Report

The global flexible packaging market is expected to grow at a CAGR of 2.12% from 2023 to 2029.

RECENT VENDOR ACTIVITIES

- In 2023, leading global packaging solutions company Huhtamaki introduced groundbreaking mono-material technology through advanced scientific development. This innovative and sustainable flexible packaging, available in Paper, PE, and PP Retort formats, is designed to meet the evolving needs of both customers and consumers. In line with its 2020 commitment, Huhtamaki aims to ensure that all of its packaging is 100% recyclable, compostable, or reusable by 2030.
- In 2022, PPC Flexible Packaging, a leading custom flexible packaging provider, announced the acquisition of Plastic Packaging Technologies, based in Kansas City, KS. This acquisition expands PPC's operations to thirteen manufacturing facilities across the U.S., including locations in Kansas, Illinois, Georgia, Texas, Ohio, Utah, Wisconsin, and Colombia, South America.
- In 2022, Greif, a global leader in industrial packaging solutions, announced the completion of its previously announced sale of the Flexible Packaging joint venture (FPS) to Gulf Refined Packaging for a total cash consideration of $123 million, subject to certain conditions and post-closing adjustments. The agenda of this sale is to use the proceeds for debt repayment and align with the company's strategy to strengthen its financial position.

KEY TAKEAWAYS

- Market Growth: The global flexible packaging market size was valued at USD 210.62 billion in 2023 and is projected to reach USD 238.91 billion by 2029, growing at a CAGR of 2.12% during the forecast period.
- By Product: The bags & sacks segment holds the most significant segmental market share, the growth is driven by the usage of these products in various applications such as healthcare, personal care, pet food, and others.
- By Material: The flexible plastic segment holds the largest market share, the growth is driven by the high demand for packaging solutions within the food industry.
- By Application: The consumer packaging segment shows the highest growth due to increasing demand for convenient and sustainable packaging solutions.
- By Geography: APAC dominates the global flexible packaging market share, the growth is driven by a rapidly expanding retail landscape and the growth of organized packaging sectors.
- Growth Factor: The global flexible packaging market is set to grow due to the increased adoption of flexible packaging over rigid packaging and the increase in processed and packaged food.

MARKET TRENDS & DRIVERS

Increased Adoption of Flexible Packaging Over Rigid Packaging

The shift from rigid packaging to flexible packaging is a major trend in the global packaging industry, driven by multiple factors, including sustainability, cost-effectiveness, convenience, and advancements in materials. This shift has seen significant growth, especially in industries such as food and beverages, pharmaceuticals, personal care, and consumer goods. One of the most significant factors driving the adoption of flexible packaging is its lower environmental footprint. Flexible packaging generally uses less material, resulting in reduced waste and a lighter weight, which cuts down on energy consumption during transportation. In contrast, rigid packaging, such as glass bottles or tin cans, often requires more material, energy, and resources to produce and ship. Companies like Nestle and Unilever are adopting recyclable flexible pouches for products like coffee, pet food, and snacks. These pouches weigh less and reduce carbon emissions during transport. Consumers today prefer packaging that is easy to handle, resealable, and portable. Flexible packaging is often more convenient than rigid forms because it can be designed in various shapes, making it ideal for on-the-go products. Flexible packaging tends to be more cost-effective in terms of both production and shipping. The materials used (such as plastics, paper, and aluminum) are often cheaper than rigid alternatives like glass or metal.

Advances In Barrier Technologies

Barrier technologies refer to materials and methods used in packaging to protect the contents from external factors such as oxygen, moisture, light, chemicals, and gases. In flexible packaging, these barriers are crucial for maintaining the integrity and quality of perishable goods, pharmaceuticals, and sensitive electronics. They are typically achieved using layers of materials such as plastics, aluminum, paper, or bio-based films that act as barriers against external elements. Consumers are increasingly expecting longer shelf lives for perishable items such as food, beverages, and pharmaceuticals. Enhanced barrier technologies can prevent oxygen and moisture from penetrating the package, reducing spoilage and waste. Clean-label trends push brands to minimize the use of preservatives, making high-performance packaging critical to maintaining product integrity. The rise of online shopping, especially for groceries and pharmaceuticals, has increased the demand for secure, lightweight, and protective packaging. E-commerce requires packaging that can endure long supply chains and varying environmental conditions without compromising product quality. Research in nanomaterials, multilayer films, and coatings has led to the creation of advanced barriers that are thinner yet stronger.

Increase In Shelf Life

Flexible packaging materials such as multi-layer films, laminated materials, and barrier films are designed to protect products from environmental factors like oxygen, moisture, light, and heat. These factors are detrimental to perishable goods, especially in the food industry. The use of advanced barrier materials like polyethylene (PE), polypropylene (PP), and ethylene vinyl alcohol (EVOH) has revolutionized packaging by enhancing its ability to block out oxygen, moisture, and other gases that lead to spoilage. Vacuum-sealed flexible packaging is widely used for meat, cheese, and other perishable products. Modified atmosphere packaging (MAP) is another technology used in flexible packaging, especially in food packaging. Pre-cut salad bags use a combination of flexible materials with modified atmosphere packaging (MAP) to increase shelf life, maintaining freshness for up to 10-14 days. The pharmaceutical industry relies heavily on flexible packaging to extend the shelf life of drugs and medical products. By using specialized materials with high barrier properties, pharmaceuticals can be protected from contamination, moisture, and oxidation.

INDUSTRY RESTRAINTS

Recycling Challenges with Flexible Packaging Products

Many flexible packaging products are made from multilayer films, where different materials (such as plastic, aluminum, and paper) are laminated together to achieve specific properties like moisture resistance, durability, or light protection. These materials are difficult to separate during recycling processes, and most recycling facilities are not equipped to handle complex multilayer packaging. Flexible packaging requires specialized recycling technologies that are not universally available. The majority of recycling infrastructure is built to handle rigid plastics like PET bottles or HDPE containers, not soft and flexible materials. The absence of standardization across recycling facilities globally makes it difficult to recycle flexible packaging consistently, leading to low recovery rates. Consumers often face confusion regarding which flexible packaging products are recyclable and how to properly dispose of them.

SEGMENTATION INSIGHTS

INSIGHTS BY PRODUCT TYPE

The global flexible packaging market by product type is segmented into bags & sacks, pouches, and others. The bags & sacks segment holds the most significant segmental market share of over 43%. There has been a surge in the adoption of pouches across diverse industries such as food & beverages, personal care, healthcare, etc., due to their convenience and versatility, plastic bags maintain a dominant position in the market due to their sheer volume and specialized use in applications where other packaging formats cannot easily replace them. The simple monolayer structure of plastic bags ensures that they are produced with a minimal amount of material, making them both lightweight and inexpensive compared to other multi-layered packaging alternatives. The demand for plastic bags remains high due to their cost-effectiveness, ease of production, and the inability of alternative packaging solutions to fully replace their role in many non-food and lightweight packaging applications.

- By Product Type
o Bags and Sacks
o Pouches
o Other Products

INSIGHTS BY MATERIAL

Based on the material, the flexible plastic segment dominates and has the largest share of the global flexible packaging market. Flexible plastic pouches use 60% less plastic compared to rigid packaging, offering a higher product-to-package ratio. This leads to lower energy consumption during production and reduced emissions. The food sector is the largest revenue generator and also shows the highest year-over-year (YOY) growth. Among flat pouches, four-side-seal pouches are expected to experience the fastest growth, particularly for meat, poultry, and seafood applications. Flexible plastic packaging materials are derived from non-renewable resources. Premium products, especially food items, are often packaged in flexible plastic pouches equipped with closures like spouts or zippers. These pouches typically require multi-layer films to extend the shelf life of their contents. One of the layers often includes aluminum, which makes recycling these pouches challenging. The process of separating aluminum from the other layers is complex and requires advanced infrastructure. Even when these pouches are recycled, they are not reused for food packaging but are repurposed as flexible plastic sacks for industrial applications.

- By Material
o Flexible Plastic
o PE (Polyethylene),
o BOPP (Biaxially Oriented Polypropylene),
o CPP (Cast Polypropylene),
o BOPET (Biaxially-oriented Polyethylene Terephthalate),
o PA (Polyamide),
o PET (Polyethylene Terephthalate),
o PVC (Polyvinyl Chloride),
o EVOH (Ethylene-Vinyl Alcohol), and
o Others
o Flexible Paper
o Foil

INSIGHTS BY APPLICATION

Based on the application, the consumer packaging segment shows significant growth, with the fastest-growing CAGR during the forecast period. The primary drivers behind this growth are the increasing demand for packaged food and beverages, personal care items, and household products. With busier lifestyles and a rising middle class in developing regions, consumers are gravitating towards packaging that offers convenience, ease of use, and longer shelf life. Flexible packaging, which includes pouches, wraps, and bags, meets these demands by providing practical, easy-to-handle solutions that are often resealable, lightweight, and customizable in terms of size and shape.

- By Application
o Consumer Packaging
o Bakery & Confectionery
o Meat, Poultry & Seafood
o Dairy
o Ready-To-Eat (RTE)
o Frozen Food
o Healthcare
o Personal Care
o Tea & Coffee
o Pet Food
o Other end-users
o Industrial Packaging

GEOGRAPHICAL ANALYSIS

The global flexible packaging market is primarily dominated by the APAC, Europe, and North America regions, with APAC holding the largest market share. The APAC region is poised to dominate the flexible packaging market, driven by a combination of increasing demand and the availability of cost-effective labor. These factors make the region highly attractive to producers seeking to expand their market presence and boost profitability. In response, major players in the industry are intensifying their focus on the region by adopting strategies such as market expansions, increased investments, acquisitions, strategic agreements, and the introduction of innovative products. The flexible packaging market in the APAC region is characterized by demand across a broad spectrum of products, ranging from cost-effective sachets to high-end luxury packaging. The sector is expected to see robust growth, particularly in the food, pharmaceutical, and industrial packaging segments, driven by rising consumer demand for more convenient and protective packaging.

By Geography

- APAC
o China
o India
o Japan
o Australia
o South Korea
- Europe
o Germany
o France
o UK
o Italy
o Benelux
o Spain
- North America
o US
o Canada
- Latin America
o Mexico
o Brazil
o Argentina
- Middle East & Africa
o Turkey
o Egypt
o Saudi Arabia
o South Africa

COMPETITIVE LANDSCAPE

The global flexible packaging market report consists of exclusive data on 37 vendors. The competitive landscape of the global flexible packaging market is fragmented characterized by the presence of several major players, as well as numerous regional and local manufacturers. Amcor, Berry Global, Mondi, Sealed Air, Huhtamaki Oyj, TC Transcontinental Packaging, Sonoco, Constantia Flexibles, Ahlstrom, and Greif are some companies currently dominating the market. Key strategies include product innovation, mergers and acquisitions, and partnerships to enhance market presence and expand geographical reach. Collaborations with OEMs and other industry stakeholders to develop integrated solutions and improve market reach.

Key Vendors

- Amcor
- Berry Global
- Mondi
- Sealed Air
- Huhtamaki Oyj
- TC Transcontinental Packaging
- Sonoco
- Constantia Flexibles
- Ahlstrom
- Greif

Other Prominent Vendors

- Smurfit WestRock
- Aluflexpack Group
- Fenton Packaging
- ProAmpac
- Wipak Group
- FlexPak Services
- Coveris
- American Packaging Corporation
- InterFlex Group
- Flex-Pack Engineering
- Innovia Films
- Cosmo Films
- Novolex
- Sigma Plastics Group
- Graphic Packaging International
- Bischof+Klein
- SUDPACK
- Bak Ambalaj
- B&A Packaging India
- SCG Packaging
- Novus Holdings
- PPC Flex
- UFlex
- Clondalkin Group
- Danaflex
- Glenroy
- Printpack

KEY QUESTIONS ANSWERED:

1. How big is the global flexible packaging market?
2. Who are the major players in the global flexible packaging market?
3. Which region will have the highest CAGR in the global flexible packaging market?
4. What are the factors driving the global flexible packaging market growth?
5. What is the growth rate of the global flexible packaging market?