Global flexible packaging market to near $250bn in 2020

Flexible packaging has been one of the fastest growing packaging sectors over the past 10 years, thanks to increased consumer focus on convenience and sustainability, and this rapid development will continue to accelerate, the report has found. The Smithers Pira Future of Global Flexible Packaging to 2020 report stated that the market will grow at an annual average rate of three percent, reaching 248 billion USD in 2020.

According to the executive summary of the report, flexible packaging is the most economical method to package, preserve and distribute food, beverages, other consumables, pharmaceuticals and other products that need extended shelf life. It can be designed with barrier properties tailored to fit the products being packaged and their end-use, whereas other barrier packaging formats generally provide a one-size-fits-all approach. Flexible packaging can now be made in a wide variety of innovative shapes, sizes and appearances, and can include components such as handles and opening and reclosing features such as zips and spouts.

Flexible packaging technology has advanced dramatically over the past 10 years and is now a consumer household mainstay, steadily moving into new markets and applications. Products have progressed from simple monolayer bags and wrappings to coextruded or laminated engineered multilayer and coated constructions, comprising multiple materials such as plastics, paper and metal foils, coatings and other additives. These developments provide properties such as high barrier to oxygen, extended shelf life and convenience, all of which are increasingly demanded in packaging for food, consumables and pharmaceuticals. The properties of flexible packaging can be tailored to provide specific combinations required for packaging a broad range of products.

Future of Global Flexible Packaging to 2020 has also noted that the global consumer flexible packaging market value is estimated at 91.7 billion USD for 2015, and is forecast to grow at an annual average rate of 4.4 percent during the 2015-20 period to reach 114 billion USD. The market tonnage of this segment is estimated at 26.2 million tonnes in 2015 and is forecast to grow on average by 3.8 percent during the 2015-20 period to reach 31.7 million tonnes. World demand for consumer flexible packaging us to continue its upward growth trend in 2015 and well beyond, especially as developing economies continue to expand, according to the report. China is the largest national market for consumer flexible packaging, with a market tonnage of 6.07 million tonnes. Asia is the largest regional market with 40 percent of global market volume, followed by Western Europe and North America. Asia is also projected to be the fastest growing market for consumer flexible packaging over the forecast period, with an annual average rate of 6.6 percent in volume terms. India and China are the fastest growing national markets for consumer flexible packaging at 9.4 percent and 6.9 percent annual rates, respectively, over the 2015-20 forecast period.

Forecast consumer flexible packaging consumption by product category, 2010-20 (‘000 tonnes)

(graphic and date source: Smithers Pira)

Food is projected to account for almost three-quarters of global consumer flexible and forecasts packaging consumption in 2015. Meat, fish and poultry account for the largest usage food sector for flexible packaging, followed by confectionery and baked goods. Flexible food packaging has been growing at an average annual rate of four percent in volume terms over the 201conv0-15 period. It was the fastest growing end-use sector with beverages and pharmaceuticals following close behind.

In terms of future growth, a number of new packaging materials will become commercialized over the forecast period. Packaging converters looking to reduce production and transport costs are benefiting from the increase in flexible packaging types, aided by the continual development of new pouch designs – particularly the potential for an all-plastic barrier pouch – and by growing consumer demand for convenience and packets that are easy to open and close. New processes and machinery will enable pouch filling speeds to match those of bottles over time.

Advances in digital printing will provide opportunities for direct in-line printing as part of the conversion operation and developments in packaging and graphics to meet the requirements of brand-owners and consumers for rapid product changes, versioning, personalization and individualization.

A recent report from Canadean has predicted that nearly 800 billion units of flexible packaging will be consumed within global retail food markets in 2018, meaning flexible packaging is set to expand its share in the food packaging market to 53.1 percent in the next three years.

Another recent Smithers Pira report has stated that the global folding carton market will be worth over 100 billion USD by 2020 and will consume almost 47 million tonnes of material.

Both flexible packaging and folding carton printing will form part of package printing’s overall presence at Labelexpo Europe 2015. This will include Nilpeter showing flexible package printing on an FA-4* in the technical Packprint Workshop feature area.

Read more about digital flexible package printing in L&L issue 2, 2015