Market Trends of APAC Flexible Packaging Industry
Expanding Food Industry Expected to Drive Market Growth
- Flexible packaging is commonly used for food products such as smoothies, snacks, dairy, confectionery, etc. Typical flexible food packaging applications include films, pouches, aluminum lids, and paper bags to package cheeses, meats, bread, and vegetables. This flexible packaging can be used as primary packaging as well as secondary packaging in some cases.
- The packaged food industry has been witnessing growth owing to innovations in food processing techniques and changes in consumer lifestyles. These trends are anticipated to eventually boost product demand, propelling the growth of the market during the forecast period. For instance, in February 2024, PepsiCo India introduced a new sub-brand, Lay's Shapez, to its potato chips lineup. The innovative product showcases heart-shaped pellets made from potatoes.
- Also, in August 2024, Uswatte Confectionery Works Pvt. Ltd, Sri Lanka's oldest confectionery manufacturer, announced the revival of its famous potato chip brand, Chirpy Chips. The company had previously discontinued the brand due to government policies restricting the import of high-quality potatoes into the country. This re-entry of potato snacks by confectionery manufacturers in Sri Lanka is expected to support market growth.
- Flexible packaging materials, such as multilayer films and laminates, provide significant barrier properties that protect food from moisture, oxygen, and contaminants. This helps to extend the shelf life of perishable items like dairy products, meat, and baked goods. Consumers and food manufacturers alike seek packaging solutions that maintain product freshness while also ensuring food safety, making flexible packaging a preferred choice.
- In 2023, online retail sales of soft drinks in Japan amounted to around USD 2.6 billion, making it the largest segment within the food-based e-commerce industry. According to the National Bureau of Statistics of China, in 2023, the annual revenue of the foodservice industry in China amounted to around CNY 5.3 trillion. This indicated an increase in revenue of approximately 20% compared to the previous year. Such expansion of e-commerce and food delivery services has accelerated the need for lightweight, durable, and protective packaging that can withstand the rigors of shipping. Flexible packaging fits these needs by being cost-effective and adaptable for both dry and liquid food products.
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India Is Expected to Witness Significant Market Growth
- India is playing a significant role in driving the growth of the flexible packaging market due to its rapidly evolving economic, social, and industrial landscape. With a population of over 1.4 billion, India is one of the largest consumer markets in the world. Rapid urbanization is leading to lifestyle changes, with more people moving to cities and a higher demand for packaged goods. According to Bikaji, the market value of packaged food is likely to surpass INR 5 trillion by 2026.
- India's food and beverage industry is experiencing significant growth, driven by changing consumer preferences and increasing spending on processed and packaged foods. This industry is the largest end user of flexible packaging in the country. In 2023, the retail sales value of naturally healthy beverages in India was the highest for hot drinks at over USD 1.1 billion. Furthermore, the retail sales value of the naturally healthy beverages surpassed USD 1.6 billion that same year.
- The snacks market has been expanding in emerging economies, including India, creating a growth opportunity for market vendors due to the application of flexible packaging in making snack pouches, wraps, bags, and others. Additionally, Bikaji, a snack brand in India, reported that the savory snacks market in India witnessed growth in July 2023.
- India is a significant player in the global pharmaceutical industry, and the demand for flexible packaging is growing. Flexible packaging offers tamper-evident, moisture-resistant, and protective solutions for pharmaceutical products, including tablets, capsules, and syrups. As the healthcare sector expands, especially with the increasing focus on hygiene and safety post-COVID-19, flexible packaging plays an increasingly crucial role in ensuring product integrity and safety.
- There is growing awareness among Indian consumers and companies about the importance of sustainability and reducing plastic waste. This has led to improved demand for eco-friendly and recyclable flexible packaging materials. The Indian government has introduced policies such as the ban on single-use plastics and initiatives promoting sustainable practices. These regulations are pushing manufacturers toward innovative packaging solutions like biodegradable and compostable flexible packaging.
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