Plastic flexible packaging is gaining market share globally, including in North America , as per a report by Freedonia. Gains in packaging will benefit from changes in food consumption patterns and trends such as portion control, which are altering the way snack food is packaged. Flexible packaging will benefit from the trend toward individually wrapped products, of which pouches are expected to experience the fastest growth through 2010.
World demand for converted flexible packaging, pegged at US$38 bln, will increase by 4.6% pa through 2005. Based on environmental advantages and improving barrier properties and convenience, growth will be driven by new applications and encroaching of market share of rigid containers, and plastic films replacing lead over paper and foil. US demand for flexible bulk packaging will reach $7 billion in 2009 based on healthy outlooks for manufacturing and retail activity. Film wrap and FIBCs will record the best gains, with above-average growth also expected for plastic shipping sacks and plastic strapping. The food and beverage and smaller nondurables markets will grow the fastest.
Packaging demand in the U.S. is forecast to increase 2.8% pa from 2005 to US$131 bln in 2010. Demand for plastic packaging is projected to expand 4.4% pa through 2010, the fastest pace of all packaging products. The food market will continue to account for the largest share of packaging demand in 2010 at US$47.8 bln.

Source reduction efforts are promoting the use of flexible packaging products such as bags, sacks and pouches, which contain about 80 percent less material than equivalent rigid containers.
Plastic films used in flexible packaging have good barrier properties as well as tensile strength. Besides, the rising cost of aluminum has forced several manufacturers to shift from metal containers to flexible plastic packages. Being lightweight, flexible plastic packages also help reduce transportation costs, and occupy less shelf space - allowing more products to be displayed on the same shelf. Among the many growth factors, the introduction of stand up pouches is fast developing as a key driver for the growth of the plastics in flexible food packaging markets. In addition to being lightweight and offering most of the features of rigid packages, stand up packages also offer the advantage in being able to deliver a high degree of product differentiation, particularly with attractive flexographic printing.

Flexible plastic food packagers are made from mono as well as multi-layered films. While mono-layered films accounted for more than 55-60% of market share in 2005, the market is seeing the rapid growth of multi layered films and a decline in the market share of mono-layered products. The share of mono layered films is declining to the tune of 5-10% pa and its dominance is expected to be overtaken by multi layered films in the next 1-2 years. Among the multi layered films, the ones with 3, 5 and 7 layers are most used. 3 layered films account for more than 30% of the market whereas five and seven-layered films account for merely 10%.

However, despite the high level of convenience, lower costs of manufacturing and transportation, lesser use of polymer, flexible packages still fall short of rigid packaging with regard to filling systems. Rigid package filling is more efficient and almost five times faster when compared to that of flexible packages. Also, current filling lines are dedicated to rigid packaging and many manufacturers are unwilling to dismantle and install new flexible lines until they recover their investments in rigid lines. The flexible package manufacturers need to work closely with equipment manufacturers to come up with packages that increase the speed of filling. With rising polymer prices, small and medium sized companies are being forced to sell at competitive prices, thereby reducing their margins. Thus the challenge for manufacturers is to develop films that are not only thin, but also have the necessary barrier properties required for the extended shelf life of food products.