The pharmaceutical, food, and beverage industries are driving the demand for flexible packaging

Flexible Packaging Category - Procurement Intelligence

The flexible packaging category is expected to grow at a CAGR of 4.7% from 2023 to 2030. The growing use of these products in the pharmaceutical and food and beverage industries is anticipated to drive the demand. In 2022, Asia Pacific accounted for the highest proportion of the category share, with more than 38%. Flexible packaging has the primary advantage of reducing the amount of packaging materials used. They boast a low packaging ratio (up to five times less than alternatives), are highly customizable, lightweight, use less energy and water during production, occupy less space in landfills, and are highly customizable. More food businesses are exploring flexible packaging for their products. Producers, consumers, and retailers all benefit from flexible packaging in terms of sustainability.

One of the major trends in this category is the increasing use of sustainable plant-based packaging solutions. According to studies, polyethylene resin and/or paper derived from plants can currently be used to create flexible packaging. TricorBraun Flex's introduction of a completely biodegradable, plant-based flexible packaging material, named Biotre 3.0, in 2021 is an example of the same. A survey conducted by the Paper and Packaging Board in 2022 found that 72% of respondents reported dissatisfaction with the packaging solution and design of the product, which influenced their purchase decisions. E-commerce stores have begun to pay attention to flexible packaging because of this.

The overall packaging sector experienced a slowdown in M&A activity in Q2 2023, as both transaction volume and valuations declined modestly. In the coming years, the ongoing global plastics treaty negotiations (which started in March 2022) will likely have a significant impact on flexible packaging. A few examples are:

• In August 2023, Amcor plc announced the launch of its high-barrier packaging made of paper in the North American region. As part of its “Amfiber” portfolio, the new recyclable product is known as AmFiber Performance Paper. The product adheres to the Repulpability Standards–curbside recycling−thereby enabling firms to offer consumers more environmentally friendly packaging. The product was already launched in Europe in June 2023 to include heat seal sachets for dry applications in beverages such as drinks powder, instant coffee, seasonings, and spices.

• In June 2023, Huhtamaki announced its decision to consolidate the production footprint of its Flexible Packaging business segment in Europe. It would close its manufacturing plant in Prague, Czech Republic, as part of this consolidation process. By March 31, 2024, all operations will be closed at the facility, including all production and support activities.

• In February 2023, Sealed Air Corporation (SEE) announced the acquisition of Liquibox for USD 1.15 billion in cash. The acquisition is expected to enhance the former’s fluids and liquids business segment, under its brand, CRYOVAC, which is Sealed Air’s fastest-growing segment.

• In February 2022, Sealed Air Corporation (SEE) acquired Ireland-based Foxpak Flexibles Limited. Foxpak would expand on SEE's digital/smart packaging solutions, where graphic design and digital printing are major value-creating areas. 

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Flexible Packaging Sourcing Intelligence Highlights

• The global flexible packaging category features a fragmented landscape with the presence of several international and regional players. By providing a variety of unique shapes and general conveniences that are appropriate for a variety of purposes, pouch manufacturers are literally and figuratively going the extra mile to meet the needs of consumers.

• The major cost components associated with the production of flexible packaging are raw materials, energy, printing-converting-packaging processes, equipment, types of products chosen for production, and labor.

• More than 60% - 65% of pharmaceutical companies fully outsource their packaging requirements due to its complexity to a third-party contractor. Outsourcing enables a company to obtain a partner who can take care of a variety of regulatory and quick launch requirements, including international regulatory requirements for multi-market launches.

• The most preferred countries for sourcing this category’s materials and films are India, China, Vietnam, Turkey, and Germany. As of May 2023, India is the world's leading exporter of flexible packaging material, shipping the majority of its products to the UK, the U.S., and South Africa. 

Flexible Packaging Procurement Intelligence Report Coverage

Grand View Research will cover the following aspects in the report:

• Category Intelligence along with emerging technology and regulatory landscape

• Market estimates and forecasts from 2022 to 2030

• Growth opportunities, trends, and driver analysis

• Supply chain analysis, supplier analysis with supplier ranking and positioning matrix, supplier’s recent developments

• Porter’s 5 forces

• Pricing and cost analysis, price trends, commodity price forecasting, cost structures, pricing model analysis, supply and demand analysis

• Engagement and operating models, KPI, and SLA elements

• LCC/BCC analysis and negotiation strategies

• Peer benchmarking and product analysis

• Market report in PDF, Excel, PPT, and online dashboard versions 

Cost Intelligence Highlights

Grand View Research has identified the following key cost components for the Flexible Packaging category:

• Raw Materials

  • Polymers or Films

  • Foils

  • Laminates

  • Others

• Energy

• Printing-Converting-Packaging Processes

  • Digital Printing

  • Flexography

  • Rotogravure

  • Lithography

  • Inks/Coatings

  • Others

• Equipment

• Types of End Product

  • Bag

  • Pouches

  • Sachets

  • Others

• Labor

• Others

  • Facilities or Utilities

  • Transportation

  • Tax and Profit

  • SG&A

  • R&D

  • Others

Raw Materials, Energy, Printing-Converting-Packaging Processes, and Equipment form the largest cost components of the Flexible Packaging category. 

List of Key Suppliers in the Flexible Packaging Category

• Bemis Company, Inc.

• Amcor plc

• Mondi plc

• Huhtamaki Oyj

• SEE (Sealed Air Corporation)

• Constantia Flexibles International GmbH

• Sonoco Products Company

• Ukrplastic Corporation

• Ampac Holdings LLC

• Wipak Walothen Gmbh (Wipak Group)

• SIG Group

• Aluflexpack AG