Market Trends of Benelux Flexible Plastic Packaging Industry
Rise in Supermarkets and Hypermarkets to Drive the Demand for Pouches
- Understanding the surging popularity of grocery shopping, consumers can now project the evolving sales landscape for flexible packaging products such as pouches, primarily in supermarkets or hypermarkets. This evaluation encompasses metrics like supermarket square footage per capita, demographic shifts, local lifestyles, and the market penetration of online grocery platforms.
- According to CBRE Group, in September 2023, Waterland, Bloemendaal, and Blaricum municipalities in the Netherlands stood out with the highest sales potential for physical supermarkets. These locales boast a sizable population of high-income residents, translating to increased shopping expenditures. The surge in grocery spending is expected to be primarily propelled by population growth.
- In Belgium, the retail landscape is primarily shaped by critical players like Colruyt, Jumbo, Delhaize, Carrefour, Lidl, and Aldi. Jumbo, a rising contender, is carving its niche by matching low prices and enhancing the overall shopping experience. Jumbo's expansion strategy in Belgium is evident; the company aims to launch 50 new stores by the end of 2025, primarily through a robust franchising model.
- The retail market has undergone significant and lasting changes due to the rapid expansion of e-commerce. While day-to-day shopping still predominantly gravitates toward physical supermarkets, the trend is shifting. Online grocery purchases have surged the demand for pouches, yet physical supermarket sales have also increased. Notably, investments in online platforms and distribution networks are escalating, spearheaded by industry giants like Albert Heijn and Jumbo, as well as newer entrants such as Picnic and Crisp.
- According to Supermarket & Ruimte, supermarket giant Picnic's share of online grocery shopping was 27% in 2021 and 39% in 2023. Similarly, Jumbo's share was 21% in 2021 and 22% in 2023. Therefore, a slight increase in supermarkets' online shopping share is expected to push the demand for the flexible plastic packaging market in the country.
Understand The Key Trends Shaping This Market
Download PDF
Food Industry to Widely Use Flexible Packaging Products
- The region's food packaging market is witnessing robust growth, primarily fueled by consumers' preference for convenient, on-the-go food options. Shifting dietary habits and a rising appetite for international flavors further propel spending on out-of-home dining.
- Factors like a rising influx of tourists, a burgeoning young workforce, and the proliferation of quality-driven fast-food chains are bolstering the market. As consumers grapple with increasingly hectic schedules, the trend toward takeaways and home deliveries is set to gain momentum, spurring the growth of innovative food outlets.
- The countries consume various types of packaged food, including snacks, meat, confectionery, and more. According to Minister of Agriculture Martine Hansen, in 2023, Luxembourg's meat consumption averaged 85.4 kilos per person. Luxembourg residents spent an average of EUR 6,200 (USD 6,709.9) on meat, a notable increase from EUR 4,900 (USD 5,303) in 2019.
- According to Agriculture and Agri-Food Canada, the compound annual sales growth rate of organic packaged food in Belgium from 2021 to 2026 by category was 10.2% for ready meals, followed by baby food with 10%. Organic sauces, dressings, and condiments are projected to see a modest annual growth rate of almost 3% in their retail sales value, marking them as the slowest-growing segment within the organic packaged products market. Dairy, biscuits, snack bars, and fruit snacks, and confectionery stood at 4.6%, 4.3%, and 4%, respectively.
- According to the US Department of Agriculture, the appetite for sustainably sourced, nutritious, and plant-based foods, alongside convenience products, remains robust. A surge in online shopping is anticipated, with a persistent preference for home grocery deliveries. Moreover, the market share of expedited delivery services is poised for further expansion. Retailers are set to double down on innovative food service offerings to entice foot traffic into their brick-and-mortar establishments. These developments are expected to push the market for flexible plastic packaging in the region.
