North America Flexible Packaging Market - 2022-2029

Market Overview

The North America flexible packaging market size was worth US$ XX million in 2021 and is estimated to record significant growth by reaching up to US$ XX million by 2029, growing at a CAGR of XX% within the forecast period (2022-2029).

Flexible packaging uses non-rigid materials to package items, allowing for more cost-effective and adaptable solutions. It is a relatively recent packaging method that has increased in popularity due to its great efficiency and low cost. In order to make pouches, bags, and other pliable product containers, this packaging method employs a range of flexible materials such as foil, plastic, and paper. Flexible packaging is very useful in businesses that demand a wide range of packaging options, such as food and beverage, personal care, and pharmaceuticals.

Growing Governments support for encouraging the use of sustainable packaging to minimize waste is creating huge market growth opportunities for flexible packaging to grow in the forecast period. For instance, on January 4, 2022, The Flexible Packaging Association (FPA), the industry's leading advocate and voice, announced that the Emerging Leadership Council (ELC) of the Flexible Packaging Association (FPA) had launched a new campaign, "Come Grow With Us," to help promote and attract new talent to the flexible packaging industry.

Market Dynamics

Millennials' increased demand for cost-effective, convenient packaging drives the market share for flexible packaging in North American countries.

Millennials' increased demand for cost-effective, convenient packaging drives the market share for flexible packaging in North American countries.

Demand for convenient products has increased in North American countries due to busy lifestyles increasing demand for flexible packs. Flexible plastic packaging uses fewer resources and energy to package; as a result, flexible packs are less expensive and take up 35% less retail shelf space, making them more cost-effective than other types of packaging.

In comparison to rigid clamshell containers, Robbie Fantastic Flexibles, a member of the Flexible Packaging Association, claims that making 780,000 flexible pouches uses 87% less coal, 74% less natural gas, and 64% less crude oil. Furthermore, there has been a progressive shift in consumer preference away from traditional ways of food preparation at home and toward purchasing packaged goods.

In addition, the need for flexible packaging items in the region is largely driven by millennial customers, who have a strong affinity for on-the-go style and single-serving food and beverage foods. Flexible packaging is an excellent alternative for packing these products because they are often designed to be sturdy, portable, and lightweight. The food and beverage industry in North America is expected to have a growing demand for flexible packaging because of the growing areas of snack foods, both fresh and processed.

Therefore, to overcome the growing demand for cost-effective and convenient packaging products, various companies offer flexible packaging products in the region.

For instance, In March 2020, Berry Global Group, Inc. has announced a USD 30 million investment to expand its ultra-high performance stretch film production capacity. In nine of the North American locations that now make stretch films, the funds will add new lines and upgrade existing assets.

Poor recycling facility for flexible plastic packaging is hurdling the growth of the product in the region

Plastic packaging waste recycling is a complex process that requires cutting-edge infrastructure. It's a time-consuming procedure that necessitates staff knowledge. However, some portions of the world lack recycling facilities. Even in wealthy countries such as the U.S., the problem of inadequate recycling infrastructure exists. Due to a shortage of recycling facilities, more than USD 11 billion in recyclable containers are thrown away each year in the U.S. alone.

The United Nations Environment Programme estimates that the world creates 330 million tons of plastic waste per year. Only 9% of all plastic garbage produced has been recycled to date, and only 14% is currently collected for recycling. As most recycling facilities are old, they cannot cope with changes in waste sources. Even if paper trash has decreased and plastic waste has increased, present gear is ill-equipped to handle such shifts in packaging waste trends.

Plastic accounts for around 90% of all pollution in the oceans. Flexible plastic packaging, according to estimates, accounts for the majority of the market. In the flexible packaging business, which delivers value for reuse and contributes to lower waste, recycling is also a major challenge; hence, rising demand for flexible plastic packaging is limiting the market's growth in the region.

COVID-19 Impact Analysis

In 2020-2021, the demand for flexible packaging in North American countries was expected to see a slightly modest decline in its growth rate. The packaging industry faces a major decline, particularly in production and manufacturing units. Nevertheless, there appears to be a demand for flexible packaging, particularly for food, beverage, and pharmaceutical packaging applications during COVID-19.

However, the demand for flexible packaging is expected to remain robust in the pharmaceutical industry as hospitals, medications, and PPE manufacturers respond to the crisis. Furthermore, demand for domestic needs, healthcare, and medical supplies are not likely to fall considerably, and retail distribution of these things via online delivery is expected to expand. As a result, the COVID-19 pandemic has moderately impacted the flexible packaging market's growth, particularly between 2020 and 2021.

Segment Analysis

The North America flexible packaging market can be segmented on material, product, printing technology, end-user and country.

Plastic flexible packaging holds a dominating market share in North America due to its cost-effectiveness, less energy consumption during production and increased demand in end-use industries

The North America flexible packaging market is segmented based on type into polymer, plastic, aluminum, cellulosic, paper and others. Out of the mentioned types, the plastic segment holds the highest market share of the product to the cost-effectiveness and increased demand in end-use industries, such as food, beverage, cosmetic & personal care, and pharmaceutical.

Furthermore, the rise in modern retailing, high consumer income, and acceleration in e-commerce activities in the U.S are expected to drive the flexible plastic packaging market. Flexible plastic packaging consumes less natural resources, less energy during production, and emits fewer greenhouse gases.

The Natural Resources Defense Council estimates that nearly 40% of food in the U.S. was wasted in 2016. Flexible plastic packaging decreases product waste while also extending product shelf-life; for example, bananas wrapped in flexible plastic packaging ripen more slowly, extending shelf life. The sort of packing can be done with the least amount of packaging feasible, reducing warehousing and transportation costs while preserving or improving product protection.

Country Analysis

The rising e-commerce sector in the North American countries is creating market growth trend for flexible packaging to grow in the region

North America's growing e-commerce sector is driving up demand for flexible packaging. Its efficiencies and the convenience of comparison shopping drive down prices in various industries. According to Business Insider, e-commerce is driving retail expansion, and its impact on flexible packaging may rise in the region. Due to established food retailers including Walmart, Kroger, and Albertsons, the retail industry in the U.S. is highly competitive, propelling the country's market growth.

Furthermore, Walmart, situated in the U.S., is the world's largest retailer and the largest of its kind. Five of the top ten largest retail corporations globally are headquartered in the U.S., making it the industry's leader.

In addition, players are investing heavily in product innovation in response to the increased demand for flexible packaging, boosting the country's market growth. For example, Kodak stated in June 2020 that the Sapphire EVO W Press is now available worldwide, with the first installation scheduled for later this year at a customer in the U.S. The Sapphire EVO W was the first flexible packaging press with Kodak's latest continuous inkjet technology to hit the market.

Competitive Landscape

The North America flexible packaging market is highly competitive with local companies. Some prime companies contributing to the market's growth are Berry Global Inc, Bemis Company, Inc, Sonoco, Sealed Air Corporation, Transcontinental Inc, Sigma Plastics Group, ProAmpac, Winpak Ltd, FlexPak Services LLC, Mondi Group and others

The major companies adopt several growth strategies such as acquisitions, product launches, and collaborations, contributing to the flexible packaging market of North America.

• For instance, in September 2019 - Amcor has opened a new e-commerce testing lab in Manchester, Michigan. The company will use this to cater to online sales of pet food, sauces, cosmetics, personal care, and house cleaning supplies, among other things. The laboratory is accredited for analyzing ISTA 6A packaged goods.
• October 2021 Berry Global and LyondellBasell collaborated to advance the objective of procuring 100% of its customer-facing packaging responsibly by 2026. The partnership encourages consumers to switch from plastic-lined paper cups with low recyclability to single-substrate, clear plastic drink cups that are easier to recycle.

Berry Global Inc

Overview: Berry Global, Inc. is a Fortune 500 global plastic packaging maker and marketer. It is headquartered in Evansville, Indiana, and employs over 48,000 people in over 290 locations worldwide. The corporation is the 6th largest Indiana-based company in Fortune Magazine's rating, with US$13 billion in 2018. Berry Global, Inc. was formed in April 2017 when Berry Plastics was renamed Berry Global, Inc.

Product Portfolio: The Company has a product portfolio of flexible packaging that includes:

• Custom Films: The company offers a selection of unique goods that can be made as per customer requirements out of LDPE, LLDPE, and specialty resin mixes. For instance, Poly Bags are drum liners, carton liners, furniture covers, textile bags, mattress bags, Gaylord/combo liners, and pallet covers (gusseted or centerfold, shrink and non-shrink)

Key Development

• In May 2020, Berry Global Group, Inc. partnered with Mondelez International, a long-time customer, to supply Philadelphia, the world's most popular cream cheese, with recycled plastic packaging. Berry's relationship with SABIC, announced earlier this year, yielded plastic material for the package, which was recovered using advanced recycling technology.

Why Purchase the Report?

• Visualize the North America flexible packaging market segmentation by material, product, printing technology, end-user and country, highlighting key commercial assets and players.
• Identify commercial opportunities in the flexible packaging market by analyzing trends and co-development deals.
• Excel data sheet with thousands of North America flexible packaging market-level 4/5 segmentation points.
• PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
• Product mapping in excel for the key product of all major market players

The North America flexible packaging market report would provide approximately 45 market data tables, 37 figures and 105 pages.

Target Audience 2022

• Service Providers/ Buyers
• Food & Beverage Companies
• Research Laboratory
• Manufacturers
• Healthcare
• Consumer Goods Companies
• Distributors