Josh Brooks / packagingnews.co.uk

Asia, format switches to drive 22% flexibles growth by 2016: Pira

Sales for the global flexible packaging market are predicted to grow by 22% to more than $70bn in the next five years, driven by Asian growth and brands moving their products out of other formats.

A new study from research body Pira claims that flexible formats – such as the pouches recently adopted by UK baby food brand Ella’s Kitchen (pictured) – will benefit from replacing formats such as metal cans, glass and plastic bottles and liquid cartons.

Asia is expected to be the biggest geographical growth market, while western Europe and north America are likely to show only modest growth, Pira’s report, The Future of Global Flexible Packaging to 2016, predicts.

Total annual tonnage is expected to rise from 18.lm tonnes in 2011 to 22.5m tonnes in 2016, according to the report.

Sales, meanwhile, will hit $71.6bn by 2016 compared to $58.3bn this year, the report predicts, representing an annual .


‘Versatility’

Pira International head of reports and consultancy Adam Page said: “Brand owners value flexible packaging for its versatility, comparative low cost and potential for innovation.

“It is also a lighter-weight pack format, a key attribute given the growing importance being attached to carbon footprint analysis and the environmental impact of packaging.”

Elsewhere, the report says that barrier flexible packaging will play an important role in the future growth of the flexibles market as the major retail chains demand greater product protection and longer shelf life.

As a result, Pira expects higher-barrier plastics such as BOPET, EVOH and PA, to show the highest growth rates over the forecast period.


Asia driving expansion

Geographically, growth in the mature western European and north American markets is expected to be modest, while the engines of expansion for flexibles are expected to be the world’s developing economies.

Asia, which represents 29.1% of global flexibles consumption, is expected to lead the field with annual growth of 7.9%.

India and China alone are expected to account for more than two-fifths of all growth in the global market in the coming five years.

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WORLD FLEXIBLES MARKETS:

Global consumer flexible packaging consumption by region, 2011 (% share by volume)

Asia: 29.1%
Western Europe: 27%
South and Central America: 4.2%
North America: 20.7%
Central and eastern Europe: 6.7%
Rest of the world: 12.3%