Flexible Packaging Market: Key Trends Influence Shift from Rigid to Sustainable Packaging

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Flexible Packaging Market Key Trends Influence
Shift from Rigid to Sustainable Packaging
During a products lifecycle, packaging emerges
as a vital step in enhancing the durability and
appearance of goods. In recent years, consumers
interaction with packaged products has evolved
significantly, resulting in high demand for
convenient packaging solutions. Moreover, rising
environmental concerns and ecommerce growth have
influenced prominent brands to opt for flexible
packaging to gain a competitive edge. Flexible
packaging materials have shown significant
prominence over rigid packaging as they require
less transportation and storage space, resulting
in reduced resource wastage, energy consumption,
and CO2 emissions. For instance, flexible
plastics enable more than 78 weight savings than
rigid solutions. This has led companies to opt
for flexible solutions to reduce their carbon
footprint. For example, Mondi Group partnered
with Henkel to launch a fully recyclable
mono-material refill pouch for Pril dish wash
liquid.
As per Tritons estimates, the global flexible
packaging market is expected to witness
substantial growth in terms of revenue and volume
at a CAGR of 4.66 and 4.01, respectively, over
the forecast period 2022-2028.
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• Regional Considerations Key Growth Trends
  Segmentation
• Globally, the improvements in consumer goods
  manufacturing have influenced packaging
  manufacturers to develop innovative packaging
  solutions to ensure a higher shelf life of
  products. Since flexible packaging is easy to use
  and lightweight, it has become integral across
  FB, cosmetic, and pharmaceutical sectors in
  major regions, including the Asia-Pacific and
  Europe.
• Asia-Pacific to dominate with a revenue share of
  142.87 billion by 2028
• The regions market is expected to grow
  significantly during the forecast period, owing
  to a rise in private investments, low-cost labor,
  and higher domestic demand. This has led various
  market players to establish their operations in
  the region to gain a higher market share. For
  instance, Rengo Co Ltd opened the Yashio Second
  Logistics Center in the Kanto region, Japan, to
  expand the capabilities of its first logistics
  center.
• Additionally, the rising demand for food and
  pharmaceutical products is anticipated to augment
  the consumption of flexible packaging solutions.
  The food beverage category dominates in the
  application segment. An increase in population
  and food expenditure, especially in China and
  India, are key growth drivers of vacuum
  packaging. Our estimates thus indicate that a
  surge in packaged food products demand and
  rising RD will propel the Asia-Pacific flexible
  packaging market on a growth path.
• Europe to witness a CAGR of 4.47 during
  2022-2028
• Given the declining growth of the pharmaceutical
  industry on account of shifting manufacturing
  bases to low-cost regions has negatively impacted
  the market. Nevertheless, the Europe flexible
  packaging market is expected to witness lucrative
  growth over the forecast period, owing to a rise
  in RD expenditure in the pharmaceutical sector.
• In the pharmaceutical sector, significant RD
  investments have fueled the adoption of flexible
  packaging solutions to ensure chemical resistance
  and enable dispensing with precision. Flat
  pouches, gusseted bags, and wicketed bags have
  emerged as prominent flexible packaging types in
  the industry. For instance, pouch solutions
  reduce the need for a heat seal and offer tear
  notches and ergonomic handles, extending shelf
  life and decreasing product wastage.
• Additionally, product differentiation has become
  a major trend as consumers opt for single-serve
  options. Our estimates indicate that the demand
  for flexible solutions in eastern European
  countries is expected to soar, owing to changing
  consumer preferences and rising income.
• Market Expansion through Strategic Initiatives
• The flexible packaging market is moderately
  consolidated, with product differentiation
  increasing competition. In this regard, the
  development of application-specific products and
  technological innovations have compelled market
  players to expand their footings through
  acquisitions, product launches, and partnerships.
  Some of the notable strategies undertaken by
  players include
• In March 2022, Rengo Co Ltd acquired 100 shares
  of Nagai Tekko Co Ltd, making Nagai a Rengo
  subsidiary.
• In April 2022, Mondi Group collaborated with
  Thimonnier, a French machine supplier, to develop
  recyclable packaging solutions to reduce plastic
  waste.

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• Sealed Air Corporation announced expanding and
  doubling its equipment manufacturing capacity in
  the next three years in May 2022.
• Differentiated Packaging to Boost Sales
• The rapid surge in e-commerce sales, especially
  during COVID-19, fuelled the demand for safe and
  efficient flexible packaging. In some cases,
  products marketed in a retail environment do not
  have the same demand when sold online. Hence,
  manufacturers and retailers opt for distinct
  packaging formats to ensure a seamless consumer
  experience and maintain brand reputation via
  e-commerce platforms. Therefore, the expansion of
  the e-commerce industry is expected to create
  numerous opportunities for flexible packaging
  players over the upcoming years.
• FAQs
• Q1) Is flexible packaging a viable option?
• Flexible packaging is gaining significant
  traction in the FB sector as it helps preserve
  food. Airtight packaging using flexible packaging
  materials helps increase the shelf life of
  perishable goods.
• Q2) How big is the flexible packaging market?
• In 2021, the flexible packaging market attained
  revenue worth 255.26 billion. It is expected to
  garner 350.17 billion by 2028.