New plastic technologies and development of alternative bioplastic solutions augment market growth, finds Frost & Sullivan
LONDON, Dec. 10, 2019 /CNW/ -- Growth opportunities in the Global Flexible Plastic Packaging Market look promising over the next four years. Shifting consumer preferences and an evolving retail landscape have increased the demand for flexible packaging with features such as improved shelf life, convenience, and ease of use. A growing need for innovative flexible plastic packaging options that meet recyclability, regulatory, and sustainability standards are further factors augmenting lucrative market expansion possibilities. Frost & Sullivan forecasts the global flexible plastics packaging market to generate revenues of $172.29 million from 2018 to 2023 with a steady CAGR of 3.2% during this period.
"Due to current regulatory, consumer, and environmental pressures, manufacturers are steering their strategies towards circularity and leveraged new plastic technologies to develop recyclable and sustainable solutions that include specific properties such as oxygen, moisture, light, puncture, and chemical resistance, and easy-tear propagation," said Prateeksha Kaul, Senior Research Analyst, Chemicals, Materials & Nutrition. "Further key focus areas for manufacturers include the development of alternative bioplastics solutions such as Polybutylene succinate and Biopolyproplyene. However, competitive factors like price and the disposal of bioplastics will need to be examined to ensure successful usage."
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From a regional perspective, Asia-Pacific is expected to witness the highest growth rate during the forecast period due to the increasing number of dual-income households. While North America faces challenging competition from emerging markets and is set to experience average growth, European regulations regarding recyclability and sustainability of plastics used in packaging are expected to impact this region.
"The persistent growth of the middle-class population in Asia-Pacific is set to be the prime driver for flexible plastic demand owing to the low cost of production," noted Kaul. "Furthermore, an uptick in consumers using eCommerce platforms will drive greater use of flexible plastic packaging associated with shipping products."
From a competitor position, the supply base is fragmented with multinational companies playing a dominant role in most regions; the top five participants typically cater to less than 30% of the market.
To gain a competitive advantage, Kaul recommends players emulate innovative companies such as Amcor, Berry, Huhtanaki, and Mondi, and introduce product innovation aimed at sustainability, enhanced consumer convenience, and ensuring higher recyclability.
Additional growth opportunities participants should aim to secure include:
- Expanding operations into emerging regions such as Asia-Pacific, where demand for flexible plastic packaging is expected to surge given the growing need for these products across end-applications
- Introducing products that promote less use of natural resources, produce less waste, improve shelf-life, and are cost-effective
- Increase production capabilities to cater to the growing demand for packaged foods such as ready-to-eat meals, frozen meals, snack foods, and cake mixes
"Despite significant market expansion prospects, durability and the longevity of plastics imply that it takes a lot of effort to degrade, and flexible plastic-like bags, films, and wrappers end up in landfills or oceans," noted Kaul. "Furthermore, plastic litter can also impact human health as it moves up the food chain. This, in turn, has exerted pressure on companies and manufacturers to find viable solutions, either by improving the recycling rate or focusing on producing alternatives to plastics."
Frost & Sullivan's recent analysis, Global Flexible Plastic Packaging Market, Forecast to 2023, explores the industrial, technology, regulatory, and growth factors and trends that have shaped the global flexible plastic packaging market landscape, the challenges that lie ahead, and the opportunities that can be tapped. The research provides a detailed analysis of the growth opportunities for key players in this space. End industries analysed in this research include food & beverage, pharmaceuticals, personal care & cosmetics, and more. Raw material segmentation includes polyethylene, polypropylene, polyethylene terephthalate, and others.
Analysis of the Global Flexible Plastic Packaging Market, Forecast to 2023 is part of Frost & Sullivan's Chemicals, Materials & Nutrition research and analyses available through the Frost & Sullivan Leadership Council, which helps organisations identify a continuous flow of growth opportunities to succeed in an unpredictable future.
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Analysis of the Global Flexible Plastic Packaging Market, Forecast to 2023
SOURCE Frost & Sullivan