How is Flexible Packaging Industry faring across the World?

06 January 2020

Technological advancements and innovations are the two main driving factors responsible for the evolution of consumers products and services. Earlier the aim of packaging was to protect products from damage during transit. However, with advances in packing materials, packaging is now able to cater to diverse needs, which include increasing product shelf life, promoting brands, and abiding by regulations. The application of flexible packaging is growing in food & beverage, healthcare, personal care, and pet food sectors. Packaging is majorly made out of flexible plastic, flexible paper, and foil.

Read: Flexible Packaging Market Global Outlook and Forecast 2019-2024

Geographical Overview of Flexible Packaging Industry

APAC: Product differentiation is the key factor in the region, as the industry is highly fragmented. However, there is an increase in demand for food, pharmaceuticals, and industrial secondary/tertiary packing, which is expected to bolster the market during forecast period.

Key Factors Driving the APAC Market

  • Japan is expected to offer immense growth opportunities due to the presence of elderly population. This category of people demands easy to use and ready-to-eat consumables, which can be addressed only through flexible packing.
  • The demand in Australia is likely to come for flexible sachets and stick packs, retort pouches, and microwavable pouches. The flexible packaging industry is expected to be dominated by small and medium enterprises.
  • China has abundant resources of plastic polymers; hence, the manufacturing cost is low. In addition, the availability of economical labor is helping in the growth of the market in the country. China’s GDP grew by 6.9% and per capita disposable income by 7.3% in 2017.

Europe: The packaging industry witnessed the highest consumption of plastics in 2018. The share was 45% in the total plastic production in 2016. The demand for flexible food packaging was estimated at around 4.5 million tons in 2018.

Major Drivers boosting the European Market

  • Poland has emerged as a major production hub for several brands in Western Europe. Aided by domestic consumption, packaged food exports in Western Europe increased 8% YOY, which was at 6.5% in 2017. The low production cost in Poland is expected to emerge as the major factor for the flexible packaging industry in Europe.
  • Portugal and Italy are expected to witness rapid growth in the flexible packaging industry on account of high retail consumption (packaged food).
  • Food and pharmaceutical companies in the UK are likely to drive the market. F&B captured a share of over 60%, while the pharmaceutical industry constituted over 10% of the market in 2018.

North America: Plastic films and resins are the major materials adopted by flexible packaging industries in the region. The leading ten vendors accounted for more than 50% of the market share in 2017 in the US.

Factors increasing growth market of North America

  • Scaling up of tier II brands in the US food industry is expected to bring volumes, while large food corporations are likely to drive advanced packaging and printing demand.
  • Features such as tamper-proof and child-resistant packing are likely to drive the demand from the healthcare industry.
  • The distribution of chemical and pharmaceutical in the US is on the rise. The country is the center of the pharmaceutical industry and is expected to drive the demand.

Request for your free sample now!Prominent Vendors

  • Amcor
  • Berry Global
  • Mondi
  • Sealed Air
  • TC Transcontinental
  • Sonoco
  • Huhtamaki

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