Consumers are increasingly preferring easy, convenient, lightweight, and efficient packaging, which will further boost flexible packaging industry. Global packaging expenditure was worth more than USD 400 billion in 2015, and flexible packaging market accounted for more than 20% of this revenue share. According to Global Market Insights, Inc., “Flexible Packaging Industry is expected to cross a revenue margin of USD 250 billion by 2024, growing at a rate of 5% over 2016-2024.”
Superior sealing, lightweight, enhanced elasticity, aesthetic appeal, thermal insulation, reduced wastage, and barrier against moisture are some the beneficial characteristics that are expected to boost flexible packaging market size. User-friendly features such as zip locks, spouts, and resealable seals have enhanced the popularity of flexible packaging products among consumers.
Flexible packaging industry in the healthcare sector is expected to register significant gains of 5% over 2016-2024, owing to the rising health awareness among the consumers along with favorable government schemes supporting the usage of flexible packaging products in healthcare. Changing customer trends towards aesthetically appealing items will propel the growth of flexible packaging market across the food & beverages sector.
Taking into consideration the regional trends, Europe flexible packaging industry is predicted to record a CAGR of 3.5% over 2016-2024. High preference for cosmetics, retail goods, and processed food will push the revenue. Germany and Russia are likely to drive the regional growth.
Rapidly expanding e-commerce sector across Vietnam, China, and India is anticipated to contribute significantly towards APAC flexible packaging market revenue, which earned a revenue of USD 35 billion in 2015. The industry is projected to register a CAGR of 6% over 2016-2024.
U.S. market, which was estimated at USD 30 billion in 2015, is projected to fuel North America flexible packaging industry growth. The swiftly expanding medical and confectionery sectors across the region are forecast to make substantial contributions towards the overall share.
Based on the materials, the industry is segmented into cellulosic, polymer, aluminum, and paper packaging materials. Polymer flexible packaging market, which accounted for a major share of the overall industry share in 2015, is expected to grow considerably over the years to come. High material demand subject to the properties of longer shelf life and cost effectiveness will push the revenue. Paper packaging market size, which recorded USD 15 billion in 2015, is also expected to expand strikingly. Rising utilization across the medical and pharmaceuticals sectors will lift the growth.
Four-side-seal pouches, pillow pouches, and stand-up pouches are the major flexible packaging products. Standup pouches are slated to collect a revenue of over USD 75 billion by 2024, driven by its reduced cost, high barrier features, and low material usage. Pillow pouches are likely to record a CAGR of 4% over 2016-2024 subject to high product preference from the dairy sector.