Flexible Packaging Market Growth Pegged at 5% CAGR
The flexible packaging market is set to surpass $250 billion by 2024, according to latest industry report by Global Market Insights, Inc..
Surge in demand for convenient packaging due to changing lifestyles and hectic schedules has enhanced the flexible packaging market. Shifting manufacturers preference towards flexible packaging due to low raw material usage, waste reduction and cost-effective properties. Moreover, low storage space and transportation costs will propel the industry growth.
Increase in consumer spending on ready to eat and disposable products will drive the demand. Strong outlook in healthcare, household, food & beverages, cosmetics & toiletries, sports and agricultural products will create lucrative opportunities for the industry growth.
Polymer is the dominating material accounting for over 70% of total industry share. Cost effectiveness and durability are the key factors driving the product development. Stringent government regulations to use eco-friendly products and reduce CO2 emission may restrain the product demand.
Flexible packaging market share is led by food & beverages accounting for more than 50% in 2015. Changing lifestyle and eating habits of customers owing to hectic schedule has enhanced the demand for processed and packaged food in several regions. Healthcare will witness significant gains in the forecast period, due to rising health consciousness and increase in disposable incomes.
Pillow pouches are expected to witness notable gains in the forecast period because of increasing consumption in food & beverages industry. Start-up pouches and pillow pouches are both widely used packing product. High seal-ability, barrier against oxygen & moisture coupled with low cost and ease in transportation will influence the flexible packaging industry.
The U.S. flexible packaging market revenue was valued around $30 billion in 2015. Upsurge in demand for bakery products and confectioneries among consumers will support the product demand. Europe, dominated by Germany and Russia is anticipated to grow at about 3.5% by 2024. Rising demand for processed food and cosmetics will stimulate the demand.
Asia-Pacific is the fastest growing market and was valued over $35 billion in 2015. Improving purchasing power and economic conditions in India and China will support the flexible packaging market growth. Increased product consumption in pharmaceuticals, cosmetics, food & beverages industry will propel the industry growth. Expansion in e-commerce industry will positively influence the revenue growth in this region.
Global flexible packaging market is fragmented owing to presence of numerous regional players. Major industry participants include Sonoco Products, Huhtamaki Group, Bemis, Constantia and Amcor. Several other participants are Sealed Air Corp, Mondi Group, Ampac Holdings, Ukrplastic and Wipak Group.