Market Overview:

Flexible packaging refers to packaging material that can be easily bent, folded, inflated or deflated without significantly altering its shape. It is lightweight, takes up less space in supply chain and transportation, and allows highly decorative graphics & designs to promote branding. The growing food & beverages industry in ASEAN countries has fuelled the demand for flexible packaging in the form of stand-up pouches, shrink films, wraps and bags. It is extensively used for packaging food products, fresh produce, ready-to-eat meals, confectionery and drinks.

Market Dynamics:

Rising adoption of sustainable packaging: There is increasing adoption of sustainable flexible packaging materials made from recycled or bio-based content due to rising environmental concerns and stringent government regulations on plastic usage. Flexible manufacturers are investing in R&D to develop eco-friendly packaging options from bioplastics, renewable feedstock and recycled polymers.

Increasing sales of prepared foods and beverages: There is a growing demand for ready-to-eat meals, snacks, desserts and beverages in Southeast Asia due to rapid urbanization, rise in dual income households and hectic lifestyle. Flexible packaging provides excellent barrier protection and shelf-appeal to these products. The ready-to-eat food segment is expected to boost the usage of flexible pouches, lidding films and wraps in the region.

The global ASEAN Flexible Packaging Market Share is estimated to be valued at US$ 5611.89 Mn in 2023 and is expected to exhibit a CAGR of 4.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

SWOT Analysis

Strength: The ASEAN flexible packaging market has strong growth potential due to increasing demand for convenient packaging from various end-use industries. The market features a wide range of product varieties and innovative packaging solutions. Manufacturers are focused on producing eco-friendly flexible packaging products using recycled materials.

Weakness: High initial investments and maintenance costs associated with flexible packaging machinery limit market growth. there is a shortage of skilled labour for operating advanced packaging machines in the ASEAN region.

Opportunity: Rapid growth of e-commerce and food & beverage industries creates lucrative opportunities for flexible plastic packaging sales. Rising incomes coupled with changing consumer lifestyles spur the demand for flexible pouches and bags.

Threats: Stringent environmental regulations regarding plastic waste management pose challenges for flexible packaging firms. Rise in raw material prices can increase flexible packaging costs.

Key Takeaways

The global ASEAN flexible packaging market is expected to witness high growth, exhibiting CAGR of 4.5% over the forecast period, due to increasing demand for packaged food and growing e-commerce sector in the region. The market size for ASEAN flexible packaging stood at US$ 5611.89 Mn in 2023.

Regional analysis: The ASEAN flexible packaging market is dominated by Indonesia, Thailand, and Vietnam. Indonesia accounted for over 30% share of the ASEAN flexible packaging market in 2023 due to strong food packaging demand. Thailand is the second largest market owing to robust growth of domestic FMCG industry. Vietnam has emerged as a high growth market for flexible plastic packaging with annual growth exceeding 7% during the forecast period.

Key players operating in the ASEAN flexible packaging are Amcor Limited, Prepack Thailand Co., Ltd., Berry Plastics, Mondi Group, Sealed Air Corporation, Sonoco Products Company, Constantia Flexibles Gmbh, and AR Packaging Group. Amcor Limited and Berry Global Inc. hold substantial market share due to their diversified product portfolio and expansion initiatives across Southeast Asian countries.

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