Product Code: 51365
The Flexible Packaging Market is expected to grow at a CAGR of 3.87%, over the forecast period 2020 to 2025. Technological innovation, sustainability trepidations, and attractive economics are among the reasons for the remarkable growth of flexible packaging in the last two decades, globally.
- 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.
- E-commerce, digital printing, and sustainability are driving market development and growth. Customers are increasingly becoming more eager to pay extra for certain product attributes boosted by flexible packaging. For instance, according to the 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.
- Flexible packaging is mainly used for food, which contributes to more than 60% of the total market, according to the Flexible Packaging Association. According to the Flexible Packaging Association, brand owners are taking on films, pouches, and bags as a go-to packaging solution, acknowledgments in part to extensive acceptance by American consumers.
- Beauty products manufacturers, like L'Oreal and Unilever, are also investing in eco-friendly packaging approaches to make more sustainable usage of plastics in the personal care industry. For instance, in June 2019, L'Oreal has participated in the capital increase conducted by Carbios, which develops new, bio-industrial solutions to reinvent the lifecycle of plastics.
- With the recent outbreak of COVID 19, the flexible packaging manufacturer is facing supply chain disruption along with decreasing manufacturing at the site in many parts of the world. To ensure the smooth flow of supply chain, much Global food safety initiative (GFSI) certification programs are providing six-month certificate extensions by conducting a remote audit and risk assessment pertaining to COVID-19 such that the company can approve a new supplier location without an on-site audit to meet the demand.
Key Market Trends
Beverage Segment Holds Significant Share in the Flexible Packaging Market
- Flexible packaging not only plays a pivotal role in reducing beverage and product waste but also allows online brands to reinvigorate their packaging to enhance the e-commerce experience.
- The US Dairy Export Council (USDEC) and Food Innovation and Resource Center (FIRC), at Singapore Polytechnic, are leveraging the growing dairy demand by making Southeast Asian food with reduced salt and sugar, using US dairy ingredients.
- Southeast Asia is the second-largest market for US dairy exports, and the market was valued at USD 690 million, in 2017. According to USDEC, Southeast Asian customers are conscious of artificial food ingredients and prefer flexible packaging that significantly preserves the integrity of natural and clean label products.
- The prevalence of flexible packaging in the beverage sector is quite evident when browsing through the selection in the vending machines. The products for sales are convenient, single-use, and are mostly packaged in flexible films.
North America to Have Significant Market Share
- 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 lightweight, 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 the food and beverage industry of the region.
- The United States is the largest market in the region. As per the Flexible Packaging Association, flexible packaging accounts for more than USD 31 billion as annual sales in the country being the second largest, and fastest-growing segment under the overall packaging industry. The overall industry additionally, employs nearly 80,000 workers in the United States.
- As of March 2020, FPA and its members, since being crucial to the supply chain while catering to the needs of US consumers in responding to the COVID-19 crisis, have kept industry's manufacturing facilities to stay open and functioning.
The Flexible Packaging Market is fragmented in nature. Some of the major players in the industry are Amron Limited, Mondi Group, Berry Global Inc, Sealed Air Corporation, among others.
- April 2020 - Smurfit Kappa launched a new Bag-in-Box filling solution for organic birch sap drink thus offering a perfect packaging solution for the drink that keeps it fresh for up to 24 months before opening and 8 weeks after opening.
- September 2019 - Amcor opened an e-commerce testing laboratories, one in Manchester, Michigan, US. With this, the company would cater customers with online sales; particularly in pet food, sauces, beauty and personal care, and home cleaning products. This laboratory is certified to test packaged products for ISTA 6A.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
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Table of Contents
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
- 4.1 Market Overview
- 4.2 Industry Attractiveness - Porter's Five Forces Analysis
- 4.2.1 Threat of New Entrants
- 4.2.2 Bargaining Power of Buyers
- 4.2.3 Bargaining Power of Suppliers
- 4.2.4 Threat of Substitutes
- 4.2.5 Intensity of Competitive Rivalry
- 4.3 Industry Value Chain Analysis
- 4.4 Assessment of Impact of COVID-19 on the Industry
5 MARKET DYNAMICS
- 5.1 Market Drivers
- 5.1.1 Increased Demand for Convenient Packaging
- 5.1.2 Demand for Longer Shelf Life and Changing Lifestyles
- 5.2 Market Restraints
- 5.2.1 Concerns about the Environment and Recycling
6 MARKET SEGMENTATION
- 6.1 By Material Type
- 6.1.1 Plastic
- 22.214.171.124 Polyethene (PE)
- 126.96.36.199 Bi-orientated Polypropylene (BOPP)
- 188.8.131.52 Cast polypropylene (CPP)
- 184.108.40.206 Polyvinyl Chloride (PVC)
- 220.127.116.11 Ethylene Vinyl Alcohol (EVOH)
- 6.1.2 Paper
- 6.1.3 Aluminum Foil
- 6.2 By Product Type
- 6.2.1 Pouches
- 6.2.2 Bags
- 6.2.3 Films & Wraps
- 6.2.4 Other Product Types
- 6.3 By End-user Industry
- 6.3.1 Food
- 6.3.2 Beverage
- 6.3.3 Pharmaceutical and Medical
- 6.3.4 Household and Personal Care
- 6.3.5 Other End-user Industry
- 6.4 By Geography
- 6.4.1 North America
- 18.104.22.168 United States
- 22.214.171.124 Canada
- 6.4.2 Europe
- 126.96.36.199 United Kingdom
- 188.8.131.52 Germany
- 184.108.40.206 France
- 220.127.116.11 Rest of Europe
- 6.4.3 Asia-Pacific
- 18.104.22.168 China
- 22.214.171.124 Japan
- 126.96.36.199 India
- 188.8.131.52 Australia
- 184.108.40.206 Rest of Asia-Pacific
- 6.4.4 Latin America
- 220.127.116.11 Brazil
- 18.104.22.168 Argentina
- 22.214.171.124 Mexico
- 126.96.36.199 Rest of Latin America
- 6.4.5 Middle-East & Africa
- 188.8.131.52 United Arab Emirates
- 184.108.40.206 Saudi Arabia
- 220.127.116.11 South Africa
- 18.104.22.168 Rest of Middle-East & Africa
7 COMPETITIVE LANDSCAPE
- 7.1 Company Profiles
- 7.1.1 Amcor Plc
- 7.1.2 Berry Global Inc.
- 7.1.3 Mondi Group
- 7.1.4 Sealed Air Corporation
- 7.1.5 Coveris Holdings SA
- 7.1.6 Comexi Group Industries SAU
- 7.1.7 Coherent Inc.
- 7.1.8 Sei SpA
- 7.1.9 WIPF Doypak (Wipf AG)
- 7.1.10 FlexPak Services LLC
- 7.1.11 Laser Packaging Manufacturing PTE Limited
- 7.1.12 Mespack (A Duravant Company)
- 7.1.13 Sonoco Products Company
8 INVESTMENT ANALYSIS
9 FUTURE OF THE MARKET