FMN_AUGUST14

Flexible Packaging (Cont’d from Page 1)

the expanding population, rising income levels, ur- banization, evolving lifestyles, increasing internet penetration, and a growing economy. In recent years, India has experienced a notable upswing in the sustainable packaging sector due to the rising consumption of packaged food, in- creased consumer awareness, and growing demand for high-quality products. The packaging industry in India is actively shifting toward flexible packaging, according to the report. The coming decade is expected to witness contin- ued growth in the industry, albeit with increased pressure and disruptive changes. While the growth rate in China is slowing down, it, along with other Asian markets, will remain the primary driving force for industry growth along- side North America. The rise of e-commerce has brought significant benefits to many converters in the industry. How- ever, it has also created new challenges and intensi- fied competition, resulting in tighter profit margins for converters’ customers, particularly fast-moving consumer goods (FMCG) companies and retailers. They are now faced with new demands and the need to adapt quickly to the evolving e-commerce landscape. The key observation is that North America has

There is a noticeable transition from conventional rigid packaging solutions to creative and ecologi- cally friendly flexible packaging due to the growing emphasis on sustainability. In response to the increasing demand for envi- ronmental conservation, there is a growing concern regarding discontinuing plastic and foil usage in packaging. To address these concerns, eco-friendly packag- ing relies on biodegradable and recyclable materi- als, which can take various forms. This includes the utilization of bioplastics derived from plant sources, as well as the incorporation of recycled paper and plastics. Post-consumer products like recycled bulk bags are also employed in sustainable packaging practices. India is poised to experience substantial growth within the Asia-Pacific region, particularly in the packaging sector. Packaging stands as the fifth-larg- est industry in the Indian economy and holds a prominent position as one of the fastest-growing sectors in the country. The Packaging Industry As- sociation of India (PIAI) reports a robust annual growth rate of 22-25 percent for the sector. The demand for packaging has been witnessing significant growth due to several factors, including

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Flexo Market News August 14, 2023 3

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