Market Overview:
Flexible packaging refers to pouches, bags, wraps, and films that can be easily opened, closed, sealed and shipped. It is lightweight, cost-effective and provides secure and hygienic packaging. Flexible packaging offers flexibility in sizes, shapes and designs with superior shelf appeal. It protects the product from damage, contamination and leakage. Features like breathability, re-sealability and eco-friendly characteristics make flexible packaging suitable for food and beverage, pharmaceutical and personal care industries in the ASEAN region.
Market key trends:
One of the major trends in the ASEAN flexible packaging market is growing focus on sustainable packaging. Stringent environmental regulations coupled with rising consumer awareness about sustainability is prompting manufacturers to develop eco-friendly and biodegradable flexible packaging solutions. Companies are using recycled, recyclable and plant-based materials to manufacture flexible packaging to reduce environmental footprint. Shift towards digitally printed packaging that requires less ink and raw materials is another trend gaining traction in the market. Digitally printed packaging offers higher graphics quality, customization and shorter production runs.
The global ASEAN Flexible Packaging Market Share is estimated to be valued at US$ 5611.89 Mn in 2023 and is expected to exhibit a CAGR of 4.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Porter’s Analysis
Threat of new entrants: The threat of entry is moderate in the ASEAN flexible packaging market. The high capital requirements to setup production facilities pose entry barriers for domestic players. However, supportive government policies favor SMEs to participate in the market.
Bargaining power of buyers: The bargaining power of buyers is moderate. The packaging market is extremely fragmented with presence of both global and regional players. This gives buyers multiple sourcing options to choose from.
Bargaining power of suppliers: The bargaining power of suppliers is low. The availability of raw materials from domestic and international suppliers limits their influence on price determination.
Threat of new substitutes: The threat from substitutes is low. Flexible packaging is cost-effective and convenient solution for product packaging compared to alternatives. Bioplastics serve as potential substitutes but their market penetration remains low.
Competitive rivalry: Competition in the market is intense among Amcor, Berry Plastics, Mondi Group and others due to their widespread geographical presence and portfolio diversity.
Key Takeaways
The ASEAN flexible packaging market is expected to witness high growth, exhibiting CAGR of 4.5% over the forecast period, due to increasing urbanization and demand for packaged food and beverages. The market size for 2023 is estimated at US$ 5611.89 Mn.
Regional analysis: Indonesia, Thailand, Malaysia and Philippines are expected to be the key contributors to the growth of ASEAN flexible packaging market. Thailand is projected to dominate the market during the forecast period attributed to the thriving food processing industry in the country. Flexible packaging manufacturers are increasingly locating their production facilities in Thailand to cater domestic demand.
Key players: Key players operating in the ASEAN flexible packaging market are Amcor Limited, Prepack Thailand Co., Ltd., Berry Plastics, Mondi Group, Sealed Air Corporation, Sonoco Products Company, Constantia Flexibles Gmbh, and AR Packaging Group. These players are focusing on capacity expansion and new product launches to strengthen their foothold in the market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
