Coherent Market Insights estimates the flexible packaging market will account for $400 billion in terms of value by the end of 2027, witnessing a CAGR of 5.40%.
Market Drivers
The global flexible packaging market growth is driven by investment in compostable flexible food packaging. For instance, in December 2020, TIPA, an Israeli-based startup developing sustainable packaging solutions, raised $4 million from Millennium Food-Tech, a Tel Aviv-listed investment vehicle, for its compostable flexible food packaging.
Moreover, development and launch of new products is also expected to propel growth of the global flexible packaging market over the forecast period. For instance, in September 2020, Amcor Ltd. announced the world's first recyclable flexible retort pouch, which uses Amcor's AmLite HeatFlex Recyclable solution.
Market Opportunities
Increasing funding for sustainable plastic packaging is expected to offer growth opportunities for players in the global flexible packaging market. For instance, in December 2020, UK Research and Innovation (UKRI) announced $35.25 million worth of funding for projects that improve plastic packaging across the retail supply chain.
Moreover, acquisition of other companies is also expected to offer growth opportunities for players in the global flexible packaging market. For instance, in October 2021, C-P Flexible Packaging acquired Preferred Packaging, a privately held packaging manufacturer.
Market Trends
The organization cites an increase in concerns regarding plastic pollution, which is expected limit demand for flexible packaging. For instance, the study, “Plastic pollution is killing marine megafauna, but how do we prioritize policies to reduce mortality?” published in December 2020, in Conservation Letters, reported that flexible plastic is responsible for the largest proportion of debris deaths, primarily due to gastric obstructions, in oceans.
Major players operating in the global flexible packaging market are focused on adopting expansion strategies to enhance their market share. For instance, in December 2020, Plastic Packaging Technologies LLC started a 130,000-square-foot "Center of Excellence for Flexible Pouching" in a portion of Turner Logistics Center's third building in Kansas City.
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