The demand for the $17.5 billion U.S. converted flexible packaging industry is projected to rise 3.3 percent annually to 20.7 billion by 2019, according to a new report released by Freedonia Group.
The report presents historical demand data on the industry, as well as forecasts by material, product and market. It predicts that converted flexible packaging will remain a growth area for both food and nonfood applications. It also predicts that converted flexible packaging’s source reduction, space saving and lower production and transportation costs will be increasingly valued by retailers and packaged goods firms, which will in turn aid the growth of the industry.
Other important takeaways include:
1. Pouches to outplace bags. Spouts and fitments add value to flexible packaging, and will be part of the reasons the industry will see growth moving forward.
2. Applications to favor both food and nonfood markets. Pouches and bags will continue to capture share from rigid packaging, which will increase the flexible packaging food market. Ease-of-use properties will also prove useful for nonfood markets, such as pharmaceutical and medical products.
3. Plastic materials to outplace paper and foil. The demand for paper and foil is expected to drop, and the dominant plastic film segment will outpace paper and foil due to its beneficial features.
To read the whole report, visit www.freedoniagroup.com.