MARKET OVERVIEW- GLOBAL FLEXIBLE PACKAGING MARKET
Flexible packaging is a packaging film that is made from flexible materials that can be used to package products of various shapes and sizes. It consists of paper, plastic, foil, sheet, laminated sheet and sheet metal. It maintains the freshness of the product and increases the shelf life of the product and also reduces production waste. This is expected to drive the global flexible packaging market. Ensures protection against damage during transport and storage. Major end users of flexible packaging include pharmaceuticals, food and beverages, home care, cosmetics and personal care products, and sporting goods. Flexible packaging uses less material than rigid packaging and also consumes less energy in production. Growing demand for bio-based polylactic acid (PLA) films for use in food, bakery, confectionery, and snack packaging is expected to be a key driver of the flexible packaging market in the near future due to ease of recycling and biodegradability. In addition, it releases less greenhouse gas emissions, which is better for a sustainable environment.
Flexible packaging uses less material, energy and water during production and takes up less space in landfills after disposal, making it more sustainable. Furthermore, with increasing number of application industries preferring sustainable packaging solutions due to regulatory pressures, the demand for flexible packaging is expected to increase during the forecast period. Developments in science and nanotechnology have revolutionized the food and beverage industry in recent years. In the fields of functional food development, production preservation, packaging and processing, nanotechnology is expected to become mainstream in the next few years. Food packaging is the latest commercial application of nanotechnology in the food industry.
MARKET DRIVERS
A rapidly growing population is expected to maximize total food demand to meet the needs of billion people. To revolutionize the food service sector, manufacturers are relying on modern and advanced packaging techniques assisting the market growth. The improving standard of living of individuals in developing economies is leading to an increase in the purchasing power of consumers, thereby supporting the demand for products with high-quality packaging. Changes in consumer lifestyles along with increasing demand for eco-friendly packaging materials are estimated to increase the demand for flexible packaging in the near future. Due to these factors, the global flexible packaging market accounted for a significantly large market size and is expected to reach a significantly larger market size in the future, recording a steady revenue growth rate during the forecast period. Market demand is expected to be driven by efforts to develop bio-based packaging products coupled with stringent regulations to promote their use in the flexible packaging market.
This has led to a shift from traditional rigid packaging to flexible packaging for food storage and preservation purposes. For example, in 2019, the global plastic film for food packaging market revenue was approximately USD 12 billion and will increase to USD 12.7 billion in 2020. This is attributed to the growing demand for flexible packaging. Furthermore, innovations in flexible packaging by key market players to improve product performance and functionality will encourage manufacturers to adapt to flexible packaging and further fuel the growth of the flexible packaging market. Major players are introducing various types and sizes of flexible packaging, such as high-temperature retort pouches, vacuum pouches, and stand-up pouches, to accommodate evolving packaging, and this trend is expected to fuel market growth.
The flexible packaging market has undergone numerous mergers and acquisitions that have led to consolidation of the industry. Most of these events took place in North America and European markets. The shift in trend from two and three-layer films to seven and nine-layer films due to their advantages such as extended shelf life with less chance of contamination is expected to boost the growth of the flexible packaging film market. One of the important factors driving the growth of the flexible packaging market is the increasing inclination of consumers towards convenient products. Convenience of packaging is a major motivator for consumers to purchase. It influences their preference for a particular type or design of packaging and influences their behaviour.
MARKET OPPORTUNITIES
Dynamic changes in the industry, such as the introduction of new regulatory initiatives, have encouraged manufacturers to develop new packaging options. Governments around the world encourage the use of sustainable packaging because it is safe, secure and minimizes waste. The above factors create an opportunity for manufacturers to produce products.
MARKET RESTRAINTS
The key restraining factors for the growth of the flexible packaging market are thin layers of packaging that are unable to provide proper physical protection to the products. Additionally, liquid packaged products require gentle handling as they are easily punctured, and this is further expected to hinder the growth of the flexible packaging market. The fluctuating price of raw materials used in the production of flexible packaging, due to unstable volatile oil prices this directly affects the overall cost of production and raw materials, as plastic is a key component used in the production of flexible packaging. This is expected to hamper the growth of the flexible packaging market.
MARKET GROWTH CHALLENGES
Recyclability issues associated with flexible packaging is a major factor expected to challenge market growth. Multi-layer flexible packaging for further post-consumer use cannot be easily recycled. In addition, plastic-metal packaging and plastic paper packaging are difficult to recycle, which has a negative impact on the environment. Recycling has thus become a major challenge in the flexible packaging industry, resulting in less waste.
CUMULATIVE GROWTH ANALYSIS
The report provides an in-depth analysis of the global flexible packaging market, including market size, and compound annual growth rate (CAGR) for the forecast period of 2023-2029, considering 2022 as the base year. The increased product shelf- life and Cost-effectiveness is driving the market and is expected to witness growth at a specific CAGR from 2023-2029.
FLEXIBLE PACKAGING MARKET SEGMENTAL OVERVIEW
The Global Flexible Packaging Market consists of different market segments like By Raw Material, By Product, Application, and geography.
FLEXIBLE PACKAGING MARKET BY DEVICE TYPE
The Flexible Packaging market on the basis of raw material include:
- Plastic
- Flexible Foam
- Paper
- Aluminium Foils
- Bioplastic
- Flexible Foam
On the basis of raw material, the plastic segment holds the largest share of the flexible packaging market. Growing demand for innovative products such as flexitanks and retort pouches for bulk transportation and storage of beverages and semi-solid food products is expected to drive the demand for plastic packaging in food and beverage applications. Plastic provides high shock absorption, higher structural and thermal stability, and can act as an insulator, making it an ideal packaging solution for the storage and transport of perishable products such as fruit, meat, and dairy products. The high consumption of these products across the globe contributes to the growth of the flexible packaging market.
FLEXIBLE PACKAGING MARKET BY PRODUCT
By product, flexible packaging market is consisting of
On the basis of product, the pouches segment holds the largest share of the flexible packaging market. Flexible packaging products such as pouches require significantly less material to manufacture and reduce overall shipping costs, increasing the profit margin of companies operating in the application industry. As a result, the adoption of flexible packaging format is increasing, which is benefiting the growth of the market. In the supermarket, where people make purchasing decisions more quickly, stand-up bags work as a marketing tool because they have a higher surface area on which graphics can be printed to consumers. This factor has also attracted the attention of application industries such as food & beverage and cosmetics, thus stimulating the growth of the market during forecasted period.
FLEXIBLE PACKAGING MARKET BY APPLICATION
The Flexible Packaging market on the basis of application include:
- Food & Beverages
- Pharmaceutical
- Cosmetics
- Consumer Goods
Based on application, the Food & Beverages segment holds the largest share of the flexible packaging market. The rise of organized stores and the development of the e-commerce sector throughout the F&B packaging sector are growing exponentially. Extensive research focuses on the importance, product type, and use of food and beverage packaging. Proper packaging enables easier and more successful transportation of food and pharmaceutical products. It is an important part of the successful launch of a new product and serves as a link between manufacturers and customers. Growing demand for advanced packaging in emerging countries due to rising consumption of packaged foods and growing health and nutrition concerns further drive the growth of advanced packaging in the food and beverage industry. The growing penetration of automated food manufacturing plants also necessitates the use of modern packaging systems for barrier-free packaging of finished products, thereby accelerating market growth.
FLEXIBLE PACKAGING MARKET BY GEOGRAPHY
The Flexible Packaging market is studied for the following region:
- North America
- Europe
- Asia-Pacific
- Rest of the World (RoW)
For the flexible packaging market, Asia Pacific holds the largest market share and is expected to maintain its dominance during the forecast period. Asia Pacific is home to the largest working population in the world. The need for packaging is increasing due to population growth, rising income levels, urbanization, changing lifestyles, increasing internet penetration and rapid economic development. Further lucrative growth opportunities for packaging market players due to large population base; increased consumption of packaged foods; the growing organized retail sector and the e-commerce boom; and increasing per capita income. These factors will also ensure that China and India remain the dominant market in the coming years.
COVID-19 IMPACT ANALYSIS ON THE GLOBAL FLEXIBLE PACKAGING MARKET
Axiom MRC provides a 360-degree analysis of the micro and macro-economic factors of the flexible packaging market. The report studied an exclusive analysis of the impact of COVID-19. In addition, the report also studied a complete analysis of changes in the global flexible packaging market, spending, and economic and international policies on the supply and demand side. COVID-19 has had a positive impact on the flexible packaging market.
During the COVID-19 pandemic, people stocked up essentials in large quantities as they were instructed to stay at home, which required large amounts of plastic packaging. In addition, consumers were shopping online more than ever before, ordering fresh food products, everyday staples and convenience foods. This has led to increased demand for solutions in the global flexible packaging market. In addition, during the pandemic, the pharmaceutical industry has also contributed to the strong demand for innovative and safe solutions offered by players and manufacturers in the global flexible packaging market. In addition, increased product demand in the global flexible packaging market for timely delivery of finished goods and raw materials is expected to support industry growth over the forecast period.
COMPETITIVE LANDSCAPE ANALYSIS
The competitive landscape analysis of the flexible packaging is majorly focused on expanding the global growth of flexible packaging market with new product innovation, business expansion, and the increasing presence of a range of manufacturers operating in flexible packaging market has led to the growing demand for the market.
The key players studied in the market are
- Amcor Limited (Australia)
- Bemis Company, Inc. (United States)
- Berry Global Inc. (United States)
- CLONDALKIN GROUP (Netherland)
- Mondi (South Africa)
- Sealed Air Corporation (United States)
- Sonoco (United States)
- American Packaging Corporation (New York)
- COVERIS (United Kingdom)
- Novolex (United States)
- Winpak Ltd. (Canada)
- Printpack Inc. (United States)
- Sigma Plastics Group (Sigma Plastics Group)
- HUHTAMAKI GROUP (Finland)
- Glenroy, Inc. (United States)
RECENT DEVELOPMENT:
April 2022: Amcor has announced the addition of new, more sustainable High Shield laminates to its pharmaceutical packaging portfolio. This new product is a low-carbon, recyclable packaging and provides the high barrier and performance requirements needed by the industry
April 2019: Amcor launched AmLite Ultra Recyclable. The new high-barrier laminate can package a range of food, home, and personal care, and pharmaceutical products, and be recycled in existing polyolefin recycling streams.
May 2020: Berry Plastics Group, a manufacturer of plastic packaging products, has announced a partnership with long-time customer Mondelez International, an American confectionary, food, beverage and snack company, to supply packaging containing recycled plastic to Philadelphia, USA.
