Converted Flexible Packaging Market Trends

Introduction

The flexible packaging market is expected to be worth US$22,976.8 million in 2023, and this is largely due to the confluence of macroeconomic factors such as technological advancements, government regulations and changes in consumer behavior. In the past few years, the development of new materials and production processes has greatly enhanced the functionality and versatility of flexible packaging, while the stringent regulations on the reduction of plastic waste have led to a shift towards more sustainable packaging. As a result, the market has been transformed into a market of convenience and sustainability. The key to coping with the complexity of this fast-changing market is to be able to grasp the opportunities that it presents.

Top Trends

1. Sustainability Initiatives
   Amcor, for example, has promised to make all its packaging re-usable or recyclable by 2025. And governments are tightening the screws on plastics, forcing industry leaders to change. By 2022, a majority of consumers will prefer brands that show they care about the environment. This is likely to boost investment in biodegradable materials and recycling technology, and change the way the industry works.
2. Smart Packaging Technologies
   The use of smart packaging is on the increase, as for example Sealed Air, which has developed packaging which can monitor freshness. According to industry forecasts, the market for smart packaging is expected to grow significantly, driven by consumers’ demand for a safer product. This trend is expected to initially increase operating costs, but in the long term could increase consumer trust and loyalty.
3. E-commerce Growth
   The e-commerce boom has created a need for more flexible packaging solutions to ensure the security of products during transportation. To meet this demand, companies like ProAmpac are innovating with lightweight, strong materials. In 2022, e-commerce will represent 20 per cent of all retail sales,* which will put the spotlight on the importance of efficient packaging. This trend is likely to continue, putting even more pressure on manufacturers to adapt their products to the needs of e-retailers.
4. Health and Safety Regulations
   Health and safety regulations are influencing the design of packaging, especially in the food and pharmaceutical industries. The Food and Drug Administration (FDA) has been increasing its scrutiny of the packaging materials, which has prompted companies to invest in compliance. In 2023, 75% of packaging companies had to deal with increased costs due to compliance with regulations. This trend will drive innovation in safe materials and processes, influencing the industry’s operational strategies.
5. Customization and Personalization
   Customized solutions are increasingly sought after by brands wishing to enhance consumer engagement. CCL Industries offers a range of packaging solutions tailored to meet the individual needs of its customers. A survey showed that 70 per cent of consumers would be more likely to buy a product that had been individually labelled. This trend may result in increased production complexity, but it can also boost brand loyalty and differentiation.
6. Digital Printing Advancements
   A new development in the flexible packaging industry is digital printing. It makes it possible to print shorter runs and get them to the market faster. Companies like Glenroy are making use of this technology to produce more colourful and detailed packages. By 2022, digital printing was responsible for a third of all flexible packaging. This trend is expected to reduce waste and increase efficiency.
7. Recyclable and Compostable Materials
   For many companies, the shift towards compostable and re-usable materials is becoming a priority. For example, Berry Global has introduced a range of compostable films. In a survey, it was found that 50% of consumers are willing to pay more for eco-friendly packaging. This trend is likely to lead to innovation in materials, and new products that will meet the demands of both consumers and the authorities.
8. Supply Chain Resilience
   The COVID-19 pandemic highlighted the vulnerability of the supply chains and led companies to take measures to ensure their resilience. Companies like Coveris have diversified their supplier network to reduce their exposure to risks. A recent study showed that some sixty-five per cent of packaging companies are investing in supply-chain technology. This trend is expected to lead to more robust supply-chain strategies, ensuring continuity and consistency in deliveries.
9. Increased Focus on Food Safety
   The development of new packaging materials for food is driven by concerns about food safety. According to the industry, 80 per cent of consumers make food safety their first priority when choosing products. This trend is likely to increase R&D investment in the development of advanced packaging materials to ensure the integrity of products.
10. Globalization of Packaging Solutions
    The internationalization of the supply chain is influencing the packaging strategy of the companies, which are extending their reach into foreign markets. Companies such as Smurfit Kappa are able to adapt their products to meet the diverse requirements of different countries. In 2023, 40 per cent of packaging companies reported a rise in exports. This trend will drive competition and innovation as companies compete to meet the varied demands of consumers in different countries.

Conclusion: Navigating the Evolving Packaging Landscape

Converted flexible packaging is characterized by a high degree of competition and market fragmentation. The market is characterized by a combination of both established and newcomers. Regional trends indicate a growing demand for sustainable solutions, which has led to innovation and adaptation of products. Newcomers have benefited from established supply chains and brand loyalty, while established players have benefited from the speed and flexibility of new technology. The ability to use artificial intelligence to analyze and monitor the data, the automation of production processes and the focus on sustainability are becoming key differentiating factors that will determine market leadership. Strategic investment in these areas is therefore essential to maintain a competitive advantage and meet changing consumer needs.