Market Segmentation Analysis of the Global Pharmaceutical Sachet Market: Infiniti’s Client Engagement for a Global Packaging Company
The flexible packaging market has witnessed steady growth over recent years. As the demand for lightweight and aesthetically pleasing packaging rises, the market continues to grow. Increasing urbanization, population, and need for convenience are other crucial factors contributing to the growth of the flexible packaging market. In recent years, convenience, aesthetics, and mass production have been essential factors in increasing consumer satisfaction. Urbanization, particularly in the APAC region, and an increase in population has also led to higher demand for on-the-go, easy-to-use packaging.
Food is the largest end-use industry in the flexible packaging market and was one of the earliest industries to adopt flexible packaging. Due to this change, the industry has seen continued growth over recent years, as demand for convenient packaging for ready-to-eat packaged food, snacks, and frozen meals increased.
The flexible packaging market continuously experiences and witnesses a variety of market trends. These trends change as time, technology, and consumer preferences advance. More recently, issues of environmental safety, increasing innovation, convenient shopping habits, and changes in consumers’ demands have impacted the market.
These are continually evolving and changing trends that can be incredibly challenging for companies since they require change, innovation, and preparation to overcome efficiently. Therefore, many top market players leverage expertise on market trends analysis. This analysis allows companies to stay ahead of the trends and their competitors. In this article, Infiniti’s research experts answer questions regarding the most prominent trends in the flexible packaging market, while also highlighting the importance of market trends analysis for market players.
The flexible packaging market is expected to grow in the coming years. To efficiently forecast and develop strategies for this market growth, request a free proposal.
Q&A: Flexible Packaging Market Trends
How does the growing demand for sustainability affect the flexible packaging market?
Contrary to popular belief, the demand for sustainable packaging is a positive factor for the flexible packaging market. Rising concern regarding the environmental crisis and the technological developments in the field of sustainability has led to a steady increase in the demand for sustainable packaging over recent years. The rigid-to-flexible packaging conversion was a significant change in the market, and sustainable packaging is the next significant conversion.
Recyclable, bio-degradable, and cost-effective packaging solutions are being rapidly developed. This allows companies to reduce costs, keep customers satisfied, produce eco-friendly products, and reduce waste. Major brands across the globe are working towards developing sustainable packaging solutions. With initiatives such as these, the conversion to recyclable packaging will be faster and will act as a significant growth driver in this market.
What role does the food industry play in the flexible packaging market?
Food is the largest end-use industry in this market. There has been a recent, substantial increase in demand for ready-to-eat and on-the-go foods. As countries urbanize and populations increase, there is a higher need for convenient products and efficient processes. For instance, a flexible plastic pouch packaging helps consumers save space, time, and reduce waste, as opposed to rigid packaging of any form.
Processed fruits and vegetables, as well as baby food, are expected to outperform other segments of flexible food packaging. With the adoption of sustainable alternatives in flexible packaging, food packaging companies are likely to increase their use of flexible packaging. Sustainable packaging allows for a longer shelf-life, better aesthetic appeal, and higher consumer demand.
How crucial is innovation in the flexible packaging market?
With the increasing demand for eco-friendly and sustainable packaging, the flexible packaging market is constantly innovating. Developing efficient and cost-effective sustainable alternatives is crucial to the growth of the market. Additionally, plastic pouches are the most prominent segment in flexible packaging due to their high flexibility, ease-of-use, and light weight. Recently, there have been various innovations in plastic pouches. Tear notches, spouts, and resealable closures are the characteristics developed and modified the most.
Advances in manufacturing technology to lower production costs and increase the speed of production lines are essential for the growth of this market. Without innovation, growth in flexible packaging will stagnate. Constant innovation helps companies improve operations, understand market trends and challenges, and, most importantly, increase customer satisfaction.
How has a high demand for convenience changed the flexible packaging market?
As convenience becomes a necessity, consumers are searching for the most efficient alternatives to shopping from small grocery stores. Recently, supermarkets have become the preferred mode of shopping for consumers in the United States, due to the availability of multiple products in one area. Companies produce and deliver large inventory to supermarkets across the country, and this translates into a need for a high volume of flexible packaging.
Further, eCommerce has become a crucial focus for almost every industry due to the high level of convenience it provides. The food industry is one such industry, and flexible packaging allows for low-cost manufacturing, accessible transportation, and longer shelf-life. The growth of supermarket shopping and eCommerce has led to an increased need for flexible packaging across industries.
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Market Trends Analysis in the Flexible Packaging Market
These trends have transformed the flexible packaging industry over recent years. As technology, consumer preferences, and sustainable packaging continue to change, so do the trends that influence the market. Market trends analysis allows flexible packaging companies to forecast, identify, and understand the current and upcoming trends in the market to grow efficiently. Understanding market trends will enable companies to strategize and produce according to current or forecasted demand, minimize customer attrition, and stay a step ahead of competitors.
Infiniti’s market trends analysis has helped prominent flexible packaging market players exceed their revenue goals, sign deals with top players, and innovate effective alternatives. As the flexible packaging market continues to grow, staying ahead of the curve is becoming a necessity. Market trends analysis enables customers to stay ahead of the curve, their competitors, and consumers’ changing preferences.
To understand market trends analysis solutions, and the upcoming trends of the flexible packaging industry, request more information.
North America remains the global leader in the packaging industry right now. Although the North American packaging market faced a brief dip in 2009, the sector has seen steady growth over the past couple of years. However, new packaging industry trends such as the rising need for eco-friendly and sustainable solutions are posing new challenges for companies in the sector. Also, China is poised to become a packaging industry major by 2020, and together with other markets in Asia, it will remain the industry’s top growth engine alongside North America. While this shift is notable, North America’s relevance in the global packaging market remains substantial due to its size and rate of innovation. The largest end-user segment of the North American packaging sector is food, while the fastest is projected to come from healthcare and cosmetics, closely similar to the global packaging industry trends. This blog provides a packaging industry overview in North America, highlighting the key packaging industry trends that investor and companies can expect to see.
North American Packaging industry trends
Impressive growth in Mexico
Mexico is predicted to have the highest packaging industry growth among the three North American countries. One of the key packaging industry segments that is expected to show positive growth in Mexico is the soft drink beverage packaging that meets the needs of customers seeking both versatility and sophistication from their packaging.
Success of rigid plastic packaging
Packaging industry trends such as rigid plastic packaging is forecasted to show steady growth in the North American packaging market and will experience the highest growth rates across plastics. Furthermore, PE and PET will remain the main plastics used for consumer manufacturing.
Paperboard to lead market share
Paperboard is one of the notable packaging industry trends that suffered a steeper decline than most other packaging materials during the recession, especially in the US. However, it has recovered quickly and returned to pre-crisis levels. In the North American packaging market, paperboard holds the largest share of packaging consumption. Corrugated packaging claims the largest share of the North American paperboard packaging sales.
Recovery of industrial sectors
The North America economy is greatly affected by uncertainties. This also includes the impact of the European economic crisis and political uncertainty in oil-exporting countries. The US has also been significantly affected by falling real estate values and difficulties in securing financing for future investments. However, the industrial segments have been in recovery since a sharp downturn in demand a decade ago. Real estate values are now also starting to show recovery. The proliferation of several innovative packaging industry trends and growth of the packaging sector can be expected in the next few years.
Packaging industry trends such as retail-ready packaging provides an attractive structure as well as advertises a product. It refers to packaging in the form of a self-contained unit that is delivered to a retailer and is immediately ready for on-shelf product display without the need for assembling or unpacking. Such packaging industry trends significantly cuts down on operation costs as the shipping-package is shelf-ready. Retail ready packaging is continuously gaining popularity and traction in North America as a number of retailers consider its implementation and others expand their efforts in the area. This is due to an increased understanding of RRP, and the ever-growing penetration of RRP across categories.
With a growing focus on sustainability, flexible packaging is replacing traditional rigid packaging solutions. Also increasing market demand for consumer-friendly and sustainable packaging materials have propelled flexible packaging as a cost-effective alternative.
Despite the strong market demand for flexible packaging services, the entry of new players in the global flexible packaging market is projected to boost the market competition. This has made it vital for major players in the flexible packaging market to conduct market research and approach the right partners to provide intelligent business solutions.
A major flexible packaging company found several inefficiencies while trying to expand their business operations to the European market. The speed of transformative change, consumer perception of plastic, sustainability challenges, and difficulty in forecasting market size made this a complex undertaking for the team. The company also struggled with building up systems and processes to keep up with the escalating requirements of the flexible packaging market. All these challenges were further escalating the costs. With this, the client realized that assessing key competitors is not enough in this competitive market. It is vital for them to attain a wider understanding of the markets as a whole.
The company approached Infiniti Research for a solution to address the challenges and drive down the costs.
Our market opportunity analysis experts leveraged various paid and non-paid databases, and other secondary sources of information to study the flexible packaging market in Europe. Also, they tracked the distribution channels of major competitors and conducted porter’s five forces analysis to examine the European flexible packaging industry’s competitive forces and likely profitability.
Key takeaways of this engagement
- Gained insights into market size estimate for the next 10 years
- Identified factors affecting profitability and reduced time to market
- Expanded their business operations around niche market segments
The client also achieved a 50% reduction in the total cost of operations and up to $13 million in potential annual operational savings.
Wondering how the client successfully achieved a spot in the European flexible packaging market? Download this FREE resource to gain detailed insights into this success story.
Why Infiniti’s Market Opportunity Analysis Solution?
Today, it is indispensable for organizations to understand the competitive landscape and market attractiveness to gain an edge over their peers. Market opportunity analysis helps organizations to effectively connect their products and services with their target customers. Market opportunity engagement also helps organizations comprehend the potential challenges and barriers to entry across niche market segments. Infiniti’s market opportunity analysis has helped various companies gain accurate and actionable data to devise effective go-to-market strategies.
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Market Opportunity Analysis to Support Data-Driven Business Strategies for a Flexible Packaging Firm
The global packaging industry is booming with rising demands especially from growing economies at an annual rate of over 5%. Furthermore, factors including the growing urbanization, development of retail chains, investment in housing and construction, and the burgeoning healthcare and cosmetics sectors especially in BRIC nations are driving sales growth for the global packaging industry. Over the years, customer expectations from packaging industry (especially food packaging) have drastically evolved. They now expect packaging to comprise of three key qualities: convenience, ease of use, and ease of transportation. With a steady increase in competition as well as opportunities to improve offerings, the vendor landscape in the global packaging market is poised to experience steady growth over the next five years.
Packaging industry trends and market updates 2019
The article below scans the category for the packaging industry in its entirety to help vendors in this sector understand and stay abreast of the latest news, innovations, and market developments.
Packaging industry moves to more customized options
Owing to the busy lifestyle today, consumers will continue to crave convenience. This could result in a new level of customization, taking not only personalization of the product but even the packaging industry as a whole to new heights. With the breakthroughs in technology, printing, and data collection, we can soon expect highly personalized and localized packaging formats. Furthermore, the rising concerns relating to global challenges such as shortage of food and water demands the needs to reduce problems such as food waste. Protective packaging will play a major role in making food safer and more accessible. This will also help serve the need to keep food items fresh for longer during transportation to long distances. The demand for greater protection coupled with the demand for greater sustainability will be met with a highly protective packaging that is also more environmentally-friendly, lighter and more suitable for transport.
Nanotechnology in packaging industry
Vendors in the sector are exploring opportunities for packaging in marketing their products better. Technologies such as NFC, RFID, and LED solutions are expected to offer consumers a new level of interaction, information, and entertainment. Furthermore, the use of nanotechnology in packaging industry could provide better protection against air and light, improving the shelf-life of products. Nanotechnology in packaging industry could also help promote active packaging. This involves using materials that actually interact with the products’ content, fighting microbes, and thereby reducing the risk of foodborne diseases.
Growth of flexible packaging market in GCC
Flexible packaging includes materials such as bags, pouches, plastic, film, aluminum foil, metalized or coated paper or film, or any combination of these materials that is easy yielding and has no rigid structure. Flexible packaging is currently the fastest growing segment in the global packaging industry and is used in consumer as well as industrial packaging. Currently, the flexible packaging market is observed to be exhibiting strong growth in the GCC region. This growth is driven largely by continuous development in sectors including food, retail, consumer goods, and pharmaceuticals. Moreover, the increase in personal disposable income and the growth in retail and consumer goods market further add to the growth of the packaging industry in GCC economies.
Foodservice packaging is growing despite challenges
Nearly two-thirds of manufacturers in the foodservice packaging segment of packaging industry are experiencing rapid growth in volume. These manufacturers also gained a surge in sales. Due to the increased number of fast-casual options, quality food offerings, and value to their customers, this segment of the packaging industry is expected to expand in the next few years despite several challenges including environmental concerns and government regulation taking the center stage. Supermarkets/grocery stores and delivery services are also noted as opportunities for market expansion of the foodservice packaging because of the popularity of being able to grab products on the go or have them delivered.
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