by Flexible packaging refers to packaging products made of paper, plastic film, aluminum foil, or others that can be easily sealed, folded, inflated or deformed. Products packed with flexible packaging materials allow for customized shapes that can fit irregularly shaped items and prevent breakage during transportation. Flexible packaging solutions are preferred for food, beverages, pharmaceuticals and other industries as they provide durability, cost efficiency and reusability.
The global ASEAN flexible packaging market is estimated to be valued at US$ 9.2 Bn in 2023 and is expected to exhibit a CAGR of 3.6% over the forecast period 2023-2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Consumers prefer packaged food products with resealable and easy-open features which is fulfilled by flexible packaging materials like pouches, bags and wraps. Furthermore, flexible packaging generates less waste as compared to rigid materials and can be efficiently recycled, leading packaging manufacturers to increasingly adopt sustainable and eco-friendly solutions. The market is also driven by technical advancements in flexible packaging like automated filling and sealing machines that enhance production efficiency.
SWOT Analysis
Strength: ASEAN is one of the fastest growing regions in the world for flexible packaging. The ASEAN flexible packaging market benefits from increasing demand for packaged food and beverages and changing lifestyles and consumption patterns in Southeast Asia. Furthermore, increasing focus on sustainable packaging solutions and adoption of eco-friendly materials by manufacturers will drive the use of flexible packaging solutions.
Weakness: High dependency on imports of raw materials increases production costs for flexible packaging manufacturers in ASEAN. Significant fluctuations in raw material prices pose challenges. Additionally, lack of innovation and technology adoption could restrict market growth over the forecast period.
Opportunity: Rapid urbanization and growing middle class population present an opportunity to introduce innovative flexible packaging solutions. Rising e-commerce industry coupled with innovative packaging formats will boost demand. Furthermore, flexible packaging caters well to on-the-go consumption trends, supporting market expansion.
Threats: Stringent government regulations pertaining to the use of plastics pose threats. Environmental concerns related to non-biodegradable plastics may challenge market growth. Additionally, substitute packaging materials such as paper and rigid plastics threaten the flexible packaging business.
Key Takeaways
The ASEAN flexible packaging market is expected to witness high growth over the forecast period driven by increasing consumption of food and beverages. The growing regional economy and thriving urban population are key factors promoting the packaging industry. Flexible packaging manufacturers are benefitting from demand for sustainable and eco-friendly materials in the region.
Regional analysis comprises Indonesia, Thailand and Vietnam are among the fastest growing countries for flexible packaging in ASEAN. Indonesia dominates flexible packaging consumption led by food packaging. Meanwhile, Vietnam has emerged as a major production hub for flexible packaging in recent years.
Key players operating in the ASEAN flexible packaging market are Amcor, Berry Global, Mondi, Sonoco, Huhtamaki and Constantia Flexibles. These companies cater to the demand for polyethylene, paper, and aluminum-based flexible packaging formats by offering laminated pouches, bags, and films.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
