MOUNTAIN VIEW, Calif., Nov. 15, 2012 /PRNewswire/ -- Changing lifestyles among consumers and the consequent dependence on processed, packed and pre-cooked food is increasing the sales of flexible packaging. Rigid packaging is visibly giving way to flexible packaging due to the latter's light weight, superior barrier properties, and prudent use of packaging materials.
New analysis from Frost & Sullivan (http://www.chemicals.frost.com), Analysis of the North American Flexible Packaging Market, finds that the market earned revenues of $25.40 billion in 2011 and estimates this to reach $30.63 billion in 2016 at a compound annual growth rate of 3.8 percent. The dominant flexible packaging formats are pouches and are likely to remain so during the forecast period of 2012 to 2016.
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"While the food and beverage market is flexible packaging's largest end-user segment, healthcare has become the fastest growing," said Frost & Sullivan Research Analyst Tridisha Goswami. "In any application segment, product innovation geared toward effective performance, customization and sustainability is essential for the success of this market."
Polymers are the dominant material in flexible packaging due to their properties of high performance and weight reduction. Moreover, it can be engineered for better performance characteristics such as barrier protection, clarity, transparency, and mechanical strength.
Recent market trends include unit dosage packaging, attractive product visualization, and convenient, yet environmentally-friendly packaging. However, strong competition from countries offering low-cost manufacturing, as well as the strong competition among more than 400 converters in North America, is slowing the market down. The market's maturity is further compounded by the production of thinner gauge sizes, which reduces the volumes.
The need for packaging to be unique and in line with changing technologies is challenging smaller market participants. These players are often acquired by larger companies to enhance product offerings and expand their geographical footprint.
"Innovative packaging, customized products, and sustainable packaging, along with mergers, acquisitions and partnerships, help companies gain expertise in niche segments and aid the overall growth of the market," noted Goswami.
Analysis of the North American Flexible Packaging Market is part of the Materials Growth Partnership Services program, which also includes research in the following markets: Asia-Pacific Biorenewable Materials Market, Western European Fall Protection Equipment Market, Food Grade Phosphoric Acid Market, and North American Flexible Packaging Market. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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Analysis of the North American Flexible Packaging Market
SOURCE Frost & Sullivan