Flexible packaging is a type of packaging that uses materials that are easily adaptable to the product shape and size. Flexible packaging such as pouches, bags, and wraps are commonly made from plastics, aluminum, or paper, which makes them lightweight and portable. Flexible packaging offers product protection, tamper evidence, longer shelf life, and ease of handling. It is widely used for food packaging, medical devices packaging, and many other consumer products packaging. The global flexible packaging market is estimated to be valued at US$ 86.35 Bn in 2024 and is expected to exhibit a CAGR of 82.% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
The global flexible packaging market is witnessing high growth opportunities owing to its ability to reduce food waste. Flexible packaging plays an important role in reducing food waste by extending the shelf life of fresh foods. Perishable foods such as meat, poultry, seafood, fruits, and vegetables require packaging technologies that provide a natural barrier against moisture, gases, and microbes. Flexible packaging solutions such asstand-up pouches, retort pouches, and barrier films effectively extend the shelf life of foods by protecting them from spoilage. By reducing spoilage and keeping food fresh for longer, flexible packaging helps reduce nearly 15-30% of food waste across the supply chain. As concerns about food sustainability increases globally, the ability of flexible packaging to reduce wastage acts as a major market opportunity.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is medium as the flexible packaging market requires high capital investment for setting up manufacturing units and distribution channels. However, since the growth potential of the flexible packaging market is very high, new players are expected to enter the market.
Bargaining power of buyers: The bargaining power of buyers is high due to the presence of a large number of players in the flexible packaging market. Buyers can negotiate on price and quality of flexible packaging materials.
Bargaining power of suppliers: The bargaining power of suppliers is medium as there are few raw material suppliers in the market for producing flexible packaging. However, suppliers cannot influence prices much due to availability of substitutes.
Threat of new substitutes: The threat of new substitutes is medium as flexible plastic packaging has wide application. However, biodegradable and eco-friendly substitutes can pose threat to traditional flexible packaging materials.
Competitive rivalry: The competitive rivalry is high owing to presence of numerous domestic and international players competing in terms of product quality, innovation, and pricing.
SWOT Analysis
Strength: The flexible packaging provides barrier properties, durability, and printability. It is lightweight and convenient for transportation and storage.
Weakness: Raw material price volatility can increase cost of flexible packaging. Improper disposal of flexible plastic waste causes environmental pollution.
Opportunity: Growing e-commerce sector drives demand for effective packaging solutions. Developing economies offer strong growth potential.
Threats: Stringent environmental regulations on plastic waste may impact sales. Substitutes like paper offer sustainable alternative.
Key Takeaways
The Global Flexible Packaging Market Demand is expected to witness high growth during the forecast period owing to increasing demand from food and beverage industry across the world.
The Asia Pacific region dominates the global flexible packaging market and is expected to maintain its lead during the forecast period. China and India account for the major share in Asia Pacific flexible packaging market due to increasing population, changing lifestyle and rise in disposable income. North America and Europe are also projected to offer substantial growth opportunities for flexible packaging market supported by developed packaging industry in countries like United States, Germany, Italy and United Kingdom.
Key players operating in the flexible packaging market are Apple,Oculus VR, Sony,Samsung Electronics,X-Celeprint,Nanosys,Jade bird display,aledia,mikro mesa,verlase technologies, and allos semiconductors. Flexible packaging provides easy printing, branding and product information which helps companies to attract consumers which give them competitive advantage
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it