Canada Flexible Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Canada Flexible Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The Canadian flexible packaging market is expected to register a CAGR of 4.6% during the forecast period. One of the primary aspects driving the growth of the Canadian flexible packaging industry is the growing consumer inclination for convenience products. Consumer tastes are changing due to hectic lifestyles and smaller home units, necessitating products that are easy to open, store, use, transport, and dispose of, as well as those that appeal to their on-the-go lifestyles.

• The Canadian flexible packaging market is witnessing a trend of eco-friendly packaging types from consumers and manufacturers. More than 40 Canadian companies recently unveiled the Canada Plastics Pact, a plan to recycle or compost 50% of Canada's plastic packaging by 2025. Fiber-based flexible packaging is also gaining traction in the Country and supporting a brand's effort to use more sustainable packaging. Even certain flexible packaging has now been engineered to be more environmentally friendly.
• The government of Canada is taking initiatives for plastic packaging in the Country. For instance, In April 2022, Circular Plastics Taskforce received funding from the Canadian government's Ministry of Economy and Innovation (MEI) to support projects that will optimize the recycling of all plastic packaging. The Organisation has received more than USD 399,904 from MEI for the start of the project's second phase.
• The recent municipal, provincial, and federal legislative action in Canada has especially focused on single-use plastics. Following the approach set out in the EU's 2018 Plastics Strategy, the Canadian government recently announced its intention to ban single-use plastics. Also, the Canadian province of Ontario is expanding the extended producer responsibility (EPR) scheme for paper packaging from covering half of the recycling cost to the full cost by 2023. The bill would establish a free program similar to Maine's and be applied to packaging, printing, writing paper, and food service ware.
• According to Statistics Canada, monthly sales of grocery stores in Canada hit a high of CAD 10.39 billion during the pandemic. The spread of COVID-19 and the consequent panic buying can explain this jump in sales. Such sale has increased manifold in demand for flexible packaging during the crisis. The COVID-19 pandemic has given a new foothold to single-use plastics previously criticized for the waste they generate. Flexible packaging has benefitted because of increased concerns around hygiene and the protection it provides. Specific bans on plastic shopping bags have been overturned or fees lifted due to the initial concerns reusable alternatives could spread the virus.
• On the flip side, flexible packaging products are typically made of soft plastics (various plastic polymers). The increasing awareness about the environmental effect of single-use plastic and unsustainable business practices has empowered consumers to demand a higher standard of product with a positive ecological impact. Further, initiatives such as promoting sustainable packaging by some companies in the packaging market across the country are expected to hurt the market growth during the forecast period.

• The Canadian Food industry is one of the major consumers of the flexible packaging market in the country, owing to increasing demand for easy-to-use and small packaging solutions, with consumer growing demand for ready-to-eat types. In recent years, the country has witnessed increasing demand for snack and convenience foods in small or single-size portions, increased spending on short-run ready meals and coffee or hot chocolate sticks and pouches, dehydrated foods, snack foods, and nuts, bakery products, among others. All these products are some of the major consumers of flexible packaging solutions in the country, hence expanding the studied market scope.
• The agriculture and Agri-Food Minister announced a CAD 376,200 (USD 299,869) investment in the Canadian Produce Marketing Association. The CPMA is a non-profit organization whose mission is to improve Canada's fresh produce market and make it easier for its member organizations to trade produce. The funds will be used to fund a national pilot project to assist in developing sustainable package design and material solutions that are more recyclable or compostable.
• According to StatCan, in October 2022, manufacturer sales of snack food totaled around CAD 383 million. In March 2022, manufacturer sales of sugar and confectionery items totaled around CAD 464.83 million. Such huge sales of food products would create an opportunity for the local and international flexible players to develop new products to cater to a wide range of customer needs and capture the market share.
• According to the Canadian Agri-Food Trade Alliance, Canada is the world's fifth largest exporter of agricultural and agri-food products, trailing only the EU, the United States, Brazil, and China. In agriculture and agri-food goods, Canada expects to export USD 82.2 billion by 2021. Half of our beef/cattle, 70% of our soybeans, 70% of our pork, 75% of our wheat, 90% of our canola, and 95% of our pulses are exported. Over 90% of Canadian farmers rely on exports, as does 40% of the food processing industry. Such huge exports would create an opportunity for the studied market to grow.
• Furthermore, stringent government regulations regarding food product safety and other information make flexible packing a preferred choice, owing to their connivance for printing and marketing purposes. The safety of all materials used for packaging foods is controlled under Division 23 of the Food and Drugs Act and Regulations, Section B.23.001. Flexible packaging is also gaining traction owing to the increasing number of product launches in the studied sector. As more and more food manufacturing companies increase investment in innovative and informative packaging, the scope of the studied market will also expand.

• According to the FAO (Food and Agriculture Organization), in 2021, Canada's capacity for wrapping and packaging paper and paperboard will be 3.8 million metric tons. The capacity of Canada is predicted to remain stable until at least 2026.Forest Products Association of Canada (FPAC) provides the voice for Canada's wood, pulp, and paper producers nationally and internationally in government, trade, and environmental affairs. Further, the CAD 69-billion-a-year forest products industry represents 2% of Canada's GDP and is one of Canada's largest employers operating in more than 600 communities and providing around 230,000 direct jobs across the country.
• Further, to meet consumer demands, food, and beverage manufacturers are making greater efforts to provide sustainable materials and packaging, functional and convenient displays, and healthier food options. Paper bags are becoming increasingly popular in restaurants, hotels, and cafes, among other food establishments. Similarly, the growing popularity of on-the-go meals and online food delivery services has increased the demand for paper bags in food service. Additionally, Paper bags meet the consumer demand for secure, leak-proof, and recyclable packaging. Paper bags are gradually replacing plastic packaging solutions in areas where takeout and online food delivery are becoming popular. Paper Packaging will also cater to the increasing demand from the food and beverage sector.
• Moreover, WestRock Company, a developer of specialized paper and packaging solutions, partnered with Recipe Unlimited in April 2022 to adopt a recyclable paperboard packaging suite to divert 31 million plastic containers from landfills in Canada each year. Recently, the package first appeared in Swiss Chalet restaurants, which are currently available in all of the company's locations.
• To capture the market share in the country different paper packaging firms are providng new products. For instance, in August 2022, Duro, a Novolex brand, is releasing Load & Fold Shopping Bags and Load & Seal Shopping Bags, tamper-evident paper bags that provide restaurants and retailers with more secure transit and deliveries. Duro, a Novolex brand, has introduced Load & Fold and Load & Seal Shopping Bags. The tamper-evident paper bags provide restaurants and businesses with more secure transportation and delivery. The bags have a large aperture for convenient loading, a flat bottom for keeping objects secure, and robust paper twist handles for easy and dependable carrying.
• Further, in November 2022, Pet Valu, Canada's premier specialty retailer of pet food and pet-related goods, that will discontinue the sale and distribution of single-use plastic shopping bags at all corporate and franchised sites across the country, excluding Quebec. Customers are encouraged to bring their own reusable shopping bags, but they will also be able to purchase recyclable paper bags at the checkout.

The Canada flexible packaging Market is moderately competitive owing to the presence of multiple players. The players in the market are adopting strategies like product innovation, mergers, and acquisitions to expand their product portfolio, expand their geographic reach, and primarily stay competitive in the market.

• April 2022: Cascades Inc., a packaging manufacturer, has announced the addition of a 100% recycled polyethylene terephthalate (PET) tray that can be widely recycled in Canada to their eco-friendly packaging line. According to the company, the composition of the tray and optimal recycling design give it an alternative to conventional difficult-to-recycle food packaging. The design also makes the tray compatible with packaging machinery already used by food processors and retailers.
• February 2022: Belle-Pak Packaging, a Canadian manufacturer of flexible packaging, has been bought by US-based ProAmpac, a firm specializing in material science and flexible packaging. Based in Ontario, Belle-Pak provides various packaging products, such as poly mailers for online and logistics services, specialized medical and clinical bags, and packing list envelopes.

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