Converted Flexible Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Converted Flexible Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Converted Flexible Packaging Market is expected to reach a CAGR of 5.79% during the forecast period (2022 - 2027). Innovative packaging and growing utilization in end-user industries such as food & beverage, pharmaceuticals, and health & beauty are expected to promote market forecasts. The ongoing conversion from rigid to flexible formats and consumer interest in single-use packaging will continue to drive the market.

Key Highlights

• The increasing demand for convenience-oriented processed products such as food is driving the need to transform flexible packaging, as they typically use high-barrier, high-grade packaging materials for longer shelf life. The industry is also noticing an increasing trend towards environmentally friendly formats. Innovative products such as auto-venting films that allow frozen and other foods to be steamed inside the package could represent a breakthrough in technology improvement and development.
• The growing e-commerce market in various countries creates special demand for cardboard and corrugated products, especially from transportation and logistics companies. In addition, the environmental friendliness of packaging materials has made them more popular and is driving the market.
• Further, aluminum foil is one of the popular packaging materials for converted flexible packaging. Many products, from food and beverages to cosmetics, are packaged in aluminum to maintain product integrity throughout their shelf life. According to European Aluminum Foil Association, the first three months of 2021 saw deliveries from European foil rollers reach 245,000 tonnes, up by 2.3% compared to 2020 (239,500 tonnes), led by striving performance in overseas markets, where the growth of over 10% was achieved.
• The transformed flexible packaging industry is being challenged by rising material costs and increased demand for products such as low-fat snack foods. These products require innovative technology and material combinations to meet packers' freshness needs. Technological advances include controlled and modified atmosphere (CAP/MAP) packages, resulting in much longer shelf life for produce, meat, and other products.
• The recent outbreak of COVID-19 has left converted flexible packaging manufacturers in a deluge of concerns expected to be short-lived. The pandemic lockdown impacts include supply chain disruptions, unavailability of raw materials used in manufacturing, labor shortages, price volatility that can bloat end product production and exceed budgets, and shipping issues. etc. is included.

Key Market TrendsFood & Beverage to Drive Growth in the Converted Flexible Packaging Market

• The converted flexible packaging market is anticipated to rise exponentially during the forecast period owing to factors such as increased consumption of meat products. Factors such as global population growth, income growth, and urbanization are strongly and positively associated with meat product consumption. The World Health Organization (WHO) evaluates that meat consumption could rise to 376 million tonnes by 2030.
• Seafood will continue to be one of the leading food markets driving growth in the converted flexible packaging sector. Seafood will continue to lead the market against meat and poultry over the coming years. It will be supported by ongoing consumer demand for individually wrapped portions and case-ready and pre-seasoned proteins.
• Companies are focused on innovating, sustainable products for the food and beverage industry. For instance, in March 2022, Graphic Packaging International, a textile-based consumer packaging solutions manufacturer, expanded its range of sustainable multi-pack packaging for the beverage industry. In line with its commitment to continuous product innovation to support a more circular economy, the company has launched its EnviroClip. It is a soft material paperboard alternative to the standard plastic ring and shrinks film for beverage cans. Such innovations drive the market for converted flexible packaging.
• Similarly, in April 2022, Amazon unveiled new packaging that uses recycled paper. Whether customers order refrigerated or frozen groceries from Amazon Fresh and Whole Foods Market, they are delivered segregated in packages that are easy and convenient for customers to recycle at home. Transitioning to fully recyclable insulation packaging reduces material waste, replacing approximately 735,000 pounds of plastic film, 3.15 million pounds of natural cotton fiber, and 15 million pounds of non-recyclable mixed plastics yearly.
• Moreover, the rising consumption of baked goods continues to drive the adoption of flexible plastic packaging solutions to extend shelf life. With around 80% of bakery products sold in converted flexible packaging and bakeries now producing a wider variety of bread and more items, market participants are developing advanced solutions to meet market demand.

Asia-Pacific Holds a Dominant Position in the Market

• The Asia Pacific is one of the important and fastest growing regional markets. Given the great potential in developing markets such as China and India, the transformed converted flexible packaging industry has recently seen several strategic partnerships, asset exchanges, capacity expansions, mergers, and acquisitions.
• For instance, in August 2022, ePac Flexible Packaging announced that it would accelerate its growth over the next 18 months and transition into a global company. Eleven new sales and manufacturing locations will be established in Asia Pacific, Europe, and other regions, expanding ePac's global footprint to 36 locations.
• Seafood is one of the main drivers of growth in the converted flexible packaging market. According to the Food and Agriculture Organization (FAO), an additional 40 million tonnes of seafood will be needed by 2030 to meet rising demand or a nearly 30% increase. As China's processing, distribution, and cold chain systems improve, frozen and processed seafood consumption is expected to grow steadily. Additionally, the growing popularity of high-end supermarkets and consumer desire for a more varied and nutritious diet, including seafood, is seen as an increase in frozen and processed fish sales.
• In recent years, India has seen sustained growth in packaging owing to rising consumption of packaged food, awareness, and demand for quality products. Consumer awareness of packaged food, especially packaged food delivery, is increasing. In 2021, the Food Safety and Standards Authority of India (FSSAI) announced new packaging regulations to replace the 2011 regulations. The new rules include migration limits of 60 mg/kg or 10 mg/dm2 and migration limits for certain contaminants in plastic packaging materials.
• In addition, growth in the region is expected to be supported by opportunities for printed packaging and increasingly specialized film packaging for meat products. Polyethylene is expected to continue to be the most widely used film in Asia-Pacific due to its cost-effectiveness, versatility, downgrade capability, and excellent barrier properties.

Competitive Landscape

The Converted Flexible Packaging Market is moderately competitive and concentrated and consists of some influential players. Regarding market share, some of these major players currently dominate the market. The market is showing an increase in growth rate due to constructive forces from internal and external market forces. Certain areas of the market are expected to gain absolute dominance in the market due to improved strategies. Market-absorbed costs are easily handled, creating room for market expansion.

• May 2022 - ProAmpac announced the acquisition of Specialty Packaging, Inc., a family-owned manufacturer of specialty packaging products in paper, film, and foil for the fast food and hospitality industries. The addition of Specialty Packaging's complementary product portfolio and manufacturing capabilities will extend ProAmpac's reach to food service customers and expand its footprint in the Southwest United States.
• August 2021 - Amcor has announced plans to construct two new state-of-the-art innovation centers. The new facilities in Belgium, and China. The company will welcome customers from mid-2022 and fully extend over the next two years. The total investment is expected to be approximately USD 35 million.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.