Canada Flexible Packaging Market Size (2024 - 2029)

Canada Flexible Packaging Market Analysis

The Canada Flexible Packaging Market size is estimated at USD 8.55 billion in 2024, and is expected to reach USD 12.53 billion by 2029, growing at a CAGR of 7.94% during the forecast period (2024-2029).

• One of the primary factors driving the growth of the Canadian flexible packaging market is the growing consumer inclination toward convenience products. Consumer tastes are changing due to hectic lifestyles and smaller home units, necessitating products that are easy to open, store, use, transport, and dispose of, as well as those that appeal to on-the-go lifestyles.
• The Canadian flexible packaging market is witnessing a trend of eco-friendly packaging types from consumers and manufacturers. More than 40 Canadian companies unveiled the Canada Plastics Pact, a plan to recycle or compost 50% of Canada's plastic packaging by 2025. Fiber-based flexible packaging is also gaining traction in the country and supporting a brand's effort to use more sustainable packaging. Certain flexible packaging has now been engineered to be more environmentally friendly.
• The recent municipal, provincial, and federal legislative actions in Canada were focused on single-use plastics. Following the approach in the EU 2018 Plastics Strategy, the Canadian government announced its intention to ban single-use plastics. The Canadian province of Ontario expanded the extended producer responsibility (EPR) scheme for paper packaging from covering half of the recycling cost to the full cost by 2023. The bill established a free program similar to Maine's that can be applied to packaging, printing, writing paper, and foodservice ware.
• The Canadian government is taking initiatives to promote plastic packaging in the country. Recently, Circular Plastics Taskforce received funding from the Ministry of Economy and Innovation (MEI) to support projects that optimize the recycling of all plastic packaging. The Taskforce received more than USD 399,904 from MEI for the start of the project's second phase.
• According to Statistics Canada, monthly sales of grocery stores in Canada hit a high of USD 7.66 billion during the pandemic, leading to an increase in the demand for flexible packaging. The COVID-19 pandemic provided a new foothold to single-use plastics previously criticized for the waste they generate. Flexible packaging benefitted because of increased concerns around hygiene and the protection it provides. Specific bans on plastic shopping bags were overturned, and fees were lifted due to the initial concerns that reusable alternatives could spread the virus.
• The Canadian government aims to reduce the environmental impact of primary food plastic packaging by eliminating unnecessary packaging and promoting circular design by 2035. It plans to sell 75% of fresh fruits and vegetables in bulk or plastic-free packaging by 2026 and 95% by 2028. This pollution prevention plan is expected to challenge the flexible packaging market's growth. Strict requirements for large grocery retailers to reduce single-use packaging and prioritize reuse and recycling could decrease the demand for flexible plastic packaging materials.
• Flexible packaging products primarily use soft plastics from various polymers. Increasing awareness of the environmental impact of single-use plastics and unsustainable practices boosts the demand for eco-friendly products. Additionally, initiatives by companies to promote sustainable packaging are expected to reduce the demand for plastic packaging by adopting paper packaging.

Canada Flexible Packaging Industry Segmentation

Flexible packaging is a method of packaging items that uses non-rigid materials, allowing more cost-effective and customizable solutions. It is a relatively recent approach in the packaging business that has increased in popularity due to its great efficiency and low cost.

The Canadian flexible packaging market is segmented by type (plastics, paper, and aluminum foil), product type (pouches, bags, films, and wraps), and end-user industry (food, beverages, household, and personal care). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.