Flexible Plastic Packaging Market

Flexible Plastic Packaging Market

The global flexible plastic packaging market was value at USD 182.4 billion in 2023 and is projected to reach USD 264.9 billion by 2030, growing at a CAGR of 4.8% from 2023 to 2030. The global strive towards sustainability has propelled the market as it provides several advantages such as material efficiency, source reduction and lightweighting, high product-to-package ratio, and better life cycle metrics. For example, a stand up flexible pouch consumes 81.9% and 83.8% less fossil fuel in terms of MJ-equivalent and emits 87.6% and 78.5% less GHG emissions per gram of material when compared to steel cans and HDPE cannisters respectively. Growth in the e-commerce industry is further elevating the demand for flexible plastic packaging such as mailers, bags, pouches, and wraps. According to the International Trade Administration, the global revenue from the e-commerce industry will reach USD 5.5 trillion in 2027 growing at a CAGR of 14.4%.

Attractive Opportunities in the Flexible Plastic Packaging Market

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Flexible Plastic Packaging Market Dynamics

Driver: cost-effectiveness and increased product shelf will drive the market.

Flexible plastic packaging is known for its cost-effectiveness. It is a relatively inexpensive option for manufacturers due to its lightweight and low material cost. The production of flexible plastic packaging involves less energy and resources than other materials like glass, metal, or paper. This reduces transportation and storage costs for manufacturers and lowers consumer packaging expenses. The cost advantage is a significant reason why manufacturers across various industries prefer flexible plastic packaging. Additionally, flexible plastic packaging also helps to extend the shelf life of products. This is achieved through barrier films, which prevent moisture, air, and other external contaminants from entering the packaging. As a result, the shelf life of products is increased, and they can be transported and stored for longer periods without losing quality or freshness. This feature is essential for perishable products or with a short shelf life, such as food and beverages.

Restraint: High cost of flexible plastic packaging raw material and unavailability of good recycling infrastructure

Rising prices for raw materials can be a significant restraint in the flexible plastic packaging industry. Flexible packaging products are made from various raw materials such as plastic, paper, and metal. The cost of raw materials, such as polyethylene and polypropylene, can vary greatly depending on market conditions, supply and demand, and other factors. These fluctuations can significantly impact the cost of producing flexible plastic packaging.

Non-availability of efficient recycling activities is a significant restraint in the flexible plastic packaging market because it limits the amount of plastic that can be effectively recycled. The lack of efficient recycling activities can lead to a build-up of plastic waste in landfills, oceans, and other natural habitats, resulting in environmental pollution and harm to wildlife. Recycling plastic packaging waste is a process that requires state-of-the-art infrastructural facilities. It is a time-consuming process that demands personnel expertise. However, some parts of the world lack recycling facilities.

Opportunities: Implementing sustainable packaging solutions to meet growing consumer demand and preferences

Consumers prefer brands that adopt sustainability in their products. Similarly, they refrain from using brands that irresponsibly and negatively impact the environment. As a result, many flexible plastic packaging companies are investing in research and development to find new, sustainable packaging materials. They are also implementing recycling programs and designing packaging that is easier to recycle. As consumers continue to demand more sustainable options, the industry will likely continue to evolve and innovate to meet these demands and thus giving an opportunity to flexible plastic packaging manufacturers to attract them toward their sustainable packaging.

Challenges : Recyclability of plastics

The recyclability of flexible plastic packaging is an environmental and social issue and a major challenge that the packaging industry faces. Recycling multiple-layer flexible plastic packaging is complex, as it involves more steps than mono-layer flexible plastic packaging. Multi-layer flexible plastic packaging consists of a mix of polymer types and inks, which makes it difficult to sort from bulk waste. During the recycling process, polypropylene (PP) films can get stuck in recycling machines and cause disruptions, especially when mixed with other plastic packaging materials. This is because PP films have a lower melting point than other types of plastics, which can cause them to melt and stick to recycling equipment, leading to blockages and other issues, thus increasing production expenses and time.

Flexible Plastic Packaging Market Ecosystem Diagram

By End Use Industry, the Food industry accounted for the highest CAGR during the forecast period

The food industry has emerged as a key driver for the growth of the flexible plastic packaging market, exhibiting the highest CAGR during the forecast period. This can be attributed to several factors, including the rising demand for hygiene and sustainability in food packaging, increasing urbanization, changing consumer lifestyles, and high disposable income. Consumers today place great emphasis on food safety and aesthetic appeal, and manufacturers have responded by investing in specialized R&D facilities that employ cutting-edge technologies to create packaging that meets these requirements. Flexible plastic packaging has several advantages that make it an attractive choice for both manufacturers and consumers in the food industry. Its excellent barrier properties ensure the protection of food products, while its lightweight nature and ability to be made using fewer resources make it a more sustainable option. Additionally, flexible packaging can extend the shelf life of food products, reducing food waste and improving overall product quality. These benefits, combined with the increasing demand for hygienic and visually appealing packaging, are driving the growth of the flexible packaging market in the food industry.

By Packaging Type, the Pouches segment accounted for the highest CAGR during the forecast period

The pouches segment is expected to have the highest CAGR during the forecast period. Pouches are small bags made up of two flat, flexible sheets that are sealed along the edges to form a compartment whose volume depends on the position of the walls. There are two main types of pouches: stand-up pouches (SUPs) and flat or pillow pouches. Stand-up pouches can be further categorized into standard and retort stand-up pouches. Pouches are a great packaging option for bulk coffee or food items such as dried or smoked meats, as they are easy to use, heat sealable, and available in many different sizes and formats.

Asia Pacific is projected to account for the highest CAGR in the flexible plastic packaging market during the forecast period

the flexible plastic packaging market in the Asia Pacific region has exhibited the fastest growth. The region includes countries such as India, China, Japan, Australia, South Korea, and the Rest of Asia Pacific. The flexible plastic packaging market in countries like India, China, and Japan is expected to experience significant growth due to increasing developmental activities and rapid economic expansion. Moreover, the region's growing population presents a vast customer base for fast-moving consumer goods (FMCG) products and food & beverages, which is expected to drive growth in the flexible plastic packaging market.

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By Material Type, the Plastic segment accounted for the highest growth during the forecast period

The shift toward flexible plastic packaging options made of plastic is one of the major trends that is anticipated to have an impact on the flexible plastic packaging business in the future. Plastic films are made from a wide range of polymers and have the ability to be molded into the desired shape when subjected to heat or pressure. Plastic films can be easily formed, are of high quality, are cost-effective, and provide excellent barrier properties. Hence, they are preferred for flexible plastic packaging. Moreover, plastic films offer down-gauging properties, as they allow manufacturers to use minimum resources to manufacture a package. Plastic films offer excellent product visibility and provide secure and attractive packaging options. Plastic films manufactured from polyethylene, polypropylene, PVC, and polyamide are widely used for flexible plastic packaging.

By Printing Technology, the Flexography segment accounted for the second-highest CAGR during the forecast period

various brands that sell products such as food, wine, motor oil, and grass seed prefer flexographic printing over other printing techniques. The reason for this preference is due to the recent advancements in flexographic printing, which now provides several benefits that are highly attractive to product marketers and purchasing managers. These benefits include the ability to produce high-quality images and graphics, ensuring high consistency, and enabling quick, cost-effective changeovers that support small quantity runs. This has led to an increase in popularity of flexographic printing among various market segments, with its usage expected to grow rapidly due to the various benefits it offers.

Flexible Plastic Packaging Market Players

Flexible plastic packaging comprises major manufacturers such as Huhtamaki Oyj (Finland), Berry Global Group Inc. (US), Amcor Limited. (Australia), Mondi Group. (UK), and Sonoco Products Company (US) were the leading players in the flexible plastic packaging market. Expansions, acquisitions, joint ventures, and new product developments are some of the major strategies adopted by these key players to enhance their positions in the flexible plastic packaging market.

Read More: Flexible Plastic Packaging Companies 

Flexible Plastic Packaging Market Report Scope

This research report categorizes the global flexible plastic packaging market on the basis of Type, Application, and Region.

Flexible Plastic Packaging Market, By Type

• Pouches
• Rollstock
• Bags
• Films & Wraps
• Other Packaging Types

Flexible Plastic Packaging Market, By Material

• Plastic
• Metal
• Other Materials

Flexible Plastic Packaging Market, By Printing Technology

• Rotogravure
• Flexography
• Digital Printing
• Other Printing Technologies

Flexible Plastic Packaging Market, By Application

• Food
• Beverages
• Pharmaceutical & Healthcare
•  Personal Care & Cosmetics
• Other Applications

Flexible Plastic Packaging Market, By Region

• North America
• Europe
• Asia Pacific (APAC)
• South America
• Middle East & Africa

The market has been further analyzed for the key countries in each of these regions.

Recent Developments

• In January 2023, Amcor Limited acquired MDK, a Chinese company that provides packaging for medical devices. This acquisition will strengthen Amcor’s leadership in the Asia Pacific medical packaging segment, especially serving China, India, and Southeast Asia markets.
• In December 2022, Amcor Limited signed a Memorandum of Understanding (MOU) with Licella Holdings to invest in plastic advanced recycling facilities in Australia. This deal strengthens Amcor and Licella's commitment to developing a local circular economy for soft plastics in Australia and advances Amcor toward achieving its objective of having 30% recycled content in all of its products by 2030.
• In September 2022, Berry Global Group, Inc. announced a collaboration with Mars Inc. to launch its popular pantry-sized treats in polyethylene terephthalate (PET) jars that have been optimized by including 15% recycled plastic content, i.e., post-consumer resin (PCR).
• In September 2022, Amcor Limited announced a strategic investment in ePac Flexible Packaging, a leader in high-quality flexible packaging materials. This investment is expected to increase the shareholding of Amcor Limited in ePac Holdings LLC.
• In July 2022, Berry Global Group, Inc. partnered with McCormick & Company, Inc. to produce bottles that are made from 100% post-consumer recycled plastic and helped the latter to achieve its sustainability goals.

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