US Converted Flexible Packaging

Converted Flexible Packaging

Demand for converted flexible packaging is forecast to increase 3.0% annually to $30.6 billion in 2026. Flexible packaging continues to take share from rigid types due to its lower material usage, lower cost, and lighter weight, as well as increasing penetration into new markets:

• Pouches are the leading type of flexible packaging and have maintained healthy growth due to their numerous performance advantages.
• Formats such as bag-in-box, lidding, and strip packs continue to see solid growth, attributable to their strong performance properties compared to less costly flexible packaging (while still allowing for cost savings compared to rigid options).

Paper to Increase Volume Share of Market

Plastic remains the material most used in the manufacture of flexible packaging because of its performance, but paper is expected to increase its share of the market due to its more sustainable image. Growing demand for paper will be further supported by recent innovations in barrier solutions, allowing for its use in more applications, such as liquids and items requiring protection from moisture.

Meat Products, Pet Food, & Pharmaceuticals to See Healthy Gains

The pet food, pharmaceuticals, and meat, poultry, and seafood markets will offer the best opportunities for converted flexible packaging:

• Meat and poultry products will continue adopt higher value, case-ready flexible packaging formats like vacuum skin packaging and lidding following pandemic-induced grocery store labor shortages and an increasing consumer preference for high-quality, organic meat products.
• The increasing popularity of premium and organic pet foods benefits converted flexible packaging suppliers, as these products are often sold in higher value packaging such as pouches.
• Flexible packaging for pharmaceutical products will benefit from the strong performance properties of strip and blister packaging, as well as unit dose requirements.

Sustainability Remains the Leading Concern for Packaging Manufacturers

Sustainability remains the top priority for most packaging manufacturers, with many switching from rigid to flexible packaging where possible to reduce shipping weights and increase the amount of product per load. Additionally, flexible packaging manufacturers are focusing on increasing recycling rates and the use of recycled packaging to meet sustainability goals. Other initiatives include:

• Numerous companies have announced or released monomaterial offerings, in formats such as pouches, that are more easily recycled than composite material alternatives.
• There have also been various improvements in coatings and barriers for flexible paper packaging, allowing for its usage in more applications while maintaining recyclability.

This study examines the US market for converted flexible packaging, defined as packaging made of flexible or easily yielding materials that even when filled or closed can be readily changed in shape. Historical data are provided for 2011, 2016, and 2021, with forecasts through 2026. Also provided is an analysis of key industry players.