Flexible Packaging Category - Procurement Intelligence

In this flexible packaging procurement intelligence report, we have estimated the pricing of the key cost components. We have found in our research that raw materials, energy, processes such as printing, converting and packaging, equipment, types of end products, and labor are some of the key components associated with the total cost structure of flexible packaging production. Raw materials can include cost components such as polymers or films, laminates, foils, etc. Some of the major polymers used in flexible packaging films are polyethylene (PE), polypropylene (PP), polyvinyl chloride (PVC), ethyl vinyl alcohol (EVOH), polystyrene (PS), and polyamide (PA). Polyethylene can be further divided into LDPE, HDPE, LLDPE, BOPET, BOPE, etc. Aluminum foils and foil laminates are the final materials used for flexible packaging, along with paper or substrates derived from paper.

According to the Flexible Packaging Europe report of 2022, prices for some flexible packaging materials declined in the last quarter of 2022 as demand stabilized amid persistent uncertainty about the global economic outlook and energy concerns. After peaking in the middle of 2022, most substrate prices fell by a single digit in Q4 2022. The only exception to the downward trend, as it was in Q3 2022, was 60-gsm one-sided coated paper, prices for which increased by 10% from October to December 2022. Compared to 2021, this was an increase of 42% ending 2022. In Q4 2022, only 20-micron BOPP film experienced a double-digit drop, falling 15% from Q3 2022. In the same period, HDPE and LDPE both had declines of 7% and 6%, respectively, ending the year roughly where 2021 ended. Aluminum foil (7 microns) decreased marginally by 3% in Q4 2022. This was still an increase of 21% over December 2021. While films of 15 microns BOPA and 12-micron PET decreased by 3% and 4%, respectively, during the last quarter of 2022, prices were still 20% above their levels from 2021. Reduced substrate prices were also aided by lower raw material prices and increased global capacity in industries like BOPET film.

Order your copy of the Flexible Packaging category procurement intelligence report 2023-2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

Operational Capabilities - Flexible Packaging

• Industries Served - 20%
• Years in Service - 20%
• Revenue Generated - 15%
• Employee Strength - 15%
• Geographic Service Provision - 12%
• Certifications - 10%
• Key Clients - 8%

Functional Capabilities - Flexible Packaging

Types of Rollstock

• Barrier Films - 8%
• Cold Seal - 8%
• Resealables - 8%
• Others - 5%

Types of Pouches

• Retort And Hot Fill Pouches - 8%
• Stand Up Pouches - 8%
• Closure Options - 8%
• Others - 5%

Lidding Types

• Retail Packaging Lid Film - 9%
• Peel And Resea - l9%
• Non Food Package Lid Films - 9%
• Food Service Lidding - 9%
• Others - 6%

Rate Benchmarking

The geographical location, scale of business, transportation, type of business, order volumes and density, and complexity play a vital factor in analyzing the rate benchmarking of the flexible packaging category. A significant aspect of logistics is transportation. Freight can account for up to 10% to 20% of a company’s retail pricing and 50% of its logistical costs. As of June 2023, the ocean rates for North America from China were on the rise as supply and demand were better balanced. From May 2023, the freight prices from China ports to Western U.S. ports jumped by 19.2%. During the same period, ocean rates to the eastern U.S. ports increased by 11%.

At the end of June 2023, a few examples of ocean freight rates for the transportation of 20-foot FCL containers from China to the North American region were as follows - Shanghai to Los Angeles rates started from USD 1,300, Qingdao to New York rates started from USD 2,100, Yantian to Baltimore rates started from USD 1,900 and Shanghai to Savannah rates started from USD 2,000. In comparison to May 2023, the freight prices for shipping goods from Chinese ports to European base ports had reduced by 1.5% with the availability of sufficient space and equipment.

Similarly, the density also plays a key role in pricing. Compared to flexible packaging, denser and thicker materials are frequently used to create rigid packaging. This in turn increases the prices as transporting low-density goods typically costs more per pound.

Supplier Newsletter

In August 2023, Amcor announced the acquisition of Phoenix Flexibles to expand the company’s capacity in India for its flexibles division. Amcor will be able to meet the continued high demand with Phoenix Flexibles' capitalized and strategically placed production facility in Gujarat, India. Adding advanced film technology to Amcor's product offering will enable local production of more sustainable packaging solutions.

In July 2023, Huhtamaki announced a sizeable investment in its Paris, Texas plant in the U.S. The deal entailed consolidating an external warehouse in addition to increasing its manufacturing capability. The manufacturing and warehouse facilities will be leased, and an estimated USD 30 million will be invested in production assets. In order to support the expansion of the food service industry, the deal aimed to enhance the North American business segment's capacity for folding cartons.

In April 2023, A non-binding letter of intent was signed by Sealed Air and Koenig & Bauer to further advance their strategic alliance for digital printing machines. The alliance aimed to improve packaging design capabilities by creating cutting-edge digital printing technology, tools, and services. The trademarked “prismiq” technology, software, and intellectual property from SEE will be used in the Koenig & Bauer RotaJET-series of digital printing machines.

In February 2023, one of the leading manufacturers of customized flexible packaging, PPC Flexible Packaging acquired StePac, MAPfresh Holdings. For bulk and retail applications, StePac provides atmosphere- and humidity-controlled packaging using roll products, lidding, and pre-made bags and pouches. The acquisition aimed to strengthen their integrated sustainable packaging for specialty fresh-produced products.

List of Key Suppliers

• Bemis Company, Inc.
• Amcor plc
• Mondi plc
• Huhtamaki Oyj
• SEE (Sealed Air Corporation)
• Constantia Flexibles International GmbH
• Sonoco Products Company
• Ukrplastic Corporation
• Ampac Holdings LLC
• Wipak Walothen Gmbh (Wipak Group)
• SIG Group
• Aluflexpack AG 

Browse through Grand View Research’s collection of procurement intelligence studies: 

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• Lab Equipment Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)
• Commercial Real Estate Services Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Flexible Packaging Procurement Intelligence Report Scope

• Flexible Packaging Category Growth Rate : CAGR of 4.7% from 2023 to 2030
• Pricing Growth Outlook : 15% - 25% increase (Annually)
• Pricing Models : Single, bundled, volume-based pricing model
• Supplier Selection Scope : Cost and pricing, past engagements, productivity, geographical presence
• Supplier Selection Criteria : By types of roll stock (barrier films, cold seal, resealable), pouch type (retort and hot fill pouch, stand up, closure option pouch), lidding types (retail package lid film, peel and reseal, non-food package lid films, food service lidding), operational capabilities, quality measures, technology, certifications, data privacy regulations, and others
• Report Coverage : Revenue forecast, supplier ranking, supplier positioning matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model 

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions. 

Our services include (not limited to):

• Market Intelligence involving – market size and forecast, growth factors, and driving trends
• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions