A) Market Overview:
The ASEAN Flexible Packaging Market is estimated to be valued at US$ 5138.98 Mn in 2021 and is expected to exhibit a CAGR of 4.5% over the forecast period (2022-2030), as highlighted in a new report published by Coherent Market Insights. Flexible packaging refers to packaging made from easily moldable materials such as plastic, aluminum, and paper. It offers various advantages such as lightweight, cost-effectiveness, convenience, and sustainability. The need for innovative and eco-friendly packaging solutions, coupled with the rising demand from industries such as food and beverages, pharmaceuticals, and consumer goods, is driving the growth of the ASEAN flexible packaging market.
B) Market Key Trends:
One key trend in the ASEAN flexible packaging market is the increasing demand for sustainable and biodegradable materials. With the growing awareness about environmental conservation, consumers and manufacturers are actively seeking packaging solutions that have minimal impact on the environment. As a result, there is a rising demand for flexible packaging made from bio-based and compostable materials. For example, companies like Amcor Limited and Berry Plastics have introduced flexible packaging options made from renewable sources like plant-based plastics and compostable films. This trend is expected to continue driving the market growth in the coming years.
C) Porter’s Analysis:
Threat of new entrants: The ASEAN flexible packaging market is characterized by high competition and established players with strong market presence. This makes it difficult for new entrants to gain a significant market share. Additionally, the capital-intensive nature of the industry and the need for advanced technology act as barriers to entry for new players.
Bargaining power of buyers: Buyers in the ASEAN flexible packaging market, such as food and beverage companies, have significant bargaining power due to the presence of multiple suppliers. They can switch between suppliers based on factors like price, quality, and delivery time. This puts pressure on manufacturers to provide competitive pricing and high-quality products.
Bargaining power of suppliers: Suppliers of raw materials, such as plastic resins and films, have moderate bargaining power in the ASEAN flexible packaging market. While there are numerous suppliers in the market, the dependence on specific materials and the need for consistent quality create some leverage for suppliers to negotiate prices and terms.
Threat of new substitutes: The threat of new substitutes in the ASEAN flexible packaging market is relatively low. Flexible packaging offers unique advantages such as lightweight, cost-effectiveness, and customization options, which are difficult to replicate with other packaging formats. This gives flexible packaging a competitive edge over alternative packaging solutions.
Competitive rivalry: There is intense competition among key players in the ASEAN flexible packaging market, including Amcor Limited, Prepack Thailand Co., Ltd., Berry Plastics, Mondi Group, Sealed Air Corporation, Sonoco Products Company, Constantia Flexibles Gmbh, and AR Packaging Group. These companies invest in research and development to introduce innovative products and technologies, expand their global presence, and cater to the evolving needs of customers.
D) Key Takeaways:
The ASEAN Flexible Packaging Market Growth is expected to witness high growth, exhibiting a CAGR of 4.5% over the forecast period, driven by the increasing demand for eco-friendly packaging solutions.
The fastest-growing region within ASEAN for flexible packaging is expected to be Thailand, due to its strong manufacturing base, growing consumer goods industry, and rising exports.
Key players operating in the ASEAN flexible packaging market include Amcor Limited, Prepack Thailand Co., Ltd., Berry Plastics, Mondi Group, Sealed Air Corporation, Sonoco Products Company, Constantia Flexibles Gmbh, and AR Packaging Group. These players focus on product innovation, strategic partnerships, and geographic expansion to maintain their market position.
The ASEAN flexible packaging market is poised for significant growth in the coming years, driven by the increasing demand for sustainable packaging solutions and the presence of key players investing in innovation and expansion. Market players need to adapt to changing consumer preferences and regulations to capitalize on the growth opportunities in this dynamic market.