Europe Flexible Packaging Market by End-user and Product - Forecast and Analysis 2024-2028

Europe Flexible Packaging Market Forecast 2024-2028

The Europe flexible packaging market size is estimated to grow by USD 18.31 billion, at a CAGR of 5.59% between 2023 and 2028. The market growth analysis hinges on various factors, including a heightened emphasis on enhancing product shelf life, the transition from rigid to flexible packaging, and the surging demand for flexible bioplastics. These trends reflect evolving consumer preferences and sustainability concerns driving the packaging industry. The focus on prolonging shelf life underscores the importance of product quality and preservation, while the shift towards flexible packaging offers versatility and convenience. Additionally, the rising popularity of flexible bioplastics aligns with sustainability goals, reflecting a broader trend towards eco-friendly packaging solutions. Together, these factors shape the trajectory of market growth and innovation.

What will be the Size of the Europe Flexible-Packaging Market?

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The market refers to the industry that produces and supplies packaging materials that can be easily bent or folded. The market is driven by increasing demand for convenient and lightweight packaging solutions. he market growth relies on several factors, including advancements in innovation, ensuring supply chain efficiency, and the evolution of design in sectors like cosmetics and pharmaceuticals. Manufacturers and converters play a pivotal role in meeting the dynamic demands of these industries by introducing innovative packaging solutions. For instance, the rising demand for flexible pouches and bags underscores the importance of adaptable materials and printing techniques. As consumer preferences continue to evolve, manufacturers must prioritize sustainability in materials and processes to align with market trends. This comprehensive approach ensures that the packaging industry in Europe remains competitive and responsive to emerging market demands.

Market Overview

The market is experiencing significant growth, driven by various factors such as the increasing demand for flexible packaging solutions in the food segment. Lightweight packaging offers numerous advantages including extended shelf life and enhanced packaging applications, particularly in the urban population. Processed foods, pre-prepared meals, and frozen foods are witnessing a surge in demand, further fueling the growth of the flexible packaging industry. As consumer preferences shift towards sustainability, there is a rising demand for sustainable packaging solutions to address concerns about plastic packaging waste. Additionally, the rise of e-commerce and online purchasing is reshaping the packaging market, especially in the e-commerce packaging segment. With stringent regulations from the EU Commission and increasing awareness about health and hygiene, the flexible packaging market in Europe is poised for continued expansion and innovation.Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

The rising focus on improving the shelf life of products is the key factor driving the market. Shelf life is the extent to which a product can be stored before it is used or consumed. The increase in the shelf life helps manufacturers to keep them for sale for a longer time, thereby reducing the wastage of the product. The increase in shelf life also aids in the transportation and export of perishable products such as food and beverages, medicines, and others to different places without any damage. Flexible packaging is effective in improving the shelf life of products. 

Furthermore, the need to extend the shelf life of food items and reduce their waste has led to the emergence of resealable packaging. Resealable is a type that allows the consumer to reseal or reclose after use. Reseal technology allows consumers to snack from the same bag or pouch over and over again and then properly secure the package for later use. The rise in the availability of such new products with added features is likely to increase the flexible packaging demand during the forecast period.

Key Market Trends

The emergence of recyclable flexible packaging is the primary trend showing the market. Raising awareness of environmental concerns and the growing focus on sustainable solutions have driven the demand. Governments, consumers, and businesses are actively seeking alternatives that reduce environmental impact, making them a preferred choice. Also, the rising eco-consciousness among consumers is reshaping purchasing behaviors. Consumers who actively seek products with a minimal environmental footprint drive the demand for brands that prioritize sustainable practices.

Moreover, the encouragement of recyclable materials through regulatory frameworks enhances the adoption among manufacturers and brand owners. Ongoing advancements in material science and technology have led to the development of innovative recyclable materials. Further, the adoption of recyclables is not only a response to consumer preferences but also a strategic move by businesses to meet regulatory requirements, reduce their carbon footprint, and contribute to a more sustainable future. As the demand for eco-friendly solutions continues to rise, the packaging market trends for a substantial boost during the forecast period.

Major Market Challenge

The high cost involved in manufacturing is a challenge that significantly affects the market. The cost of manufacturing is high, due to the increase in the price of raw materials. The primary raw material used in the manufacturing is plastic, which includes polyethylene (PE), polypropylene (PP), and others. There has been a significant rise in the prices of these different types of plastics. The increase in the price of raw materials will lead to a reduction in the profit margins of market players as it results in a rise in production costs. Hence, companies are forced to pass on these costs to end-users by raising the prices. Some manufacturers have been increasing the prices of their products.

Furthermore, the rise in the prices of all the above products used in the manufacture may have a negative impact on the demand for such products from manufacturers. Therefore, the price rise of raw materials compels market players to experiment with cheaper substitutes for flexible packaging in order to gain a competitive edge in the market. This is expected to limit the development of the market during the forecast period.

Market Segmentation 

The market is witnessing substantial growth, driven by various factors including the increasing demand for flexible packaging solutions in response to the needs of the urban population. These solutions play a crucial role in extending the shelf life of various products, including packaged foods, ready-to-eat meals, and frozen foods. Additionally, the demand for sustainable packaging solutions is on the rise, driven by concerns over plastic packaging waste and environmental sustainability. The EU Commission is spearheading initiatives to address these issues, particularly in industries such as the dairy industry. As consumer preferences evolve, the demand for flexible packaging in the food and beverage industries, including luxury foods, continues to grow. This trend underscores the importance of sustainable and innovative packaging solutions in meeting the diverse needs of today's consumers.

By End-user Analysis

The food and beverage segment is estimated to witness significant growth during the forecast period. Increasing demand for convenient and attractively packaged food products, along with the rise in the purchasing power of customers, will lead to the growing demand for food and beverages, driving the market. The major reason for increased purchasing power is the growing disposable income levels in various European countries, such as the UK and Germany. Furthermore, governments and other authorities in European countries are implementing new laws that focus more on sustainability. 

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The food and beverage segment was the largest segment and was valued at USD 28.01 billion in 2018. Furthermore, technological advances and an increase in R&D activities in flexible packaging solutions will drive the growth of the flexible packaging market in Europe for the food and beverage segment. Further, flexible packaging offers convenience and portability, making it suitable for on-the-go consumption trends. Consequently, growing demand for innovative and sustainable solutions, extended shelf-life benefits, cost efficiency, and the rising demand for convenient, portable will drive the food and beverage segment in the market during the forecast period.

Product Analysis

The pouches segment is becoming more popular than the other types, owing to its shelf appeal and because it offers an airtight closure and is extremely easy to pack. Stand-up pouches have multiple barrier layers of protection, which aid in improving the shelf life of various products. Additionally, major market players offering pouches are Mondi, Amcor, and Huhtamaki. Furthermore, as consumer preferences continue to evolve, pouch packaging remains a versatile and attractive option for various industries in the European market, which will drive the pouches segment in the flexible packaging market in Europe during the forecast period.

Who are the Major Market Companies?

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.

• Aluflexpack AG: The company offers flexible packaging, including a broad range of pouch types, with different shapes, sizes and materials, using a variety of printing techniques and tailor-made features, such as zippers, spouts, laser scores, special bottoms suitable for various end markets and products.

The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

Amcor plc, Bischof Klein SE and Co. KG, CCL Industries Inc., Clifton Packaging Group Ltd., Clondalkin Group Holdings BV, Constantia Flexibles Group GmbH, Coveris Management GmbH, DuPont de Nemours Inc., ePac Holdings LLC, Huhtamaki Oyj, LC Packaging International BV, Mondi Plc, Parkside Flexibles Ltd., ProAmpac Holdings Inc., Sealed Air Corp., SIG Group AG, Sonoco Products Co., Surepak Ltd., and UFlex 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.

Market Customer Landscape

The market 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 market research and growth report outlines essential purchasing factors and factors influencing price sensitivity. This aids companies in assessing and formulating effective growth strategies.

 Customer Landscape

Segment Overview

The market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028. 

• End-user Outlook 
  • Food and beverage
  • Healthcare
  • Personal care and others

• Product Outlook 
  • Pouches
  • Bags
  • Films and wraps
  • Others

Market Analyst Overview: 

The market is witnessing significant growth, driven by the increasing consumption of Processed foods and Pre-prepared foods among the Urban population. The demand for Packaged foods, including Ready-to-eat meals and Frozen foods, is rising, especially for Luxury foods. To address environmental concerns, Sustainable packaging solutions are gaining momentum, supported by initiatives from Food and beverage industries and regulatory bodies like the EU Commission. Efforts to reduce Plastic packaging waste are underway globally, with leaders like Lord Rooker advocating for change. Industries such as the Dairy industry and the Cosmetic industry are embracing eco-friendly practices, especially in countries like France.

However, despite challenges like the Financial crisis and fluctuating Commodity prices, innovations in recycling plastic packaging waste are reshaping the value chain. The surge in Online purchasing and Online shopping is driving the E-commerce packaging market, particularly for Frozen food, leading to advancements in the Barrier film packaging market and Frozen food bags. Both traditional Grocery chains, Supermarkets, Hypermarkets, and Convenience stores, and Online retailers are adapting to meet the evolving needs of the Food industry while prioritizing Health and hygiene concerns. This transformation also contributes to the Employment rate in the sector.

Market Scope
Report Coverage	Details
Page number	155
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 5.59%
Market Growth 2024-2028	USD 18.31 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	4.35
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Aluflexpack AG, Amcor plc, Bischof Klein SE and Co. KG, CCL Industries Inc., Clifton Packaging Group Ltd., Clondalkin Group Holdings BV, Constantia Flexibles Group GmbH, Coveris Management GmbH, DuPont de Nemours Inc., ePac Holdings LLC, Huhtamaki Oyj, LC Packaging International BV, Mondi Plc, Parkside Flexibles Ltd., ProAmpac Holdings Inc., Sealed Air Corp., SIG Group AG, Sonoco Products Co., Surepak Ltd., and UFlex Ltd.
Market dynamics	Parent market analysis, Market Forecasting, 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.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across Europe
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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