Metalized Flexible Packaging Market

Updated on : August 22, 2024

Metalized Flexible Packaging Market

Metalized Flexible Packaging Market was valued at USD 13.5 billion in 2023 and is projected to reach USD 16.8 billion by 2028, growing at 4.5% cagr from 2023 to 2028. Increasing global population and improving economic conditions of developing countries and rising demand for customer-friendly packaging are the major drivers of the global insulation market during the forecast period.

Attractive Opportunities in the Metalized Flexible Packaging Market

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Metalized Flexible Packaging Market Dynamics

Driver: Rising demand for customer-friendly packaging

The surge in popularity of stand-up pouches, particularly for ready-to-eat meals and microwaveable food, is driving the increased need for metalized flexible packaging. The convenience of microwaveable food aligns with evolving lifestyles and growing incomes in middle-class households. The demand for metalized films in food packaging is driven by their ability to preserve aroma and prevent odors. Consumers, preferring transparency in packaging to view products before purchase, find metalized films particularly appealing. This preference is crucial for items like dairy, poultry, vegetables, and fruits, where the visual quality is paramount. Transparent metalized films address this consumer concern by allowing a clear view of the packaged product.

Restraint: Volatile raw material costs

The majority of expenses associated with the production of metalized flexible packaging can be attributed to raw materials. The fluctuating prices of crude oil and the widespread demand for polymers in various applications contribute to variable input costs. The inherent volatility in raw material prices, especially for polymers and their production monomers, poses a substantial challenge to the expansion of the metalized flexible packaging market. Additionally, raw material costs are significantly influenced by logistics, labor expenses, trade-related costs, and tariffs, collectively exerting a considerable impact on the polymer market and, consequently, the growth trajectory of the metalized flexible packaging industry.

Opportunities: Sustainable and new metalized flexible packaging solutions

Manufacturers are responding to dynamic industry changes influenced by factors such as new regulatory initiatives, prompting innovation in packaging solutions. Heightened environmental concerns linked to the use of biodegradable metalized flexible packaging are compelling manufacturers to create packaging options that are both environmentally friendly and secure. In light of stringent government regulations, evolving consumer preferences, and environmental pressures, manufacturers are realigning their strategies to focus on developing recyclable and sustainable packaging. For instance, Canada's Celplast Metalized Products Limited has introduced sustainable alternatives like Post-Consumer Recycled (PCR) Metalized Polyester and High Barrier Metalized PLA Compostable Film. Similarly, the UK's Camvac Limited has developed an eco-friendly substitute for metalized polyester that is fully biodegradable and suitable for home composting.

Challenges:  Recyclability of metalized flexible packaging

The recyclability of metalized flexible packaging is a significant environmental and societal concern, representing the primary challenge faced by the packaging industry. Recycling multi-layer metalized flexible packaging involves a more intricate process compared to its single-layer counterpart. The complexity arises from the combination of various polymer types and metals in multi-layer packaging, making it challenging to separate from bulk waste. Each layer requires individual scrutiny, identification, and recycling. During the recycling process, complications arise as polypropylene (PE) films and other plastics used in metalized flexible packaging can become entangled in machinery, causing disruptions and thereby increasing production costs and time consumption.

Metalized Flexible Packaging Market Ecosystem

By Packaging Type, pouches accounted for the highest market share in 2022.

The pouches segment is projected to record the highest CAGR of 6.3% during forecast period as pouches are versatile, lightweight, and easy to transport. There is increasing demand for pouches from the food packaging and e-commerce industries. Pouches are easier to handle and are preferred for the space they provide for accommodating product information and branding. They can be supplied in a wide range of configurations to make the transportation of food products easier.

By End Use Industry, Food will be the Fastest-Growing Industry in Metalized flexible packaging market in 2022.

The food segment is estimated to account for the largest share of the overall metalized flexible packaging market in 2022. Changing lifestyles and busy schedules of the working population have driven the market for on-the-go flexible packaging products in the food & beverage sector.

Asia Pacific is projected to account for the highest CAGR in the metalized flexible packaging market during the forecast period.

APAC is estimated to be the largest market for metalized flexible packaging and is also projected to register the fastest CAGR of 6.0% during the forecast period. China is expected to account for the largest share of the market in APAC till 2028. Increasing global population and improving economic conditions of developing countries and demand for longer shelf life of products are the main drivers for metalized flexible packaging market.

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Metalized Flexible Packaging Market Players

Metalized flexible packaging market comprises key manufacturers such as Amcor plc (Australia), Mondi Plc (UK), Sonoco Products Company (US), Sealed Air Corporation (US), Huhtamaki Oyj (Finland), Transcontinental Inc. (Canada), Cosmo Films Ltd. (India), Polyplex Corporation Ltd. (India), Uflex Limited (India), Jindal Poly Films Ltd. (India), and others. Expansions, acquisitions, joint ventures, and new product developments are some of the major strategies adopted by these key players to enhance their positions in the metalized flexible packaging market. Major focus was given to the new product development due to the changing requirements of transportation and electronics product consumers across the world.

Metalized Flexible Packaging Market Report Scope

This research report categorizes the global metalized flexible packaging market on the basis of Material Type, Structure, Packaging Type, End-Use Industry, and Region.

On the basis of Material Type

• Aluminum Foil-Based Flexible Packaging
  • Aluminium Paper
  • Aluminium Paper Polymer
  • Aluminum Polymer
• Metalized Film Flexible Packaging
  • MET PP
  • MET PET
  • Others
• ALOX/SIOX PP
• ALOX/SIOX PET
• ALOX/SIOX OTHERS

On the basis of Structure

• Laminated Structures
• Mono Extruded Structures
• Others

On the basis of Packaging Type

• Bags
• Pouches
• Wraps
• Rollstocks
• Others

On the basis of the end-use industry

• Personal Care
• Beverage
• Pharmaceutical
• Food
• Pet Food
• Others

On the basis of region

• North America
• Asia Pacific
• Europe
• Middle East & Africa
• South America

The market has been further analyzed for the key countries in each of these regions.

Recent Developments

• On August 2023, Amcor Limited announced the acquisition of Phoenix Flexibles, a flexible packaging company with one plant in Gujarat, India. The acquisition was seen as a strategic move by Amcor to expand its capacity in the high-growth Indian market.
• In May 2022, Amcor Limited expanded its product portfolio by adding High Shield laminates to the pharmaceutical packaging portfolio. This product provides a high barrier and performance which is required by pharmaceutical companies.
• In October 2022, Mondi Group relaunched its premium Appetitt brand by collaborating with the renowned Norwegian pet food company Felleskjøpet to transition to recyclable high-barrier packaging. Mondi’s FlexiBag Recyclable is expected to be used to pack and protect dry dog and cat food.
• In April 2022, Sonoco Products Company acquired the remaining one-third stake from private investors in the joint venture, Sonoco do Brasil Participacoes, Ltda, which produces flexible packaging in Brazil.
• On April 2023, Sealed Air and Koenig & Bauer AG announced they had signed a non-binding letter of intent to expand their strategic partnership for digital printing machines. The partnership aims to significantly improve packaging design capabilities by developing state-of-the-art digital printing technology, equipment, and services.
• In February 2023, Huhtamaki Oyj acquired full ownership of Huhtamaki Tailored Packaging Pty Ltd (HTP), the Australian food service packaging distribution and wholesale group.

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