According to an analysis conducted by Freedonia, demand for converted flexible packaging is projected to increase 3.8% annually to US $ 18.2 billion in 2015. The experts say that gains will be similar to the pace of the 2005 to 2010 period based on the now more well-established presence of pouches in a number of food and non-food markets coupled with overall deceleration in raw material price growth. Volume increases, however, will accelerate from the previous five-year performance as a result of real growth in consumer non-durables as the US economy rebounds from the 2007 to 2009 recession. In addition, gains will be supported by cost, performance and source reduction advantages over most rigid packaging formats. Converted flexible packaging’s source reduction capabilities will be increasingly advantageous in light of initiatives by major retailers and packaged goods firms to evaluate their packaging in terms of eco-friendliness and cost reduction.

Sustainability

In the future environmental responsibility and corresponding commitment will keep their key role in innovation worldwide. Zip Pak calls sustainability as one of the main reasons for the change of the transition from rigid to flexible packaging. They say that the shift to flexible packaging products can lead to cost and material savings compared to rigid packaging products.

Pouches to be fastest growing major segment

Pouches will experience above-average advances, with demand expected to increase 4.6% yearly to $8 billion in 2015, says Freedonia. Growth will be driven by continued conversions to stand-up pouches and healthy gains for flat pouches in a number of markets, along with a smaller environmental footprint due to light weight and reduced material use, which also holds down shipping costs. Additionally, Freedonia forecasts the ageing of rigid packaging equipment to create openings for replacements by pouch packaging equipment over the coming decade.

Zip Pak states that increasingly more liquid product marks are introducing flexible packaging formats, ranging from soups, coffee and wine to baby nutrition or energy drinks. According to the study, customers valued the convenience and handy portability of a flexible pouch. Additionally, progress in film structure, bag making equipment and new filling technologies have further contributed to this development in the packaging supply chain. On a global scale this trend is expanding with regard to the broad and wide product offer, especially in the Pacific region.

For example, leading Ketchup manufacturer Heinz has introduced a 10-ounce (284g) version of its classic Tomato Ketchup, packaged in a flexible stand-up pouch with a spout. Heinz has developed this innovative product to meet the needs of US consumers with tight grocery budgets.

Flexible stand-up pouch version of tomato ketchup (photo: Heinz)

Another example comes from one of the leading soup marketers. Campbell’s Go soups are said to be the first soups packaged in flexible, stand-up pouches in the US. They were specifically created to appeal to a new generation of younger soup-lovers with more adventurous palates. The packaging offers a greater surface area than traditional soup packages and gains attention with eye-catching graphics and a dash of humour. The custom-made pouch features a clear gusseted bottom that helps it to stand on shelves or in the microwave, and also allows consumers to have a peek inside at the unique ingredients that make up the product. The design was awarded at the Dupont Packaging Awards (see issue 6).

Stand-up pouch with clear gusseted base (photo: Campbell)

Bags to remain largest segment

Films are one of the most important sectors in the plastics industry. Due to their considerable importance for the most diverse industrial branches and the wide variety of possible applications, market analysts at Ceresana expect global demand for plastic films to increase to approximately 71 million tonnes until 2020.

Among others, Ceresana says that this is due to advantages plastic films offer when compared to flexible packaging made from other materials (such as paper or aluminium foil). This effect is felt in the foodstuffs sector in particular, but can also be observed in non-food applications. Additionally, a change in consumption habits (convenience trend, packaged instead of loose foodstuffs, shift towards flexible packaging) has positive effects on demand for films. “We forecast the packaging sector to see demand increase at an AAGR of 3.7% until 2020,” explains Oliver Kutsch, CEO of Ceresana. Due to their perceived benefits, packaging materials made of several different materials and/or layers in particular have increased in importance.

The analysts at Freedonia say that gains for bags will be moderated by the maturity of many applications along with competition from pouches and rigid packaging. Their analysis has confirmed that advances will still represent an improvement from the 2005-2010 performance based on the expected recovery in the US economy. They say that plastic bag demand will outpace that of paper bags due to cost and performance advantages, along with widespread usage in baked goods, produce, meat, frozen food and grain mill product applications. However, they continue that growing efforts by packaged goods firms to demonstrate their commitment to sustainability will lead to some degree of renewed interest in paper, which possesses such qualities as renewability, recyclability and compostability. While overall gains for other converted flexible packaging, primarily wrap products, will lag the market average, above-average prospects are anticipated for pharmaceutical strip packs and specialised film packaging with meat products.

www.ceresana.com

www.freedoniagroup.com

www.zippak.com