Canada Multilayer Flexible Packaging Market Size, Share & Trends Analysis Report By Material, By Product (Bags, Pouches & Sachets, Wrapping Films, Laminates), By Layer Structure, By End Use, And Segment Forecasts, 2022 - 2030

Report Overview

The Canada multilayer flexible packaging market size was estimated at USD 2.22 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 4.5% from 2022 to 2030. The rising demand for packed food and cost-effective packaging is driving the growth. However, poor recycling capabilities in Canada have been restraining the growth of the industry. Multilayer flexible packaging is composed of primary raw materials such as Kraft paper, aluminum foils, adhesive tie-layers, printing inks, coatings, and plastic films. Aluminum foils are used to produce packaging for food & beverages as well as pharmaceuticals.

The aluminum foil layer is often the most expensive layer in a multilayer flexible package; hence, it is made as thin as possible. Metalized polyethylene terephthalate, polyethylene terephthalate, biaxially oriented polypropylene films, and polyethylene films are some of the plastic films used as an additional layer in multilayer flexible packaging. The plastic films provide the necessary strength to the packaging and also help in protecting the packaged product against chemicals, moisture, and gases. Furthermore, Kraft paper provides a sustainable alternative in terms of raw material selection for multilayer flexible packaging.

Multilayer flexible packaging products such as bags, pouches, wrapping films, and laminates are widely used for food & beverage packaging applications. Growing demand for ready-to-eat meals, on-the-go snacks, and resealable pouches is expected to further benefit the growth of the Canada multiple-layer flexible packaging market. In addition, growing concerns regarding single-use plastics and increasing demand for sustainable packaging solutions from both consumers and food service operators are anticipated to have a positive impact on the industry.

The consumers' preference for using sustainable material-based packaging saw a declining trend as they began concentrating on the packaging material that exhibited antiviral properties. This led to an increase in the demand for plastic-based packaging and flexible packaging consisting of coextruded multilayer plastic films. This trend is still prevalent among consumers even post-COVID market conditions.

The rising crude oil price due to the Russia-Ukraine standoff is expected to directly influence the prices of plastic resins and plastic films in Canada. Major suppliers of plastic films include Toray Plastics (America), Inc., Uflex Limited, Berry Global Group, Inc., and Sealed Air Corporation, among others. This rise in film prices is expected to impact the overall price of multilayer flexible packaging in the next couple of years.

Material Insights

Based on material, plastics accounted for 49.5% of the revenue share in the year 2021 owing to good tensile and tear strength, making them suitable for use in multilayer packaging. Polyamide (PA, Nylon), ethylene vinyl acetate (EVA), polypropylene (PP), polyethylene (PE), ethylene-vinyl alcohol (EVOH), and ionomers (EAA, EMAA) are the commonly used plastic polymers in multilayer flexible packaging.

Plastic polymers are used in film forms as layers adhered to other material sheets and in the adhesive form to glue layers together In plastic films, polyethylene film is a widely used material for food packaging applications. High-density polyethylene and linear low-density polyethylene are used in combination to provide combined properties, such as high bursting, tensile strength, and tear strength, making them suitable for use in the manufacturing of thinner films.

Kraft paper is one of the layers in multilayer flexible packaging and is expected to grow at a faster pace. It is manufactured from wood pulp and is known for its lightweight characteristics, high tear resistance, thickness, and strength. The growing demand for sustainable packaging materials has driven the demand for paper in flexible packaging applications.

Product Insights

Based on product type, pouches and sachets dominated the segment with a share of 35.66% in terms if revenue as of 2021.Different types of standup pouches include shaped pouches, spouted pouches, liquid pouches, retort pouches, gusseted pouches, and flat bottom pouches. Pouches used for packaging liquids, detergents, wet baby food, wet cooking aids, dressings, and condiments are often provided with a re-closable cap and tear-open single-use opening or closing options to preserve and use the material until its replenishment.

Wrapping films are made from multilayer plastic films. The multilayer structure in these films ranges from 3 to 12 layers. These films are manufactured by the co-extrusion process and are also referred to as co-extruded films. The properties of these films, such as heat resistance, puncture resistance, tear resistance, moisture, and oxygen barrier properties, can be attributed to the combination of layers of different materials. Multilayer wrapping films are used in medical and food packaging applications.

Furthermore, the laminates category is on of the fastest growing product type in the market. Laminates improve the functionality of the multilayer flexible packaging and provide a barrier against the permeability of oxygen, moisture, gases, and steam. Reverse printing is possible on laminated material which helps improve the visual appeal of the multilayer flexible packaging. Laminates are used for the packaging of food products, cosmetics, pharmaceuticals, and meat products, and in the production of dies cut pouches & spouted pouches.

Layer Structure Insights

Based on layer structure, the 3-layer structure is more prominently used in the market as of 2021 and holds a market share of 40.38%. The 3-layer structure-based films, laminates, pouches, and bags are used for applications requiring high seal strength, high barrier protection, and high-temperature processes. This makes them suitable for use in retort packaging as well as microwaveable bags. The 3-layer structure is widely used in the Canada multilayer flexible packaging.

The 5-layer structure consists of the following layers arranged as per their functional priority. It includes the addition of tie layers to the 3-layer structure. The sequence in which the 5-layer structure layers are arranged is the sealant layer/tie layer/barrier layer/tie layer/exterior layer. The innermost layer is the sealant layer. The sealant layer seals the product from within, protects the barrier layer, and provides burst strength to the overall multilayer flexible packaging.

End-use Insights

Food & beverage held a dominant revenue share of 43.10% as of 2021. Multilayer flexible packaging products such as bags, pouches, sachets, wrapping films, and stick packs are used for packing powdered drinks, savory snacks, baby food, dry fruits & nuts, fruits, meat, seafood, and fruits and vegetables. Flexible packaging with 3, 5, and 7 layers, as well as multilayered structures, helps preserve the nutritional value of food products and provides them required cushioning against impact due to external environmental conditions. They also act as barriers to protect packed products against gases and oxygen.

Multilayer flexible packaging in the cosmetics & personal care industry is used for packing skincare, haircare, and body care products. Spouted pouches are designed with multilayered structures to withstand squishing, crumpling, and rolling pressures. They are used for packaging beauty products such as lotions and foundations. The cosmetic web is a 5-layered structure, which offers excellent barrier properties. It is used by companies dealing in beauty and personal care products for packaging creams, soaps, and liquid gels.

Plastic has been widely used as a raw material for developing pharmaceutical packaging owing to its barrier properties. The growing demand for pharmaceutical products has driven investments from manufacturers of multilayer flexible packaging products for diversifying the use of packaging materials and technologies suited for pharmaceutical packaging. The development of new medical drugs and drug delivery devices has resulted in requirements for packaging products that ensure enhanced protection of these drugs and devices against mechanical forces, oxygen, light, and moisture. This, in turn, is anticipated to lead to the adoption of multilayer flexible packaging in pharmaceutical applications in Canada.

Key Companies & Market Share Insights

The market is highly competitive with the presence of both global and regional companies. these companies have been offering custom packaging products to suit customer-specific requirements. Several companies have been focusing on joint ventures, mergers & acquisitions and capacity expansions in order to expand market shares. For instance, in February 2022 ProAmpac, a North American global flexible packaging company, acquired a Canada-based flexible packaging product manufacturer, Belle-Pak, to expand its presence in Canada and extend its reach in healthcare, e-commerce, and logistics sectors.

In June 2022, ePac Holdings, LLC, a flexible multilayer packaging manufacturer, announced adding third manufacturing and sales location in Quebec, Canada. The company already has operations in Toronto and Vancouver. Through this expansion, the company expects to serve the Consumer-Packaged Goods (CPG) brands in Quebec province. Some prominent players in the Canada multiplayer flexible packaging market include:

• Amcor plc

• Glenroy Inc.

• Berry Global Inc.

• Mondi Group

• Transcontinental, Inc.

• Sonoco Products Company

• WINPAK LTD.

• Sealed Air

• WestRock Company

• Huhtamaki Flexible Packaging

• UFlex Limited

• Constantia Flexibles

Canada Multilayer Flexible Packaging Market Report Scope

Canada Multilayer Flexible Packaging Market Segmentation

This report forecasts revenue and volume growth at the country level and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the Canada multilayer flexible packaging market report based on material, product, layer structure, and end-use:

• Material Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2030)

  • Plastics

  • Paper

  • Aluminum Foil

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2030)

  • Bags

  • Pouches and Sachets

  • Wrapping Films

  • Laminates

  • Others

• Layer Structure Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2030)

  • 3 Layers

  • 5 Layers

  • 7 Layers

  • More than 7 Layers

• End-use Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2030)

  • Food & Beverages

  • Pharmaceuticals

  • Automotive

  • Cosmetics and Personal Care

  • Homecare

  • Electricals & Electronics

  • Agriculture & Allied Industries

  • Textiles & Apparels