Flexible Paper Packaging Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Flexible Paper Packaging Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The flexible paper packaging market is expected to register a CAGR of 3.89% over the forecast period. The increasing demand for sustainable and environment-friendly packaging solutions is a significant driver of the flexible packaging paper market, given the market has a high adoption, creating potential growth opportunities for manufacturers.

• Researchers and stakeholders in the global market are collaborating to overcome the challenges in the flexible packaging paper market and fulfill the demand from various end-use industries such as food, consumer goods, pharmaceuticals, personal care products, etc.
• Various food and beverage manufacturers have turned to flexible packaging to improve consumer convenience and experience. Furthermore, the pouches are less expensive and provide greater comfort, increasing demand for pouches throughout the region. Beyond convenience, other characteristics, such as sustainability, food safety, and reduction in food waste, influence the flexible packaging choice for various sectors in the food industry.
• The availability of substitutes in the market, such as plastic, can hinder the market's growth. Paper offers less of a barrier to oxygen, light, and microbes than other packaging materials, such as plastic. As a result, the items it stores food products have a shorter shelf life when stored in paper packaging.
• The coronavirus had a devastating impact on all businesses and manufacturing industries worldwide. Long-term lockdowns and disrupted supply chains have significantly affected the flexible packaging paper market. During the COVID-19 outbreak, decreased production of flexible packaging paper created difficult manufacturing situations. In the flexible packaging paper market, key players are looking for ways to overcome these challenges. Market participants are effortlessly contributing to establishing their businesses to keep the economy running amid the ongoing pandemic.

• The packing industry has undergone a massive transformation in recent years, owing to an increase in the number of start-ups around the world, the introduction of diverse categories of food and non-food products, and increased demand for food and beverages during the pandemic.
• There is an increasing awareness of the negative environmental impact of using various pollutant materials for packaging purposes. Environmentally conscious consumers are looking for environmentally friendly and long-lasting packaging materials. Consumers worldwide are becoming interested in biodegradable and recyclable packaging papers. As a result, manufacturers in the flexible packaging paper market are increasing their production capacity to meet demand from various end-use industries globally.
• Governments are also increasing awareness about the advantages of environmentally friendly, lightweight, and recyclable packaging papers. This flexible packaging paper is non-hazardous to the environment. The growing trend of using eco-friendly packaging solutions propels the flexible packaging paper market forward.
• Reduced production of single-use plastic, viewed by sustainability experts as one of the most harmful packaging types and has resulted in a severe accumulation of waste globally, particularly in oceans, is a critical component. Nestlé and PepsiCo have set goals of making 100% of their packaging recyclable, reusable, or compostable by 2025.
• Nestlé expands its paper presence, with its Japanese subsidiary introducing recyclable paper packaging for its KitKat products. Nestlé has also announced the introduction of a second product in paper packaging. The Nesquik All Natural powder will get packaged in a recyclable paper pouch that has been Forest Stewardship Council certified. Recently, the company introduced its YES! bars in recyclable paper. It aligns with the company's goal of making its packaging recyclable or reusable by 2025.
• Furthermore, Mondelēz International, a global snack company, is committed to making all its packaging recyclable by 2025. In line with its strategy to deliver zero-net waste packaging, the company launched its Cadbury Energy bar in New Zealand in December with new packaging made from 100% recyclable and sustainably sourced paper. According to Confectionary News, for the first time, the company has used a paper material that does not include laminates, foils, or plastics for fully-sealed flow-wrap packaging. Also, As an alternative to the existing thermoformed plastic blister package, Sonoco Alloyd introduced an all-paper retail blister package.
• There has been a rapid shift toward promoting sustainable items for packaging rather than traditional plastics. It is primarily due to the growing popularity of sustainability among people all over the world. Flexible packaging will revolutionize the entire packaging industry, particularly regarding sustainability, considering the accumulation of massive waste and environmental deterioration caused by dumping conventional packaging materials. It has enabled numerous manufacturers worldwide to devise creative strategies to minimize the amount of packaging waste and incessantly adopt flexible packaging in their products.

• Paper bags meet consumer demand for safe, leak-proof, recyclable packaging. In areas where takeout and online food delivery are becoming popular, paper bags are gradually replacing plastic packaging solutions. Paper packaging will meet rising demand from the food and beverage industries.
• The Asia Pacific region will grow due to the demand that will likely expand in the area due to its significant potential expansion. As the focus changes to eco-friendly and sustainable practices, paper packaging demand has been growing across several industries in the Asia Pacific, including food and beverage, healthcare, personal care, home care, retail, and others.
• Furthermore, the use of packaging materials has increased in tandem with the growth of the e-commerce industry. On the other hand, the food & beverage industry has taken the lead, with an increasing number of companies revising their packaging strategies. Companies in the food and beverage industries are looking for environmentally friendly alternatives to traditional packaging materials such as wrappers, cartons, bottles, and other options.
• Companies are increasingly using flexible packaging paper for packaging in various end-use industries. The increasing use of flexible and lightweight packaging paper in food, pharmaceuticals, agriculture, personal care and cosmetics, and consumer goods creates value-added opportunities for market participants. The most profitable market for flexible packaging paper solutions is the food industry. Consumption of ready-to-eat and frozen foods is increasing worldwide, creating lucrative opportunities for manufacturers in the flexible packaging paper market.
• Furthermore, rising disposable income, changing lifestyles, and demand for convenience food items are driving demand for flexible packaging paper solutions used for packaging food items such as dairy products, grains, fruits and vegetables, bakery and confectionaries, and other ready-to-eat products. The rising popularity of these food products in developing and underdeveloped countries helps to drive market growth.
• The increasing use of flexible paper packaging in various end-use industries such as healthcare, personal care, food & beverages, and consumer goods will drive the market forward. In addition, other factors like rising disposable income, growing working population, and increasing demand for packed food will soon contribute to the market growth for flexible paper packaging.
• The eCommerce market has increased significantly, accounting for approximately 20% of global retail sales in 2021. The companies are distributing a broader range of goods, necessitating packaging of various sizes, shapes, and strengths. According to Mondi's annual consumer trend research, online retailers actively seek practical packaging solutions that ensure optimal protection of goods shipped while also being environmentally friendly - 82% of customers prefer recyclable eCommerce packaging.

Globally, there is an increasing presence of manufacturers operating in the flexible packaging paper market. The growing competition among small and medium-sized market players to provide sustainable and environmentally friendly packaging solutions to gain consumer attention is driving demand for flexible packaging paper. To stay ahead of the competition, these market participants employ various strategies such as innovations, the launch of new products, partnerships, and others.

January 2022 - Amcor launched a new platform for paper-based packaging. AmFiber products offer customers high performance and differentiation across multiple applications. AmFiber innovations aim to redefine the capabilities of traditional paper packaging, providing a more comprehensive range of features and functional benefits to meet the changing needs of consumers.

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