by The ASEAN flexible packaging market is primarily used for food packaging, in which food items need to be protected from external environmental factors such as moisture, oxygen, grease, light, and mechanical stresses during transportation and storage. Flexible packages are easy to handle, use, print, seal, and transport. They help reduce costs and improve product protection.
The Global ASEAN Flexible Packaging Market is estimated to be valued at US$ 6464.9 Mn in 2024 and is expected to exhibit a CAGR of 3.6% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the ASEAN flexible packaging are Dow Inc., Covestro AG, Eastman Chemical Company, SABIC, Arkema S.A., Mitsubishi Chemical Corporation, Evonik Industries AG, Sumitomo Chemical Co., Ltd., Teijin Limited, LG Chem Ltd. The market provides opportunities for companies offering sustainable solutions through bio-based materials, recyclable packaging formats and reduced plastic content. Technological advancements like active and intelligent packaging are also gathering traction in the ASEAN flexible packaging industry.
Market Drivers
The rising demand for lightweight and sustainable packaging from food and consumer goods industries is a key driver for the ASEAN Flexible Packaging Market Trends Flexible pouches and bags help reduce plastic usage and improve logistics operations. Government support for investments in digital printing technologies to design innovative packaging also spurs the growth of flexible plastic packaging. Growing e-commerce sector and increasing consumption of convenience foods amplify the demand for aseptic packaging in the region.
Current challenges in ASEAN flexible packaging market:
The ASEAN flexible packaging market is facing challenges due to strict government regulations regarding the use of plastic packaging in several countries of the region. Many ASEAN countries have introduced bans or restrictions on single-use plastic items like bags, straws, utensils etc. to curb plastic waste. This is negatively impacting the demand for plastic flexible packaging materials in the region.
Another challenge is the availability of affordable alternatives to plastic packaging. Materials like paper and aluminum foils are replacing plastics for certain packaging applications due to sustainability concerns. Advanced alternative materials like bioplastics are also gaining acceptance but high costs are limiting their widespread adoption in the ASEAN market currently.
SWOT Analysis
Strength: Wide application base in FMCG, food & beverages, pharmaceuticals sectors. Flexible packaging is preferred for its lightweight and cost-effectiveness.
Weakness: Negative environmental impact of plastic waste. Strict regulations on plastic usage pose compliance challenges.
Opportunity: Growth of e-commerce sector increases demand for effective packaging solutions. Alternative green materials opening new opportunities.
Threats: Economic slowdowns can dampen consumption growth impacting packaging demand. Alternative materials pose substitution threat if costs come down drastically.
In terms of value, the ASEAN Flexible Packaging Market is currently concentrated in Indonesia, Vietnam, Thailand and Malaysia which account for around 65-70% of total regional demand. Indonesia alone contributes over 20% share to the ASEAN market currently led by applications in food & beverages and consumer goods.
The fastest growing country for ASEAN flexible packaging market is Vietnam. Its market is projected to expand at a CAGR of around 5-6% during the forecast period, outpacing overall regional growth. Growing domestic consumption and manufacturing sectors, rising exports as well as favorable government policies are fueling strong growth of the flexible packaging industry in Vietnam.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it.
