Analysis by Material Type (Coated Unbleached Kraft Paperboard, Coated Recycled Paper, and Solid Bleached Sulfate); by Packaging Type (Bags & Sacks, Wraps, Cartons, Envelopes, Lids, and Sachet); by Paper Type (Parchment, Greaseproof, Sulfite, and Glassine); and by End-User (Agriculture, Consumer Goods, Food & Beverages, Cosmetics & Personal Care, and Others) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2033
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The global flexible packaging paper market is estimated to garner a revenue of ~USD 60 billion by the end of 2033 by growing at a CAGR of ~5% over the forecast period, i.e., 2023 – 2033. Further, the market garnered revenue of ~USD 45 billion in the year 2022. The growth of the market can be attributed to the increased spending on medicines as well as the higher utilization of flexible packaging paper in medicine packaging. For instance, as of 2021, the total spending on medicines across the globe was estimated to be around USD 1.5 trillion. Moreover, the escalating demand for packaged food as a result of a change in lifestyle, along with growing traction for sustainable packaging solutions across the globe, is also expected to add to the market growth.
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In addition to these, factors that are believed to fuel the market growth of flexible packaging paper include the rise in demand for eco-friendly packaging, coupled with their cost effectiveness, and the high rising trend of ready-to-eat food. These some of the other key factors that are projected to propel the market growth over the coming years. Additionally, flexible packaging paper market trends such as the higher inclination of the global population toward personal care and hygiene, along with a surge in technological advancement that is boosting the novel innovative solutions in the packaging sector, and rising demand for flexible packaging in the electronic industry are projected to further influence the growth of the market positively over the forecast period.
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
~5% |
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Base Year Market Size (2022) |
~ USD 45 Billion |
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Forecast Year Market Size (2033) |
~ USD 60 Billion |
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Regional Scope |
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Growth Drivers
Rising Demand for Flexible Packaging Paper in Pharmaceuticals – Based on a report, the pharmaceutical industry was projected to be around USD 1.5 trillion in 2021. The pharmaceutical industry comprises the discovery, development, production, packaging, and distribution of medicines and drugs. The medicines and drugs are supplied from country to country for consumption by patients. Therefore, the proper demand for packaging these medicines emerges in the market, resulting in higher utilization of flexible packaging paper.
Worldwide Escalation in the Ready-to-Eat Food Industry - Ready-to-eat, instant food mix is gaining popularity as such food is most convenient for those people who have a hectic work schedule. Ready-to-eat food products are one of the best alternatives to traditional cooking that saves a lot of time. Such benefits have made these meals highly demanded by working people and students. Therefore, the surging demand for instant food has been increasing the growth ratio of the ready-to-eat food industry across the globe, which is further estimated to positively affect the flexible packaging paper market in the coming years. For instance, the global value of the ready-to-eat food industry is expected to be approximately USD 198 billion by 2026.
Growing Inclination of Men Toward Makeup and Cosmetics - As of 2020, it was estimated that nearly 60% of men were using makeup or concealer across the globe.
Increasing Production and Demand for Skin & Hair Care Products – For instance, in 2022, the skin care segment across the globe was projected to be nearly USD 8 billion.
Worldwide Growth in Retail E-Commerce – For instance, global retail e-commerce sales were estimated to be around USD 6 trillion in 2021. By 2026, this amount is estimated to propel nearly 58%, totaling roughly USD 9 trillion.
Challenges
The global flexible packaging paper market is segmented and analyzed for demand and supply by end-user into agriculture, consumer goods, food & beverages, cosmetics & personal care, and others. Out of these five types of end-user segments, the food & beverages segment is projected to witness noteworthy growth over the forecast period. The growth of the segment can be attributed to the rising demand and trade volume of food and beverage across the globe, along with higher demand for ready-to-eat meals and beverages which requires sustainable packaging. For instance, in 2022, the global food segment was estimated to generate total revenue of USD 15 billion. Besides this, increasing consumption of frozen food and dairy product is another significant factor that is anticipated to boost segment’s growth in the market further over the projected time frame.
The global flexible packaging paper market is also segmented and analyzed for demand and supply by material type into coated unbleached kraft paperboard, coated recycled paper, and solid bleached sulfate. Amongst these three types of segments, the coated unbleached kraft paperboard segment is estimated to show prominent growth over the forecast period on the back of its high usability in several end-use industries as a result of its excellent printability, and tear strength. Besides this, the coated unbleached kraft paperboard is very economical as compared to its other alternatives. This, as a result, is anticipated to create numerous opportunities for the growth of the segment in the coming years.
Our in-depth analysis of the global flexible packaging paper market includes the following segments:
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By Material Type |
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By Packaging Type |
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By Paper Type |
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By End-User |
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The Asia Pacific flexible packaging paper market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2033. The growth of the market can be attributed majorly to the dynamically increasing food and beverage industry, along with the surge in the demand for packaged food products. For instance, in 2020, packaged food sales figures in China totaled over USD 288 billion. Rice, pasta & noodles, dairy, and savory snacks were the top packaged food categories in terms of sales value. Further, an upsurge in the disposable income of the populace, and rising investment in the packaging industry in several countries in the region are some other significant factors that are projected to expand the market growth further throughout the forecast period in the region. In addition to this, an increasing count of facilities for the production of flexible packaging paper, the availability of raw materials, and low-cost labor are also anticipated to boost the market growth in the region during the forecast period.
Furthermore, the North American flexible packaging paper market, is also estimated to display notable market growth by the end of 2033. The growth of the market can be attributed to the growing research and development activities, followed by the escalating inclination of people toward cosmetics and rising disposable income. For instance, the cosmetics segment in the United States was estimated to reach approximately USD 18 billion in 2022. Furthermore, an escalating ratio of packaged food consumption, along with the higher count of government initiatives to promote sustainable packaging coupled with surging environmental concerns are also estimated to further boost the market growth in the region in the coming years in the region.
Mondi plc
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Ans: Rising demand for flexible packaging paper in pharmaceuticals, worldwide escalation in ready-to-eat food industry, and worldwide growth in retail e-commerce are the major factors driving the market growth.
Ans: The market is anticipated to attain a CAGR of ~5% over the forecast period, i.e., 2023 – 2033.
Ans: Possibility of negative impact on the environment, disrupted supply chain owing to COVID-19, and lack of awareness and proper investment are estimated to be the growth hindering factors for the market expansion.
Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2033 and provide more business opportunities in the future.
Ans: The major players in the market are Mondi plc, Smurfit Kappa Group, JK Paper Limited, Sappi Europe SA, Packaging Corporation of America (PCA), International Paper Company, Billerud AB, WestRock Company, and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by material type, packaging type, paper type, end-user, and by region.
Ans: The food & beverages segment is anticipated to garner the largest market size by the end of 2033 and display significant growth opportunities.
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