Market Research Report
Europe Flexible Packaging Market - Growth, Trends, Forecasts (2021-2026)
|Europe Flexible Packaging Market - Growth, Trends, Forecasts (2021-2026)|
Published: October 13, 2021
Mordor Intelligence Pvt Ltd
Content info: 150 Pages
Delivery time: 2-3 business days
The Europe Flexible Packaging Market has been valued at USD 52.59 Billion in 2020 and is expected to grow at a CAGR of 3.01% during the period 2021-2026. The Covid-19 pandemic resulted in a growing demand for flexible packaging in the region, due to new or heightened hygiene and consumer-safety concerns, and the drive for redefined sustainability. Technological innovation, sustainability trepidations, and attractive economics are the major factors driving the growth of innovative and more sustainable, flexible packaging. Also, the increasing market demand for customer-friendly packages and heightened product protection are expected to drive the growth of the market in Europe.
The Covid-19 pandemic has enhanced the growth of the E-commerce industry that many of the online shopping habits European consumers adopted over lockdown. Moreover, with increased E-commerce intensifying consumers' concerns about packaging, there has been an increasing demand for sustainable, flexible packaging in the region.
Various companies have been focusing on expanding their portfolio to cater to the demand for flexible packaging in Europe. For instance, Mondi has been investing in its European operations to improve and grow its services to customers, upscaling MailerBAG production to approximately 350 million bags per year, responding to strong growth and customer demand for flexible packaging in eCommerce. When used to replace standard plastic mailers, the company's scale-up in production is expected to have the potential to substitute approximately 7,000 tonnes of plastic per year. Furthermore, in June 2021, Mondi also expanded its paper-based MailerBAG range to replace plastic packaging in e-commerce with a recyclable solution made of responsibly sourced, renewable materials.
The E-Commerce industry requires flexible packaging such as bags, mailers, and folders that use less material than similar-sized boxes, weigh less, and conforms around the product, taking up less space than a box during shipping. This makes flexible packaging to pack more orders in each load, resulting in fewer trips, less fuel burned, and a smaller carbon footprint. Such potential advantages drive the demand for the market in the region.
The E-commerce industry has been growing significantly in Europe. According to the PPRO payment service provider company, as of January 2020, Romania was the country with the highest e-commerce growth in Central and Eastern Europe, followed by Ukraine and Estonia. Russia had a greater B2C e-commerce operations in Central and Eastern Europe, valued at USD 36 billion in 2020.
Flexible packaging is the lightweight alternative that can be used to eradicate costs associated with production, damage, replacement parts, returns, waste, and shipping by allowing material handlers to transport more products with less, which is an ideal solution for e-commerce professionals working with a tight budget. In addition, many small and medium enterprises in the region have been looking for enhanced protection with extended shelf life against various ways that food can be spoiled such as air, moisture, and sunlight, thereby driving the demand for flexible packaging.
The growing urban population in the United Kingdom, altering patterns in lifestyle, including decreasing the amount of time spent on the preparation of meals, is leading to a shift toward more processed, easily packed, and pre-prepared foods and snacks, which is expected to propel the growth of the market studied. Also, the rise in demand for packaged foods, ready-to-eat foods, frozen foods, luxury foods is also likely to increase the demand for flexible packaging solutions in the country, owing to its ability to extend the shelf life of such products.
Moreover, the growth of e-commerce sales, increasing demand from the food and beverage manufacturers for eco-friendly and recyclable packaging, increasing demand for personalization of products have been driving the growth of sustainable, flexible packaging solutions in the region.
Various vendors have been focusing on strengthening their position in flexible packaging and broadening their sustainable solutions portfolio, and extending their reach across the region. In July 2021, ProAmpac acquired Ultimate Packaging, a pioneer in flexographic and digitally-printed flexible packaging based in the United Kingdom, to expand ProAmpac's product portfolio. Ultimate packaging specializes in developing innovative packaging solutions to increase product shelf life, convenience, and recyclability across a range of product sectors. With the acquisition, the company is looking forward to gaining further growth opportunities in the region.
Due to the COVID-19 pandemic, United Kingdom has witnessed lockdown restrictions, which led to panic buying, which imposed massive pressure on the FMCG companies to adopt flexible packaging solutions, as the food companies have increasingly witnessed an inclination towards pre-packaged food in smaller, consumer-sized packaging. Furthermore, as flexible packaging increases the product's shelf life, customers have been preferring flexible packaging in the region.
The growing public consciousness around sustainability has led to an enormous change among UK consumers that paper-based packaging is more sustainable than plastic. In 2020, paper and board consumption in the United Kingdom amounted to 9.9. million metric tons, of which 5.6 million metric tons were consumed for packaging, which represented more than 50% of total paper and board consumption. Also, the British Plastics Federation (BPF) issued guidelines for pharmaceutical, food, drink, and cosmetic packaging to measure recycled content by including recycled packaging content in their packaging solutions. This has increased the demand for sustainable and recyclable flexible packaging offerings by various vendors in the region.
The Europe Flexible Packaging Market is concentrated and is dominated by a few major players like Amcor PLC, Mondi Group, Wipak Group, Sealed Air, and Constantia Flexibles. These major players have a prominent share in the market, and are focusing on expanding their customer base by leveraging strategic collaborative initiatives to increase their market share and profitability. With better technological advancements and product innovations, mid-size to smaller companies are growing their market presence in Europe by securing new contracts and by tapping new markets.