Industry Structure and Consolidation, Imports and Exports

The 2011 State of the Flexible Packaging Industry Report, produced by the Flexible Packaging Association, provides an overview of performance and profitability of the U.S. flexible packaging industry. Several aspects of the industry are examined within the Report including sales and utilization levels, profit trends, capital spending, M&A activity, U.S. imports and exports, and industry growth. This issue of the FPA Update focuses on the Industry Structure and Consolidation, and Imports and Exports sections of the Report. The 2011 FPA State of the Flexible Packaging Industry Report is a benefit of membership and is available in the Members Only section of the FPA Web site, The Report is also available to FPA non-members for $3,500. For more information, contact Bob Zaborowski, Director, Business & Economic Research at (410) 694-0800.

Industry Structure and Consolidation Today, there are approximately 407 flexible packaging converters/manufacturers. Of those, the top 10 flexible packaging converters account for nearly half of flexible packaging industry revenue; and, the top 5 account for 38 percent of industry revenue.

In 2010, the U.S. flexible packaging industry experienced an increase in M&A activity with 16  domestic transactions completed, versus 7 in 2009, and 9 in 2008. The 2011 State of the Flexible Packaging Industry Report includes a complete list of flexible packaging company mergers and acquisitions in 2010.

Imports and Exports

According to the Report, U.S. flexible packaging exports increased by 15 percent to 1.5 million in 2010. Eighty-eight percent of domestic FPA converter members were involved in export activities. Over the past 10 years, flexible packaging exports have accounted for a consistent share of domestic production (measured in dollars) in the range of 4 to 6 percent each year.