About this market
Flexible packaging leaves a lower carbon footprint than traditional packaging. For packing equal amount of food, flexible pouches require 4% lesser cargo space than glass containers. This leads to lower emission during transport. Also, less amount of materials is required to manufacture flexible packaging. 2.5 pounds of flexible packaging material is required to pack 100 pounds of beverages whereas 84 pounds of glass is required to pack the same volume of beverages. These attributes make flexible packaging more sustainable than glass and rigid PET. Thus, the growing awareness for sustainable development will drive the flexible packaging market in China. Technavio's analysts have predicted that the flexible packaging market in China will register a CAGR of over 8% by 2022.
Growth of food and beverages industry in China
The growing population of urban areas in China is creating a demand for food and beverages. The cold chain market in China is expected to grow by around USD 45-50 billion during the forecast period. Food and beverages segment dominate the cold chain market in China. Moreover, food companies and packaging vendors are expanding their presence by partnering with other companies and acquiring regional players. Thus, the growth of the food and beverages industry in China is driving the flexible packaging market in China.
Stringent government regulations for food packaging
With growing demand for takeaway and ready-to-eat (RTE) food, the amount of packaging waste is also increasing. Most of the plastic packaging materials are non-biodegradable. The government of China has formulated several laws and regulations to protect foods and beverages from the harmful effects of packaging materials. Packaging companies need to comply with these laws and certification policies which increases their operational difficulties thereby hampering market growth.
For the detailed list of factors that will drive and challenge the growth of the flexible packaging market in China during 2018-2022, view our report.
The market appears to be fragmented and with the presence of several companies including Amcor, and Berry Global the competitive environment is quite intense. Factors such as the increasing demand for food and beverages, will provide considerable growth opportunities to flexible packaging companies in China. Amcor, Berry Global, Sealed Air, and Shanghai Zijiang Colour Printing & Packaging are some of the major companies covered in this report.