Flexible Packaging Market Size & Forecast

The Flexible Packaging Market is expected to reach $359.3 billion by 2031, at a CAGR of 4.9% from 2024 to 2031. The growth of this market can be attributed to several factors, including the rapid expansion of the food & beverage sector, increasing demand for lightweight and convenient packaging solutions, and the rising e-commerce sector. Additionally, the increasing focus on sustainable packaging materials and recyclability and the growing demand for personalized packaging solutions are expected to create market growth opportunities. However, stringent regulatory compliance related to food safety and chemical migration may restrain the growth of this market. However, limited barrier protection properties are a major challenge for the players operating in this market.

Additionally, the integration of smart features in packaging solutions is a key trend in the flexible packaging market.

Flexible Packaging Market Growth Drivers

Rising E-commerce Sector

E-commerce refers to the buying and selling of goods and services online. Rising online shopping globally is supporting the need for efficient and protective packaging solutions. Flexible packaging helps address key challenges in online retail, such as minimizing packaging waste, improving product presentation, and enhancing the unboxing experience for customers. Flexible packaging solutions, including pouches, bubble mailers, polybags, and corrugated boxes, offer lightweight, durable, and space-efficient packaging options that ensure product safety during transit and delivery. Also, it provides the ability to protect products from damage, reduce shipping costs, and optimize storage space in fulfillment centers.

According to the Census Bureau of the Department of Commerce (U.S.), the total e-commerce sales for 2023 were estimated at USD 1,118.7 billion, an increase of 7.6% from 2022. According to the India Brand Equity Foundation (India), the Indian online grocery market is estimated to reach USD 26.93 billion in 2027 from USD 3.95 billion in 2021, expanding at a CAGR of 33%. Also, the Indian e-commerce industry is projected to reach US $300 billion by 2030, experiencing significant growth. Hence, as more consumers shift towards online shopping, there is an increasing demand for flexible packaging solutions that ensure product protection and optimize shipping efficiency. This trend underscores the vital role of flexible packaging in supporting the expanding e-commerce sector globally. All such factors, along with the increasing demand for fast and secure delivery, the growing need for sustainable packaging solutions to reduce environmental impact, and technological advancements in packaging automation and customization, are driving the demand for flexible packaging in the coming years.

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Increasing Demand for Lightweight and Convenient Packaging Solutions

The rapid shift in consumer preferences towards packaging that is easy to use, transport, and dispose of and the rise in e-commerce & online shopping are supporting the demand for lightweight and convenient packaging solutions. Flexible packaging helps meet these demands by offering flexible and adaptable materials that can be customized to specific product requirements. Lightweight packaging is easier to handle and transport and refers to materials that are less dense and thus reduce overall package weight. Convenient packaging solutions are designed to offer ease of opening, portion control, and on-the-go consumption. Lightweight and convenient flexible packaging solutions are used across various industries to reduce transportation costs, improve shelf space efficiency, enhance product protection, and minimize environmental impact through reduced material usage and waste. All such factors, including the use of eco-friendly materials and advancements in packaging technologies, are supporting the overall growth of the market in the coming years.

Flexible Packaging Market Trends

Integration of Smart Features in Packaging Solutions

Smart packaging features include QR codes, temperature sensors, freshness indicators, RFID tags, NFC labels, and interactive packaging designs. These digital identifiers provide a convenient way for companies to track the location of a product within their supply chain. Flexible packaging can easily adopt smart features due to its compatibility with innovative materials and printing technologies. Integrating smart features into flexible packaging provides benefits, including improved product traceability, enhanced safety and security, and better consumer engagement. It also allows real-time tracking, authentication, and communication between products, retailers, and consumers across various industries, including food & beverage, pharmaceuticals, cosmetics, and consumer electronics.

Companies are focusing on the integration of smart components without compromising packaging integrity to enhance interactive packaging experiences and differentiate their products. In June 2021, ePac Holdings, LLC (U.S.) entered into an agreement with Scantrust SA (Switzerland) to bring smart, connected packaging solutions to brands of all sizes, including small and medium-sized businesses. Under this agreement, both companies will offer secure, serialized QR codes on all of their packaging and provide access to a suite of Scantrust applications for consumer engagement, brand protection, and track and trace. Such developments, along with increasing demand for product traceability and transparency, increasing consumer interest in interactive packaging experiences, and technological advancements, are further boosting the market growth during the forecast period.

Flexible Packaging Market Opportunity

Growing Focus on Sustainable Packaging Materials and Recyclability

Sustainable packaging materials in flexible packaging include materials like bioplastics (PLA), compostable materials, and recyclable plastics such as PET, PP, and paper-based films. These materials help minimize environmental impact throughout their lifecycle, from sourcing to disposal, and offer benefits, including reduced carbon footprint, lower resource consumption, and improved end-of-life options like recycling, composting, or biodegradation. Companies in the market are increasingly adopting sustainable, flexible packaging by utilizing recyclable and compostable films, incorporating bio-based materials, and optimizing packaging designs to minimize material usage. For instance, in December 2022, Amcor Group GmbH (Switzerland) signed a Memorandum of Understanding (MOU) with Licella Holdings Ltd (Australia) to invest in advanced plastic recycling facilities in Australia. Under the agreement, both companies focus on creating a local circular economy for soft plastics in Australia and help advance Amcor’s target to achieve 30% recycled content across its portfolio by 2030. All such developments, along with the growing environmental concerns and consumer demand for eco-friendly solutions and government regulatory mandates promoting eco-friendly practices, boost the market growth during the forecast period.

Flexible Packaging Market Analysis: Key Findings

By Material: In 2024, the Polyethene (PE) Segment to Dominate the Flexible Packaging Market

Based on material, the flexible packaging market is broadly segmented into polyethene (PE), polypropylene (PP), polyvinyl chloride (PVC), polyolefin film (POF), polyamide (Nylon), aluminum foil, polyester (PET), paperboard, and other materials types. In 2024, the polyethene (PE) segment is expected to account for the largest share of above 44.0% of the flexible packaging market. The large market share of this segment can be attributed to the growing demand for highly versatile and cost-effective material for various flexible packaging applications, increasing use of PE material due to its easy recyclability, and high barrier properties against moisture, chemicals, and gases.

However, the polyester (PET) segment is projected to witness the highest growth rate during the forecast period of 2024–2031. This segment’s growth is driven by the growing demand for PET in beverages and the personal care sector for various packaging formats due to its properties, including high barrier properties, lightweight nature, shatter resistance, extended shelf life, recyclability, and sustainability.

By Type: In 2024, the Non-Biodegradable Segment to Dominate the Flexible Packaging Market

Based on type, the flexible packaging market is broadly segmented into biodegradable and non-biodegradable. In 2024, the non-biodegradable segment is expected to account for the larger share of above 60.0% of the flexible packaging market. The large market share of this segment is attributed to the increasing use of non-biodegradable flexible packaging materials across various industries, including food & beverage, pharmaceuticals & healthcare, and personal care & cosmetics; growing use of materials, including polyethylene (PE) and polypropylene (PP) in production of flexible packaging solutions; and the increasing use of non-biodegradable materials as they are more cost-effective compared to biodegradable alternatives.

However, the biodegradable segment is projected to witness a higher growth rate during the forecast period of 2024–2031. This segment’s growth is driven by the increasing shift in consumer preferences towards eco-friendly and compostable packaging options, growing awareness of environmental issues, increasing advancement in bioplastics solutions, and stringent government regulations and policies promoting sustainable packaging solutions.

By Packaging Type: In 2024, the Pouches Segment to Dominate the Flexible Packaging Market

Based on packaging type, the flexible packaging market is broadly segmented into pouches, bags & sachets, films & wraps, containers & tubs, and other packaging types. In 2024, the pouches segment is expected to account for the largest share of above 39.0% of the flexible packaging market. The large market share of this segment is attributed to the growing demand for convenient packaging solutions suitable for on-the-go consumption and the increasing use of stand-up pouches, flat pouches, and spouted pouches due to their versatility and cost efficiency compared to rigid packaging types.

However, the films & wraps segment is projected to witness the highest growth rate during the forecast period of 2024–2031. This growth is driven by the growing demand for films & wraps due to its features, including easy customization with printing, labels, and coatings, and high-performance barrier protection against moisture, gases, and contaminants.

By End Use Industry: In 2024, the Food & Beverage Segment to Dominate the Flexible Packaging Market

Based on end-use industry, the flexible packaging market is broadly segmented into food & beverage, pharmaceuticals & healthcare, personal care & cosmetics, household products, industrial & chemical, retail & e-commerce, agriculture & horticulture, pet care, and other end-use industries. In 2024, the food & beverage segment is expected to account for the largest share of above 56.0% of the flexible packaging market. The large market share of this segment can be attributed to the increasing demand for portable and flexible food packaging options and the growing use of flexible packaging solutions for packaging snacks, beverages, and ready-to-eat meals and preserve food quality, reduce food waste, and extend shelf life.

However, the retail & e-commerce segment is projected to witness the highest growth rate during the forecast period of 2024–2031. This growth is driven by the rapid expansion of online retailing and e-commerce platforms, increasing demand for flexible packaging, including polybags, bubble mailers, and shrink films to optimize packaging efficiency, reduce material waste, and lower shipping costs, and growing demand for flexible packaging solutions with easy-open features, tamper-evident seals, and secure closures.

Geographical Analysis

In 2024, Asia-Pacific to Dominate the Flexible Packaging Market

Based on geography, the flexible packaging market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, Asia-Pacific is expected to account for the largest share of above 39.0% of the flexible packaging market, followed by North America, Europe, Latin America, and the Middle East & Africa. Asia-Pacific’s significant market share can be attributed to several key factors, including the rapid expansion of retail & e-commerce and the food & beverage industry, growing demand for easy recyclable and high barrier property flexible packaging in personal care & cosmetics sector, and increasing demand for customizable, flexible packaging solutions for packaged food, beverages, and household goods. The region is also slated to register the highest growth rate of above 6.0% during the forecast period.

Flexible Packaging Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last 3–4 years. Some of the key players operating in the flexible packaging market are Amcor Group GmbH (Switzerland), Westrock Company (U.S.), Sealed Air Corporation (U.S.), Transcontinental Inc. (Canada), DS Smith (U.K.), Huhtamäki Oyj (Finland), Berry Global Inc. (U.S.), Mondi plc (U.K.), Sonoco Products Company (U.S.), Constantia Flexibles (Austria), ProAmpac Intermediate, Inc. (U.S.), Sigma Plastics Group (U.S.), Wipf AG (Switzerland), KM Packaging Services Ltd (England), Coveris Management GmbH (Austria), and Winpak Ltd. (Canada).

Flexible Packaging Industry Overview: Latest Developments from Key Industry Players

• In February 2024, Amcor Group GmbH (Switzerland) signed an agreement with Cadbury (U.K.) (a subsidiary of Mondelēz International (U.S.)) to supply 1,000 tons of post-consumer recycled plastic to wrap its core Cadbury chocolate range.
• In January 2023, Amcor Group GmbH (Switzerland) acquired Mdk (Shanghai) Medical Packing Co., Ltd. (China) to strengthen its position in the Asia Pacific medical packaging segment.
• In September 2022, Sonoco Products Company (U.S.) acquired. S.P. Holding, Skjern A/S (Denmark), a leading producer of high-grade paperboard from 100% recycled paper for rigid paper containers, tubes and cores, and other applications.
• In September 2022, Berry Global Group, Inc. (U.S.) collaborated with Mars, Incorporated (U.S.) to launch its pantry-sized treats in polyethylene terephthalate (PET) jars that have been optimized to be lighter weight and include 15% post-consumer resin (PCR).

Flexible Packaging Market Research Summary

Key questions answered in the flexible packaging market report: