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FLEXO Magazine : February 2014
INDUSTRY INDICATORS Global Growth Flexible Packaging Industry to Reach $231 Billion by 2018 The global flexible packaging market will grow at a rate of 3.5 percent annually through 2018, according to a major new study by Smithers Pira. This impressive rate of expansion is higher than gross domestic product, suggest- ing the flexible packaging market is growing more quickly than well developed and traditional rigid packaging markets. Smithers Pira’s report, The Future of Global Flexible Pack- aging to 2018, contains data categorized by both type and region. The report also explores the key drivers behind the changes occurring in the marketplace. The market tonnage in this segment is estimated at 24.3 million tons in 2013 and is forecast to grow at a compound annual growth rate of 4.1 percent during the period of 2013 through 2018, to reach a total of 29.8 million tons. According to Smithers Pira, the U.S. is the largest national market for this type of packaging, with a volume share of nearly 14 percent in 2013. Asia Pacific is the largest regional market, with 38 percent of global market volume and is also predicted to be the fastest growing market for consumer flexible packaging over the forecast period. The global packaging market stood at $799 bil- lion in 2012, increasing by 1 percent over 2011. Sales are projected to increase by 3 percent in real terms for 2013, to $824 billion. Smithers Pira forecasts annual growth of 4 percent per year to 2018 in the world packaging market, with sales to reach more than $1 trillion by 2018. The study explores sev- eral reasons for this high forecasted growth rate. These include: • Technical develop- ments • Cost per package • Sustainability initiatives • The continued increase of the consumer class in Asia Pacific, America and Eastern Europe • The replacement of traditional pack types with flexible packaging In addition, the industry has benefited from a range of new products being developed by brand owners in an increasing- ly competitive consumer marketplace. According to Smith- ers Pira, barrier flexible packaging will continue to grow in importance, as consumer packaged goods companies and major retail chains demand greater product protection and longer shelf life. The flexible packaging sector has traditionally had an extremely diverse and fragmented structure, consisting of a few large global operations and many small to medium sized national and regional companies. Technical advances have allowed flexible packaging to become the format choice for a wide variety of consumer products. Flexible packaging has, as a result, become substantially more sophisticated, with high end graphics, high oxygen and moisture barriers, and new functionality. The Future of Global Flexible Packaging to 2018 is avail- able to purchase online and receive immediately for $6,480. For more information, visit www.smitherspira.com. n 12 FLEXO FEBRUARY 2014 www.flexography.org PRESSING ISSUES FLEXIBLE PACKAGING FIGURES $231 Billion Market Value in 2018 29.8 Million Market Tonnage in 2018 4.1 % Tonnage Growth Rate 14% U.S. Volume Share—Largest National Market 3.5 % Market Value Growth Rate