Flexible Packaging Market Size, Share & Trends Analysis Report By Material (Plastic, Paper, Metal, Bioplastics), By Product, By Application, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global flexible packaging market size was estimated at USD 261.04 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 4.7% from 2023 to 2030. The increasing consumption of flexible packaging products in medical and pharmaceutical sectors is driving their demand. These products offer various advantages, such as container variety, need for less raw materials, ease of disposal, and lightweight nature, which are expected to fuel their demand over the forecast period.

The U.S. market is expected to grow significantly over the forecast period due to the growing demand for packaging of food & beverage and healthcare products. This market is driven by the steady growth of the healthcare, food & beverage, and personal care industries. Lifestyle and demographic factors are also expected to propel demand for cosmetic products. The application of flexible Metal packaging products in numerous applications has encouraged manufacturers of rigid Metal packaging to shift towards flexible Metal packaging. The consumption of lower energy and a significant decrease in the production of waste has prompted this shift.

In addition, the U.S. government agencies are funding projects aimed at reducing carbon emissions and energy consumption which can present a positive outlook for market. In January 2022, the U.S. Department of Energy (DOE) announced USD 13.4 million in funding to produce plastic with low energy consumption and minimum carbon dioxide emissions. This investment is focused on addressing Metal waste recycling challenges. Since flexible packaging consumes less material compared to rigid packaging, it requires less energy for production and helps in carbon emissions reduction. Such initiatives will help promote the development of bioPlastic as a sustainable material to flexible packaging as well as highlight flexible packaging as an economical substitute to rigid packaging.

Material Insights

Based on material, the market for flexible packaging is further segmented into plastic, paper, metal, and bioplastics. Among these, the Plastic sub-segment accounted for the largest market share of over 69.0%, in terms of revenue, in 2022. The availability of a wide variety of options available and their higher tensile strength compared to metal counterparts are expected to drive the demand over the forecast period.

The bioplastics segment is expected to grow at the fastest CAGR of 5.8% during the forecast period 2023-2030. They have gained popularity in various industries, including flexible packaging, as a potential solution to address Metal waste and reduce reliance on fossil fuels. According to Plastic Europe, flexible packaging emerged as the leading global application segment for bioplastics with 695.6 kilotons of bioplastics consumed in 2022 solely for flexible packaging.

The paper segment accounted for a significant market share in the base year 2022.  The growing demand for sustainable packaging materials has driven the demand for paper in flexible packaging applications. It is manufactured from wood pulp and is known for its lightweight, high tear resistance, thickness, and strength. Its coarse texture, due to highly oriented fibers, helps provide better protection than many packaging materials. Its biodegradable nature also allows it to be disposed of or recycled easily.

The metal segment is expected to expand at a significant CAGR during the forecast period 2023-2030. This is owing to its wide application in various application segments including food & beverage and pharmaceutical packaging. Aluminum foil exhibits an excellent barrier to moisture, gases, and light, making it suitable for use in flexible laminates for food, beverage, and technical applications.

Product Insights

Based on product, the market for flexible packaging is further segmented into pouches, bags, films & wraps, and others. Among these, the pouches sub-segment accounted for the largest market share of over 38.0%, in terms of revenue, in 2022. The high market share is attributed to the growing adoption of refill pouches by food & beverage manufacturers to reduce their packaging costs.

The bags sub-segment is expected to grow at a CAGR of 4.7% during the forecast period 2023-2030. This market growth is attributed to the wide utilization of these bags for packing products in bulk quantities such as automobile components, agricultural products, chemicals, and detergents.

The films & wraps segment accounted for a significant market share in 2022 owing to their properties such as superior shrinking, twist retention, and transparency. These films are used to shield packaged content during the packaging, distribution, and storage stages. They are mostly used on outer flexible packaging to increase its tearing resistance.

Application Insights

Based on application, the market for flexible packaging is categorized into food & beverage, pharmaceutical, cosmetics, and others. Among these, the food & beverages emerged as the most significant application segment for flexible packaging in 2022 and accounted for a market share of over 55.0% of the overall market. Growing demand for packaged foods, including ready-to-eat meals, frozen meals, snack foods, and cake mixes, is expected to prompt manufacturers to increase their production capacity, augmenting product demand over the forecast period.

The pharmaceutical application is expected to expand at a CAGR of 5.6% during the forecast period. This growth is attributed to its wide application for packaging and protecting a variety of drug items for medical use, including powders, tablets, and capsules. The most common types of flexible packaging in pharmaceuticals are pouches, blister packages, and strip packages.

The cosmetics application is driven by various shampoo manufacturing brands introducing samples and trial packs in flexible single-serving sachets or pillow pouches. This makes it economical for customers to try out the new cosmetic product before purchasing the entire bottle. Samples packed in single-use packets are viewed as a great marketing tool by cosmetic product manufacturers to increase brand awareness and encourage low-risk trials.

Region Insights

Asia Pacific accounted for the largest share of over 38.0% of the global flexible packaging market in 2022. The flexible packaging industry is predicted to increase at a significant rate in the region over the forecast period. A significant growth in domestic demand for flexible packaging in Asia Pacific, is due to the growing urbanization in China and India which are leading in consumption of packaged foods. Most flexible packaging used in Asia Pacific is for packaged food including noodles and snacks. Flexible Metal is preferred due to its food-preserving ability, affordability, and convenience.

China accounted for the highest market share in the region in 2022 owing to the stringent regulations introduced by the government to reduce packaging waste and promote sustainability in packaging can support the growth of flexible packaging in China. For instance, in September 2021, China’s State Administration for Market introduced Regulation GB 23350-2021 ‘Requirements of Restricting Excessive Package - Foods and Cosmetics’, an amendment to standards released in 2009, which mandates cosmetic and food companies to redesign their product packaging. This standard is expected to come into force in September 2023.

Europe is expected to witness a high demand for flexible Metal packaging solutions owing to the high growth of the healthcare and food & beverage, and personal care industries. The European market is characterized by both international and domestic players. The prominent players operating in the market have their manufacturing facilities, notably in countries such as the UK, Germany, and Italy.

North America is anticipated to grow at a CAGR of 4.2% during the forecast period owing to the for lightweight packaging solutions in the region coupled with consumer lifestyle trends necessitating portability and convenience of products has augmented the demand for flexible packaging solutions. Another important factor that has driven the industry is the increasing adoption of advanced packaging technology. This is due to various benefits offered by flexible Metal packaging solutions such as low packaging cost, warehouse cost, transportation cost, and energy consumption.

The flexible packging market in Central & South America is witnessing substantial growth due to increased demand for flexible packaging from the food & beverage sector. The countries in Central & South America such as Brazil, Argentina, and Chile have a well-established tomato puree processing industry. Brazil has a strong presence in the fruit juice market and is one of the leading exporters of fruits.

A shift toward sustainability along with the changing consumer behavior toward healthier products in the Middle East & Africa region is expected to boost the demand for flexible packaging. Growth in population coupled with rising consumer disposable income in the region has posed a high demand for quality and organic food. However, the manufacturing sector in the region is growing at a slower pace compared to other regions owing to unfavorable geography and lack of raw material availability. This is likely to impact on the production of flexible packaging solutions in the region.

Key Companies & Market Share Insights

Key Companies resort to multiple mergers and acquisitions in a bid to gain market share in a particular region. In some cases, the companies undergo several acquisitions to produce an advanced product with superior performance characteristics to increase revenue. For instance, in August 2023, Amcor plc entered an agreement to acquire a Gujarat-based flexible packaging manufacturer, Phoenix Flexibles. Amcor plc has four packaging plants in India and this acquisition is expected to enable the company to expand its market presence in India. Some prominent players in the global flexible packaging market include:

• Amcor plc

• Mondi Group

• Huhtamaki Flexible Packaging

• Sonoco Products Company

• SEE

• Constantia Flexibles

• Bemis Manufacturing Company

• UkrMetal

• ProAmpac

• Wipak Group

• Berry Global Inc

• FlexPak Services

• Transcontinental Inc.

• Coveris

• DS Smith

• American Packaging Corporation

• InterFlex Group

• FLEX-PACK ENGINEERING, INC.

• Innovia Films

• Cosmo Films

• Novolex

• Sigma Plastics Group

• Graphic Packaging International, LLC

• Bischof+Klein SE & Co. KG

• Südpack

Flexible Packaging Market Report Scope 

Global Flexible Packaging Market Report Segmentation

This report forecasts revenue growth at regional & country levels and provides an analysis of the industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the flexible packaging market based on material, product, application, and region:

• Material (Revenue, USD Billion, 2018 - 2030)

  • Plastic

  • Paper

  • Metal

  • Bioplastics

• Product (Revenue, USD Billion, 2018 - 2030)

  • Pouches

    • Retort Pouch

    • Refill Pouch

  • Bags

  • Films & Wraps

    • Strech & Shrink Labels

  • Others

• Application (Revenue, USD Billion, 2018 - 2030)

  • Food & Beverage

  • Pharmaceutical

  • Cosmetics

  • Others

• Region (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • U.K.

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

    • Thailand

    • Indonesia

    • Singapore

    • Vietnam

    • Myanmar

    • Malaysia

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • South Africa

    • Saudi Arabia