Top Trends Driving the Flexible Packaging Market

There are several factors driving the flexible packaging market today. Not all of them are directly related to tackling our collective environmental impact, although that remains an admirable and urgent goal. Ultimately, the booming flexible packaging market simply offers a much more economical alternative to some of industry’s long-standing package material and design options.

A Look at the Global Flexible Packaging Market

According to market research, in 2022 the global flexible packaging market size was valued at $248.9 billion, with market growth expected to reach $315.5 billion by 2027 at a CAGR of 4.8%. That’s impressive for any vertical — so what’s driving this change, and what lies ahead? Let’s look at a few of the top trends in this competitive landscape that have made this type of packaging so popular.

The U.S. association of flexible packaging manufacturers, the Flexible Packaging Association (FPA), promotes the benefits of flexible packaging, provides research and analysis to its members, as well as educational and networking opportunities. Its members, such as the Sealed Air Corporation, must adhere to the regulations on the use of PFAS.

Cost-Cutting Alternatives and Sustainable Packaging Solutions

Flexible packaging is used in a wide variety of industries — most notably the food and beverage and pharmaceutical sectors, as well as any other field dealing with consumable or perishable items that have specific or unique needs.

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It’s not hard to see why — just about every actor in these industries is on a constant quest to reduce overhead and cut down on ongoing expenses. Product packaging is an obvious place to begin.

Aside from providing more advanced features and greater utility, not to mention enhanced reusability, flexible product packages are also less resource-intensive to manufacture, which means concerned parties can easily reduce energy expenses. This is also a win for shipping and freight costs since more flexible packages take up less space in vehicles than more rigid options.

In some cases, the fabrication process for flexible packaging can even be performed on-site, rather than trucking in more traditional packaging materials.

Higher Performance Needs for Premium Flexible Packaging Products

Part of the reason flexible packaging is catching on is that the material science world is always finding new ways to shrink the “gauge” of plastic films and other items relative to their strength.

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The idea is to pursue ever-thinner and ever-more economical materials that don’t sacrifice tensile strength. But performance is of equal or even greater concern for certain types of premium or volatile products. Flexible packaging shines here as well.

Consider the rising popularity of “premium” organic food items and beverages, cosmetics, and baked goods that have fewer preservatives, synthetic chemicals, conflict materials, and other questionable additives. These products still must travel significant distances between the manufacturing facility and the end user, and that means companies must address the items’ increased susceptibility to surrounding environments — which is unnecessary with more preservative-laden products — through clever food packaging innovations.

To that end, flexible packaging pioneers are applying their materials and techniques to modified atmosphere packaging (MAP). This type of packaging helps account for the higher rate of spoilage among organic and more natural products, increasing their shelf life and allowing them to survive transit in good condition.

In the past, when a product required packaging with more robust barrier properties, glass, and aluminum were the go-to packaging materials. Such materials are now being supplanted by advanced, reusable plastics and high-performance, bio-based films.

Consumer Time Sensitivity and Convenience

There’s perhaps no force in industry more influential than consumer demand. And for decades now, people throughout the world have indicated their preference for more sustainable and convenient packaging.

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The higher demand for frozen, ready-to-cook meals is just one example of this. And the trend toward busier, more mobile lifestyles has brought about high demand for food products that are easy to carry, simple to open, and require little prep time.

In the United States alone, demand for conveniently packaged foodstuffs — especially fish, meat, and poultry — is expected to lead the frozen food industry to a value of $90.8 billion. And demand for packaged produce is quickly outpacing demand for unpackaged produce. Pre-sliced and pre-prepared foods are driving demand for more cost-effective modified atmosphere packaging, which is further fueling demand for more flexible, advanced materials.

Regulatory and Grassroots Demand for Stricter Environmental Standards in the Flexible Packaging Industry

The crusade against wasteful and environmentally destructive plastic products including bags, straws, and plastic foam containers took an urgent turn recently. Many scientific reports on the state of our ocean and even inland environments seems to indicate that we’ve been underestimating the threat posed by non-biodegradable packaging materials for decades.

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Today, it’s common for consumers to spend time studying products and packaging before making purchasing decisions. There are even some smartphone apps that allow shoppers to scan products in-store. A recent study found that 50% of consumers are interested in making informed choices and want to know what their food contains and where it came from. Customers will gladly scan packages to get this information.

Plastic isn’t going anywhere (the packaging market in the plastic segment accounted for $265 billion in 2021), but the call for flexible yet environmentally friendly packaging films has resulted in the creation and increasing adoption of “bio-based” plastic packaging alternatives. These include:

Thermoplastic starch (TPS)
Polylactic acid (PLA)
Polytrimethylene terephthalate (PTMT)
Polyhydroxyalkanoates (PHA)

Real-world applications include produce bags manufactured partly from potato starch. Even sugarcane-derived plastics are gaining ground on the far more environmentally fraught, petroleum-based options that industry has relied upon for years. Consumer trends will continue to influence this sector in the coming years, and packaging companies will need to adapt.

Finding Your Own Reasons to Make the Switch

The world is approaching a point at which sustainable and responsible product packaging is no longer just optional. Many are now making purchases depending on whether their items come with sustainable packaging options or not.

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Get your company ahead of the curve by taking stock of your current and future industry challenges, and choose a product that balances profitability with the larger needs of the consumer and society as a whole.

Research shows that companies are seeking flexible packaging for three main reasons: to reduce production costs, address inefficiencies in the supply chain, and bring about higher revenue and a larger share of the “premium” products market. So, what are your reasons for making the switch?