The Europe flexible packaging market was valued at US$55.139 billion in 2019 and is projected to grow at a CAGR of 3.08% to reach a total market size of US$66.146 billion by 2025. Food and beverage, healthcare and personal care industries require packaging solutions with a high level of protection, consumer friendliness with regards to convenience and packaging design, are the sectors that are estimated to drive the growth of Europe flexible packaging market. Major players in the market are increasingly making their brand portfolio adept with the variety of the demand met by flexible end-use packaging. The demand for flexible packaging by food and beverage and personal care products are evermore increasing due to the ability of flexible packaging to allow the players of the aforementioned end-use industries to enhancebrand perception to woo in prospective consumer as well retain loyal consumers, which inturn is projected to significantly drive the growth of the flexible packaging market in Europe.
Moreover, the increasing health awareness among today’s consumers isincentivizing the manufactures of flexible packaging to invest substantially in research and development. This isto enable end-use industries to extend shelf life, ensure food safety, and provide a barrier against natural elements. Furthermore, the value-added benefits of flexible packaging are, inclusive of but not limited to, the convenience of use and the ability to accommodate artistic creativity for enhancing the brand appeal. Therefore, there is an uptick in R&D initiatives that are being carried out along these lines as well as enhance the product to package ratio that is estimated to further drive the flexible packaging market in Europe.Additionally, the meteoric rise of online sales and purchase or in short, eCommerce, the market for flexible packaging is further projected to grow during the forecast period. The scope of application flexible packaging production application is set to further expand due the aforementioned development. Moreover, due to the plethora of products on offer there is demand for a variety of flexi packaging types. Further, since transportation expenses are primarily calculated based on the weight of the goods, there is an increasing interest in developing newer versions of lightweight packaging solutionsto reduce the transportation packaging.
Besides, the growing environmental consciousness among the current generations has catapulted the growth of sustainable packaging. This is because currently the production process of Flexi packaging contributes to less waste, requires fewer natural resources and thus emits less amount of greenhouse gas (GHG). Moreover, there has been increasing efforts from a variety of stakeholders in Europe to move towards the carbon-neutral production process of Flexi packaging, the market. This has led to a positive perception of the Flexi packaging market. Furthermore, there has been a paradigm shift in consumption towards organic agriproductsalong with environmentally conscious purchase that has augmented the growth of the Flexi packaging market for its property of enhancing shelf life. Hence, the aforesaid is projected to drive the growth of the Flexi packaging market in Europe.
Owing to the high demand for Flexi packaging that is estimated to further drive the growth of the market, it has led to several major acquisitions among the major players of this market to strengthen the portfolio of their products. For instance, in July 2019, Coveris a leading European packaging company that manufactures flexible packaging solutions for some of the world’s most respected brands has confirmed its acquisition of 100% of the shares of Amberley Adhesive Labels Ltd a company based in Dorset, UK. This move from Coveris was with the objective to improve its Labels & Boards business and extend its digital printing capabilities that Amberley is reputed in. Coveris’s labels business is predominantly primed towards the ambient, chilled, fresh markets whereas Amberly specializes in personal care and home markets. Moreover, in February 2019 Sealed Air Corporation (NYSE: SEE) has acquired MGM’s flexible packaging business. MGM was founded in 1982, was a provider of flexible food packaging materials for consumer-packaged goods markets in Southeast Asia and specialized in printing and laminating.