Flexible Plastic Packaging Market: Global Opportunity Analysis and Industry Forecast, 2021-2031 Market

Flexible Plastic Packaging Market Outlook - 2027

Packaging is very important for any industry as proper packaging ensures safety prevents malfunctioning of the product. Different types of packaging are currently being used in the industry. Flexible plastic packaging is a type of packaging whose shape can easily be changed according to the size and shape of the product. Different types of plastics are used for flexible plastic packaging of products. Polyvinyl chloride, polystyrene, polypropylene, and polyethylene are some types of plastics used for production of flexible plastic packaging.

COVID-19 scenario analysis:

• The demand for flexible plastic packaging is expected to decrease in 2020 due to low demand from different industries, such as pharmaceuticals and food, owing to the lockdown imposed by governments of many countries.
• COVID-19 crisis is estimated to affect the flexible plastic packaging industry negatively, owing to halted manufacturing and massive reduction in demand for luxury and non-essential services globally.
• COVID-19 crisis had a mixed impact on the packaging industry due to closure of physical retail stores globally. However, the availability of online retailing has absorbed the high impact of this shutdown.
• The requirement of e-commerce specific packaging is estimated to remain strong; although, e-commerce companies would have to focus on protection of goods and sanitization of packages. 
• In addition, the food packaging industry is on the frontline of the global packaging market, owing to the demand for essential products such as groceries and fresh food from local e-retail sites. 
• Industrial, transportation, and bulk packaging have faced a sharp decline, owing to decreased demand for non-essential goods during the first two quarters of 2020. 
• Low disposable income of maximum population and weak demand for packaging from industrial goods led the packaging industry to face significant pressure of reduction in both wholesale as well as retail costs. 
• Consumers are estimated to remain hesitant toward luxury products, travel, and hospitality services. This is expected to hinder the packaging industry growth in the future after the COVID-19 crisis. 

Top impacting factors: Market scenario analysis, trends, drivers, and impact analysis

Flexible plastic packaging offers a wide range applications in various industries such as food & beverages, pharmaceuticals, fruits & vegetables, e-commerce, and electrical & electronics. Flexible plastic packaging products come in different types such as sacks, tubes, films, pouches, and sachets. Flexible plastic packaging products are light in weight, more flexible, and durable. These properties of flexible plastic packaging products are preferred over the other types of packaging such as rigid plastic packaging, glass packaging, and metal packaging. Rigid packaging is more likely to get corroded and there is a danger of breaking rigid packaging. Therefore, flexible plastic packaging is preferred, which will help in the growth of the market during the forecast period.  

The demand for packaged food products witnesses a rapid increase across the globe. For packing of the food products, flexible plastic packaging is widely used. In the food & beverage industry, to increase the shelf life of the packaged product, flexible plastic packaging is commonly used. The products packed in plastic packaging can be stored for a longer period of time. Different food & beverage items can be packed by using sauces & condiments, juices & beverages, dried food & mixes, baked foods & snacks, chilled food, chocolates, and coffee.   

Demand for flexible plastic packaging product is expected to rise during the forecast period, owing to various properties of flexible plastic packaging product such as light in weight, high flexibility, and durability. It can be used for the packaging of products in different industries; hence, the demand for the same is expected to rise. It is also used in the pharmaceutical industry for packaging of different pharmaceutical products. In addition, it is used for aqueous solutions, parenteral solution bags, and flexible bottles for nasal sprays, ear drops & eye drops.

Mergers and acquisitions in the packaging industry

Many companies in the packaging industry have been involved in mergers and acquisitions to get competitive advantage over other players in the market. 

In March 2018, Constantia Flexibles, one of the key players in the flexible packaging industry, acquired India-based film laminates manufacturer Creative Polyback Limited. This company produces flexible packaging for home and personal care industry as well as food industry. In February 2018, Berry Global Group, the U.S.-based manufacturer of plastic packaging products, collaborated with Spinlace Technology.

This collaboration widened the flexible plastic packaging production capacity by 18,000 metric tons. 

Key restraining factor for the growth of the flexible plastic packaging market

Governments of different countries in the world have started the initiative to ban products made from the plastic, owing to increase in pollution levels across the globe. This could be the key restraining factor for the growth of the flexible plastic packaging market.

 Flexible Plastic Packaging Market: Global Opportunity Analysis and Industry Forecast, 2020-2027 Report Highlights