Flexible Plastic Packaging Market– Statistics And Analysis & Forecast To 2025

Posted by Mrudula Anil Karmarkar on April 9th, 2021

The global flexible plastic packaging market size is projected to reach USD 179.69 billion by 2025, according to a new report by Grand View Research, Inc., expanding at a CAGR of 3.9% during the forecast period. Significant demand for the product in the food & beverage and healthcare industries is a key growth stimulant for the market.

The global COVID-19 pandemic has led to a sudden pause to manufacturing activities across the globe, affecting the demand for plastics and also production & processing of them. The most critically impacted end-use segments of the plastics industry include automotive & transportation, consumer goods, industrial equipment, construction, and electronics. The report will account for Covid19 as a key market contributor.

Polyethylene is the most widely used material for the production of flexible plastic packaging. The segment is expected to account for the largest share in the market during the forecast period owing to its abundant availability and a considerable decline in manufacturing costs. In terms of type, the demand for flat pouches is estimated to register a significant rise over the same period owing to its applicability in various industries. These pouches are preferred for their convenience regarding storage and transportation.

The demand for the product in the food & beverage industry is backed by the growing popularity of stand-up pouches and flat pouches on retail shelves. The pharmaceutical industry offers a lucrative opportunity for the global flexible plastic packaging market owing to increasing health awareness among consumers, the burgeoning popularity of convenient packaging, and a substantial increase in processing units (product) from a manufacturer’s standpoint.

In this regard, Europe has also contributed significantly to the growth of the pharmaceutical industry, thereby strengthening the flexible plastic packaging market in the region. Some of the key countries that have witnessed an upswing in the demand for pharmaceutical products are Belgium, Denmark, France, Germany, Ireland, Italy, and Switzerland.

Further key findings from the report suggest:

• In terms of volume, the healthcare application segment is anticipated to reach 29.12 million tons by 2025, at a CAGR of 2.7% during the forecast period
• In terms of revenue, the food & beverage segment is expected to witness the fastest growth over the forecast period, owing to benefits offered by the product such as decreased scrap and easy processing.
• In terms of volume, the PE segment dominated the market in 2017 with a share of approximately 26.0%. It is expected to retain its prominent position over the forecast period
• In terms of revenue, the segment for stand-up pouches is anticipated to account for a market share of 65.7% by 2025. The flat pouches segment is expected to register the fastest growth over the forecast period, owing to ease of manufacturing process coupled with significant demand for the product
• The industry for flexible plastic packaging is highly competitive with the presence of various well-established players with extensive product portfolios
• Key market participants in the market include Sigma Plastics Group, Amcor Limited, Sealed Air Corporation, Constantia Flexibles Group, ProAmpac, Mondi plc, and Coveris Holding S.A.

Asia Pacific is likely to be a promising destination for flexible plastic packaging manufacturers, notably emerging countries such as China, Japan, and India. Manufacturers are focusing on setting up their manufacturing plants close to sources of raw materials in the region, on account of their cheap availability. Low labor cost is another factor that is attracting manufacturers to strengthen businesses in this region. Asia Pacific is also the largest market for beverages. This has offered lucrative opportunities for manufacturers to cater to the packaging requirements of the beverage industry in the region.

In the food & beverage industry, flexible plastic packaging plays a key role in securing the contents of packages. It is considered as a material of choice for packaging frozen foods to facilitate long-term storage. It is extensively used for packaging of various food & beverage products such as coffee, tea, confectionery & chocolate, chilled food, baked goods & snacks, dried food & mixes, beverage & juices, and sauces & condiments. Increasing investments from key market participants in R&D activities are likely to stoke the growth of the market. Key players have also been focusing on broadening their product portfolio.

Spiraling demand for flexible plastic packaging products such as stand-up pouches and flat pouches is providing a push to the market. Manufacturers of food and beverage products prefer stand-up pouches to differentiate their brands and gain a competitive advantage in the market. Stand up pouches have the flexibility of being tailored to offer unique designs, styles, and sizes.

Regulatory organizations such as the Environmental Protection Agency (EPA) have implemented various regulations to govern the market. This regulatory body promulgated Effluent Guidelines and Standards of Organic Chemicals, Plastics, and Synthetic Fibers (OCPSF), which concern the discharge of plastic products. Restrictions on usage of the product are compelling market players to conform to regulatory guidelines set up by various bodies.

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The product has garnered widespread popularity in healthcare applications. Usage of flexible plastic packaging ensures less space on displays or retail shelves. A trend that has gained significance in recent years is the growing popularity of see-through packaging. Emphasis on reviewing physical properties such as the color of food items and personal care products before purchase is encouraging the trend of see-through packaging, which is working in favor of the market.

The presence of a large number of small- and medium-sized companies has led to a fragmented market environment. especially in the downstream segment. Major players use product differentiation as a key strategy to increase demand for their products in the market. Furthermore, strategies including economies of scale, pricing, enhanced quality of products, and extension of product portfolios, are giving major market players a competitive edge over small and medium-sized regional players operating in different regions of the world.

The market is competitive in nature and both international and domestic players are important contributors in the global arena. Some of the key players are Amcor Limited, Sealed Air Corporation, ProAmpac, Sigma Plastics Group, Constantia Flexibles Group, Coveris Holding S.A., and Mondi plc.

Competition in the market is driven primarily by the extent of plastic packaging consumption across various regions such as Europe and Asia Pacific. The cost-effective nature of plastic as a packaging material is prompting players to increase their reach by extending their product portfolios.

About Grand View Research

Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.

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