The Flexible Packaging Market is estimated to be valued at US$ 68.5 Billion in 2022 and is expected to exhibit a CAGR of 4.6% over the forecast period 2022 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Flexible packaging is a product packaging solution that can be easily bent and twisted without cracking. It involves the use of more plastic than traditional packaging solutions but offers convenience and is lightweight. Flexible packaging finds applications in foods & beverages, healthcare, industrial, and other industries. The advantages of flexible packaging include barrier properties, easy sealing, easy removal of contents, lightweight, and microwave compatibility.
Market key trends:
One of the major trends driving the flexible packaging market growth is the increasing preference for sustainable packaging materials. Rising environmental concerns have prompted packaging companies to focus on the development of sustainable packaging solutions made from recycled or bio-based content. Some companies are using post-consumer recycled content in flexible films while others are exploring alternative recyclable materials like plant-based plastics. The use of sustainable materials offers an environment-friendly alternative to consumers and helps companies meet their sustainability goals. However, high material and production costs remain a challenge for widespread adoption of sustainable flexible packaging.
Porter’s Analysis
Threat of new entrants: Low capital requirements and availability of raw material has led to low threat of new entrants in the market.
Bargaining power of buyers: Large number of buyers in food, beverage and other sectors have given buyers higher bargaining power in the market.
Bargaining power of suppliers: Few global players control the supply of raw materials like polymer resins and films, increasing their bargaining power.
Threat of new substitutes: Paper is a major substitute but lacks properties like durability and shelf life stability offered by flexible packaging films.
Competitive rivalry: Intense competition exists between the key global players.
SWOT analysis
Strength: Flexible packaging offers properties like moisture protection, durability and versatility making it suitable for various products.
Weakness: Additional processing steps and machinery required for flexible packaging increase production costs compared to alternatives. Concerns regarding use of plastics and environmental sustainability remain a challenge.
Opportunity: Growth in e-commerce and on-the-go consumption trends along with focus on active and intelligent packaging by brands offer opportunities for innovation and new product development.
Threats: Stringent government regulations regarding use of plastics and adoption of single use plastic bans pose threats. Volatility in raw material prices also affects profitability.
Key Takeaways
The global flexible packaging market is expected to witness high growth, exhibiting CAGR of 4.6% over the forecast period, due to increasing demand for convenient and sustainable packaging formats from food and beverage industry.
The US market currently dominates owing to presence of key players and growth in packaged food consumption. Asia Pacific is expected to grow at fastest pace during the forecast period due to rising disposable incomes, population and economic growth in countries like China and India. Countries like Brazil and Mexico will also support growth in Latin America.
Key players operating in the flexible packaging market are Amcor Limited, Bemis Company, Sealed Air Corporation, Berry Plastics Group, Inc., Mondi Group, Sonoco Products Co., Huhtamäki Oyj, Constantia Flexibles Gmbh, Ampac Holdings, Llc, Bischof + Klein, Wipak Group, AR Packaging, Goglio Group, Schur Flexibles, Clondalkin Group, and Flair Flexible Packaging Solution. These players are focused on new product launches, capacity expansions and mergers & acquisitions for sustained growth.
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