The global Flexible Packaging Market, connected to sustainability and circular economy, is estimated to be valued at US$ 68.5 Bn in 2022 and is expected to exhibit a 4.6% CAGR over the forecast period 2022 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Flexible packaging refers to packaging made up of paper, plastic films or aluminum foils that can be easily sealed, closed, or wicketed, and are often transported on rolls or folded. Flexible packaging provides several advantages over other packaging types including lightweight, durable, sealability, barrier protection, and compatibility across a wide range of products such as food & beverages, pharmaceuticals, and personal care products. Flexibles enable enhanced graphics and product differentiation compared to rigid packaging and thereby helps drive brand identity and consumer impulse purchases.
Market key trends:
One of the key trends in the flexible packaging market is growing focus toward sustainability and circular economy. Sustainable and recyclable packaging solutions are gaining prominence among packaging manufacturers and brands as consumers are increasingly demanding eco-friendly packaging options. Major flexible packaging companies are innovating novel products made from recycled plastics, plant-based resins, and recyclable materials. For instance, Amcor plc launched AmPure- a range of polyethylene (PE) solutions featuring post-consumer recycled content for consumer packaging applications. Similarly, Mondi Group developed flexibles made from bio-based polymers derived from sugar cane. Such circular economy centered developments are accelerating the demand for sustainable flexible packaging worldwide.
Porter’s Analysis
The threat of new entrants: The threat of new entrants is moderate as the flexible packaging market requires high initial investment for machinery and equipment. However, availability of production technologies and low switching costs by customers increases the threat over time.
Bargaining power of buyers: The bargaining power of buyers is high given the presence of numerous flexible packaging manufacturers supplying similar products. 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 multiple raw material suppliers for flexible packaging manufacturing. However, producers rely on a limited number of raw material types increasing suppliers’ negotiation power.
Threat of new substitutes: The threat of new substitutes is low as flexible packaging has unique features like barrier protection, lightweight, and cost-effectiveness. However, substitutes like rigid packaging pose threats for certain product types.
Competitive rivalry: High due to numerous industry players offering similar product ranges. Intense competition on pricing and new product development.
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 from food and beverage industry. Products such as confectionery and snack items widely use flexible packaging solutions.
Regional analysis – The Asia Pacific region dominates the market and is expected to grow at the fastest pace due to rising income levels, changing lifestyle and consumption patterns. China and India are the major flexible packaging markets in the region. North America and Europe are also significant regional flexible packaging markets.
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 International, Wipak Group, AR Packaging, Goglio Group, Schur Flexibles, Clondalkin Group, Flair Flexible Packaging Solution Cellpack Packaging, and Südpack Verpackungen. Key players are focusing on new product launches, mergers, acquisitions and expansions for business growth.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
