The Asia Pacific flexible packaging market is projected to grow at a CAGR of 6.00% to reach US$56.867 billion by 2025, from US$40.089 billion in 2019. Some of the key factors behind the significant growth of the Asia Pacific flexible packaging market are rising disposable income, improvement in the standard of living, and growing consumer demand for convenient packaging solutions. Hectic work lifestyle has induced the demand for easy-to-use and carry packaged food & beverage products, thereby driving the growth of Asia Pacific flexible packaging market. The demand for flexible packaging is also derived from the growth of various end-user industries such as healthcare, food & beverages among others. Moreover, lightweight material, low production cost, and easier transportation reduce the overall operating cost for manufacturers, leading to increased adoption of these solutions to cater to their packaging needs.
Emerging economies like China and India are expected to witness the substantial growth of the Asia Pacific flexible packaging market. China is expected to be the largest market for flexible packaging solutions due to its shift from production-based to a consumption-based economic structure. The rising number of supermarkets in the Asia Pacific region will boost the demand for flexible packaging solutions.
The technological advancements and innovations in the flexible packaging industry offer environmental-friendly benefits such as reduced use of plastic by way of package minimization, use of sustainable raw materials, reduced waste in the distribution chain, and reduced energy consumption during the recycling process. Moreover, flexible packaging generates fewer greenhouse emissions and contributes less to landfill waste against other packaging formats. Apart from governmental pressure towards sustainability, even consumers are now demanding sustainable packaging solutions due to rising environmental concerns, which will further augment the demand for flexible packaging solutions in the Asia Pacific region.
The growing e-commerce industry is propelling the growth of the Asia Pacific flexible packaging market in the forecast period.
The e-commerce industry in the Asia Pacific region is among the fastest-growing which is accounted to hold a high market share in the global e-commerce market. This is due to the high penetration of smartphones and other mobile devices which aid in online shopping, thus contributing to the growth of the flexible packaging of goods. The trend of online purchasing is common among the millennials who are convenient with the online mode of purchase along with saving a huge amount of time, effort, and money, with the wide availability of safe online mode of payments. According to the United Nations Conference on Trade and Development, the business to consumer e-commerce index 2019, among the developing regions of the world, Asian countries dominated other countries, where India’s position improved to secure 73rd position among 152 countries of the world. Among the top ten nations in the e-commerce readiness index, Singapore and Australia from the APAC region secured 3rd and 10th position in 2019.
A high consumer base is driving the demand for Asia Pacific flexible packaging solutions, fueling the market growth in the forecast period.
There is a presence of a large consumer base, especially in India and China, also, with the growing preference for the consumption of convenience and ready-to-eat meals, the market demand is expected to fuel in the forecast period. One of the main factors responsible for the presence of a large consumer base is attributed to the increasing middle-class population with the increasing family income. Also, with growing urbanization in the Asia Pacific region apart from the other developing regions of the world, there is an increasing shift from rural to urban areas which have brought in changes in dietary consumption as well. In countries like India, citizens of the country have started moving away from a regular traditional form of food consumption which includes cooking at home and eating together. This shift in the trend has been observed with the adoption of a busy lifestyle and women entering the major workforce, leading to a growing preference for convenience foods and beverages.
Additionally, with the adoption of modern living conditions and an increasing disposable income, the spending ability has also increased. Thus, promoting the market players in the packaging industry to manufacture innovative products in flexible packaging to satiate a wide group of consumers here. Furthermore, with the prevalence of people suffering from chronic diseases and the presence of the elderly population, the market demand for flexible packaging is soaring with the growing consumer demand for drugs and medication.