Global converted flexible packaging market is forecast to reach 18.78 mln metric tons in terms of volume translating into US$70.15 bln in value terms by the year 2015, propelled by rising demand from consumer goods, food and beverage industries in developing economies, as per a new Report by Global Industry Analysts, Inc. Product differentiation, development and innovation continue to reign as key growth drivers for the industry. In addition, new application breakthroughs in the healthcare and pharmaceutical industries are providing ample growth opportunities for flexible packaging converters. The global packaging industry literally reeled under the severe impact of the worldwide economic slowdown. The overall packaging sales in the US and Europe witnessed all-time lows for 2008 in major end-use industries, while packaging manufacturers during the year, reported a massive 20% decline in sales. The position was no better in 2009. However, despite stagnant growth rates the overall damage in flexible packaging market was not as severe as that suffered by the larger packaging market, which witnessed huge declines over the period. The converted flexible packaging market displayed resilience in spite of investment slowdown in new conversion equipment. The major end-use market, the food-packaging sector, experienced a relatively smaller decline. In the US, as a result of the slowdown, over 55% of the companies reduced their capital expenditures by way of lower investment levels in 2009. In Japan, consumption of polyethylene in Japan represented 8.4% decline in 2009 in comparison to 2008. On the positive side, the market for flexible packaging started witnessing recovery in the year 2010 as several positive trends across the globe encouraged further growth in both volume and value terms.
Asia-Pacific constitutes the single largest market for converted flexible packaging, as stated by the new research report on Converted Flexible Packaging. India and China drive growth in the Asia-Pacific market enabling it to accrue a major share in the global market in volume terms. Europe and the US tail closely behind, the three markets together capturing a massive global share. The Asian region is also slated to surge ahead of the other markets at the overall fastest CAGR of more than 5.0% over the analysis period.
The Plastic Films material substrate, comprising of polyethylene, PVC, polypropylene and other resins constitutes the largest market. With respect to fastest growth rate, the Polypropylene material under the plastic films group is projected to sail ahead at a CAGR of 3.5% through 2015.