Flexible packaging is big business in the U.S.
The 2024 “State of the U.S. Flexible Packaging Industry Report” released earlier this year by the Annapolis, Md.-based Flexible Packaging Association says the industry was estimated to reach $42.9 billion in annual sales in 2023. That figure was expected to reach $47.3 billion in 2028, says Dan Felton, FPA president and CEO.
Flexible packaging represented 20% of the $210.8 billion U.S. packaging market, he says.
Converters (those who shape pre-made materials into a finished product) and suppliers who responded to the survey both listed sustainability as a top priority, he says.
Converters listed “Recycle Ready” as their top sustainable packaging option (85%); an “All PP” or mixed polyolefin structure consisting of polypropylene (PP) and polyethylene (PE) was next (80%); and “Post-consumer Recycled (PCR)” resin was third (77%).
“Paper” was listed by 58% of converters, and “Compostable” was listed by 56%.
These packaging materials and options align with the general sustainability trends that many brand owners look for as they strive to meet their long-term sustainability goals and consumer demands, Felton says.
They’ll likely remain a key trend for all packaging formats in the foreseeable future if for no other reason than the rise in EPR laws.
Felton says industry-friendly and thoughtful EPR (extended producer responsibility) laws could help flexible packaging manufacturers and their customers increase the production of sustainable packaging while minimizing potential consumer costs and convenience impacts.
“Conversely, more onerous EPR laws, like those enacted in California in 2022, could have the opposite effect, raising consumer costs for more sustainable packaging or even banning it outright,” he says.
Flexible pouches continue to lead the charge in terms of format trends, Felton says.
“Their rise is driven by consumer demand for convenience, brand demand for differentiation and industry demand for sustainability,” he says.
Flexible pouches are lightweight, space-efficient, require fewer raw materials and emit fewer greenhouse gases during their manufacture compared to rigid formats, Felton says.
Estimated shipment value of plastic bag and pouch manufacturing reached $15.2 billion in 2022 and is projected to rise to $15.7 billion by 2025, according to the economic analysis group Inforum.
