Published: Aug, 2016
With a large number of manufacturers operating in the global flexible packaging market, the competitive rivalry among the player is significantly high, reports Transparency Market Research in a new study. The flexible packaging market is highly fragmented in nature as the top four companies accounted for almost 15.6% of the overall global revenue in 2012. The four prime companies leading the global flexible packaging market are Amcor Ltd., Sealed Air Corporation, Bemis Company Inc., and Sonoco Products.
As a result of the prevailing environmental regulations, consumers are shifting their focus towards bio-based flexible packaging. To maintain their position in the market, the companies are focusing on product innovation and technological advancements. To meet the environmental regulation clauses, the manufacturers are aiming at producing flexible packaging products using bio-based products.
Growth in Healthcare Industry to Drive Demand for Flexible Packaging
According to a TMR analyst, “By application, the healthcare industry is one of the leading industries and accounted for almost 10% of the overall global GDP in 2011.” The healthcare industry is classified into two segments such as pharmaceuticals, biotechnology and related sciences, and healthcare equipment and services. These segments comprise products that are required to be carefully packed and transferred. For instance, pharmaceuticals include drugs that are vulnerable to rough handling such as orally administered drugs. These drugs are packed using pouches, blister packs, and healthcare product sachets.
With a rise in subsidiaries provided by the government, growing consumer awareness, rising geriatric population, and increased prevalence of chronic diseases, the healthcare industry is expected to rise at significant rate. As a result of this, the demand for flexible packaging is also anticipated increase in the industry hence positively affecting the global flexible packaging market. Furthermore, the implementation of strict regulations regarding packaging of medical equipment in North America and Europe is projected to further increase demand for flexible packaging in the coming years.
Mounting Cost of Raw Materials to Affect Productivity of Flexible Packaging Industry
The prime raw material used in the manufacturing of flexible packaging are cellulose, plastics, aluminum foil, polymers and paper. Flexible packaging films require the addition of polymers during their manufacturing as polymers provide durability, are chemical resistant, and attractive. As polymers are petroleum derivative, the fluctuating prices of crude oil due to the depleting petroleum resources have negatively affected the production of polymers. Thus, the high price volatility of petroleum derivatives is likely to impact the production of flexible packaging products leading to a consecutive downfall in the sales of flexible packaging.
Burgeoning Use of Nanotechnology in Flexible Packaging to Provide Lucrative Opportunities to Manufacturers
To enhance the shelf life of food products, ensure freshness, and improve safety standards, the food industry has shifted its focus towards the use of smart packaging materials. Smart packaging is an emerging nanotechnology application that manufacturers of flexible packaging are capitalizing on. The use of nanotechnology in the manufacturing of flexible packaging products ensures better product quality for a longer period of time. It is also used for the development of ameliorated and antimicrobial barriers for food safety. For instance, smart packaging materials used for bakery goods and meat packing contain cinnamon oil wax paraffin. Thus, these kind of developments in nanotechnology based flexible packaging is likely to provide manufacturers with better growth opportunities for future.
The global flexible packaging market is projected to expand at a CAGR of 4.4% between 2013 and 2019. In 2105, the global flexible packaging market stood at US$83.1 bn and is anticipated to reach a market worth US$99.1 bn by the end of 2019. Asia Pacific is likely to maintain a lead in the global flexible packaging market with a share of 31.7% in 2019 in terms of volume. Food and beverages is expected to emerge as the key application segment until 2019.
The review is based on the findings of a TMR report titled, “Flexible Packaging - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 – 2019.”
Flexible Packaging Market: Product Analysis
Flexible Packaging Market: Application Analysis
- Food & beverages
- Retail non-food
- Others (Includes packaging of industrial machines, vending machines, etc.)
Flexible Packaging Market: Regional Analysis
- North America
- Asia Pacific
- Rest of the World
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