Market Scenario
According to Market Research Future (MRFR), in its latest “Converted Flexible Packaging Market” report, the worldwide converted flexible packaging market 2020 can witness a sharp rise. The converted flexible packaging can surge at 5.31% CAGR through the estimated period (2017-2023). MRFR estimates the world converted flexible packaging market to value at USD 104,999.8 Mn by 2023.
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The packaging type that combines raw materials, such as adhesives, polyesters, paper & paperboard, and plastics to produce new packages, such as bags and pouches is called convert flexible packaging. Their growing food & beverages, pharmaceuticals, personal care, and consumer goods applications can prompt the convertible flexible packaging market growth.
The global market of converted flexible packaging can be driven by rise in the consumption of packaged and processed foods and beverages. The eco-friendly benefits of converted flexible packaging can fuel the expansion of the market. The use of low raw material, reduced low carbon emission, and relatively low waste production over conventional packaging formats can spur the expansion of the converted flexible market growth.
Segmentation
The global converted flexible packaging market has been segmented by material, product, and application. On the basis of the material, the market is segmented into plastic, paper, and aluminum foil. Plastic accounted for the largest market share of 45.76% in 2016 with a market value of USD 33,670.3 million. Plastic in the form of PVC, PE, PP, and others are used broadly in plastic converted flexible packaging segment. These material provide high barriers, cost-efficiency, temperature resistance and durable packaging options. These factors are pouring the demand for the plastic material.
On the basis of the product, the market is segmented into pouches, bags, and others. Pouches accounted for the largest market share of 39.62% in 2016, with a market value of USD 29,152.4 million. Pouches are available in different types including retort pouches, stand up pouches, and pillow pouches. Stand up pouches are widely used for packaging of snacks, baked goods, and pourable materials such as beverages.
Based on the application, the market is segmented into food & beverages, pharmaceuticals, consumer goods and others. Food & beverages accounted for the largest market share of 39.10% in 2016 with a value pegged at USD 28,769.8 million. High demand for ready-to-eat and on-the-go foods and drinks will influence the market demand significantly. Increase in disposable income levels and rise in population in countries of China, India, and Brazil, has led to a growth in demand for good quality packaged food. Therefore, the segment is projected to grow at a CAGR of 5.80% during the forecast period.
Regional Analysis
On the basis of the regions, the global converted flexible packaging market has been segmented into North America, Europe, Asia Pacific (APAC), and Rest-of-the-World (RoW). APAC accounted for the largest market share of 32.45% in 2016 with a market value of USD 23,876.7 million and is projected to grow at the highest CAGR of 5.62% during the forecast period. The extraordinary growth in the packaging sector is the main factor fueling the growth of the market. Growing number of supermarket chains and the high demand for multipacks of various grocery products are expected to boost the demand for converted flexible packaging products. China, Thailand, Japan, and India are the key contributors to Asia Pacific market. China accounts for the largest market share in the region mainly due to fast growth in the urbanization and industrial development.
North America is another lucrative region for the global converted flexible packaging market. Rapid growth in the retail industry and efforts to recycle materials as part of their efforts to lower plastic waste is also expected to impact the growth of the market. The presence of manufacturers such as Sealed Air Corporation (U.S.), Sonoco Products Company (U.S.), and Bemis Company Inc., and others can have a positive influence on the growth of the market. The U.S. accounted for the major market share of the North American region.
The MEA is main market in terms of demand for converted flexible packaging and is projected to grow at a CAGR of 4.23% over the review period.
Competitive Outlook
Ampac Packaging LLC, Bischof + Klein SE & Co. KG, Bemis Company Inc., Sealed Air Corporation, Sonoco Products Company, Graphics Packaging Holding Company, Constantia Flexibles Group GmbH, Oracle Packaging Inc., Honeywell International Incorporated, and Amcor Limited are prime players of the global converted flexible packaging market.
Recently, Tesco, a multinational grocery chain, has partnered with Sealed Air, SABIC, Plastic Energy, and Bradburys Cheese for creating new packaging from recycled materials. It can be used in packing of bread, cheese, salads, and other foods to maintain their freshness.
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