April 24, 2024
Flexible Packaging Market

The Flexible Packaging Market is gaining popularity driven by Sustainable Packaging Trends

The flexible packaging market comprises films, pouches, bags, and others which provide advantages like cost-effectiveness, lightweight, and higher shelf life to packaged products. Flexible packaging films find extensive usage in food & beverage, pharmaceutical, personal care, and other industries to pack snacks, frozen meals, pharmaceutical tablets & capsules, cosmetics, and more. The packaging type adds convenience for manufacturers and end-users while reducing waste.

The Global Flexible Packaging Market is estimated to be valued at US$ 86.35 Billion in 2024 and is expected to exhibit a CAGR of 8.2% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the flexible packaging market are Apple (US),Oculus VR (US),Sony (Japan),Samsung Electronics (South Korea),X-Celeprint (Ireland),Nanosys (US),Jade bird display (china),aledia (European union),mikro mesa (US),verlase technologies (US), and,allos semiconductors (Germany). The growing demand from end-use industries has propelled major players to increase their production capacities and expand operations. Flexible packaging manufacturers are also focusing on developing sustainable and eco-friendly packaging solutions to cater to the rising environmental concerns of consumers.

The increased consumption of packaged and convenience food due to changing lifestyles and busy schedules has augmented the demand for flexible packaging structures globally. Rapid urbanization and rising disposable incomes in developing nations are further expected to drive flexible packaging market growth over the forecast period. Flexible packaging vendors have opportunities for expansion in Asian and Latin American markets due to the growing economies and population in these regions.

Market key trends

Adoption of bio-based and recyclable materials for flexible packaging production is trending in the market. Major players are investing in R&D activities to develop packaging structures using bio-plastics and innovative materials that can be recycled multiple times. For example, Honeywell has developed recyclable polyethylene film using recyclable plastic waste for flexible packaging. Growing consumer awareness about environmental issues and legislation restricting non-degradable plastics have prompted companies to implement sustainable and green packaging strategies. Demand for materials promoting circular economy principles in the flexible packaging industry is expected to rise notably over the coming years.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is moderate as the capital requirement to enter in Flexible Packaging Market Demand is moderate compared to other packaging markets. However, established players have economies of scale which pose entry barriers for new players.

Bargaining power of buyers: The bargaining power of buyers is moderate to high as there are numerous packaged food and goods producers who demand flexible packaging. Buyers can negotiate on price with suppliers.

Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw material suppliers have established relationships with packaging manufacturers. However, packaging manufacturers can choose from various raw material suppliers globally.

Threat of new substitutes: The threat of new substitutes is low as flexible packaging provides advantages over rigid packaging formats. However, paper bags remain a substitute for some flexible packaging applications.

Competitive rivalry: The competitive rivalry is high among major flexible packaging manufacturers globally owing to their established production facilities and supply network.

Geographical Regions

North America accounts for the largest share in terms of value in the flexible packaging market owing to high demand from food and consumer goods sectors.

The Asia Pacific region is expected to witness fastest growth during the forecast period due to increasing population, rising disposable incomes and growth in food packaging and consumer goods industries in countries like China and India. Countries like China, India and Southeast Asian nations are expected to drive the demand for flexible packaging in the region.

The flexible packaging market in Latin America and Middle East & Africa is also expected to grow at a steady rate during the forecast period owing to expanding demand from companies seeking sustainable packaging solutions.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it