Pira Forecasts $71.3 Billion Flexible Packaging Market by 2016 as Asia Drives 55% of Growth

Pira International (UK), one of the founders of the research institute association, has released its latest survey report. It estimates 2011 global flexible packaging consumption at 18.1 million tonnes and a market value of US$58.3 billion; over the next five years, market value is forecast to grow at a 4.1% CAGR, reaching 22.5 million tonnes and US$71.3 billion by 2016. The report, 'Global Flexible Packaging Market Forecast to 2016,' also says that as metal cans, glass and plastic bottles are gradually eliminated by the market, flexible packaging will usher in brand-new growth opportunities.

The report notes that the booming global flexible packaging market is largely driven by new products developed by brand owners to maintain market competitiveness. Because retailers want to extend product shelf life as much as possible, high-barrier flexible packaging such as BOPET, EVOH and PA will have broader development prospects, and its market position will rise rapidly.

Adam Page, who led the report, said brand owners highly value flexible packaging's versatility, low cost and innovation potential. At the same time, it is a lightweight packaging format that can reduce environmental impact and help packaging companies achieve low-carbon production.

At present, flexible packaging markets in developed countries such as North America and Western Europe are already mature and have limited future growth potential, while markets in developing countries are poised for growth.

Asia is the largest regional market, accounting for about 29.1% of global flexible packaging sales, followed by Western Europe and North America. Asia is also the fastest-growing flexible packaging consumption market; from 2011 to 2016, its CAGR is expected to reach 7.9%, and it will account for 55% of the total growth in global flexible packaging consumption. According to Pira International, India and China are the fastest-growing countries in flexible packaging consumption, and during 2011-2016 the two countries will account for 44% of the total growth in global flexible packaging consumption.

From an application perspective, food accounted for almost three quarters of total global flexible packaging consumption in 2011; meat, fish and poultry are the foods that use the most flexible packaging, followed by candy and baked goods.

Flexible packaging outer layer materials often undergo a series of processing steps, such as printing, lamination, coating and extrusion, and may involve different substrates, such as plastic film, paper and metal foil. Flexible packaging types are also quite diverse, including plastic bags, film and lidding film, paper bags, aluminum-plastic laminated tape, aluminum foil seals, blister packaging and foil pouches.

Flexible packaging materials can be used alone or in combination according to the product's application (retail food packaging and non-food packaging, such as pet food, tobacco, cosmetics and personal care products, household detergents, pharmaceuticals and medical products), while flexible packaging films can be made from soft plastics (PE, PP, polyester or PA), aluminum foil and flexible paper, or can have their physical properties improved through coating and lamination.

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