The North America Flexible Packaging market was valued at USD 38.6 billion in 2019 and is expected to reach USD 51.2 billion by 2025, at a CAGR of 3.16% over the forecast period 2020 - 2025. Technological innovation, sustainability trepidations, and attractive economics are among the reasons for the remarkable growth of flexible packaging in the last two decades in the United States. The way consumers view and interact with packages is altering. Owing to the rising focus on sustainability, traditional rigid packaging solutions are being substituted by innovative and more sustainable flexible packaging. The growing market demand for customer-friendly packages and heightened product protection is expected to boost flexible packaging as a viable and cost-effective substitute.
- Flexible packaging in North America is rising faster than many other forms. It includes trends, like e-commerce, digital printing, and sustainability that can be used to drive the market development and growth. Customers in the region are eager to pay more for certain product attributes boosted by flexible packaging. For instance, according to Flexible Packaging Association, more than 60% of consumers in North America are keen to pay more for tangible and functional packaging benefits, such as product protection, shipping friendly, and supply chain efficacy, among others.
- Customers in the region are willing to pay additional for food stored in flexible packaging. For instance, more than 46% of Americans are willing to pay more for food and beverage products stored in flexible packaging than they would for food products kept in non-flexible packaging, and 71% of Americans said they would prefer flexible packaging over non-flexible packaging when asked to pick between flexible and non-flexible packaging for a product they were considering for purchasing (Flexible Packaging Association, 2017).
- Flexible packaging is mainly used for food, which contributes to more than 60% of the total market. The US flexible packaging industry is witnessing a healthy growth, as the industry was able to implement innovative solutions for the many packaging challenges it faced. According to the Flexible Packaging Association, brand owners are taking on films, pouches, and bags as a go-to packaging solution, acknowledgements in part to extensive acceptance by American consumers.
- The impact of the outbreak of Covid-19 on the market is significant in the short-run as the global lockdown has brought the entire packaging supply chain to an almost grinding halt as US has the largest number of confirmed cases in the world. But, in the long-run, with online shopping on the rise, the market is expected to rebound back.
Scope of the Report
Flexible packaging is one of the most prominent packaging technique used by major vendors across a diverse range of end-user verticals, owing to its superior quality, such as ascended shelf life. Moreover, it is the most economical packaging method to distribute, and preserve food, pharmaceutical products, and other consumables.
| By Type |
| || |
| Plastics |
|Polyethene (PE) |
|Bi-orientated Polypropylene (BOPP) |
|Cast polypropylene (CPP) |
|Polyvinyl Chloride (PVC) |
|Ethylene Vinyl Alcohol (EVOH) |
| ||Paper |
| ||Aluminium Foil |
| By Product Type |
| ||Pouches |
| ||Bags |
| ||Films & Wraps |
| ||Other Product Types |
| By End-user Industry |
| ||Food |
| ||Beverages |
| ||Household and Personal Care |
| ||Other End-user Verticals |
| By Country |
| || |
| United States |
|United States Flexible Packaging Overview (Market Demand, Market Influencers) |
| US Flexible Packaging Market – By End-User Industry |
|Household and Personal Care |
|Other End-user Verticals |
| || |
| Canada |
|Canada Flexible Packaging Overview (Market Demand, Market Influencers) |
| Canada Flexible Packaging Market – By End-User Industry |
|Household and Personal Care |
|Other End-user Verticals |
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Key Market Trends
The Increased Demand for Convenient Packaging by Millennial Customers will Drive the Market Growth
- The demand for flexible packaging products is generally driven by millennial customers in the region, as they have an ardent preference of single-serving and on-the-go style food and beverage foodstuffs. As these products are generally designed to be durable, portable, and light weight, flexible packaging stands to be a famous option to pack such products. Firmest growing areas of snack foods, both in terms of processed foods and fresh items, are anticipated to govern the demand for flexible packaging from food and beverage industry of the region.
- Also, the advanced packaging styles, such as collapsible/reusable pouches, bag-in-box, among others, are raising the usage of flexible packaging in combination with rigid packaging formats. Products, such as pouches, liners, bags, and shrink wraps, are opening an extensive range of new applications to the flexible packaging market in the region. Additionally, consolidation of the e-commerce sector in the region is anticipated to make flexible packaging one of the quickly growing packaging approaches over the forecast period.
- E-commerce is an example of the convenience trend. Its efficiencies, coupled with the comfort of comparison shopping, are also motivating down prices in several sectors. As business insider reports, e-commerce is driving virtually wholly retail growth, and its influence on flexible packaging may develop with it in the region.
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United States will remain the Largest Market for Flexible Packaging
- The United States holds the key market share in the region, due to the existence of established industries, like the pharmaceutical, food and beverage, etc. However, Canada is anticipated to witness a higher growth rate, due to the growing adoption of these packaging techniques across numerous industries. Furthermore, the region has a flourishing retail industry that banks on heavily on flexible packaging methods, being a global leader in the retail industry.
- For instance, according to the balance, in 2017, the US retail industry generated USD 1.14 trillion in value-added, which is 5.9% of US gross domestic product. The biggest category within retail is automotive, at USD 212 billion, grocery stores are USD 167 billion and general merchandise is USD 161 billion. Internet retailing is the wildest growing segment. By 2020, it is projected to reach USD 523 billion, at a growth rate of 9.32% each year until then.
- Walmart, based out of the United States, is not only the largest global retailer but also the largest of its kind in the world. Of the top 10 largest retail companies in the world, five of them are based out of the United States, making the country the foremost in the retail industry. As per the flexible packaging association of the United States, flexible packaging is the second-largest packaging segment in the country, with almost 20% share in the market.
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The North America Flexible Packaging Market is fragmented and consists of several major players. The major players with a prominent share in the market are focusing on expanding their customer base across foreign countries.
- September 2019 - Amcor opened a packaging innovation center in New Albany, Ohio. The Innovation Center is supported by a cross-functional team of engineers, designers, and technical specialists who work with customers on their product concepts. This specializes in the home and personal care market, but its services are open to packaging customers across all ofthe segments that Amcor serves.
- July 2018 - PPC Flexible Packaging, an Illinois-based consumer packaging company invested over USD 2 million in upgrading its equipment and facilities, which is expected to positively impact the United States market.
Table Of Contents
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHT
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Market Drivers
4.4.1 The Increased Demand for Convenient Packaging
4.4.2 Changing Demographic and Lifestyle Factors
4.5 Market Restraints
4.6 Sustainable Packaging Light weighting Recycled and Recyclable Polymers
4.7 Cost Structure and Pricing Analysis
4.8 Assessment of Impact of Covid-19 on the Industry
5. TECHNOLOGICAL ADVANCEMENTS
5.1 Digital Printing
5.2 Barrier Developments
5.3 Active Packaging
6. MARKET SEGMENTATION
6.1 By Type
184.108.40.206 Polyethene (PE)
220.127.116.11 Bi-orientated Polypropylene (BOPP)
18.104.22.168 Cast polypropylene (CPP)
22.214.171.124 Polyvinyl Chloride (PVC)
126.96.36.199 Ethylene Vinyl Alcohol (EVOH)
6.1.3 Aluminium Foil
6.2 By Product Type
6.2.3 Films & Wraps
6.2.4 Other Product Types
6.3 By End-user Industry
6.3.3 Household and Personal Care
6.3.4 Other End-user Verticals
6.4 By Country
6.4.1 United States
188.8.131.52 United States Flexible Packaging Overview (Market Demand, Market Influencers)
184.108.40.206 US Flexible Packaging Market – By End-User Industry
220.127.116.11.3 Household and Personal Care
18.104.22.168.4 Other End-user Verticals
22.214.171.124 Canada Flexible Packaging Overview (Market Demand, Market Influencers)
126.96.36.199 Canada Flexible Packaging Market – By End-User Industry
188.8.131.52.3 Household and Personal Care
184.108.40.206.4 Other End-user Verticals
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Amcor Ltd.
7.1.2 Mondi PLC
7.1.3 Transcontinental Inc.
7.1.4 American Packaging Corporation
7.1.5 Sit Group SpA
7.1.6 Toppan Printing Co. Ltd.
7.1.7 Printpack Inc.
7.1.8 Sigma Plastics Group Inc.
7.1.9 Novolex Holdings Inc.
7.1.10 Berry Global Inc.
7.1.11 Sealed Air Corp.
7.1.12 Tetra Pak International SA
7.1.13 Constantia Flexibles
7.1.14 Winpak Limited
7.1.15 Cascades Flexible Packaging
7.1.16 Emmerson Packaging
7.1.17 Covertech Flexible Packaging Inc.
7.1.19 Sonoco Products Co.
7.1.20 St. Johns Packaging
*List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET