Market Trends of North America Flexible Packaging Industry
This section covers the major market trends shaping the North America Flexible Packaging Market according to our research experts:
The Increased Demand for Convenient Packaging to Drive the Market Growth
- Meeting consumer demands for convenience is continuing to be a significant driver for existing and new flexible packaging technologies. The reason for the growing demand is that more and more people want easy-to-carry packaging solutions.
- Moreover, the changing lifestyle of the consumer in the American region has also increased demand for ready-to-eat foods. The need for ready-to-eat food is at an all-time high. Ready-to-eat foods have emerged as the best solution with the new-age working population working around the clock and the Gen-Z looking for everything convenient.
- In line with the growth in the number of single-person households, most consumers (especially the youth) are inclined to frequent shopping for groceries in smaller quantities as they enjoy the ability to carry their favorite products with them wherever they go for convenience. Party-size bags of food items have become an old norm as smaller or individual-sized packages allow consumers to feel more in control of portion sizes.
- Millennial customers generally drive the demand for flexible packaging products in the country, as they prefer single-serving and on-the-go food and beverage products. These products are typically designed to be portable, durable, and lightweight. The increasing demand for snacks, processed foods, and fresh items is expected to govern the need for convenient packaging in the country's food and beverage industry.
- The consumption of breakfast cereals is increasing at unanticipated growth rates, further driving the demand for flexible packaging. According to the US Census Bureau, the breakfast cereal manufacturing industry's revenue is estimated to reach USD 10 billion by FY 2023 in the United States. Over the past couple of years, flexible packaging has gradually infiltrated supermarket shelves, overtaking traditional rigid packaging for breakfast cereals.
- Also, new types of packaging, like pouches that can be folded or reused and bag-in-box, are making more flexible packaging and rigid packaging formats popular. Products, such as pouches, bags, and more, are opening up a broad range of the latest applications for the flexible packaging market. Besides, consolidation of the e-commerce sector in the North American region is anticipated to make flexible packaging one of the fastest-rising packaging approaches over the forecast period.
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United States is Expected to Remain the Largest Market for Flexible Packaging
- The proliferation of e-commerce in the country is boosting the demand for flexible packaging. Its efficiencies and the comfort of comparison shopping also influence prices in several sectors. E-commerce is driving retail growth virtually, and its influence on flexible packaging may develop in the region. The retail industry in the U.S. is highly competitive due to established food retailers such as Walmart, thereby driving the growth of the country's market.
- According to the Flexible Packaging Association (FPA), as of August 2021, flexible packaging is the second largest packaging segment in the U.S., garnering about 19% of the USD 170 billion U.S. packaging market. Further, FPA is exploring opportunities to communicate the advantages of flexible packaging in reducing food waste. Flexible packaging, according to FPA studies, reduces food waste if a systems approach to products and packaging is developed.
- In August 2022, California-based packaging business Flexible Pouches developed clear stand-up pouches to preserve food quality and show products most appealingly. The transparent stand-up pouches from Flexible Pouches are cost-effective and environmentally friendly. The solution offers a full view of the content from all sides for secure eating and straightforward access. Businesses of all sizes in the food business may go to Flexible Pouches for a transparent stand-up wholesale pouch to provide their clients with high-quality food and products free of flaws.
- Various end-user industry players are emphasizing such types of reusable packaging. For instance, Mars Food, a prominent food company in the United States, has partnered with Amcor to launch recyclable microwavable rice pouches. The partnership moves Amcor closer to its pledge to develop all its packaging to be recyclable or reusable by 2025.
Advanced packaging styles, such as collapsible/reusable pouches and bag-in-box, are raising the usage of flexible packaging in combination with rigid packaging formats. Products, such as pouches, liners, bags, and shrink wraps, are opening an extensive range of new applications to the flexible packaging market in the region.
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