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Analysis
Flexible packaging market to grow by 4.2% per year
Demand for converted flexible packaging is forecast to expand 4.2 percent per year to $16.5 billion in 2011. Growth will be attributable to cost, performance and source reduction advantages over most rigid packaging. Moreover, heightened barrier requirements in many markets will drive increased demand for value-added materials to enhance shelf life or product protection. Developments in breathable and self-venting films and resealable features will also fuel growth. Additionally, demographic changes such as greater numbers of single-person households and older consumers will support demand for more convenient prepared foods and single-serving portions. This trend will boost material consumption as smaller packages tend to use more packaging relative to their size.These and other trends are presented in Converted Flexible Packaging, a
new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.
Among major converted flexible packaging types, pouches will log the fastest
advances, with demand expected to grow 5.9 percent per annum to $6.9 billion in
2011. Solid prospects will be driven by continued expansion of the stand-up pouch
segment and healthy gains for flat pouches in certain markets. In addition, process
enhancements such as faster line speeds and the increasing incorporation of such
value-added features and properties as spouts, zippers, retortability and
microwaveability will further boost prospects for pouches. Bags will post more
moderate growth based on the maturity of many applications along with loss of share for
paper bags to plastic bags and sacks, and pouches. Food applications will outpace the
bag average, benefitting from ongoing widespread usage with produce and meat
products.
Food markets are projected to increase 4.5 percent per year to $11.6 billion in
2011. Heightened demand for food in smaller package sizes or larger multipacks
containing smaller units will bode well for converted flexible packaging demand. The
produce, meat and related products, beverage and frozen food markets will enjoy the
fastest growth. Nonfood markets are forecast to climb 3.5 percent per year to $4.9
billion in 2011, aided by cost, source reduction, barrier protection, product visibility, theft
protection and product unitization advantages. The pharmaceutical and medical
markets will expand more rapidly based on heightened barrier requirements, cost and
convenience advantages, and adaptability to growing unit-of-use requirements.
