United States Flexible Plastic Packaging - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The United States Flexible Plastic Packaging Market size in terms of shipment volume is expected to grow from 5.08 Million tonnes in 2024 to 5.81 Million tonnes by 2029, at a CAGR of 2.72% during the forecast period (2024-2029).

Key Highlights

• Flexible plastic packaging allows more economical and customizable options for packaging products. It is particularly useful in industries requiring versatile packaging, such as the food and beverages, personal care, and pharmaceutical industries. It has grown popular due to its high efficiency and cost-effectiveness. Government agencies in the region fund projects to reduce carbon emissions and energy consumption, which can present a positive outlook in the market.
• The US Department of Energy (DOE) announced it would invest USD 13.4 million in funding to produce plastic with low energy consumption and minimum carbon dioxide emissions. This investment is focused on addressing metal waste recycling challenges. Since flexible packaging consumes less material than rigid packaging, it requires less production energy and helps reduce carbon emissions. Such initiatives will assist in promoting the development of bioplastic as a sustainable material for flexible plastic packaging and highlight flexible packaging as an economical substitute for rigid packaging.
• The need to integrate technology with packaging is driven by rising demand for packaging materials with improved barrier qualities, product innovation, and increasing supply chain digitization. The growth of the food ingredients market in the region is driven by the growth of the food and beverage industry, increasing consumption of dairy and frozen dairy products, and increased focus on demand for processed and packaged foods. Flexible plastic packaging is the common packaging material. The growing demand for portable and suitable food packaging is driving the use of flexible plastic packaging across various industries.
• Pouch packaging is rapidly gaining popularity as it is a highly convenient and portable solution. Many of today’s shoppers prefer flexible, stand-up pouches over traditional, rigid packaging. Consumers drove the demand for stand-up pouches (snacks, beverages, baby food, or industrial oils and lubricants) exponentially over the past decade. Specific innovations in the packaging type further drive the market's sustainability.
• For instance, in November 2023, ProAmpac, a US-based packaging and material science, introduced a sustainable alternative to traditional retort options called ProActive PCR retort pouches. These pouches are designed to reduce the use of new plastics and incorporate up to 30% post-consumer recycled material by weight. This aims to assist brands and retailers in achieving their circular economy objectives. The ProActive PCR retort pouches are specifically tailored for products like shelf-stable ready-to-eat proteins that require exceptional barrier properties and heat resistance.
• The market players are investing in new product development to satisfy customers' rising needs. For instance, in August 2023, TC Transcontinental Packaging, the Packaging segment of TC Transcontinental, announced an investment of USD 60 million toward developing advanced mono-material recyclable flexible plastic packaging solutions, providing high-performance polyethylene films with more heat resistance.
• The regional players are acquiring various packaging firms to expand their market presence. For instance, in February 2023, SEE announced that it completed the acquisition of Liquibox for a purchase price of USD 1.15 billion on a money and debt-free basis. This strategic investment unites two players in the flexible packaging industry and aligns with both companies' high-performance growth. Liquibox innovates and manufactures bag-in-box sustainable fluids and liquid packaging, dispensing products for fresh food, beverage, consumer goods, and industrial end-markets. This acquisition accelerates SEE’s fastest-growing segment, the CRYOVAC brand Fluids and Liquids business. CRYOVAC technology, scale, and market access provide significant synergies.

United States Flexible Plastic Packaging Market Trends

Increasing Demand for Pouch Packaging among Various End-user Industries

• Pouches play a pivotal role in the food and beverages, cosmetics, baby food, pharmaceuticals, and energy drinks segments in the United States. Driven by a growing consumer preference for convenience and their adoption by small and medium enterprises, the flexible plastic packaging market, especially pouches, is set for significant growth. The demand for pouch packaging has surged across various industries, buoyed by technological advancements and evolving consumer tastes.
• The US food and beverage segment, encompassing fast food chains, organic foods, soft drinks, health supplements, and confectionaries, is a primary driver of the nation's plastic pouch packaging. According to the National Confectioners Association report, confectionary sales in the United States hit USD 48 billion in 2023, with projections soaring to USD 61 billion by 2028.
• Convenience and protection are essential drivers for pouch packaging's popularity. Their versatility in size, from small to large, makes them ideal for the cosmetic industry, especially for products tailored to the travel and tourism markets. Additionally, with 92% of United States consumers prioritizing freshness in their purchases, stand-up pouches with explicit films are gaining significant traction, as highlighted by polymer packaging.
• Also, innovations and product developments are reshaping the pouch packaging landscape. With time-starved consumers favoring microwave-friendly options for quick meals, manufacturers are responding by introducing pouches with advanced functional attributes. A prime example is Kraft Heinz's 2023 launch of a pouch that crisps up a microwaved grilled cheese. This move, featuring their patented 360Crisp technology, showcases the company's commitment to pioneering innovations in its product lineup.
• The United States is seeing a rise in demand for sustainable packaging driven by consumers and manufacturers. Manufacturers are increasingly moving toward circular economic models, boosting the growth of eco-friendly pouch packaging. This shift is helping eco-friendly pouches and affecting the broader flexible plastic packaging market.
• Amcor Group GmbH, a leading sustainable packaging manufacturer, teamed up with Stonyfield Organic, a top organic yogurt producer, and Cheer Pack North America, known for its spouted pouches. They created the first all-polyethylene (PE) spouted pouch. This new design replaces Stonyfield Organic's old multilayered packaging and is now used for its YoBaby refrigerated yogurt, marking a significant step toward sustainability.

Flexible Plastic Packaging Demand Surges as Consumer Lifestyle Shifts

• Consumer products, from food to cosmetics, are increasingly turning to flexible packaging, driven by a demand for convenient, portable solutions. This shift is mainly due to the rising popularity of packaging that aligns with the fast-paced urban lifestyle.
• As consumers seek lightweight, easy-to-use packaging, vendors are pivoting to innovative solutions to stay competitive in the evolving retail landscape. Embracing materials like flexible pouches meet these demands and offer significant energy-saving advantages.
• Also, the trend toward smaller, microwavable portions is gaining traction, especially as single-person households become more prevalent. This shift has bolstered convenience store retailing and heightened the need for more convenient packaging solutions.
• Supermarkets and hypermarkets, recognizing the demand for convenience in today's fast-paced world, increasingly offer easily transportable options. In the food industry, ready-to-eat meals, often housed in plastic pouches, are witnessing remarkable growth. These pouches cater to various products, from fully cooked meals to those that can be reheated with hot water, a heater, or even enjoyed cold.
• Highlighting this trend, data from the US Census Bureau reveals a notable increase in supermarket and grocery store sales, reaching USD 846.38 billion in 2023, up from USD 823.68 billion in 2022. Such robust sales underscore the growing appetite for flexible packaging in the nation.
• Illustrating this market momentum, in January 2024, Accredo Packaging Inc., a leading sustainable packaging manufacturer, completed its fourth expansion at its Texas headquarters, investing a substantial USD 10 million. Adding 83,000 square feet of office space, this expansion underscores the company's commitment to producing recyclable, compostable, and sustainable packaging materials, catering to diverse markets like snacks, confectionery, and baked goods.

United States Flexible Plastic Packaging Industry Overview

The United States flexible plastic packaging market is fragmented. The major players in the market include Berry Global Group, Proampac LLC, Novolex Holdings Inc., Sonoco Products Company, Amcor Group GmbH, C-P Flexible Packaging, American Packaging Corporation, and Sealed Air Corporation. The players in the market are focusing on offering innovative and sustainable flexible plastic packaging solutions to cater to the growing demand.

In April 2024, American Packaging Corporation announced the launch of RE Design for Recycle flexible packaging technology for pet food products. The new technology includes compost, circular, renewable content designs, and additional designs for recycled film and paper options. This would help the company meet industry guidelines for recyclability.

In November 2023, ProAmpac LLC announced the launch of ProActive PCR Retort pouches made using post-consumer recycled (PCR) material. The launch of this product helps the company cater to retailers and brands looking for innovative solutions and meeting circular economy goals.

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