The US flexible-packaging industry saw a robust 2.4% increase in dollar volume last year over 2016, according to the “2018 State of the Industry” Report presented today at the Flexible Packaging Assn (FPA). Annual Meeting in Naples, FL. The increase translates into about $750 million of additional demand for flex packs annually.
The report, presented by David M. Staker, president/CEO of Plastic Packaging Technologies LLC, and current chairman of the FPA, also forecasts growth for the packaging format for almost all end-use markets. In addition, US flexibles as a percent of total packaging relatives to Europe suggests the potential of a "one-time" shift of about $5 billion in packaging spending to flexibles and away from rigid containers since 2007.
Some highlights from the report:
- The global flexible-packaging market was $86 billion last year, a 4.5% increase over 2015. North American represented 36% of the total field. The estimated global market will rise to $107 billion in 2022.
- The US market’s products in 2017 were composed of 78% value-added flexible packaging, or $24.1 billion of dollar volume. The other format segments' share were 10% consumer products, 7% retail poly bags and 5% other poly bags and wraps; this is unchanged from 2016.
- US converters saw volume rise slightly and profits remain mostly flat last year.
- In terms of printing methods in 2017, flexography continues to lead with 671% market share, compared to 65% in 2015. Gravure fell to 10%, down from 14% two years ago. Offset and other methods are unchanged at 4%. And digital printing continues to barely register at less than 1% market share. Unprinted finished-materials share has fallen to 15% from 24% back in 2012, showing the growth of value-added flexible packaging.
- There were 22 flex-pack mergers & acquisitions last year; among the most notable were Mondi Group buying Excelsior Technologies; ProAmpac acquiring Trinity Packaging Corp.; Multi-Color Corp. purchasing Constantia Flexibles Label Div.; and Sonoco Products Co. acquiring Peninsula Packaging Co.
More info: www.flexpack.org