ALBANY, NY—Transparency Market Research (TMR) is reporting that the global flexible packaging market is set to grow at a moderate pace during each one of the next five years.
Critical observations point to clear trendlines, namely:
- With sustainability taking center stage, market players aiming at product innovation that is Earth-friendly are likely to benefit from lucrative opportunities in the landscape
- Similarly, players catering to consumer preference for multi-layered packaging are likely to gain a competitive edge
In the latest study, TMR becomes the second major market watcher to see a continuous and temperate rise in the pace of both demand and production. Its latest report charts the application’s history for the five-year period of 2014-2018, then discusses projections on results likely to be turned in from 2019-2027.
Globally, revenue generated by the flexible packaging market is anticipated to reach approximately $370 billion in 2019 and is projected to expand at a compound annual growth rate (CAGR) of roughly 5 percent, reaching $537 billion in 2027. Production volumes are projected to expand 1.4 times in the period.
The projection falls in line with a similar Smithers conclusion, issued in April and contending that CAGR will come in at close to 4 percent, with production capacity equating to approximately 37.5 million tons by 2026.
TMR maintains, “The food sector has been the largest end user of flexible packaging, and in 2018, held a ~30 percent share of market.” It adds, “This is projected to rise over the forecast period at the rate of ~5 percent, and the food sector is likely to continue to hold the largest chunk of the revenue and sales in the market.”
Researchers attribute the forecast to lowered production and transportation costs, customizable barrier properties, and protection of product integrity.
One point of note in the report, “Pharmaceuticals are quickly gaining significance in the flexible packaging market, projected to grow the fastest at a healthy pace of ~6 percent annually between 2019 and 2027.” Customizable packaging, recyclability and convenience are the major factors that have contributed to the growing popularity.
Asia Pacific, as a region, accounted for more than one-third of the revenue share of the global market in 2018, and is expected to expand at about 6 percent during the forecast years.
“Production volumes are projected to expand 1.4 times”
North America also occupied a significant share of approximately 28 percent in the global landscape in 2018, and is likely to grow at a CAGR of roughly 5 percent over the forecast period. Pouches, sticks, and sachets are expected to remain popular within the North America market, thereby driving its growth.
FTA member companied counted among major players by TMR, most of which are in the top 10 printers in terms of flexible packaging production volume, are: Amcor, Berry Global, CCL Industries, Huhtamaki, International Paper, Mondi, ProAmpac, Sonoco Products, WestRock and Winpak.
“Stakeholders in the flexible packaging market are looking into the use of newer and different materials including environment-friendly bio-based materials and biodegradable plastics,” according to TMR. Statistics compiled support the observation:
- Plastic, as a raw material, occupied around two-thirds of the total market share in 2018, and is likely to retain its place at the top during the forecast period.
- Popularity of paper is also increasing, expected to witness growth at about 5 percent in the foreseeable future
- Bioplastics held a market share of roughly $3.8 billion by value in 2018, and this segment is expected to grow at a CAGR of approximately 5 percent through 2027
- Change in product design and appearance, along with ease of handling and storage is estimated to drive market growth
- Consumption of multi-layer films has increased at a rapid pace across various end-use industries.
- Shift in preference from single layered films to multi-layer films comes with various advantages—extended shelf life without losing product fragrance and quality, plus reduced chances of contamination