market growth in the region are that it generates less waste, significantly reducing landfill discards. The lightweight, flexible packaging also produces less energy (fossil fuel) consumption in transportation and environmental pollution.
- Furthermore, technological innovations in the packaging industry have enabled manufacturers to use fewer natural resources. Moreover, the improvements in production processes have reduced water and energy consumption, greenhouse gas emission, and volatile organic compounds emission.
- Flexible packaging made of paper is experiencing growth in the country. Even though the country's distribution of paper and paperboard production in packaging is 65.8% in 2021, according to COPACEL, In 2021, the country imported 5.08 million metric tons of paper and paperboard. This states that the players focus on paper-based flexible packaging to significantly reduce plastic use, eventually promoting paper-based packaging in the forecast period. Even though the market witnessed a decline in 2021, the growth is expected to surge in the coming years due to the rising demand for sustainable packaging materials.
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E-commerce Market is Expected to Contribute to the Growth
- According to Atradius, French food and beverage output will expand by roughly 4% in 2022 after increasing by 4.6% in 2021 and contracting by 2.0% in 2020. Foodservice and producers/processors of significant industries, including beverages and meat, suffered from worsening hospitality and catering demand during the lockdowns in 2020 and early 2021, which had a detrimental impact on their profitability. While sales in the restaurant and catering industries have recovered since last year, they have yet to return to pre-pandemic levels.
- European countries are experiencing a rise in demand for convenience foods due to the busy lifestyle of people. Hence, food that gets cooked quickly attracts many consumers and, in turn, increases demand for corrugated boxes or folding cartons, mainly used as a secondary or primary in case of a bakery or prepared food dishes. The surging population also drives the demand for processed food, which is considered healthy and convenient.
- With the evolution of e-commerce and focus on offering an eco-friendly solution to meet the regulatory bindings, the eco-friendly approach has also emerged as a significant factor for new design with the consumer becoming waste-conscious. End-user industry players are steering away from over-packaging and wasting space, and similar trends have been observed in the e-commerce sector. According to Edge by Ascential, retail e-commerce sales in France will reach EUR 72.5 billion (USD 77.07 billion) in 2021. Moreover, two-thirds of this proportion refers to first-party sales. 1P sales in France are expected to reach about EUR 68 billion (USD 72.29 billion) by 2026, while 3P sales will be around EUR 41 billion (USD 43.58 billion).
- Also, regarding e-commerce's percentage of global sales, the United Arab Emirates was the top-performing country. Carrefour's E-commerce accounted for 12.6% of Carrefour's sales in the nation. France's e-commerce sales account for about 8.8% of total sales. Additionally, E-commerce sales of the French multinational wholesaler and retail Carrefour, generated sales around USD 6.3 billion worldwide in 2022. The growing sales is expected to support growth of flexible packaging in France.
