by The ASEAN flexible packaging market has been witnessing significant growth owing to the increasing demand for consumer packaged goods in the region. Flexible packaging offers advantages like low cost of production and packaging, lightweight packaging solutions and ease of handling. Flexible packaging solutions are highly suitable for food & beverages, industrial, and personal care products packaging needs in Southeast Asia. The growing working population has also augmented the demand for convenient and on-the-go food packaging formats like stand-up pouches, bags, and wraps.
The Global ASEAN flexible packaging market is estimated to be valued at US$ 6464.9 Mn in 2024 and is expected to exhibit a CAGR of 3.6% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the ASEAN flexible packaging are Dow Inc., Covestro AG, Eastman Chemical Company, SABIC, Arkema S.A., Mitsubishi Chemical Corporation, Evonik Industries AG, Sumitomo Chemical Co., Ltd., Teijin Limited, LG Chem Ltd. The companies are focusing on capacity expansions, new product launches, and mergers & acquisitions to strengthen their market position.
The key opportunities in the ASEAN Flexible Packaging Market Trends include increasing emphasis on sustainable packaging solutions and growing popularity of lightweight and biodegradable packaging formats. There is a rising need for flexible pouches and wraps with extended shelf life for perishable products.
The ASEAN region represents a lucrative growth avenue for flexible packaging companies with the expansion of e-commerce and online grocery platforms. Leading players are investing in Southeast Asian countries to tap the rising demand from various end-use industries and strengthen regional supply chains. Countries like Indonesia, Malaysia, Thailand, and Vietnam are expected to offer high growth potential driven by industrial growth and increasing disposable incomes over the forecast period.
Market Drivers
The primary market driver for the growing Asean Flexible Packaging Market is the rising demand for consumer packaged goods in Southeast Asia. As incomes rise in the region, consumption of packaged food, pharmaceuticals, personal care and home care products are increasing rapidly. Flexible packaging materials are highly suitable for the packaging of various products due to advantages like low costs, lightweight and enhanced shelf appeal. The increasing popularity of on-the-go packaging formats like pouches, bags and wraps has also been fueling the flexible packaging market growth. Ease of transport, storage and convenience offered by flexible packaging drives its increasing preference over rigid packaging alternatives.
PEST Analysis
Political: The ASEAN region is strategically located economically and has beneficial trade relationships. However, political stability differs across countries which could impact market growth.
Economic: Countries in the region have seen healthy economic expansion in recent years supported by growing domestic consumption and regional trade. This positively influences demand for flexible packaging.
Social: Rising incomes and urbanization are boosting purchasing power and changing lifestyles/consumption patterns. More people prefer conveniently packaged food, personal care and consumer goods propelling packaging demand.
Technological: Digital printing, lightweighting, resource efficiency and sustainable materials are trends gaining traction. Innovation helps comply with environmental regulations while improving functionality, shelf-appeal and cost-efficiency of flexible packaging.
The ASEAN market in terms of value is concentrated in Indonesia, Thailand, Malaysia, Singapore and Vietnam where FMCG industries including food and beverages are well developed. These countries account for over 75% of the regional flexible packaging demand.
Indonesia is emerging as the fastest growing country for ASEAN flexible packaging. It has the largest population and economic size in Southeast Asia presenting huge market potential. Rapid growth in e-commerce is expanding the packaging sector along with rising exposure to Western brands and lifestyles augmenting flexible packaging consumption.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it.
