Flexible and high-barrier packaging solutions drive market growth

The "Flexible Packaging Market - Global Outlook & Forecast 2024-2029" report has been added to ResearchAndMarkets.com's offering.

The Flexible Packaging Market was valued at USD 210.62 billion in 2023, and is projected to reach USD 238.91 billion by 2029, rising at a CAGR of 2.12%.

The global flexible packaging market is highly fragmented, with numerous leading vendors actively competing. While the market is slowly consolidating, the pace of mergers and acquisitions remains moderate. Key players in the global flexible packaging market include Amcor, Berry Global, Mondi, Sealed Air, TC Transcontinental, Sonoco, Huhtamaki, Constantia Flexibles, Ahlstrom, Greif, WestRock, and Aptar Group. Further, in recent years, the market has seen the entry of several external players adopting inorganic growth strategies to expand their presence across various regions. The larger, established companies possess technological advantages and high-volume production capabilities that allow them to mitigate cost fluctuations. Meanwhile, smaller firms tend to focus on customization, as competition in the market is primarily driven by product features and pricing. Niche segments with lower volume demands often rely on smaller packaging companies to meet their specific needs.

The rise of e-commerce, particularly in the APAC region, has spurred the emergence of new companies specializing in protective packaging solutions. Further, many international players are expected to invest in infrastructure that supports the recycling and reuse of packaging materials. By 2025, leading vendors anticipate a significant shift towards green packaging materials. This transition will likely pose challenges for small and medium-sized packaging companies, as they must invest in new machinery to remain competitive. Additionally, the penetration of bio-based plastics across various end-use categories is expected to continue increasing, further shaping the competitive dynamics of the flexible packaging market.

MARKET TRENDS & OPPORTUNITIES

Leveraging AI and Robotics for Flexible Packaging Solutions

Rapid industrial robotics and AI advancements have transformed the packaging industry, particularly in areas such as automated material selection, real-time damage detection, and enhanced recycling capabilities. As robots become more sophisticated and integrated into packaging lines, they offer unprecedented precision, consistency, and adaptability, which are crucial for meeting the growing demands of modern supply chains. Moreover, AI can help in the predictive maintenance of packaging machinery, minimizing downtime and ensuring continuous production. In the context of flexible packaging, these technologies support the production of lighter, more efficient packaging that aligns with sustainability initiatives. As the flexible packaging market grows, AI and robotics in flexible packaging are expected to expand, providing companies with the tools to meet operational and environmental targets.

Increase in Consumer Awareness

There has been a noticeable shift in consumer behavior in recent years, driven by a growing awareness of environmental issues. This increased awareness significantly impacts various industries, including the flexible packaging market. Flexible packaging, which includes materials like plastic films, pouches, and bags, has seen a considerable change in consumer preferences, largely influenced by environmental considerations. One of the most significant changes observed is the rising demand for recyclable and compostable materials in flexible packaging. Consumers are increasingly seeking packaging that can be easily recycled or composted, thereby reducing waste and supporting circular economy principles. This trend is reflected in developing and adopting materials such as biodegradable films and recyclable laminates. These materials offer a more sustainable alternative to traditional plastics and align with the consumer demand for environmentally responsible options.

Usage of High-Barrier Plastic Packaging Materials

The barrier properties of films used in plastic packaging are important as they ensure that the food is not spoilt and that shelf life is increased. The advent of thinner packaging materials is leading to a requirement for high-barrier properties. The polymers used in these plastic films are the actual differentiating factor for the efficacy of such barrier films in maintaining the quality of packaged or processed foods. The flexible packaging market widely uses high-barrier films for premium food protection. The lightweight nature and flexibility of flexible packaging using these high-barrier films replace traditional packaging materials such as metal, rigid plastic, and glass. Also, with the growing demand for high-barrier packaging, especially in the vacuum packaging industry due to its cost-effectiveness and efficiency, recyclable, high-barrier plastics such as stand-up pouches are preferred. Moreover, rising awareness of eco-friendly and convenient packaging in the food industry is also expected to increase the demand for high-barrier vacuum packaging.