Gradually replacing rigid packages on store shelves, flexible packaging is poised for even greater growth.

The flexible packaging industry is doing well these days. The properties that make it unique – its functionality, affordability, ease of use and, well, its flexibility – have won it the admiration of consumers and converters alike. As a result, its producers now comprise an industry that is worth $20 billion in North America alone. Observers say that volume in the flexible packaging industry has increased by 3.5% in the last year and some shops are reporting spikes of up to 20%. Even with the predictable dip in growth rates brought about by the sagging economy, as flexible packaging continues to push rigid containers aside in product lines, it should easily outpace the metric provided by the Gross Domestic Product index. Forecasters are predicting that next year’s growth rate will continue at the same pace, bringing the industry up to the $20.4 billion mark.

Statistics at both the U.S. Departments of Labor and Commerce tell us that at present the flexible packaging industry employs some 90,000 people. The typical flexible packaging converter is a small manufacturer that operates out of a single facility and employs fewer than a hundred workers. These shops may be small, experts say, but they are rapidly expanding. In 2001, 60% of these shops indicated plans to invest in either new or used machinery, the most sought after piece of equipment being a press.

Flexible packaging’s end-users – who are mostly food manufacturers or health and beauty companies –say their chief goal is cutting costs. The producers of flexible packaging have a different set of priorities. Forty percent say that they want to increase volume. Twenty percent want more control over material costs and 20% are concerned with holding their own against competitors. For 8% of the industry, labor issues are a major concern and for 4%, fixed cost reduction is key. As for retailers, they appreciate the fact that consumers enjoy the textile aspects of flexible packaging as well as its ability to keep its contents fresh.

Concerning future directions for the flexible packaging industry, many insiders see increased growth in the fresh produce and pet foods categories as well as a burgeoning market among pharmaceutical and bio-tech end-users. As new medical technologies – such as disposable devices and implants – are developed, and as the population demographically grows older, experts are predicting a surge in demand for flexible packaging in this arena. As far as what materials will be used to answer these future demands, observers point to polyester plastics because of their toughness, heat and grease resistance, printability, low odor and heat sealing qualities. In addition, newly developed high-density polyethylene (HDPE) resins and polyolefin films are both expected to play a future role in the industry. Insiders generally agree, as flexible packaging’s producers continue to make improvements such as better printing capabilities and discover new applications for their product, the industry is bound to keep expanding.

Source: Flexible Packaging
Robert Moran
Flexo Magazine, Dec. 2001
http://www.flexography.org/flexo/1201/122001.cfm