World Demand for Converted Flexible Packaging to Exceed 19 Million Metric Tons in 2013

World demand for converted flexible packaging is forecast to increase 3.5 percent per year to over 19 million metric tons in 2013.  Factors contributing to rising demand will include growth in food and beverage production, which represents the largest market by far.  In addition, cost, performance and source reduction advantages, as well as ongoing developments in high-barrier resins and value-added features, will continue to favor flexible packaging products over their rigid counterparts. Gains will be limited by the mature state of the packaging industry in developed areas such as the US, Western Europe and Japan, where the main markets for flexible packaging are well-established.  Material downgauging will also restrain volume gains. These and other trends, including market share and product segmentation, are presented in World Converted Flexible Packaging, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

The fastest increases will occur in the world’s developing regions.  Asia, Latin America, Eastern Europe and the Africa/Mideast region will all outpace the global average.  Population growth and greater urbanization (except in Eastern Europe), industrialization trends, and expanding international trade will support advances in these regions’ generally underdeveloped packaging sectors. 

Some of the best gains are expected in China, which has surpassed Japan to become the world’s second largest converted flexible packaging market (behind the US); and India, which will benefit from strong growth in domestic output and consumer product markets.  Rapid gains are also expected in Russia and Indonesia, which will benefit from greater investment in state-of-the-art manufacturing equipment, resulting in improved product quality.

Plastic films, which account for almost three-quarters of global converted flexible packaging material demand, will continue to make inroads at the expense of paper and aluminum foil.  Plastics will benefit from a superior price/performance profile, versatility, and efforts to improve sanitation and extend product shelf lives in the food and beverage, pharmaceutical and personal care markets.  In addition, developments in flexible packaging films, such as breathable properties, biodegradable films and high-barrier resins, will support demand in new and existing applications, particularly in the food and pharmaceutical industries.  Novel value-added features, including microwaveable pouches, resealable stand-up pouches and pouring spouts, will reflect increasing consumer preference for convenience-oriented processed food, especially in developed countries.

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.