The Europe flexible packaging market size to cross USD 50 billion by 2025, growing at a CAGR of 4% during the forecast period. The Europe flexible packaging market is likely to grow on account of fast economic growth and high disposable incomes during the forecast period. The competitive edge lies with vendors that have technologically advanced equipment and can deliver on aseptic, retort, anti-counterfeit, and child-resistant packaging. The healthy growth of end-users, such as coffee, pet food, and fresh foods, has driven production higher. The demand from Western Europe, which is considered as the mature market with high disposable personal incomes, has been high for flexible packing.
Similarly, the demand from Eastern Europe is expected to increase during the forecast period on account of an increase in the purchasing power of customers. In the aftermath of the COVID-19, the global flexible packaging market growth is expected to witness a supply chain disruption on account of the voluntary shutdown of factories or authorities enforced lockdown. Almost 70% of the demand in Europe comes from the food and beverage segment. The luxury personal goods sector, home care applications, oils & lubricants, and other non-food sectors are expected to witness a decline in the Q2 and Q3, 2020.
- The German flexible packaging market is expected to witness an incremental growth of over $6 billion on account of its growing pharmaceutical sector, which is growing at an annual growth rate of 5%.
- The healthcare segment is likely to reach $5 billion by 2025 due to the high consumer preference for lightweight, durable, and highly aesthetic packaging.
- The flexographic segment is projected to achieve a mark over 33 billion units by 2025 as flexographic packing offers cost efficiency and low-energy requirement
EUROPE FLEXIBLE PACKAGING MARKET: SEGMENTATION
This research report includes a detailed segmentation by
INSIGHTS BY MATERIAL
The food industry is the major driver for flexible plastic packaging in Europe. An increasing number of food and beverage manufacturers are turning to flexible packing to add convenience and improve the consumer experience. These pouches also provide 99% product evacuation compared to rigid. Flexible plastic has been increased in application due to its durability, low weight, cost-effectiveness, and easy handling. Also, it uses less energy during the production process. Hence, the growing need for convenience and product safety among consumers is driving demand growth for the segment.
Flexible paper packaging has a wide application in the healthcare sector and the tobacco and CPG packaging industry. Paper laminates offer reduced weight and have over 50% of the recycled rate, hence, it is a more sustainable option than plastics. Paper sacks provide several purposes that are in line with the customer's packing needs and environmental sustainability. The region accounted for over 30% of consumption in 2017 (around 4 million tons annually). The other category of papers such as wrapping paper witnessed a demand of 3.5−4 million tons in 2019 worldwide. The consumption of wrapping paper increased to around 890 wrapping paper in 2017 in the region.
INSIGHTS BY PRODUCT
The flexible pouch market is highly growing in various applications, particularly in the food sector. The food industry has evolved globally in terms of packaging, especially in food norms, which are related to labeling and packaging. Maintaining a clean room and hygienic facility is paramount. In this aspect, existing companies have invested in newer machinery, while the new entrants in the pouch market are starting with high-end machine installments. A significant replacement has taken place to accommodate the high-volume packing of fruits and vegetables, meat, snacks, and RTE. These are the sectors that utilize multi-barrier technology and provide higher revenue to the industry. Europe flexible packaging market is growing. The major reason for the growth is the conversion from rigid to flexible packing.
INSIGHTS BY APPLICATION
The consumer flexible packaging segment comprises a major share in the Europe flexible packaging market. The segment is increasing at a moderate pace with the increase in consumption rate and per capita income in the region. Also, the beauty and personal care sector has an important role to play in building momentum toward a more circular economy for plastic packaging. Food and beverages, pet food, healthcare, and personal care are the major end-user of the segment.
Stretch and shrink films and FIBCs are the major industrial packaging products. FIBCs, shrink and stretch films, bubble wraps, air pillows, and other flexible protective products are the major products. Chemical and pharmaceutical industries accounted for more than 40% of the applications in 2019. The growth of FIBC usage during the forecast period is expected to increase on account of multiple industries adopting lightweight, sustainable, and convenient products.
INSIGHTS BY PRINTING
Europe is mainly dependent on flexographic printing. Flexographic printing is associated with low-labor costs, low-press footprint, and less energy requirements. Flexographic is one of Europe's main printing methods and is also a growing industry. Flexographic printing growth is also driven by the growth in e-commerce, which has increased the volume of goods. Due to its wide range of applications, water-based inks hold a substantial share in the flexographic printing inks market.
INSIGHTS BY END-USERS
The F&B industry dominates the Europe flexible packaging market shares. The packaging cost in the food industry accounts for 7−11% of the total product cost in the region. The increasing number of quick-service restaurants and retail outlets has fueled food consumption, thereby driving packaging. However, the market growth rate was offset by high taxes and labor costs as a result of the economic slowdown in some European countries. The demand for packing is high as well as complex in the pharmaceutical and healthcare industry. Several flexible packaging formats for solid dosages (pills) and powders are present in paper and plastic flexible formats. The foil material for lidding in blister packaging is used extensively.
The personal care industry is a high-volume industry with the high growth being witnessed in several European regions. The growth of the e-commerce sector has scaled up the option for several vendors. The European cosmetics market offers promising opportunities for flexible packaging since the new natural ingredient-based cosmetics demand is on the rise. There is a growing consumer awareness for natural cosmetics and the desire of cosmetics companies to replace synthetic ingredients with natural variants. In Europe, skincare and toiletries are the most important product categories, followed by hair care and fragrances.
INSIGHTS BY GEOGRAPHY
All market segments are experiencing notable growth in the Europe flexible packaging market. The general trend from rigid to flexible, which provides greater convenience and fits in better with current lifestyle needs is likely to affect the market. Innovative, flexible packing styles are increasing convenience and offer a higher variety of formats. The products in Europe that are less than 100 gm are packaged mainly with pouches. The growth forecast for packages weighing 50−100 gm is expected to be higher (over 10%) than packages weighing less than 50 gm, which is expected to boost the growth in the region. The price of the pouches is lower and provides high convenience; hence the demand for pouches is expected to increase across the region. The diversity in flexible packing enables the industry to withstand the pressure of sourcing raw materials, the price pressure, operating costs, and availability of resources.
INSIGHTS BY VENDORS
Small and medium enterprises dominate a vast segment of the Europe flexible packaging market shares. Large players have been aggressively adopting an inorganic growth strategy to expand their operations in many regions. They have technological strength and high-volume product lines that have helped offset the cost variations. The smaller companies focus on customization, as the competition in the market is mainly based on two aspects – features and price. The Europe flexible packaging market has witnessed many M&A transactions in the last few years; the consolidation is expected to grow, especially in Europe further.
The Europe Flexible Packaging market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:
Segmentation by Material
- Flexible Plastic
- Flexible Papers
- Bags & sacks
- Food & Beverage
- Pet Food
- Personal Care