Market Trends of Germany Flexible Plastic Packaging Industry
The Food Industry is Expected to Witness Growth in the Market
- In the food industry, factors like sustainability, transparency, food safety, waste reduction, and convenience play pivotal roles in driving the preference for flexible packaging in baked goods, snack foods, meat, and others.
- According to Germany Trade & Invest in 2023, in-store bakeries and discount bakery chains are predicted to grow and offer manufacturers premixes and dough sales opportunities. Further trends include wholegrain products, premium pastries, international delicacies, and healthy snacks. Growth potential also rests on Mediterranean and gluten-free products and the growth of convenience and ready-to-eat baked goods, including sandwiches, wraps, and bagels.
- German consumers are increasingly sophisticated, emphasizing variety and quality in their food choices. Recent trends in the German food market reflect broader societal shifts. A rising emphasis on sustainability and ecological practices drives interest in alternative foods, innovative production methods, and a focus on seasonal, regional, and fair trade products. While organic items have firmly entered the mainstream, fair trade goods, notably coffee and cocoa, are also gaining traction. Such trends in the food industry would further leverage the recyclable plastic packaging in the country.
- According to the organic food industry report (BOLW), the revenues from organic foods in 2020 were EUR 14.99 billion (USD 16.22 billion) and reached EUR 16.08 billion (USD 17.40 billion) in 2023. Given the rising consumer focus on food production methods and a growing emphasis on healthy living, this trend is poised for sustained growth in the foreseeable future.
- Moreover, food companies are expanding into the region as part of expanding their business reach. For instance, Newrest, a specialist in multisector catering, is set to invest EUR 10 million (USD 10.74 million) in setting up inflight catering units in Berlin and Frankfurt (Main). The company has inked agreements with major airlines, including EasyJet, China Airlines, Air Astana, LATAM Chile Airlines, and Egypt Air. Newrest aimed to penetrate the German market by introducing new inflight catering units in Munich and Hamburg by 2023. Newrest sought consultancy and investment assistance from Germany Trade and Invest to bolster its expansion. Such expansions might increase the flexible plastic packaging in the country.
Understand The Key Trends Shaping This Market
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Plastic Recycling Trends are Expected to Encourage the Market's Growth
- The plastic packaging market solutions are increasingly used for innovative and customized products. Plastic packaging that involves new technologies and improved processes creates significant efficiencies, making plastic packaging more appealing.
- According to the EU strategy on plastics in a Circular Economy 2030, all plastic packaging materials within the EU market must be recyclable, which requires higher standards and new technology solutions from packaging producers and recyclers. At the same time, the German recycling technology industry will have to increase recycling capacities significantly, raising the country's flexible plastic packaging market.
- According to Montalvo Corporation, in response to demand, biodegradable flexible packaging highlights the significant impact on the flexible packaging landscape. Comprising materials that naturally decompose, biodegradable flexible packaging stands in contrast to its traditional counterparts, which often end up as landfill waste. The proliferation of biodegradable options, from bags to films, swiftly positions it as the preferred choice for consumers and businesses.
- Significant players operating across the region are focused on expanding their business through innovations. For instance, in March 2024, TOPPAN Inc., a TOPPAN Group company and a wholly owned subsidiary of TOPPAN Holdings Inc., and India-based TOPPAN Speciality Films Private Limited (TSF) designed GL-SP. This barrier film utilizes biaxially oriented polypropylene (BOPP) as the substrate. GL-SP is a new addition to the range of products for sustainable packaging in the TOPPAN Group’s GL BARRIER1 series of transparent vapor-deposited barrier films. TOPPAN and TSF will launch sales of GL-SP for dry-content packaging, focusing on markets in Europe and other regions.
- According to Statistisches Bundesamt, the country's revenue from packaging activities witnessed growth. In 2020, the packaging activities revenue was valued at USD 3,469.27 million and is projected to reach USD 3,892.84 million in 2024. Rising demand for packaging across various end-user industries would improve the market for flexible plastic packaging in the country.
