Flexible packaging helps extend shelf life of products by providing barrier against moisture, oxygen, and other external contaminants. Flexible packaging such as pouches, bags, and wrapping films are widely used across industries as they reduce distribution costs and provide tamper evidence. Flexible packaging requires less storage space and raw materials as compared to rigid packaging such as bottles and cans.
The global ASEAN flexible packaging market is estimated to be valued at US$ 13.5 billion in 2023 and is expected to exhibit a CAGR of 3.6% over the forecast period 2023-2031, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The growing demand for packaged food across ASEAN countries has led to increased utilization of flexible packaging. The ASEAN countries are witnessing increased urbanization and changing lifestyles leading to rising demand for convenience foods such as snacks, frozen foods, ready-to-eat meals. The flexible packaging helps extend the shelf-life of food products and provides convenience of storage as well as transportation. Additionally, increasing inclination towards nuclear families has boosted demand for ready-to-eat and on-the-go food options in the region driving growth of the ASEAN flexible packaging market over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is low as the ASEAN flexible packaging market is consolidating. Established players have economies of scale and strong brand recognition.
Bargaining power of buyers: The bargaining power of buyers is high due to the presence of many small and medium buyers in the ASEAN region. Buyers can negotiate for better prices and demand high-quality products.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are many suppliers of raw materials in the ASEAN region. However, industry leaders have long-term contracts with reliable suppliers.
Threat of new substitutes: The threat of new substitutes is low as flexible packaging has superior properties over rigid packaging. However, biodegradable and eco-friendly alternatives pose a moderate threat.
Competitive rivalry: The competitive rivalry is high among established flexible packaging manufacturers. Players compete based on product innovation, quality, and pricing.
SWOT Analysis
Strengths: Flexible packaging offers properties like resilience, lightweight and is easy to use. Established brands have strong distribution networks in the region.
Weaknesses: High dependence on imports of machinery and raw materials. Lack of technological innovation and skills development in some ASEAN countries.
Opportunities: Growing e-commerce sector and demand for innovative healthcare and food packaging solutions. Sustainable packaging presents an opportunity.
Threats: Stringent environmental regulations can increase production costs. Economic slowdowns affect consumer demand in the region.
Key Takeaways
The global ASEAN flexible packaging market is expected to witness high growth. The market is driven by the growth of food processing and pharmaceutical industries in the region. Rising urbanization and demand for convenient packaging also boost the market.
Regional analysis – Southeast Asia dominates the ASEAN flexible packaging market with over 50% share. Countries like Indonesia, Thailand and Vietnam offer lucrative opportunities due to increasing consumption and favorable FDI policies.
Key players – Key players operating in the ASEAN flexible packaging market are Amcor, Mondi, Sealed Air, Sonoco, and Huhtamaki. These leaders focus on capacity expansion, mergers and acquisitions to strengthen their market presence.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
