Growth Flexible plastic packaging market looks promising
A growing need for innovative flexible plastic packaging options that meet recyclability, regulatory, and sustainability standards are further factors augmenting lucrative market expansion possibilities. Frost & Sullivan, a global consulting firm, forecasts the global flexible plastics packaging market to generate revenues of $172.29 mill. from 2018 to 2023 with a steady CAGR of 3.2% during this period.
From a regional perspective, Asia-Pacific is expected to witness the highest growth rate during the forecast period due to the increasing number of dual-income households. While North America faces challenging competition from emerging markets and is set to experience average growth, European regulations regarding recyclability and sustainability of plastics used in packaging are expected to impact this region.
Sustainability is key
From a competitor position, the supply base is fragmented with multinational companies playing a dominant role in most regions; the top five participants typically cater to less than 30% of the market. To gain a competitive advantage, the study recommends players emulate innovative companies such as Amcor, Berry, Huhtanaki, and Mondi, and introduce product innovation aimed at sustainability, enhanced consumer convenience, and ensuring higher recyclability.
Additional growth opportunities participants should aim to secure include:
- Expanding operations into emerging regions such as Asia-Pacific, where demand for flexible plastic packaging is expected to surge given the growing need for these products across end-applications.
- Introducing products that promote less use of natural resources, produce less waste, improve shelf-life, and are cost-effective.
- Increase production capabilities to cater to the growing demand for packaged foods such as ready-to-eat meals, frozen meals, snack foods, and cake mixes.