global packaging

Flexible packaging has been the mainstay of the global packaging industry for many years now especially in the food packaging section. Technical advancements have also dramatically changed how packaging is viewed. It has become the most favored form of packaging replacing rigid packaging like glass, metals etc. It is estimated the global consumption of plastic packaging will grow at an annual rate of 3.5% over the next 5 years reaching $ 231 billion by 2018.

Asia is the largest regional market with 29.1% of global market volume in 2011. It is also the fastest growing market for consumer flexible packaging with a forecasted CAGR for 2011-16 of 7.9%. During the period of 2011-16 the region is forecasted to represent 55% of total global packaging consumption trade. India and China are the fastest growing destinations for consumer flexible packaging accounting for 44.0% of world flexible packaging consumption growth during the forecast period.

In the Indian context too the FMCG are the largest consumers of flexible packaging. Food accounts for 38% of total packaging consumption. The packaging industry in India is growing at an annual rate of more than 15% and is valued at $15.6 billion and this amount is expected to reach around $ 60 billion in the next 5 years. A burgeoning middle class, liberalization and an organized retail sector have contributed significantly to the growth of the packaging companies in India.

The flexible packaging market has also witnessed a growth in the pharmaceutical sector where it is growing with a CAGR of 7.1% by 2018. With a growing concern and awareness about public health, the pharma industry is exhibiting strong gains in the form of an increase in product processing units, convenience packaging and rising consumption of generic drugs.

Flexible plastic packaging has also benefitted from a wide range of new products being developed by brand owners to sustain the increasingly competitive market environment. As retail chains demand greater product (particularly food) protection the use of barrier flexible packaging will continue to grow. Also plastics such as BOPET, EVOH and PA are also touted to show the highest growth rate.

The Indian packaging industry scenario will witness more growth for flexible packaging owing to its cost-effectiveness and sustainability credentials. Plastics are touted to grow more. Some of the major growth areas will be: