A new report from PMMI, The Association for Packaging and Processing Technologies, finds that the flexible packaging industry — projected to reach $32.7 billion in 2015 — is approaching maturity and can expect to see healthy growth and stability.
The 2015 Flexible Packaging Market Assessment Report draws on in-depth interviews with end users, materials suppliers and other industry experts who weighed in on the future of flexible packaging.
Over two-thirds (68 percent) of end user companies interviewed expect to purchase new equipment, modify existing equipment or buy used equipment to accommodate flexible packaging.
Thirty-three percent of end users expect to increase their use of flexible packaging (vs. rigid materials) over the next five years; however, 61 percent expect the ratio of flexible to rigid packaging to remain the same during that time frame. In this category, 40 percent of the companies use flexible packaging for upwards of 90 percent of their products.
Food products use the most flexible packaging, leading all vertical industries with 57 percent usage of flexible packaging compared to rigid, followed by the pharmaceutical industry at 31 percent. The beverage industry uses 25 percent flexible packaging, while 2 percent of household products are currently in flexible packaging.
The promise of cost reductions and greater strides in sustainability remain significant incentives for consumer goods manufacturers to choose flexible packaging. Downgauging to thinner, lighter packaging reduces the amount of source materials, and flexible packaging's high product-to-package ratio and light weight offer allow more units to fit into a shipment and require fewer shipments for the same amount of product. This reduces shipping costs as well as greenhouse gas emissions.
An infographic illustrating key findings is now available on packexpolasvegas.com. Stop by the PMMI booth in the Central Lobby for a copy of the executive summary or visit PMMI.org for the full Flexible Packaging Market Assessment Report ($500 for non-members).
PMMI, The Association for Packaging and Processing Technologies, represents the voice of more than 700 North American manufacturers of equipment, components and materials for processing and packaging. We work to advance a variety of industries by connecting consumer goods companies with manufacturing solutions through the world class PACK EXPO portfolio of trade shows, leading trade media and a wide range of resources to empower our members. The PACK EXPO trade shows unite the world of processing and packaging to advance the industries they serve: PACK EXPO International, PACK EXPO Las Vegas, Pharma EXPO, PACK EXPO East, EXPO PACK México, EXPO PACK Guadalajara and ProFood Tech, launching in April 2017. PMMI Media Group connects manufacturers to the latest solutions, trends and innovations in processing and packaging year-round through brands including Packaging World, Automation World, Healthcare Packaging, Contract Packaging and Packaging + Processing OEM. PMMI Business Drivers assist members in pursuing operational excellence through workforce development initiatives, deliver actionable business intelligence on economic, market and industry trends to support members’ growth strategies, and actively connect the supply chain throughout the year. Learn more at PACKEXPO.com, PMMIMediaGroup.com and PMMI.org.