US flexible packaging sales increasing rapidly

Flexible packaging sales are increasing rapidly, with flexible packaging taking the place of rigid due to its light weight, superior barrier properties and prudent use of packaging materials.

North American flexible packaging sales hit US$25.40 billion in 2011 and are set to reach $30.63 billion in 2016 with a compound annual growth rate of 3.8%, according to new research from Frost & Sullivan.

The report, Analysis of the North American Flexible Packaging Market, said that changing consumer lifestyles have led to a dependence on processed, packaged and pre-cooked foods, which are increasing flexible packaging sales.

“While the food and beverage market is flexible packaging’s largest end-user segment, healthcare has become the fastest growing,” said Frost & Sullivan Research Analyst Tridisha Goswami. “In any application segment, product innovation geared toward effective performance, customisation and sustainability is essential for the success of this market.”

Polymers are the dominant material in flexible packaging due to their properties of high performance and weight reduction. Moreover, they can be engineered for better performance characteristics such as barrier protection, clarity, transparency and mechanical strength.

Recent market trends include unit dosage packaging, attractive product visualisation and convenient, yet environmentally friendly packaging. However, strong competition from countries offering low-cost manufacturing, as well as the strong competition among more than 400 converters in North America, is slowing the market down, according to Frost & Sullivan. The market’s maturity is further compounded by the production of thinner gauge sizes, which reduces the volumes.

Smaller companies are frequently challenged by the need for packaging to be unique and in line with changing technologies. These small companies are often acquired by their larger counterparts looking to enhance product offerings and expand their geographical footprint.

“Innovative packaging, customised products and sustainable packaging, along with mergers, acquisitions and partnerships, help companies gain expertise in niche segments and aid the overall growth of the market,” Goswami said.

For more information on the Analysis of the North American Flexible Packaging Market report, click here.