Global Flexible Packaging Market - Focused Insights 2024-2029

MARKET INSIGHTS

The global flexible packaging market size was valued at USD 210.62 billion in 2023 and is projected to reach USD 238.91 billion by 2029, growing at a CAGR of 2.12% during the forecast period. The market is experiencing significant growth due to factors, including the cost-effectiveness of raw materials, lower production costs, and the lightweight nature of these solutions. Beyond supplier advantages, demand from buyers and end consumers is accelerating this shift. The rise of smaller, single-serve packaging led to an increase in the number of lower-volume packages, driven primarily by changing consumer behaviors, lifestyle trends, and convenience factors.

MARKET TRENDS & DRIVERS

Increased Adoption of Flexible Packaging Over Rigid Packaging

The shift from rigid packaging to flexible packaging is a major trend in the global packaging industry, driven by multiple factors, including sustainability, cost-effectiveness, convenience, and advancements in materials. This shift has seen significant growth, especially in industries such as food and beverages, pharmaceuticals, personal care, and consumer goods. One of the most significant factors driving the adoption of flexible packaging is its lower environmental footprint. Flexible packaging generally uses less material, resulting in reduced waste and a lighter weight, which cuts down on energy consumption during transportation. In contrast, rigid packaging, such as glass bottles or tin cans, often requires more material, energy, and resources to produce and ship. Companies like Nestlé and Unilever are adopting recyclable flexible pouches for products like coffee, pet food, and snacks. These pouches weigh less and reduce carbon emissions during transport. Consumers today prefer packaging that is easy to handle, resealable, and portable. Flexible packaging is often more convenient than rigid forms because it can be designed in various shapes, making it ideal for on-the-go products. Flexible packaging tends to be more cost-effective in terms of both production and shipping. The materials used (such as plastics, paper, and aluminum) are often cheaper than rigid alternatives like glass or metal.

Increase In Shelf Life

Flexible packaging materials such as multi-layer films, laminated materials, and barrier films are designed to protect products from environmental factors like oxygen, moisture, light, and heat. These factors are detrimental to perishable goods, especially in the food industry. The use of advanced barrier materials like polyethylene (PE), polypropylene (PP), and ethylene vinyl alcohol (EVOH) has revolutionized packaging by enhancing its ability to block out oxygen, moisture, and other gases that lead to spoilage. Vacuum-sealed flexible packaging is widely used for meat, cheese, and other perishable products. Modified atmosphere packaging (MAP) is another technology used in flexible packaging, especially in food packaging. Pre-cut salad bags use a combination of flexible materials with modified atmosphere packaging (MAP) to increase shelf life, maintaining freshness for up to 10-14 days. The pharmaceutical industry relies heavily on flexible packaging to extend the shelf life of drugs and medical products. By using specialized materials with high barrier properties, pharmaceuticals can be protected from contamination, moisture, and oxidation.

INDUSTRY RESTRAINTS

Recycling Challenges With Flexible Packaging Products

Many flexible packaging products are made from multilayer films, where different materials (such as plastic, aluminum, and paper) are laminated together to achieve specific properties like moisture resistance, durability, or light protection. These materials are difficult to separate during recycling processes, and most recycling facilities are not equipped to handle complex multilayer packaging. Flexible packaging requires specialized recycling technologies that are not universally available. The majority of recycling infrastructure is built to handle rigid plastics like PET bottles or HDPE containers, not soft and flexible materials. The absence of standardization across recycling facilities globally makes it difficult to recycle flexible packaging consistently, leading to low recovery rates. Consumers often face confusion regarding which flexible packaging products are recyclable and how to properly dispose of them.

KEY TAKEAWAYS

• By Product: The bags & sacks segment holds the most significant segmental market share of over 43%. The adoption of pouches is rising across industries like food, personal care, and healthcare for their convenience, but plastic bags dominate due to their lightweight, low cost, and specialized uses. Their simple monolayer structure requires minimal material, making them affordable and hard to replace in many non-food and lightweight packaging applications.
• By Material: Based on the material, the flexible plastic segment dominates and has the largest share of the global flexible packaging market. Flexible plastic pouches use 60% less plastic than rigid packaging, offering a higher product-to-package ratio, lower energy consumption, and reduced emissions. The food sector leads in revenue and YOY growth, with four-side-seal pouches growing fastest, especially for meat and seafood. While convenient and premium, these pouches often use multi-layer films, including aluminum, for extended shelf life, making recycling complex. Recycled pouches are repurposed for industrial use, not food packaging.
• By Application: Based on the application, the consumer packaging segment shows significant growth, with the fastest-growing CAGR during the forecast period. The growth is driven by rising demand for packaged food, beverages, personal care, and household products. Busier lifestyles and a growing middle class in developing regions favor convenient, resealable, lightweight, and customizable flexible packaging like pouches, wraps, and bags.

GEOGRAPHICAL ANALYSIS

The global flexible packaging market is led by APAC, Europe, and North America, with APAC holding the largest share. APAC's dominance is fueled by growing demand and cost-effective labor, attracting producers seeking growth and profitability. Major players are focusing on APAC through expansions, investments, acquisitions, and innovative products. The region's market spans from affordable sachets to luxury packaging, with strong growth expected in food, pharmaceutical, and industrial packaging due to rising demand for convenient, protective solutions.

COMPETITIVE LANDSCAPE

The global flexible packaging market report consists of exclusive data on 37 vendors. The competitive landscape of the global flexible packaging market is fragmented characterized by the presence of several major players, as well as numerous regional and local manufacturers. Amcor, Berry Global, Mondi, Sealed Air, Huhtamaki Oyj, TC Transcontinental Packaging, Sonoco, Constantia Flexibles, Ahlstrom, and Greif are some companies currently dominating the market. Key strategies include product innovation, mergers and acquisitions, and partnerships to enhance market presence and expand geographical reach. Collaborations with OEMs and other industry stakeholders to develop integrated solutions and improve market reach.

RECENT VENDOR ACTIVITIES

• In 2023, leading global packaging solutions company Huhtamaki introduced groundbreaking mono-material technology through advanced scientific development. This innovative and sustainable flexible packaging, available in Paper, PE, and PP Retort formats, is designed to meet the evolving needs of both customers and consumers. In line with its 2020 commitment, Huhtamaki aims to ensure that all of its packaging is 100% recyclable, compostable, or reusable by 2030.