Asia-Pacific Flexible Packaging Market - Segmented by Material (Plastic, Paper, Aluminum), Product Type (Pouches, Bags, Wraps), End-User Industry (Food, Beverage, Pharmaceutical), and Country - Growth, Trends, and Forecast (2018 - 2023)
The Asia-Pacific flexible packaging market was valued at USD 99.5 billion in 2017, and is expected to reach a value of USD 131.487 billion by 2023, at a CAGR of 4.76% over the forecast period (2018 - 2023).The scope of the market covers flexible packaging products, including pouches, bags, and wraps.
The market in Asia-Pacific is driven by the increasing demand in developing markets of China and India, coupled with the advances in manufacturing technology and equipment, resulting in numerous end-use applications.
Aluminum to Witness Greater Adoption
Asia–Pacific accounts for one of the largest food & beverage industries, owing to the high population in these countries, which is a major driver for the adoption of aluminum packaging. Also, China, India, and Indonesia, are some of the largest manufacturers and exporters of tea and coffee, which is instrumental in driving aluminum foil packaging. These countries have also shifted to aluminum as it is a more eco-friendly and convenient choice of packaging, and it is also easy to carry out recycling activities, which are particularly beneficial to the environment. These recycling activities also contribute to the decrease in the cost structure for the packaging industry. The recycling rate of aluminum in countries, such as Japan, is significantly high. Many efforts are also being made in countries, such as India, to improve recycling, as the recycling rate is just about 25%. China has only about 20% of its aluminum produce recycled.
India to Witness the Fastest Growth
The primary drivers for the growth of the flexible packaging market in the country are the increasing per capita income, growing heath consciousness, and changing lifestyle patterns. The country also boasts of abundantly available raw materials for manufacturing plastic, metal, and paper packaging. The growing competition and packaging standards set by the government for labelling of quality, quantity, and price, coupled with the demand for easy and convenient packaging, have been instrumental in driving the adoption of flexible packaging in India. Further, the increasing global trade and India’s WTO commitment for rationalising tariffs, and lowering trade barriers have enabled the growth of international trade in packaging material and machinery, which, in turn, has equipped manufacturers with the machinery necessary to innovate and offer enhanced packaging.
Increased Demand for Convenient Packaging
Flexible packaging is preferred by both consumers and producers, owing to its advantages over rigid packaging. One of the significant benefits for the manufacturer and retailer is the reduced weight of the packaging, which results in reduced shipping and warehousing costs, while simultaneously creating more space on store shelves. Also, the increase in single-person households along with changing consumer preferences and rapidly population aging are further aiding the growth of flexible packaging in the region. Given that single-person households now represent the largest group, a growing demand for single-value pack sizes and convenient packaging is being witnessed. Also, with changing lifestyles, there is an increased demand for on-the go food and snacks.Thus, the industry players are launching small-size packaging, as well as lightweight and flexible packaging to suit this expanding demographic. For instance, Japanese beverage manufacturers have widened their selections of smaller pack sizes, in a bid to attract new consumers, while in food packaging, there has been a rise in the selection of small pack sizes that are easily consumable. “Tabekiri” packs meet the rising needs of single-person households attempting to consume small portions of a variety of products.
Key Developments in the Market
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook