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The flexible industrial packaging market size is forecast to increase by USD 21.32 billion at a CAGR of 5.49% between 2022 and 2027. The growth of the flexible industrial packaging market hinges on multiple factors. Firstly, the rise in demand from end-user industries like food, pharmaceuticals, and personal care drives market expansion. As these sectors seek convenient, sustainable packaging solutions, the demand for flexible packaging grows. Additionally, global economic growth plays a crucial role, as thriving economies spur consumer spending and industrial activity, thereby increasing the need for packaging materials. Furthermore, innovation in flexible industrial packaging solutions is paramount. Advancements in materials, technology, and design cater to evolving consumer preferences, environmental concerns, and regulatory requirements, ensuring the market's continuous growth and adaptation to changing dynamics. This market growth analysis report also includes an in-depth analysis of drivers, market growth and trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The market is thriving across various sectors, including the personal care industry, metals, and the food & beverage industry. With a growing focus on reducing carbon footprint and carbon emissions, industries are increasingly turning to sustainable solutions like flexography printing and eco-friendly materials such as bioplastics. The medical and pharmaceutical sectors are also adopting flexible packaging for its protective properties and extended shelf life benefits. Raw materials like plastic, paper, and polypropylene are widely used, with an emphasis on recycling and the development of multi-layer high-barrier materials for enhanced protection. Innovative packaging types like stand-up pouches and bag-in-box solutions cater to diverse needs, reflecting the dynamism of the packaging industry and its pivotal role in ensuring product integrity and sustainability.
The growth of the flexible industrial packaging market is driven by increasing demand from diverse sectors such as the food & beverages, personal care, and pharmaceutical industries. Materials like plastic, paperboard, metal, and bioplastics are used to manufacture pouches, bags, and stand-up pouches, with a focus on sustainability through recycling and biodegradable films. Constant innovation, including multi-layer high-barrier materials and smart packaging, caters to evolving needs while reducing the carbon footprint. This growth trajectory is further propelled by the adoption of environmentally friendly packaging solutions by big corporations and industrial giants like Constantia Flexibles.
One of the key factors driving the market growth is global economic growth. There is an increase in industrialization and construction activities at a significant rate in developing countries including Brazil, China, India, Mexico, and South Africa. One of the main factors that is fuelling the growth of the market is the increase in demand for construction, chemical, and food and beverage products.
Moreover, there is an increasing adoption of solutions for efficient mobilization, transportation, and storage of products for driving economic, ecological, and societal progress. For instance, In 2021, the global merchandise trade grew by approximately 4%. The increase in growth of the e merchandise trade fuels the growth of industrial activities which in turn is positively impacting the market. Hence, such factors are expected to drive market growth during the forecast period.
A key factor shaping the market growth is the growing demand for biodegradable packaging alternatives. The main challenge faced by the market players in the market is the growing concerns regarding the environment. However, there is an emerging trend of sustainable, flexible packaging solutions which is positively impacting the market. FIBCs and sacks are essential, solutions extensively utilized for the storage and transportation of raw materials and goods.
Moreover, there is an increase in the advancement of technologies and R&D which has resulted in the development of several bio-degradable packaging solutions derived from natural sources. Some of the main bio-plastic raw materials developed include starch plant oil, polyhydroxyalkanoates, polylactic acid (PLA), and other cellulose material packaging products. Hence, such factors are expected to drive the market growth during the forecast period.
Volatility in raw material prices is one of the key challenges hindering the market growth. The main raw material which is used in the manufacturing of products is plastics. There is significant volatility in the price of plastics due to the demand and supply gap as well as fluctuations in crude oil cost. Fluctuations in global crude oil prices will significantly impact the prices of polymer resins that are used to manufacture flexible IBCs and sacks.
Moreover, such price volatility in polymer resin prices will result in uncertainty in the profit margins of flexible industrial products. Therefore, it has become essential for market players to either increase the price of their products or reduce their profit margins in order to balance the negative impact of the increase in crude oil prices. Hence, such factors are hindering the market growth during the forecast period.
The various sectors like the healthcare industry, food & beverage segment, and pharmaceutical segment. With a focus on reducing carbon emissions and energy consumption, industries are embracing eco-friendly alternatives such as bioplastics and biodegradable films. Packaging options like stand-up pouches and bag-in-box solutions offer both convenience and protective properties, extending the shelf life of products and reducing food wastage. Materials like plastic, paper, and metal are being used innovatively, with a shift towards recyclable and environmentally friendly packaging. Leading players like Constantia Flexibles are driving innovation in the market, catering to the needs of big corporations and industrial giants seeking sustainable packaging solutions.
The pouches segment is estimated to witness significant growth during the forecast period. There is a significant adoption of the pouches segment in the market due to their adaptability, convenience, and sustainability. There is an extensive use of this segment across various industries due to their lightweightedness, and cost-effectiveness. For example, due to their shelf-stable construction, stand-up pouches are utilized in food packaging for products including snacks, coffee, and pet food.
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The pouches segment was the largest segment and was valued at USD 20.37 billion in 2017. There is a growing popularity for flexible pouches in the pharmaceutical industry for packaging drugs and medical devices. Additionally, spouted pouches have gained traction due to their ease of use in packing liquids including baby food, and energy drinks. Furthermore, there is an increasing demand for eco-friendly pouches which are manufactured using recyclable materials. Hence, such factors are fuelling the growth of this segment which in turn will drive the market growth during the forecast period.
Based on application, the segment is classified into the chemical industry, construction industry, food and beverages industry, pharmaceutical industry, and others. There is an increasing adoption of bulk containers to encase chemicals while storing and transporting them. However, these containers need to comply with strict regulations in terms of the degree of caution required to handle chemical substances. Additionally, the decrease in crude oil prices has increased exploration and manufacturing activities. Furthermore, there is an extensive demand for solutions to store and transport the substance since crude oil products are used as feedstocks in various industries, such as the plastic industry. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
APAC is estimated to contribute 46% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period
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One of the main factors that are significantly contributing to the growth of the market in APAC is the strengthening of the regional economic condition. In addition, the increase in demand for such packaging solutions from China, India, South Korea, Singapore, Australia, Japan, and others is significantly fuelling the market growth in the region. Furthermore, the increasing adoption of FIBC across several emerging economies in APAC is fuelled by its cost-efficiency. For example, FIBCs require 1/20th of shipping and storage volume as compared to the Gaylords bulk rigid containers. Furthermore, an increase in foreign direct investment (FDI) in APAC is fuelling industrial activities in the region. Hence, such factors are expected to drive the market growth in APAC during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Amcor Plc: The company offers flexible industrial packaging products such as Metal free laminates, vento and formpack blister system.
This market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Aluflexpack AG, Anglo American plc, Berry Global Inc., Bulk Lift International LLC, Clifton Packaging Group Ltd., ePac Holdings LLC, Eskay Flexible Packaging Industries Pvt Ltd., Flexibles Industrial Packages Co., Global Pak Inc., Greif Inc., Industrial Packaging supply Inc., International Paper Co., Kiliper Corp., LC Packaging International BV, SAFEPACK Inc., Sealed Air Corp., SIG Group AG, Sonoco Products Co., and Surepak Ltd.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The Market forecast research report encompasses the entire market adoption cycle, ranging from the initial innovator phase to the subsequent laggard stage. It emphasizes adoption rates across various regions, determined by penetration levels. Additionally, the report outlines essential purchasing factors and factors influencing price sensitivity. This aids companies in assessing and formulating effective market growth and forecasting strategies.
Global Market Customer Landscape
The flexible packaging market is a vital segment within the broader packaging industry, encompassing various products such as stand-up pouch, film, bags, sachets, roll stocks, and wraps. It caters to diverse sectors including food & beverage, personal care, and pharmaceuticals, driven by the rising demand for cost-effective packaging solutions. Strategic activities like mergers and acquisitions, product developments, and investments are reshaping the industry landscape, leading to facility expansions. However, challenges such as the high cost of raw materials and the lack of good recycling infrastructure persist. Innovations like polypropylene and multi-layer high-barrier materials are addressing these concerns, while efforts toward a closed-loop system aim to enhance recycling. Sustainable packaging solutions are gaining traction in alignment with environmental goals such as the Paris Agreement and net-zero targets, emphasizing the importance of reducing the environmental impact while ensuring hygiene and product integrity amidst rapid changes in technology, formats, and designs.
The market is evolving to meet diverse needs across various sectors, including the food industry, personal care industry, and pharmaceutical sector. Innovative packaging type materials like plastic, paper, metal, and bioplastics are utilized to enhance food shelf life while reducing solid waste. Packaging options such as stand-up pouches and aluminum foil offer practical solutions for both food and non-food products, ensuring freshness and convenience. With a focus on sustainability, recyclable products and smart packaging technologies are gaining traction, aligning with the demand for eco-friendly solutions. As the market advances, printing technology plays a crucial role in delivering attractive and informative packaging for FMCG products and household care items, reflecting the dynamic nature of the industry.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Market Scope |
|
Report Coverage |
Details |
Page number |
181 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.49% |
Market growth 2023-2027 |
USD 21.32 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.87 |
Regional analysis |
APAC, North America, Europe, South America, and the Middle East and Africa |
Performing market contribution |
APAC at 46% |
Key countries |
US, China, India, Germany, and the UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aluflexpack AG, Amcor Plc, Anglo American plc, Berry Global Inc., Bulk Lift International LLC, Clifton Packaging Group Ltd., ePac Holdings LLC, Eskay Flexible Packaging Industries Pvt Ltd., Flexibles Industrial Packages Co., Global Pak Inc., Greif Inc., Industrial Packaging supply Inc., International Paper Co., Kiliper Corp., LC Packaging International BV, SAFEPACK Inc., Sealed Air Corp., SIG Group AG, Sonoco Products Co., and Surepak Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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