by The flexible packaging market includes packaging products that can be easily bent, folded, inflated or deflated without compromising product performance or structural integrity. flexible packaging market size is commonly used for snacks, beverages, oils, frozen food, fresh food, confectionery, pharmaceuticals, home care and personal care products owing to advantages like light weight, shatter resistance, ease of transport and display convenience. The Global Flexible Packaging Market is estimated to be valued at US$ 86.35 Bn in 2024 and is expected to exhibit a CAGR of 82.% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the flexible packaging 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 for flexible packaging from food and beverage industry is the major factor driving the market.Asia Pacific region dominated the global flexible packaging market in 2022 on account of growing population, increasing disposable income and changing lifestyle in emerging economies such as China, India.. Flexible packaging manufacturers are also expanding their production facilities globally to strengthen market presence.
Market Key Trends
The increasing awareness regarding eco-friendly and sustainable packaging has emerged as a key trend in the flexible packaging market. Flexible packaging manufacturers are increasingly focusing on production of biodegradable, compostable and recyclable packaging using materials like paper, bioplastics and renewable resources in order to cater to rising environmental concerns. For example, Amcor introduced new recyclable flexible plastic packages made from PET that can be recycled along with PET bottles. Flexible packaging serves sustainability needs of brands while offering excellent barrier properties and shelf appeal for products.
Porter’s Analysis
Threat of new entrants: The flexible packaging industry requires high investment costs for R&D, machinery and equipment. Stringent government regulations for packaging restricts new players from easily entering this market.
Bargaining power of buyers: Buyers have moderate bargaining power. There are numerous packaging producers but key brands have customer loyalty giving them pricing power to an extent.
Bargaining power of suppliers: Suppliers have moderate power. Raw material costs contribute significantly to the production costs. Fluctuations in raw material prices can impact manufacturer’s margins.
Threat of new substitutes: Threat of substitution is low as flexible packaging caters to diverse customer needs better than rigid alternatives. However, eco-friendly paper-based substitutes pose a threat.
Competitive rivalry: The market is dominated by few international players. Intense competition keeps prices and margins low. Innovation and brand differentiation are key to gain an edge.
Geographical regions: North America accounts for the largest share currently due to high demand from food and pharmaceutical industries. Asia Pacific is expected to surpass North America and become the fastest growing regional market due to expanding manufacturing sectors and rising incomes in China and India.
The flexible packaging market in Europe has matured and grows steadily supported by stringent regulations favoring sustainable packaging types. Growth in Latin America is driven by Mexico while the Middle East market is fueled by packaging needs in GCC countries. Africa remains a relatively untapped market with potential over the long term.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
