In 2017, the food and beverage segment accounted for the highest market share in terms of revenue. Asia-Pacific is expected to be the leading contributor to the global Flexible Packaging market revenue in 2017.
The increasing disposable incomes and growing demand for fast-moving consumer goods drive the growth of the flexible packaging market. Growing urbanization has resulted in urban citizens spending most of their time at work and everyday commute, which has increased the demand for convenient packaging for on-the-go consumption, thereby supporting the flexible packaging market growth. Brand owners are taking initiatives to optimize packaging operations to meet the global competition, increase productivity, enhance the shelf life of products, improve overall efficiency, and create brand differentiation in the market. The demand for new and unique packaging sizes, shapes and configurations have increased from industries such as food and beverages, cosmetics, and healthcare among others. The increasing need to offer convenient packaging solutions while also addressing environmental concerns has boosted the flexible packaging market growth.
Numerous key players have adopted partnership and acquisition strategies to increase their market share in the global flexible packaging market. For instance, In December 2015, Mondi Group signed an agreement for the acquisition of 95% of the outstanding share capital in KSP, Co. KSP is a flexible packaging company based in South Korea with a strong focus on the production of high-quality spouted and retort stand-up pouches for food, pet food and beverage industries. The acquisition of KSP compliments Mondi's stand-up pouch operations in Korneuburg, Austria and Jackson, MS, while expanding its presence in the U.S. and Asia. In July 2016, Mondi Group also signed an agreement to acquire Uralplastic. Uralplastic manufactures a range of consumer flexible packaging products for food, hygiene, homecare and other applications. The acquisition of Uralplastic supports the development of Mondi's consumer packaging business, strengthens its presence in the Russian consumer packaging market, and expands its offerings in the flexible packaging market.
Asia-Pacific generated the highest market share in terms of revenue in 2018 in the flexible packaging industry and is expected to lead the global Flexible Packaging market throughout the forecast period. The growing population, rising disposable incomes, and increasing living standards support the growth of the flexible packaging industry in the region. The increasing demand from the food and beverage and retail industry is expected to generate numerous opportunities for the flexible packaging industry.