Market Trends of North America Flexible Plastic Packaging Industry
Innovative Packaging Solutions are Driving the Market’s Growth due to the Demand from Frozen-Food Categories
- High demand from frozen food categories is spurring innovation in packaging design. This innovation aims to meet specific requirements, including maintaining product freshness, enhancing shelf appeal, and ensuring ease of use. Manufacturers are increasingly investing in developing new types of flexible plastic packaging tailored to the unique needs of these food categories, thereby further fueling the growth of the flexible plastic packaging market.
- With its lightweight nature and resistance to chemicals and moisture, the polyethylene (PE) segment dominates the market in terms of volume. Polyethylene's versatility shines through in its ability to effectively package various items, from fruits and vegetables to meat and seafood. Notably, the United States stands out as one of the largest consumers of frozen foods, a trend set to boost North America's films and wraps segment significantly.
- Recent Frozen and Refrigerated Buyer data highlights the market's demand for frozen foods. In 2023, frozen appetizers and snack rolls accounted for USD 809.75 million, with pizza leading the pack at over USD 1.5 billion in sales. As these categories maintain their popularity, manufacturers are increasingly turning to flexible plastic packaging to meet the rising consumer demand. This surge in packaging needs is a crucial driver behind the flexible plastic packaging market's growth.
- For the 12 weeks that ended on January 1, 2023, private label sales of frozen meat in the United States hit approximately USD 211.74 million. During the same period, the Cooked Perfect frozen meat brand saw sales of around USD 31 million. With private labels and branded products vying for market share, manufacturers are pressured to differentiate their offerings. This push for differentiation is fueling the development of innovative packaging solutions tailored to frozen meat's unique demands, like enhanced freshness preservation and added consumer convenience features.
- Amid mounting environmental concerns and a rising demand for sustainability, manufacturers in the frozen food industry are pivoting toward recyclable packaging solutions. A case in point is the American Packaging Corporation, in February 2024, unveiled its RE Design for Recycle flexible packaging technology. This eco-friendly innovation specifically targets frozen food products, including fruits and vegetables. By adopting this technology, the company aims to replace its current non-recyclable multi-material laminate, aligning with its broader sustainability objectives.
Understand The Key Trends Shaping This Market
Download PDF
Changing Consumer Preferences in Canada Aids the Market's Growth
- Consumer preferences are shifting toward user-friendly and compact packaging solutions, driving the Canadian flexible plastic packaging market. The country has witnessed a notable uptick in consuming single-serve snacks and convenience foods. Additionally, there's been a noteworthy increase in spending on ready-to-eat meals and beverages, particularly coffee and hot chocolate, often packaged in pouches.
- The convenience and portability of pouch packaging have propelled its popularity. Many consumers now favor flexible stand-up pouches for various products, including snacks, baby foods, sauces, and drinks. Companies in the region are increasingly turning to innovative packaging solutions, often through partnerships, to expand their product offerings nationwide. Notably, there's a rising demand for dehydrated foods, snacks, nuts, and bakery products, which heavily rely on flexible plastic packaging.
- According to StatCan's data from June 2023, Ontario led the pack with 81 frozen food manufacturing establishments, followed by Quebec, British Columbia, and Alberta, with 50, 33, and 25 establishments, respectively. Flexible plastic packaging has emerged as the go-to choice for frozen food manufacturers when shipping large quantities. Its lightweight nature and compact design, compared to rigid alternatives, not only make transportation easier but also contribute to cost savings and environmental benefits.
- With the continuous expansion of e-commerce platforms, the demand for plastic packaging in e-commerce supply chains has become paramount due to its durability and protective attributes. As e-commerce booms, investments are pouring into tailored packaging solutions that address the unique challenges of online retail. This surge in e-commerce is reshaping Canada's packaging landscape. With its reduced material usage and enhanced shipping efficiency, flexible plastic packaging is increasingly becoming the preferred option for e-commerce businesses aiming to streamline their logistics.
- Statistics Canada reported that Canada's retail e-commerce sales, which stood at CAD 3.78 billion (USD 2.88 billion) in August 2022, surged to CAD 3.99 billion (USD 2.959 billion) by April 2024, showcasing significant growth. Such a substantial uptick in e-commerce sales propels players in the flexible plastic packaging sector to innovate, introducing new products like pouches, bags, and films. It aims to meet diverse customer demands and expand its market presence.
- Several factors, including heightened consumer awareness of environmental concerns, evolving regulatory standards, and a growing emphasis on sustainability, propel packaging-waste recycling initiatives in Canada. The market is witnessing a surge in innovative recycling technologies, particularly in flexible packaging. Advances like enhanced sorting systems, chemical recovery processes, and efficient recycling methods significantly impact flexible packaging, reducing its environmental footprint and leading to a notable uptick in overall recycling rates.
- Highlighting the industry's commitment, in September 2023, the Canada Plastics Pact (CPP) unveiled a comprehensive five-year action plan to bolster the circular economy for flexible plastic packaging nationwide. This initiative, termed the 'flexible plastic packaging roadmap,' underscores an unprecedented collaboration across Canada's value chain. It emphasizes the collective effort required from all industry stakeholders to accelerate and scale solutions and achieve a circular economy by 2027.
Get Analysis on Important Geographic Markets
Download PDF
