Flexible Packaging Paper Market Size, Share Global Analysis Report, 2023 – 2030

Industry Insights

[211+ Pages Report] According to Facts and Factors, the global flexible packaging paper market size was valued at USD 47.50 billion in 2022 and is predicted to surpass USD 66.52 billion by the end of 2030. The flexible packaging paper industry is expected to grow by a CAGR of 4.30%.

Market Overview

Flexible packaging is paper-based materials that are flexible and adaptable for use in different packaging applications. This kind of packaging combines the advantages of paper, like sustainability and printability, to meet the diverse requirements of different products and industries.

The flexible paper packaging is designed with barrier properties to protect against external factors like air and moisture. Therefore, it is crucial to preserve the freshness and quality of the contents.

Key Insights

• As per the analysis shared by our research analyst, the global flexible packaging paper market size is estimated to grow annually at a CAGR of around 4.30% over the forecast period (2023-2030).
• In terms of revenue, the global flexible packaging paper market size was valued at around USD 47.50 billion in 2022 and is projected to reach USD 66.52 billion by 2030.
• Sustainability and environmental concerns are driving the growth of the global flexible packaging paper market.
• Based on the distribution channel, the e-commerce segment is growing at a high rate and is projected to dominate the global market.
• Based on the packaging type, the pouches segment is projected to swipe the largest market share.
• Based on the material type, the paper segment is expected to dominate the global market.
• Based on the end-user, the food segment is expected to dominate the global market.      
• On the basis of region, North America is expected to dominate the global market during the forecast period.          

Growth Drivers

• Sustainability and environmental concerns are likely to drive the growth of the global market.

The increasing awareness regarding environmental issues has led to a growing preference for sustainable packaging solutions. Flexible packaging paper solutions are recyclable and largely prepared from renewable sources, which further attracts consumers. Also, the changing consumer lifestyle, characterized by on-the-go preferences and busy schedules, is boosting the requirements for convenient packaging.

The flexible packaging paper is lightweight, portable in nature, and effective for consumers who look forward to the easy-to-use packaging options. Therefore, such a landscape is expected to propel the growth of the global flexible packaging paper market during the forecast period. For instance, Huhtamaki Oyj successfully took over the Polish joint venture firm from Smith Anderson Group Ltd in January 2022.

Restraints

• Limited barrier properties are likely to hamper the growth of the global market.

Flexible packaging paper has certain limitations in offering barrier properties against oxygen, moisture, and other external factors as compared to plastic-based materials. However, this limits its usability for certain products and, therefore, slows down the growth of the global flexible packaging paper market.

Opportunities

• Versatility in packaging format is expected to foster growth opportunities in the global market.

Flexible packaging paper offers versatility in terms of packaging formats like wraps, bags, pouches, and more. This adaptability helps manufacturing to serve a diverse range of end-user sectors with different products, from food and beverage to pharmaceuticals.

Also, the ongoing innovations in packaging design are further expected to widen the scope of the global market. Advancements in printing technologies, unique shapes, and customizable features further improve the visual appeal and market competitiveness of flexible packaging.

For instance, Amcor Ltd extended its profile to the pharmaceuticals packaging portfolio by complementing its product list with High Shield laminates in May 2022.

Flexible Packaging Paper Market Challenges

• Complex manufacturing processes are a big challenge in the global market.

The manufacturing processes for producing advanced and high-performing flexible packaging paper are complex. This complexity affects the lead times, efficiency, and overall cost-effectiveness. Therefore, this factor has emerged as a big challenge in the flexible packaging paper industry.

Segmentation Analysis

The global flexible packaging paper market can be segmented into the distribution channel, packaging type, material type, end-user, and region.

On the basis of distribution channels, the market can be segmented into retail and e-commerce. The e-commerce segment is projected to grow with a high CAGR during the forecast period. The growth is likely to be highly influenced by the surging trend of increased e-commerce activity across different industries.

Also, the growing preference among consumers for purchasing flexible packaging paper products is further boosting the popularity of the segment. Factors like the ability to browse, easy accessibility, convenience, and compatibility of the products online further contribute to the increasing adoption rate of e-commerce shopping.

On the basis of packaging type, the market can be segmented into sachet, pouches, lids, envelopes, bags & socks, cartons, wraps, and others. The pouches segment is expected to dominate the flexible packaging paper industry in the forthcoming years. Pouches are versatile in nature and can be used to pack different items.

However, their adaptability to different sizes and shapes contributes to the dominance of the segment in the market. Pouches are lightweight, which lowers the transportation cost and their environmental impact. The ongoing innovation is making these a more sustainable option, thereby aligning with the growing demand for eco-friendly packaging.

On the basis of material type, the market can be segmented into paper, metal, and plastic. Paper is widely considered an environmentally friendly and sustainable packaging material. The rising global focus on sustainable and eco-friendly packaging contributes to the dominance of the segment.

Paper is widely known for its recyclability and biodegradability; thereby, it aligns with the growing consumer and industry emphasis on lowering environmental damage. Also, the regulatory framework and standards encourage sustainable and recyclable packaging, thereby fostering developments in the segment.      

On the basis of end users, the market can be segmented into personal care and cosmetics, pharmaceutical and healthcare beverages, and food. The food industry is expected to swipe the largest share of the global flexible packaging paper market during the forecast period.

The growing demand for junk food products is driving the segment's growth. The shift in consumer lifestyle and demand for more convenience became a priority, which led to an increased need for processed food, which tends to pose a huge requirement for efficient and sustainable packaging solutions.

The food industry encompasses a wide range of products with diverse packaging needs, like frozen foods, beverages, snacks, fresh produce, and more. The different types of packaging, materials, and formats are used to meet the specific requirements of the various food products.

Also, packaging plays a crucial role in ensuring the freshness and safety of food. The ever-evolving need to meet surging requirements like the development of barrier materials, reusable packaging solutions, and modified atmosphere packaging is also expected to foster growth opportunities in the industry.

Report Scope

Regional Analysis

• North America to dominate the global market.

North America accounts for the largest share of the global flexible packaging paper market during the forecast period. The region has a mature packaging industry, and the flexible packaging paper segment is an integral part of this market. The regional growth is highly driven by various factors like advancements, sustainability concerns, consumer preferences in packaging technology, etc.

Also, the region is witnessing a growing consumer preference for sustainable and eco-friendly packaging options. Flexible packaging paper can be easily recycled and is largely made from renewable sources, which aligns with people's surge preferences, thereby contributing to the higher growth of the regional market.

Manufacturers and brands are exploring environmentally friendly alternatives, and flexible paper packaging solutions fit into this surging trend and are highly recyclable. Asia Pacific is expected to see a steady growth rate in the forthcoming years because of the growing middle-class population, changing consumer lifestyle, increasing urbanization, and several other factors.

Also, the economic development in countries across the region, like India and China, is leading the growth of the regional market. Increasing consumer spending in these areas is positively influencing consumer preferences, which further contributes towards the growth of the regional market. For instance, Amcro Ltd acquired DG Pack, a best-in-class flexible packaging plant, in August 2022.

Competitive Analysis

The key leaders in the global flexible packaging paper market include:

• KapStone Paper and Packaging Corp
• Pratt Industries Inc.
• Packaging Corporation of America
• BillerudKorsnäs AB
• Georgia-Pacific LLC
• Stora Enso Oyj
• Oji Holdings Corporation
• Nippon Paper Industries Co. Ltd.
• WestRock Company
• DS Smith Packaging Limited
• International Paper Company
• Mondi Group Plc.
• Smurfit Kappa Group plc
• Sappi Limited

For instance, Mondi group Appetitt brand relaunched its premium profile Appetitt brand by collaborating with Felleskjopet, a Norwegian pet food company. Their aim is to transition to recyclable high-barrier packaging.

The global flexible packaging paper market is segmented as follows:

By Distribution Channel Segment Analysis

• Retail
• E-Commerce

By Packaging Type Segment Analysis

• Sachet
• Pouches
• Lids
• Envelopes
• Bags & Socks
• Cartons
• Wraps
• Others

By Material Type Segment Analysis

• Paper
• Metal
• Plastic

By End-User Segment Analysis

• Personal Care & Cosmetics
• Pharmaceutical And Healthcare Beverages
• Food

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America