Flexible Packaging Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)Report

Flexible Packaging Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

  • Published Date: Oct, 2023
  • Base Year for Estimate: 2022
  • Report ID: GVR-P-10552
  • Format: Electronic (PDF)
  • Historical Data: 2020 - 2021
  • Number of Pages: 60

The pricing and cost analysis helps in deriving and forecasting the actual cost of products or services over the forecast period. It considers all the cost components and provides a competitive edge during supplier negotiations. Moreover, the outcome helps procurement leaders understand detailed and fact-based cost drivers for the category.

In this flexible packaging procurement intelligence report, we have estimated the pricing of the key cost components. We have found in our research that raw materials, energy, processes such as printing, converting and packaging, equipment, types of end products, and labor are some of the key components associated with the total cost structure of flexible packaging production. Raw materials can include cost components such as polymers or films, laminates, foils, etc. Some of the major polymers used in flexible packaging films are polyethylene (PE), polypropylene (PP), polyvinyl chloride (PVC), ethyl vinyl alcohol (EVOH), polystyrene (PS), and polyamide (PA). Polyethylene can be further divided into LDPE, HDPE, LLDPE, BOPET, BOPE, etc. Aluminum foils and foil laminates are the final materials used for flexible packaging, along with paper or substrates derived from paper.

According to the Flexible Packaging Europe report of 2022, prices for some flexible packaging materials declined in the last quarter of 2022 as demand stabilized amid persistent uncertainty about the global economic outlook and energy concerns. After peaking in the middle of 2022, most substrate prices fell by a single digit in Q4 2022. The only exception to the downward trend, as it was in Q3 2022, was 60-gsm one-sided coated paper, prices for which increased by 10% from October to December 2022. Compared to 2021, this was an increase of 42% ending 2022. In Q4 2022, only 20-micron BOPP film experienced a double-digit drop, falling 15% from Q3 2022. In the same period, HDPE and LDPE both had declines of 7% and 6%, respectively, ending the year roughly where 2021 ended. Aluminum foil (7 microns) decreased marginally by 3% in Q4 2022. This was still an increase of 21% over December 2021. While films of 15 microns BOPA and 12-micron PET decreased by 3% and 4%, respectively, during the last quarter of 2022, prices were still 20% above their levels from 2021. Reduced substrate prices were also aided by lower raw material prices and increased global capacity in industries like BOPET film.

On the other hand, between 2017 and 2022, HDPE prices fluctuated significantly, hitting a low of USD 837 per metric ton in 2020 and a high of USD 1,211 per metric ton in 2018. The price increased to reach USD 1,106 per metric ton in 2022. The average polyethylene (PE) price in June 2023 was USD 1,138 per ton, which is a decrease of -4.9% from May 2023.

Every organization and its procurement team look forward to negotiating the best deal while procuring a set of products or subscribing to services. Rate benchmarking involves price/cost comparison of more than one set of products/services to analyze the most efficient combination that can potentially help the procurement team in getting the optimum rate.

The geographical location, scale of business, transportation, type of business, order volumes and density, and complexity play a vital factor in analyzing the rate benchmarking of the flexible packaging category. A significant aspect of logistics is transportation. Freight can account for up to 10% to 20% of a company’s retail pricing and 50% of its logistical costs. As of June 2023, the ocean rates for North America from China were on the rise as supply and demand were better balanced. From May 2023, the freight prices from China ports to Western U.S. ports jumped by 19.2%. During the same period, ocean rates to the eastern U.S. ports increased by 11%.

At the end of June 2023, a few examples of ocean freight rates for the transportation of 20-foot FCL containers from China to the North American region were as follows - Shanghai to Los Angeles rates started from USD 1,300, Qingdao to New York rates started from USD 2,100, Yantian to Baltimore rates started from USD 1,900 and Shanghai to Savannah rates started from USD 2,000. In comparison to May 2023, the freight prices for shipping goods from Chinese ports to European base ports had reduced by 1.5% with the availability of sufficient space and equipment.

Similarly, the density also plays a key role in pricing. Compared to flexible packaging, denser and thicker materials are frequently used to create rigid packaging. This in turn increases the prices as transporting low-density goods typically costs more per pound.

To gain a comprehensive understanding of other aspects of rate benchmarking, please subscribe to our services and get access to the complete report.

Labor cost is one of the key components of the total incurred costs while offering a product or service. Therefore, an organization must decide on whether the focus category should be retained in-house or outsourced if the organization is providing its products or services at competitive prices. If the organization decides in favor of outsourcing, it must understand the difference in the salary structures of suppliers before selecting a supplier and formulating a negotiation strategy.

According to our research, packaging engineers at Amcor, Constantia Flexibles, and Huhtamaki receive a 15% - 20% higher base salary compared to the salary received by packaging engineers working in companies such as Sealed Air Corporation and Ampac Holdings. However, the year-on-year increment rate in all these companies majorly depends on the Key Result Areas (KRAs).

Organizations may find it cumbersome to continuously track all the latest developments in their supplier landscape. Outsourcing the activities related to gathering intelligence allows organizations to focus on their core offerings. At this juncture, our newsletter service can help organizations stay updated with the latest developments and innovations and subsequently assist in preventing disruptions in the supply chain. We have identified the following developments within the flexible packaging category over the last two years:

  • In August 2023, Amcor announced the acquisition of Phoenix Flexibles to expand the company’s capacity in India for its flexibles division. Amcor will be able to meet the continued high demand with Phoenix Flexibles' capitalized and strategically placed production facility in Gujarat, India. Adding advanced film technology to Amcor's product offering will enable local production of more sustainable packaging solutions.

  • In July 2023, Huhtamaki announced a sizeable investment in its Paris, Texas plant in the U.S. The deal entailed consolidating an external warehouse in addition to increasing its manufacturing capability. The manufacturing and warehouse facilities will be leased, and an estimated USD 30 million will be invested in production assets. In order to support the expansion of the food service industry, the deal aimed to enhance the North American business segment's capacity for folding cartons.

  • In April 2023, A non-binding letter of intent was signed by Sealed Air and Koenig & Bauer to further advance their strategic alliance for digital printing machines. The alliance aimed to improve packaging design capabilities by creating cutting-edge digital printing technology, tools, and services. The trademarked “prismiq” technology, software, and intellectual property from SEE will be used in the Koenig & Bauer RotaJET-series of digital printing machines.

  • In February 2023, one of the leading manufacturers of customized flexible packaging, PPC Flexible Packaging acquired StePac, MAPfresh Holdings. For bulk and retail applications, StePac provides atmosphere- and humidity-controlled packaging using roll products, lidding, and pre-made bags and pouches. The acquisition aimed to strengthen their integrated sustainable packaging for specialty fresh-produced products.

What questions do you have? Get quick response from our industry experts. Request a Free Consultation
gvr icn


gvr icn

This FREE sample includes market data points, ranging from trend analyses to market estimates & forecasts. See for yourself...

Add-on Services

Should Cost Analysis

Component wise cost break down for better negotiation for the client, highlights the key cost drivers in the market with future price fluctuation for different materials (e.g.: steel, aluminum, etc.) used in the production process

Rate Benchmarking

Offering cost transparency for different products / services procured by the client. A typical report involves 2-3 case scenarios helping clients to select the best suited engagement with the supplier

Salary Benchmarking

Determining and forecasting salaries for specific skill set labor to make decision on outsourcing vs in-house.

Supplier Newsletter

A typical newsletter study by capturing latest information for specific suppliers related to: M&As, technological innovations, expansion, litigations, bankruptcy etc.

gvr icn


We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports, as well as offer affordable discounts for start-ups & universities.

Contact us now to get our best pricing.

esomar icon

ESOMAR certified & member


ISO Certified

We are GDPR and CCPA compliant! Your transaction & personal information is safe and secure. For more details, please read our privacy policy.