Flexible packaging market to grow 5.1% by 2018

Industry analyst 'MarketsandMarkets' has revealed that the global flexible packaging segment is set to grow from $73,825.3 million in 2012 to $99,621.9 million by 2018 with a CAGR of 5.1% over the next five years.

The flexible packaging market is a mature sector that has various stake holders such as raw material suppliers, processors, packaging manufacturers, and end-user industries such as manufacturers of personal care products, food, beverage and pharmaceuticals.

The report "Flexible Packaging Market by End-Use” focused in on materials such as Polypropylene and Polyethylene, substances particularly used in the cosmetics industry.

In personal care products, polyethylene is a polymer made of repeating ethylene units, used for a variety of purposes, such as uniting or bonding surfaces or holding ingredients together.

It is used in many makeup products such as eyeliners, mascara, eye shadows, eyebrow pencils, lipstick, blushers, face powders and foundations, as well as in skin cleansers and skin care products.

Market breakdown in terms of demand

According to the market researcher's report, the North American and European markets fared well in terms of revenue in 2012, the CAGR for ROW is 6.0% from 2013 to 2018. The four most potential nations for the flexible packaging market are Brazil, Russia, India and China, which are poised to exhibit the fastest growing trend.

Analysts at MarketsandMarkets reckon the opportunities to grow in these end-use markets are saturating in developed markets, players are struggling to diversify their product portfolio. The end-use products and their packaging are two interdependent markets.

"Consumer preferences, product characteristics, and material compatibility are essential in determining the level of demand and thus the direction of this market," the report states.

Europe is growing with a CAGR of 3.9%, and is driven mainly by the Eastern European markets whilst Asia is reported as leading the way with the highest market share and is estimated to grow with a CAGR of 7.1% during the period under review.

Personal care packaging

The personal care packaging market has also been forecasted by fellow market researcher Visiongain to record strong and sustained growth over the next decade as the economy continues to recover, supported by frequent innovation and sustainability.

"The European and North American markets are now very mature and saturated and the main way in which suppliers will seek to increase their sales and market share is through innovation,” comments the report’s author.

The use of biodegradable plastic in cosmetic packaging is increasing as more companies up their sustainability efforts and turn to injection-molded cases or packs for creams, gels and make-up.