The global flexible packaging market is fairly fragmented with a low entry to barrier for new entrants, notes Transparency Market Research (TMR). However, in recent years, the market has witnessed significant number of mergers and acquisitions, especially in North America and Europe, leading to an increased consolidation of the market landscape, observes TMR. Some of the leading companies in the global flexible packaging market are Clondalkin Group, The Dow Chemical Company, Berry Plastics Group, Inc., Wipak Group, and Amcor Limited. Top players are actively launching innovative products and sustainable packaging to consolidate their market shares across major regions.
The estimated valuation of the global flexible packaging market was US$238.5 bn by the end of 2016 and is projected to surge to USD 358.7 bn by the end of 2024. The market is forecast to rise at a CAGR of 5.2% from 2016 to 2024, in terms of revenue.
Packaging of Convenience Foods to Reign Supreme
Geographically, Europe leads the global market driven by the substantial demand for flexible packaging in the region. However, the market is expected to witness some stagnation over the forecast period on account of it reaching a saturation level. The revenue generated by manufacturers in the Europe flexible packaging is projected to reach US$117.7 bn by the end of 2024.
Based on application, the flexible packaging market is segmented majorly into consumer and industrial and institutional, where the former is further segmented into personal care, pharmaceutical, and tobacco. Out of these, the consumer segment is the dominant segment and is expected to lead throughout the forecast period. The growth is fuelled by the substantial demand for packaging several convenience foods such as ready-to-eat (RTE) and ready-to-serve foods, attributed mainly to the increasing urbanization in developing regions.
Shelf-stable and Frozen Convenience Food Packaging
The growing prominence of flexible packaging for primary packaging a variety of foods and beverages is a key factor driving the market. The rapid pace of urbanization has spurred the demand for various types of convenience food packaging such as shelf-stable and frozen convenience food packaging, thereby boosting the market. Flexible packaging for RTE products offers numerous advantages such as providing excellent barrier to moisture and heat. In addition, flexible packaging is light weight, easier to handle and store, offer lower scope of contamination, and are affordable. For instance, retort pouches are flexible packaging that are gaining traction for packaging several RTE foods in emerging and developed markets. Ready-to-use retort pouches offer remarkable puncture resistance and can withstand tough conditions in transportation.
Eco-Friendly Raw Materials to Provide Sweet Spot
The growing use of flexible packaging for packing various perishable foods is expected to catalyze the market growth. The use of flexible packaging markedly enhances the shelf-life of various convenience and perishable products. Compared to other packaging, flexible packaging has ergonomic design hence save space while storing and transporting. As a result, flexible packaging are anticipated to witness significant uptake in the e-commerce industry as their use can reduce transportation costs.
However, the difficulty in recycling of plastics and polymers used in several flexible packaging may hinder its demand due to stringent regional regulation. Be that as it may, recyclable flexible packaging made from eco-friendly raw materials are likely to gain wide adoption in the coming years, unlocking exciting opportunities in the coming years. Recent investments in state-of-the-art equipment and advances in extrusion coating technology have resulted in product innovations. This is expected to open up lucrative avenues in the flexible packaging market.
The study presented here is based on a report by Transparency Market Research (TMR) titled “Flexible Packaging Market (Material – Polymer (Polyethylene (PE) (LDPE, HDPE, and LLDPE), Polypropylene (PP), Biaxially-Oriented Polypropylene (BOPP), Cast Polypropylene (CPP), Biaxially-oriented polyethylene terephthalate (BOPET), Polyamide (PA), Poly Vinyl Chloride (PVC), Ethylene Vinyl Alcohol (EVOH), and Poly Styrene), Paper, Aluminum, and Cellulosic; Product – Stand-up Pouches, Vacuum Pouches, Retort Pouches, Converted Roll Stock, Gusseted Bags, Wicketed Bags, Laminated Tubes, and Squeezable Bottles; Application – Consumer (Food & Beverages (Dairy, Bakery & Confectionery, Ready-to-Eat Food, Frozen & Chilled Food, and Tea), Personal Care, Pharmaceutical, and Tobacco) and Industrial & Institutional) – Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2016 - 2024.”
Source: Transparency Market Research