Europe Flexible Packaging Market - Growth, Trends, COVID-19 Impact, Forecast(2022 - 2027)

Europe Flexible Packaging Market - Growth, Trends, COVID-19 Impact, Forecast(2022 - 2027)

The Europe Flexible Packaging Market has been expected to grow at a CAGR of 4.01% during the period. The Covid-19 pandemic resulted in a growing demand for flexible packaging in the region due to new or heightened hygiene, consumer-safety concerns, and the drive for redefined sustainability. Technological innovation, sustainability trepidations, and attractive economics are the major factors driving the growth of innovative and more sustainable, flexible packaging. Also, the increasing demand for customer-friendly packages and heightened product protection are expected to drive the market's growth in Europe.

Key Highlights

• The need for longer shelf life, increased adoption of flexible packaging over rigid packaging, demand for lightweight products, and changing lifestyle of people in Europe have been the primary drivers of the market. As flexible packaging is known to have better barrier capabilities, it can effectively protect the product from moisture and oxygen, which is particularly important in the pharmaceutical industry, where the production capacity is of prime importance.
• Various food and beverage manufacturers have been turning to flexible packing to add convenience and improve the consumer experience. Also, the price of the pouches is lower and provides high comfort, which has increased the demand for pouches across the region. In the food industry, beyond convenience, other characteristics, such as sustainability, transparency, food safety, and reduction in food waste, influence the flexible packaging choice for meat, poultry, and seafood.
• The growth of the e-commerce industry and the increasing need for convenience are shaping new customer expectations in Europe. Some E-commerce and home delivery businesses are experiencing a massive boost during the pandemic, where packages require better impact and puncture resistance, driving a shift from rigid to flexible packaging for liquid products, as enhanced integrity is required with e-commerce purchases, thereby driving the growth of the market in the region.
• The consequences of the financial crisis on the consumer’s purchasing power, rising commodities prices, and other such factors can be challenging to the European market. Also, some environmental concerns about recyclability and sustainability may slightly hamper the market's growth due to the common use of plastic material for flexible packaging. Furthermore, regulations concerning disposal and recycling are becoming stringent in several European countries, which might challenge several regional vendors.
• With the covid-19 pandemic, restaurants have shifted to take-away and food deliveries during lockdowns, driving the demand for packaged food, such as Frozen meat, fish, etc., which increased the need for flexible packaging. Also, using at-home refill packaging for home and personal care products has generated a new potential for flexible plastic refill pouches that minimize shipping weight and parcel size in transit.

Key Market TrendsE-Commerce Industry to Drive the Flexible Packaging Market in the Region

• The COVID-19 pandemic has enhanced the growth of the E-commerce industry where many of the online shopping habits European consumers adopted over lockdown. Moreover, with increased E-commerce intensifying consumers' concerns about packaging, there has been an increasing demand for sustainable, flexible packaging in the region.
• Various companies have been focusing on expanding their portfolio to cater to the demand for flexible packaging in Europe. For instance, Mondi has been investing in its European operations to improve and grow its services to customers, upscaling MailerBAG production to approximately 350 million bags per year, responding to strong growth and customer demand for flexible packaging in eCommerce. When used to replace standard plastic mailers, the company's scale-up in production is expected to have the potential to substitute approximately 7,000 tonnes of plastic per year. Furthermore, in June 2021, Mondi also expanded its paper-based MailerBAG range to replace plastic packaging in e-commerce with a recyclable solution made of responsibly sourced, renewable materials.
• The E-Commerce industry requires flexible packaging such as bags, mailers, and folders that use less material than similar-sized boxes, weigh less, and conform around the product, taking up less space than a box during shipping. This makes flexible packaging to pack more orders in each load, resulting in fewer trips, less fuel burned, and a smaller carbon footprint. Such potential advantages drive the demand for the market in the region.
• Growing demand for packaged food and non-food items across Europe propels the retail industry's expansion. It generates a unique need for flexible packaging solutions, which is anticipated to greatly accelerate the growth of the plastic packaging market.
• Flexible packaging is the lightweight alternative that can be used to eradicate costs associated with production, damage, replacement parts, returns, waste, and shipping by allowing material handlers to transport more products with less, which is an ideal solution for e-commerce professionals working with a tight budget. In addition, many small and medium enterprises in the region have been looking for enhanced protection with extended shelf life against various ways that food can be spoiled, such as air, moisture, and sunlight, thereby driving the demand for flexible packaging.

United Kingdom to Witnesses Significant Growth Opportunities in the market

• The growing urban population in the United Kingdom, altering patterns in lifestyle, including decreasing the amount of time spent on the preparation of meals, is leading to a shift toward more processed, easily packed, and pre-prepared foods and snacks, which is expected to propel the growth of the market studied. Also, the rise in demand for packaged foods, ready-to-eat foods, frozen foods, and luxury foods is also likely to increase the demand for flexible packaging solutions in the country, owing to its ability to extend the shelf life of such products.
• Moreover, the growth of e-commerce sales, increasing demand from the food and beverage manufacturers for eco-friendly and recyclable packaging, and increasing demand for personalization of products have been driving the growth of sustainable, flexible packaging solutions in the region.
• Various vendors have been focusing on strengthening their position in flexible packaging and broadening their sustainable solutions portfolio and extending their reach across the region. In July 2021, ProAmpac acquired Ultimate Packaging, a pioneer in flexographic and digitally-printed flexible packaging based in the United Kingdom, to expand ProAmpac's product portfolio. Ultimate packaging specializes in developing innovative packaging solutions to increase product shelf life, convenience, and recyclability across a range of product sectors. With the acquisition, the company is looking forward to gaining further growth opportunities in the region.
• Due to the COVID-19 pandemic, the United Kingdom has witnessed lockdown restrictions, which led to panic buying, which imposed massive pressure on the FMCG companies to adopt flexible packaging solutions, as the food companies have increasingly witnessed an inclination towards pre-packaged food in smaller, consumer-sized packaging. Furthermore, as flexible packaging increases the product's shelf life, customers have preferred flexible packaging in the region.

Competitive Landscape

The Europe Flexible Packaging Market is concentrated and is dominated by a few major players like Amcor PLC, Mondi Group, Wipak Group, Sealed Air, and Constantia Flexibles. These major players have a prominent share in the market and are focusing on expanding their customer base by leveraging strategic collaborative initiatives to increase their market share and profitability. With better technological advancements and product innovations, mid-size to smaller companies are growing their market presence in Europe by securing new contracts and by tapping new markets.

• June 2022 - Constantia Flexibles and Plasthill Technical Films, a company of the Dutch Oerlemans Packaging Group, have partnered to bring Constantia Flexibles’ proprietary technology, CompresSeal, to the market in Europe as part of Expansion.
• April 2022 - Amcor announced an investment to expand its new thermoforming capabilities for medical packaging in its Sligo, Ireland, healthcare packaging facility. The expansion will strengthen Amcor’s leadership in the growing industry for sterile packaging, providing customers in Europe another site with inclusive healthcare solutions

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