Global flexible packaging market size is expected to reach $293.03 billion by 2022, according to a new study by Grand View Research, Inc., San Francisco, Calif., due to the rising need for durable, lightweight and compact products among consumers.
Retail industry growth along with increasing acceptance of supermarket culture in emerging markets of Asia Pacific and strong export scenario is expected to have a positive impact on the flexible packaging industry growth over the forecast period.
The report, titled "Flexible Packaging Market Analysis By Raw Material (Paper, Aluminum Foil, Plastics, Bioplastics), By Application (Food, Beverages, Pharmaceutical, Cosmetic) And Segment Forecasts To 2022,” also shows high use in various applications, such as food, beverages and pharmaceuticals on account of less raw material requirement, undemanding storage space and easy disposal to be favorable for industry growth.
North America flexible packaging market is expected to witness considerable growth in light of rising R&D expenditure for introduction of bio-based plastics. However, raw material price volatility is expected to challenge growth over the next seven years.
Further key findings from the study suggest:
- Bioplastics are expected to be the fastest growing segment in terms of volume. It is expected to grow at a CAGR of 15.4% from 2015 to 2022. Prevalence of stringent government regulations particularly in Europe has led to increasing demand for environment friendly material. This is expected to augment bioplastics demand in the industry over the next seven years.
- Plastics dominated the flexible packaging industry with demand estimated over 15,800.0 kilo tons in 2014. Plastics can be modified by co-polymerization through use of various additives to match exact packaging requirements of various products, thus resulting in high demand.
- Food and beverages was the largest application segment estimated at 15,935.4 kilo tons in 2014. Flexible packaging provides easy transportation, convenient storage and disposal characteristics making it favorable for use in food and beverage application. Growing consumption of snacks such as chips, sausages and breads in emerging markets of China, India and Middle East is expected to increase consumption.
- Asia Pacific was the largest market, estimated over 7,800 kilo tons in 2014. Population growth, rising disposable income along with rapid urbanization is expected to augment the food and beverage industry in China and India. This in turn is expected to fuel flexible packaging demand over the next seven years.
- Global market is fragmented on account of presence of numerous companies. These companies invest highly in R&D to introduce innovative products.