Urbanization is Key for the Proliferation of Flexible Packaging on Consumer Goods
Flexible packaging is perhaps one of the more important innovations from the packaging industry over the past. Flexible packaging lowers the total weight of a ready product. Additionally, it reduces the size that each packaged item takes during storage and transportation. This allows a greater number of goods to be stored in one location.
The global flexible packaging market is expected to reach US$358.7 bn by the end of 2024. This revenue is being projected at a CAGR of 5.2% within a forecast period from 2015 to 2024.in 2014, the global flexible packaging market was valued at US$238.5 bn. Here are three questions answered by industry experts from Transparency Market Research. The answers to these questions will broaden the knowledge base for many readers.
Q. How Will Accelerated Urbanization in Emerging Economies Benefit the Global Flexible Packaging Market?
The revenue generated in the global flexible packaging market over consumer goods is expected to reach US$278.4 bn by the end of 2024. This is a massive quotation for the global flexible packaging market based on a single sector of application, but the consumer industry has always been the primary application segment for all sorts of packaging. Due to the high demand volume for flexible packaging that already exists in the world, even the currently stagnated demand growth is not going to be large enough to stunt the profitability for flexible packaging manufacturers from consumer goods.
A key reason for the consumer goods dominance over flexible packaging demand is the global urban population. The urban localities hold the overwhelming majority of demand for packaging of items. The current penetration of flexible packaging by its manufacturers is adding to an already impetuous growth rate of urban areas and populations in the world. As economies develop and disposable income percentages increase, flexible packaging will continue to show an increasing appearance rate in the urban markets.
Q. Will Europe Continue to Show a Strong for Flexible Packaging?
Till 2024, Europe is expected to stay the top region for flexible packaging in terms of demand and overall market attractiveness. By the end of 2024, Europe is expected to generate US$117.7 bn in flexible packaging revenue due to added investments, the use of modern and more effective materials and manufacturing techniques, and stronger regulations regarding the volume of plastics used and disposed. At the same time, while the overall growth in demand for flexible packaging in Europe continues towards stagnation, the total volume of demand is already so high that it will ensure regional dominance for the continent in the global flexible packaging market for the coming years.
The growing impact of flexible packaging in emerging economies is also growing at a rapid pace. An example of this would be the setting up of multiple flexible packaging plants in India by Huhtamaki PPL. In developed economies, mergers and takeovers and the incorporation of modern technology take a higher priority, such as the addition of film extrusion films by leading flexible packaging manufacturer Transcontinental, Inc.
Q. Will Flexible Packaging Ever be Considered a Primary Packaging Mode?
Flexible packaging could very well become one of the primary packaging methods in the market. The market has recently been introduced with many advancements in technology that have allowed the producers of flexible packaging. The food and beverage industry is absolutely well-versed on the advantages that flexible packaging will be bringing to the table. It significantly reduces the volume of storage required for foods that are otherwise packed in boxed packaging which can easily reduce number of items in one volume of area.