Flexible Packaging Market Size, Share & Trends Analysis Report By Material (Plastic, Paper, Metal, Bioplastic), By Application (Food, Beverages, Pharmaceutical, Cosmetic), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global flexible packaging market size was valued at USD 261.04 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 4.7% from 2023 to 2030. The growth is primarily driven by the growing demand for packaged food coupled with the convenience of use and cost-effectiveness of the product. Flexible packaging offers the benefits of plastic, paper, and aluminum foil without sacrificing printability, durability, barrier protection, freshness, or simplicity of use of the product. Additionally, there is an increasing demand for flexible packaging owing to its many energy and environmental benefits.

Rising demand for compact packaging has given impetus to the pouch and flexible bag segment which can encourage the entry of new market participants. Flexible packaging has high potential on account of fewer storage requirements, low shipping costs, and rising consumer preference.

Flexible packaging uses less material, energy, and water during manufacturing and occupies less space in landfills after disposal, making them more sustainable. Furthermore, with the increasing application industries opting for sustainable packaging solutions due to regulatory pressures, the demand for flexible packaging is expected to surge during the forecast period.

The U.S. is a highly significant market for flexible packaging due to the presence of major players operating in the application industry. Additionally, the high market penetration of ready-to-eat meals in the country owing to busy lifestyles and a significant number of working-class personnel is expected to contribute to the flexible packaging market growth in the country.

Flexible packaging is commonly employed for the packaging of food products, such as snacks, dairy, smoothies, and others. The change in consumer lifestyles and innovations in food processing techniques has driven the packaged food market globally which in turn can positively drive the demand for flexible packaging.

Flexible packaging products such as pouches demand significantly lesser material for their manufacturing and reduce the overall cost associated with transportation, improving the profit margin of the companies operating in the application industry. As a result, the adoption of flexible packaging formats is increasing, thus benefitting market growth.

In supermarkets, where people make faster purchasing decisions, stand-up pouches act as a marketing tool, as they have a higher surface on which graphics can be printed to entice consumers. This factor has also drawn the attention of application industries such as food and beverage and cosmetics, thus stimulating market growth from 2023-2030.

Application Insights

The food and beverages segment accounted for the largest revenue share of over 55.0% in 2022. Significant use of the product for food and beverage packaging due to its sustainability, light weight, cost-effectiveness, and non-fragile nature contributes to a high market share during the forecast period.

In the coming years, flexible packaging manufacturers will have considerable opportunities due to the increasing sanctification trend characterized by busy lifestyles and the convenience of consumption offered. Pouches are growing in popularity for packaging these items due to the ease of filling nitrogen to preserve color, flavor, and texture.

Products such as medical paper pouches, printed zipper pouches and bags, and aluminum foil among others, are used in the packaging of liquid- and/or powder-based pharmaceutical drugs, gels, and syrups.

Furthermore, branding activities are being incorporated by retail pharmacies on their packaging to differentiate products. Packaging companies are also increasingly focusing on the use of sustainable materials, tamper-evident properties, administration aids, and dispensing mechanisms in the packaging to enhance their safety and functionality.

Thus, efforts by flexible packaging manufacturers for offering efficient products for the pharmaceutical industry are expected to bolster product growth during the forecast period. Brand owners operating in the cosmetics landscape are increasingly looking for materials that can reduce the weight of packaging to create lighter packaging solutions. With flexible bags and pouches offering several benefits, it is increasingly being used in the cosmetics industry, benefitting the flexible packaging industry’s growth.

Material Insights

The plastic segment accounted for the largest revenue share of over 69.0% in 2022. Increasing demand for innovative products such as flexitanks and retort pouches for bulk transportation and storage of beverages and semi-solid food products is expected to fuel the demand for plastic packaging in food and beverage applications.

Plastic provides high shock absorption, higher structural and thermal stability, and can act as an insulator making it an ideal packaging solution for the storage and transportation of perishable products like fruits, meat, and dairy products. High consumption of these products around the globe contributes toward a high market share.

Metal-based flexible packaging solutions are resistant to water, air, light, and rodents & insects, providing long-term storage benefits. Other factors propelling the usage of metal include its ability to be cooled and heated for sterilization, its ability to maintain the structure and integrity of the product, and increasing metal recycling activities by major economies globally.

The bioplastic material segment is expected to record the highest CAGR between 2022 and 2030. Its properties are similar to those of plastic, and it's completely biodegradable. Moreover, increasing regulations on plastic packaging and increasing consumer awareness of sustainability are expected to boost segment growth in the future.

Regional Insights

Asia Pacific dominated the flexible packaging industry and accounted for the largest revenue share of over 38.0% in 2022. Asia Pacific countries including China and India are further expected to offer potential growth opportunities for the players due to growing e-commerce and organized retail sectors coupled with ease in availability of raw materials. Growing spending power in China, Indonesia, and India is expected to result in increased demand for packaged food products, which in turn will drive the market growth over the forecast period.

Furthermore, the demand for flexible packaging is expected to be high in North America due to the growing preference for the consumption of packaged beverages and small-sized packs. Based on data provided by the Flexible Packaging Association it was found that 46% of Americans were willing to pay more for flexible packaging for food & beverages. Moreover, the increasing preference of end-use product manufacturers for incorporating flexible packaging due to its marketing advantages is also expected to favor the product demand in the region.

Key Companies & Market Share Insights

The industry is highly fragmented due to the presence of both international and domestic players. Companies in the industry specialize in designing customized packaging products based on the requirements of the customers, as well as acquiring companies and developing new products to win a competitive edge in the market. For instance, in June 2021, Coveris developed a new Cereal+ liner, which will deliver improved packer performance and product shelf life. Recyclable polyethylene is used as the key raw material in this liner and can be used in bag-in-box packaging of dry food and cereals.

Additionally, in September 2020, Amcor plc developed recyclable flexible retort pouches using its AmLite HeatFlex Recyclable solution. This initiative further helped expand the sustainable packaging portfolio of the company. Some prominent players in the global flexible packaging market include:

• Bemis Company, Inc

• Mondi plc

• Huhtamaki Oyj

• Sealed Air Corporation

• Constantia Flexibles International GmbH

• Sonoco Products Company

• Amcor Ltd.

• Ukrplastic

• Ampac Holding

• Wipak Group

Flexible Packaging Market Report Scope

Global Flexible Packaging Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2019 to 2030. For this study, Grand View Research has segmented the global flexible packaging market report based on material, application, and region:

• Material Outlook (Revenue, USD Billion, 2019 - 2030)

  • Plastic

  • Paper

  • Metal

  • Bioplastic

• Application Outlook (Revenue, USD Billion, 2019 - 2030)

  • Food & Beverages

  • Pharmaceutical

  • Cosmetics

  • Others

• Regional Outlook (Revenue, USD Billion, 2019 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

    • Southeast Asia

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • UAE

    • South Africa