Flexible Packaging Market Size, Share & Trends Analysis Report By Raw Material (Plastics, Paper, Metal, Bioplastics), By Application (Food & Beverages, Pharmaceutical, Cosmetics), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global flexible packaging market size was valued at USD 252.0 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 4.5% from 2022 to 2030. Market growth is primarily driven by the growing demand for packaged food coupled with the convenience of use and cost effectiveness of flexible packaging. 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.

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 number of application industries preferring 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 strong foothold of major players operating in the application industry.

Additionally, high market penetration of ready-to-eat meals in the country owing to busy lifestyle and high number of working-class professionals is further expected to contribute towards the growth of flexible packaging during the forecast period. Flexible packaging is commonly employed for the packaging of food products, such as smoothies, snacks, dairy, and others. The packaged food market has been witnessing growth globally due to innovations in food processing techniques and change in consumer lifestyles which is expected to fuel the product demand during the forecast period.

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 format is increasing, thus benefitting market growth. In the supermarket, 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 attention of application industries such as food and beverage and cosmetics, thus stimulating market growth from 2022-2030.

A sharp decline in sales of personal care and electronics products, along with disruption of supply chains, affected the sales of flexible packaging during early 2020. Packaging manufacturers worldwide were affected by the lockdown in China, owing to the country being a key raw material supplier. However, packaged food products saw a significant increase in consumption. A considerable proportion of population choose packaged foods such as ready-to-cook food, packaged food ingredients, and ready-to-eat food. Globally, COVID-19's negative impact on market was mitigated by this strong demand.

Application Insights

The food and beverages segment dominated the market and accounted for the largest revenue share of 56.0% in 2021.Significant use of the product for the packaging of food and beverages due to their sustainability, lightweight, cost-effectiveness, and non-fragile nature contributes towards high market share during the forecast period. In the coming years, flexible packaging manufacturers will have considerable opportunities due to the increasing snackification trend characterized by busy lifestyle and convenience of consumption offered. Pouches are growing in popularity for packaging these items due to ease of filling nitrogen to preserve color, flavor, and texture.  

Products such as medical paper pouch, printed zipper pouch and bags, and aluminum foil among others, are used in the packaging of liquid- and/or powder-based pharmaceutical drugs, gels, syrups. Furthermore, retail pharmacies are increasingly incorporating branding activities on their packaging to differentiate products. Packaging companies are also increasingly focusing on the incorporation of dispensing mechanisms, administration aids, sustainable materials, tamper-evident properties, and counterfeiting measures into the packaging to enhance their functionality and safety.

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

Raw Material Insights

The plastic segment dominated the market and accounted for the largest revenue share of 70.1% in 2021. 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 storage and transportation of perishable products like fruits, meat, and dairy products. High consumption of these products around the globe contributes towards high market share of the material in 2021.

Metal based flexible packaging solutions are resistant to water, air, light, and rodents and insects, providing long-term storage benefits. Other factors propelling the usage of metal includes 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 is expected to boost the segment growth in the future.

Regional Insights

Asia Pacific dominated the flexible packaging market and accounted for the largest revenue share of 38.0% in 2021. Countries of Asia Pacific including China and India are further expected to offer potential growth opportunities for market players due to growing organized retail and e-commerce sectors coupled with ease in availability of raw materials. Growing spending power in China, India, and Indonesia is expected to boost the demand for packaged food products, which in turn will drive market growth.

Furthermore, flexible packaging is expected to be in high demand in the region due to the growing consumption of packaged beverages and the preference for small-sized packs due to their affordability and convenience. According to Flexible Packaging Association, more than 46% of Americans are willing to pay more for flexible packaging that stores food and beverages owing to its sustainability profile. Furthermore, increasing preference for flexible packaging by manufacturers due to marketing advantages is 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 domestic and international 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. Coveris, for instance, developed a new cereal liner in June 2021, Cereal+ liner, which will deliver improved shelf life and packer performance. This liner is made of fully recyclable polyethylene and provides dry food and cereals packing in bag-in-box packaging with freshness, protection, and shelf life.

Additionally, In September 2020, Amcor plc developed flexible retort pouches, which are made using its AmLite HeatFlex Recyclable solution. These flexible retort pouches are recyclable. This move further expanded sustainable packaging offering of the company Moreover, major companies are expected to shift manufacturing base to developing countries including China and India on account of low production and labor costs. Some of the prominent players in the global flexible packaging market include:

• Amcor plc

• Mondi

• Sealed Air

• CONSTANTIA

• Coveris

• Goglio SpA

• ProAmpac

• GUALAPACK S.P.A

• Huhtamaki Group

• Smurfit Kappa 

Flexible Packaging Market Report Scope 

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global flexible packaging market report on the basis of raw material, application, and region:

• Raw material Outlook (Revenue, USD Billion, 2017 - 2030)

  • Plastic

  • Paper

  • Metal

  • Bioplastic

• Application Outlook (Revenue, USD Billion, 2017 - 2030)

  • Food & Beverages

  • Pharmaceutical

  • Cosmetics

  • Others

• Regional Outlook (Revenue, USD Billion, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia & New Zealand

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa