Laminates (Bags and Pouches)

Laminates (Bags and Pouches) Global Market Outlook

• The global flexible laminate market is valued at $21.8 billion in 2023E. The market is expected to grow at a CAGR of 5–6 percent and reach $29 billion by 2027F

• 2023E is anticipated to be a promising year for flexible laminate market growth from increasing laminate demand, backed by sufficient supply

• Growing consumer preference for convenient packaging, rising demand from various end-use industries, barrier property, and shift from rigid to flexible packaging are the driving factors of flexible laminates in 2023E

Global Market Size: Flexible laminates

• Global flexible laminates market is growing at a CAGR of 6-6.5 percent in terms of value, and it is expected to reach $29 billion by 2027. The market has almost recovered from its fall from COVID 19 impact

• Increasing demand for laminates to produce pouches and bags flourishes the growth for flexible laminate as opposed to traditional packaging formats, like and jars and tins. Asia pacific is the largest regional market in terms of volume, accounting to ~40 percent of the demand by 2023, followed by Europe and North America

• Mature markets, like Europe and North America, focuses on sustainable alternatives to meet their sustainable packaging needs. Whereas developing countries, like APAC and LATAM, focus of cost-effective packaging formats

Flexible laminates Regional Market Snapshot : North America

Market Overview

• North America contributes 20 percent of global flexible laminate market, and the supply base is fragmented with the presence of global and regional players. Innovation and technology drives laminate’s competition in North America

• The market is nearing maturity with moderate growth rate, hence North American suppliers tend to penetrate market of Mexico and Brazil through acquisition

• Supplier compete on sustainability front. Recyclable, bio-based and bio-degradable laminate film are key trends observed with global suppliers

• The region have also been witnessing less sustainability innovations since the outbreak of COVID-19, due to shift towards cost cutting focus by supplier. This trend is expected to change in 2023

• Retail food packaging consumes 45-50 percent of flexible laminates produced in North America. Bulk buying and rise in demand for high barrier films to avoid food contamination are the major reasons for laminates growth in North America

• 25 percent more end-users are expected to switch from rigid containers to flexible formats in North America by 2027. This is expected to spur the laminate growth in the region

Cost Structure Analysis: Flexible Laminates

• Europe and North America witness high raw material and production cost. APAC has an advantage, in terms of cost-effective labor source. This makes China a global exporter of flexible laminates across the world

• Raw material, such as different types of resins used in the production film for lamination, has the highest contribution to the cost structure of flexible laminates. Fluctuation in raw material price is directly proportional to fluctuation in the cost of flexible laminates