The ASEAN Flexible Packaging Market Is Estimated To Witness High Growth Owing To Increasing Demand
The ASEAN flexible packaging market is estimated to be valued at US$ 5.55 Bn in 2023 and is expected to exhibit a CAGR of 4.5% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Flexible packaging is used for packing of food products, consumer goods, pharmaceuticals, and others. It provides easy handling, is lightweight, and helps preserve the quality and freshness of products. Flexible packaging uses materials such as plastic films, paper, aluminum foil which can be easily printed, sealed and converted into various shapes for packaging of products. In ASEAN countries, flexible packaging is extensively used for packaging of food items such as snacks, confectionery items and ready-to-eat meals.
Market Dynamics:
The growth of the ASEAN flexible packaging market is driven by increasing demand for convenient packaged food products and increasing e-commerce penetration in the region. With rapid urbanization and changing lifestyle, there is rising demand for easily accessible and ready-to-eat packaged foods among consumers. Flexible packaging aids in increasing the shelf-life of food products as it provides high barrier protection. Further, the growth of the e-commerce industry is also fueling the demand for flexible packaging as it prevents damage to products during delivery and provides tamper evidence. Malaysia and Indonesia are witnessing increasing penetration of online retailers and e-commerce platforms which is augmenting the sales of flexible packaging in these countries. Additionally, rising health-consciousness has increased the demand for packaging that maintains product freshness and nutritional value for longer duration, thereby propelling the market growth.
Segment Analysis
The ASEAN flexible packaging market is segmented into pouches, bags & sacks, and others. Among these, the pouches segment dominates the market and accounts for more than 50% share of the total market. Pouches are widely used for packaging of various products across industries such as food & beverages, personal care, healthcare, and homecare. Their properties such as low weight and high barrier against oxygen, moisture, and other external agents make them suitable for efficient packaging of both dry and liquid products.
PEST Analysis
Political: The ASEAN countries promote extensive trade relations among each other through various trade agreements which positively impact the flexible packaging market.
Economic: Rapid urbanization and rising disposable incomes in the ASEAN region enhance consumer spending on packaged goods, driving market growth.
Social: Changing lifestyles and growing awareness about convenience packaging bolster the demand for flexible packaging.
Technological: Advancements in printing and coating technologies allow manufacturers to develop innovative and customized packaging solutions for customers.
Key Takeaways
The ASEAN Flexible Packaging Market Size was valued at US$ 5138.98 Mn in 2023 and is expected to reach US$ 7403.55 Mn by 2030, expanding at a CAGR of 4.5% during 2023-2030. Growth of the consumer goods industry along with rising focus on sustainable packaging is fueling the flexible packaging demand in the region. Among countries, Indonesia holds the largest market share currently and is anticipated to maintain its dominant position during the forecast period. Some key factors attributed to its leading position are huge population, growing middle-class consumers and increasing disposable incomes.
Regional analysis
Among the Southeast Asian countries, Indonesia is the fastest growing market for flexible packaging due to high population and expanding middle-class driving demand for packaged food, beverages, consumer goods and other products. Thailand also holds a significant share in the ASEAN market owing to rising foreign investments in the food processing sector.
Key players analysis
Key players operating in the ASEAN flexible packaging market are Amcor Limited, Prepack Thailand Co., Ltd., Berry Plastics, Mondi Group, Sealed Air Corporation, Sonoco Products Company, Constantia Flexibles Gmbh, and AR Packaging Group. These players are actively adopting business strategies like new product launches, capacity expansions and mergers & acquisitions to enhance their presence in the region.