An increasing number of industries are finding themselves in need of flexible packaging solutions, and as a result both the sales and expectations of the industry are set to grow in the near future.
Packaging World reported that the Flexible Packaging Association expects the industry to have expanded by nearly 4 percent in 2014. Worth a total of $27.2 billion in annual sales in 2013, that number is predicted to grow by about 3.8 percent in 2014 for a new total of $28.2 million, which would help it become one of the fastest-growing packaging segments in the United States.
These types of packaging would be for a wide variety of products, including retail and institutional food and medicine packaging, industrial materials, different types of films, retail shopping bags and storage bags that are meant for consumers.
The recent report from the FPA said that flexible materials that can perform multiple processes are especially in demand. That segment is expected to expand upon its overall market value of more than $21.2 billion last year.
"The process of manufacturing flexible packaging materials utilizes any or all of the following: laminating or co-extrusion to combine materials, coating of films and paper, and/or printing," the report said. "Generally taking the shape of a bag, pouch, liner, or overwrap, etc., flexible packaging is defined as any package or any part of a package whose shape can be readily changed."
In the past 10 years, flexible packaging's growth has seen a rate of around 2.6 percent annually, on average. Retail food consumes its products the most, at $16 billion, while retail non-food consumes about $4.3 billion of the market, and medical supplies following at $2.3 billion.
Laminating adhesives growing as result
A Markets and Markets report covering the global laminating adhesive market, which is vital in context of how flexible packaging is produced, found that it is expected to grow in accordance with industry expectations in the coming years. Worth a total of $1.357 billion in 2013, the market is predicted to expand greatly in the next few years, experiencing a compound annual growth rate of about 8.8 percent between 2014 and 2019, largely because of a rise in demand for the adhesive.
This study was based off the adhesive supply chain, which currently involves raw materials, manufacturers and end-users. Specific highlights noted in the report were the driving demand of the Asia-Pacific region and the growing strategies that companies are putting into place to capture market demand like mergers and new competition.
Companies prepare for growth
With this expected growth, it would go without saying that companies in the industry would focus on improving their wares, and the Milwaukee Business Times found that is the truth. One company, Glenroy Inc., told the news source that it's in the stages of adding a machine worth $3 million to its factory that will make it easier to produce more flexible products and improve lamination capabilities. As a result, it's hiring nine new employees to better operate in the near future.
This company's flexible packaging is considered to be lightweight, and can be made into various products like standup pouches that have resealable caps or zippers, just to name a few possibilities. It also consumes fewer carbon emissions and has as many as eight different layers in each of its packaging products.
Glenroy uses flexographic printers that can transfer images onto various types of clear film, then color-match them over time. Employees can spot-check different films to ensure there are no errors in the products made.
