Flexible Packaging Market Size, Share & COVID-19 Impact Analysis, By Material (Plastic, Paper & Paperboard, and Aluminum), By Product Type (Pouches & Sachets, Bags, Films & Wraps, Tubes, Tapes & Labels, and Others), By End-use Industry (Food & Beverage, Pharmaceutical, Personal Care & Cosmetics, Homecare, Industrial, E-commerce, and Others), and Regional Forecasts, 2023-2030

The global flexible packaging market was valued at USD 258.67 billion in 2022 and is projected to grow from USD 272.10 billion in 2023 to USD 402.79 billion by 2030, exhibiting a CAGR of 5.76% during the forecast period.

Flexible packaging is the fastest-growing segment of the packaging industry, as it adds marketability and value to edible and non-edible products. This is achieved by combining the qualities of plastic, paper, and aluminum, resulting in a wide range of products with protective and preventive properties, leading to this market’s growth. This versatile packaging is made from non-rigid materials and caters to industries such as fast-moving consumer goods (FMCG), retail, and industrial, among others. It saves time, cost, and material, which, in the end, reduces the manufacturing cost, thus aiding the global flexible packaging market growth.

COVID-19 IMPACT

Surge in Product Demand in the Pharmaceutical Industry During the Pandemic Led to Positive Market Growth

The coronavirus impacted the way people utilize products, whether it’s food, cosmetics, or industrial products. Moreover, due to the health threat, the government imposed restrictions on the manufacturing units and closed the retail outlets temporarily, thus impacting the growth of this market. During the peak time of COVID-19, the demand for medical supplies and pharmaceutical products such as masks, gowns, and protective equipment surged, which led to increased demand for films, pouches, and bags for safer delivery and protection of products. Increased demand for such flexible products for packaging thrived the market growth during the pandemic.

Moreover, the food & beverage industry saw moderate effects of the pandemic as there was high demand for food products, but the shortage of raw materials, disruption in the supply chain, and closed hypermarkets, supermarkets, and retail shops hindered the growth of this market. Unlike the food & beverage and pharmaceutical industries, all remaining industries saw negative demand from the market till the end of the COVID-19 period.

Flexible Packaging Market Trends

Growing Demand for Digital Printing in Flexible Packaging is Emerging as a New Trend

Digital printing involves printing digital-based images directly onto a media substrate. Unlike traditional printing methods, it eliminates the need for individual printing plates. It offers several advantages, such as excellent color capabilities with image quality, and takes less time to print than traditional printing. Such features increase the demand for digital printing.

In today's fast-paced world, connectivity plays a crucial role in everyday life. Packaging is an interceder for the complete supply chain, from producers to consumers. Digital printing allows brands to integrate connectivity features such as personalization, printing, variable data, QR codes, and AR/VR technology onto their packaging. These features improve the user experience, create brand loyalty, and boost sales and potentially  improve supply chain efficiency for the brand itself.

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Flexible Packaging Market Growth Factors

Increasing Utilization of Flexible Packaging in the Food Industry Contributes to the Market's Growth

Packaging of food products requires extra safety as they are more prone to damage and can lose their properties after coming in contact with air and moisture. Such packaging provides solutions to these problems as it is airtight and durable, protecting the product from outside elements, and maintains the quality and freshness of the food products. This, in turn, increases the shelf life of products and reduces food waste. The preference of people toward portioned food and beverages is increasing as it helps in better digestion, reduces binge eating, and also helps in lowering food wastage. In 2018, according to the Frontiers in Nutrition organization, around 100 million tons of foods are wasted annually during the supply chain, leading to a significant impact on the environment. 

These packaging solutions are easy to customize and has better printability, differentiating food and beverage products from competitors and attracting customers due to its attractive visual appearance. The easy printability of the packaging helps the manufacturers provides details about the products, making it easier for consumers to access important details. These features contribute to the growing demand for these products in the expanding food & beverage industry.

Rising Circular Flexible Packaging Initiatives to Encourage the Growth of this Market

The packaging is extremely efficient, enabling the packaging of large quantities of products at a low weight, thereby minimizing carbon emissions and providing various benefits, including product protection, preservation, and quality assurance. According to the Flexible Packaging Initiative, such packaging solutions accounts for around 44% of all post-consumer packaging waste in the EU. Manufacturers and governments in many nations are taking initiatives to recycle flexible packaging waste and reuse the material to create new products. One such notable initiatives is led by CEFLEX, involving 180 European associations, companies, and organizations across the entire value chain. The goal is to collect all packaging products that are flexible, with over 80% of it recycled materials will be used into valuable new markets, replacing virgin materials and fostering an overall circular initiative for flexible product packaging.

In 2022, according to the U.S. government's Division of Energy Efficiency and Renewable Energy, the U.S. Department of Energy (DOE) awarded USD 13.4 million in funding for next-generation plastics technologies that reduce the carbon emissions and energy use of single-use plastics. This involves converting plastic films into valuable materials and developing more biodegradable and recyclable plastic to align with the country's sustainability goals. Such initiatives will encourage the development of bioplastic as a sustainable material, and boost the global flexible packaging market share.

RESTRAINING FACTORS

Less Durability and Less Tear Strength of Flexible Packaging to Hinder the Growth of the Market

Such packaging packaging solutions are analyzed to be successful in replacing other packaging formats due to its several benefits, such as less energy consumption and lesser environmental impacts. However, it is less durable than rigid packaging as it is unable to handle high pressure and temperature, causingaloss of its properties. This limitation becomes critical when packaging food and pharmaceuticals, as it can lead to spoilage and contamination, thereby  restricting the market’s growth.

Flexible films with lesser tear strength are not suitable for packaging applications as they are susceptible to damage and fail quickly under stress or abrasion. These films can easily be torn, kinked, and punctured, making the products safe from contamination and acting as a barrier to the market’s expansion.

Flexible Packaging Market Segmentation Analysis

By Material Analysis

Potential Benefits Offered By Plastic is Thriving the Growth of Plastic Segment

Based on the material, the market is segmented into plastic, paper & paperboard, and aluminum.

Plastic segment is the dominating segment of this market. Plastic, being the most durable material, acts as a barrier against dust, water, heat, and moisture, thereby extending the shelf life of products. The demand for customizable packaging is increasing and the high molding capacity of plastic allows easy customizability and printability that also enhances the visual appearance of the products. Such features of plastic drive the segment’s growth.

Plastic waste is a major concern for the people and the incorporation of bioplastic in the manufacturing of such packaging is anticipated to bolster the growth of this segment.

Paper and paperboard is the second dominating segment of this market. The growth of the food and beverage industry, coupled with the shifting preferences of the consumer toward sustainable products and rising demand of the e-commerce sector, are boosting the growth of this segment.

By Product Type Analysis

Increasing Demand for Intermediate Bulk Flexible Bags is Flourishing the Growth of Bags Segment

Based on the product type, the market is segmented into pouches & sachets, bags, films & wraps, tubes, tapes & labels, and others.

Bags segment accounts for the largest market share. FIBC is a kind of flexible bag generally used for bulk cargo transportation. A flexible intermediate container can hold a variety of materials and product quantities and can also help prevent damage. It is non-reactive and is generally safe to store and perform without much hassle. FIBC’s, made of soft woven plastic serves as an effective choice for items that might break during storage and transportation, leading to the growth of this segment.

The films & wraps segment accounted for the second largest share in this market. Films & wraps are increasingly used in the packaging of fruit, vegetables, and other food items to keep the product fresh. Moreover, the use of films and wraps for protecting fragile and breakage-prone products further flourish the growth of this segment.

By End-use Industry Analysis

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Shifting Preferences of People Toward Healthy and Portioned Food is Enhancing the Segment’s Growth

Based on the end-use industry, the market is segmented into food & beverage, pharmaceutical, personal care & cosmetics, homecare, industrial, e-commerce, and others.

The food & beverage industry is the dominating segment of this market. The growing demand for packaged food and the requirement for extended product life are key factors driving this dominance. Moreover, the rising number of online food outlets coupled with the door-to-door delivery system is surging the demand for these packaging type and thus, contributing to the growth of this segment.

The growing health concerns and awareness about nutritious food and beverages have increased the demand for dairy products such as milk and curd. The rising demand for portioned healthy drinks among the younger generation is enhancing the growth of this segment.

Pharmaceuticals are the second dominating segment of this market. The growing pharmaceutical sector in emerging nations and the global rise in the drug delivery system are driving the growth of this segment. Furthermore, these solutions provide protection from the outside environment with enhanced visuals, contributing to the growth of this sector.

REGIONAL INSIGHTS

The market is analyzed across North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa.

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Asia Pacific is the dominating and fastest-growing region of the market. The increasing disposable income, global foreign investments, and the growing population in countries such as China, India, and Japan are driving the demand for product in the food & beverage industry. The increasing number of smartphone users and penetration of the internet is fueling the e-commerce industry, further  boosting the growth of the Asia Pacific region.

North America is the second largest region of this market. The well-established pharmaceutical and e-commerce industries are enhancing the growth of the market in this region. Moreover, the continuous innovation in packaging equipment, along with the advanced technology, is also one of the key factors of the North American region’s growth.

Europe is experiencing a steady growth due to the presence of key players in the region. The growth of the personal care & cosmetics industry and the rising demand for sustainable packaging is contributing to the market growth in this region.

Latin America is anticipated to grow at a significant rate due to the rising e-commerce industry. The presence of key players in countries such as Brazil and Mexico and the growing innovations in such packaging are bolstering the growth of this region.

The Middle East & African region is forecasted to grow at a moderate rate. The rising personal care & cosmetics market, coupled with the surging e-commerce industry, is flourishing the growth of this region.

List of Key Flexible Packaging Market Companies

Significant Growth Opportunities in the Market Leads to Substantial Growth of Major Players

The global market is highly fragmented and competitive. In terms of market share, a few major market players dominate the market by offering innovative packaging solutions. These major players in the market are constantly focusing on expanding their customer base across the regions and innovation.

Major players in the market include Amcor, Constantia Flexibles, Sonoco Product Company, Berry Global, Mondi Group, and others. Numerous other players operating in the industry are focused on delivering advanced packaging solutions.

LIST OF KEY COMPANIES PROFILED:

• Amcor (Switzerland)


• Constantia Flexibles (Austria)


• Sonoco Product Company (U.S.)


• Berry Global (U.S.)


• Aluflexpack AG (Switzerland)


• Bak Ambalaj Sanayi (Turkey)


• Transcontinental Inc. (Canada)


• B&A Packaging India Ltd. (India)


• UFlex Limited (India)


• SCG Packaging (Thailand)


• Mondi (U.K.)


• Huhtamaki (Finland)

KEY INDUSTRY DEVELOPMENTS:

• July 2023 - Berry Global launched NordiVent, a high-performance form-fill-seal film with 50% recycled content to support the sustainability goals of customers. The film is waterproof and provides dust and moisture resistance for powdered products.


• June 2023 - Avery Dennison introduced new premium labeling papers made from recycled pulp and alternative fibers. Targeting the premium packaging segment, including craft beverages, wine and spirits, gourmet food, beauty, and fragrances.


• October 2022 - ePac Flexibles announced the launch of a flat-bottom pouch in collaboration with Totani, one of the leading pouch equipment manufacturers. The pouch offers superior stand-ability and allows five graphics panels to enhance the shelf presence.


• June 2022 - Constantia Flexibles introduced a recycle-ready laminate for the pharmaceutical sector with high chemical resistance against gel formulations or aggressive liquid. The laminate is made up of mono-material polypropylene (PP) and can be used for food products that requires additional chemical resistance.


• May 2021 - Amcor launched sachets packaging for powdered chocolates in Latin America. designed for recyclability to advance sustainability goals. This packaging reduces the carbon footprint by 53% and water consumption by 84% during recycling.

REPORT COVERAGE

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The market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, competitive landscape, product/service types, Porter’s five forces analysis, and leading end-use industries for the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the above factors, the report encompasses several factors that contributed to the market's growth in recent years.

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