Flexible packaging for converting (2022)
The market data reported in this analysis refer to 2022 sector figures and were analysed in October 2023.
By Barbara Iascone
Italian Packaging Institute Research Office
The flexible packaging area includes the types of packaging created through the joining, co-extrusion and lamination of film of different materials (multi-material) or of the same material (mono-material).
Each material used fulfils a specific use function and, for this reason, it is considered as packaging with a complex structure. It’s the newest form of packaging on the market: with a very high technological value, it meets increasingly sophisticated and complex needs with respect to the protection and distribution of goods. An example, for instance, is packaged fruit and vegetables which are today sold pre-washed and, therefore, ready to eat: this was unimaginable only a few years ago.
Thanks to its intrinsic characteristics, flexible packaging is therefore still in an expansionary phase, to the extent that, in the last twenty years, with regards to Italian production, is has grown at an average of +4.4%.
The market
Having established that the flexible packaging market is still in a growth phase, also due to its “young” age, it will continue to expand in the sectors where it is already used. There are many factors in its favour: the ever-increasing consumption of convenience food, the constant attention to packaging design and graphics, the constant request for light solutions and minimal environment impact.
In the world. In 2022 the global market for flexible packaging is estimated at around 106 billion dollars, up 1% against the previous year. USA and central-eastern Asia account respectively for 31% and 26% of the global market. At European level, there is a fall in terms of volumes of -1%, while turnover has grown by 11.7%.
In Italy. Flexible packaging for converting represents 2.3% of total packaging production and 6.7% of turnover. In 2022 production amounted to 421,000 tonnes, up +1.5% but the trend is less dynamic than that recorded in the last twenty years, albeit recovering after the negative trend recorded in 2020. Exports represented 54% of production, growing 5.3% compared to 2021. Imports are historically very low, hovering around 3,000 tonnes, and are stable. The domestic market is represented by an apparent use, which does not take account of the movement of stocks, down -2.6%, standing at around 197,000 tonnes.
| 2019 | 2020 | 2021 | 2022 | |
|---|---|---|---|---|
| Turnover millions of euros | 2,250 | 2,227 | 2,227 | 2,822 |
| Companies operating in Italy | - | - | - | 80 |
| Approx. workforce | - | 6,991 | 7,115 | 7,130 |
| Production t/000 | 403 | 399 | 415 | 421 |
| Exports t/000 | 222 | 219 | 216 | 227 |
| Imports t/000 | 3 | 3 | 3 | 3 |
| Apparent usage | 184 | 183 | 202 | 197 |
If we consider flexible packaging at a whole (including aluminium foil and paper), it accounts for 12% of the total packaging, of which 2.2% relating to joined flexible packaging for converting.
Turnover for the sector, in 2022, was around 2.8 billion euro, up compared to the previous year by +19%.
It is worth pointing out the clear difference between the growth rates of production and turnover, as was the case for the packaging sector as a whole given that, in this area there have been significant increases in production costs, deriving from increases in the prices of raw materials and from the surge in energy costs: these elements have led to a raising of prices of packaging products to cover the increases suffered, hence the increases in turnover.
On the basis of the prevalence of materials, flexible packaging for converting is broken down as follows: 73% is represented by predominantly plastic packaging, 25% by paper and 2% by aluminium.
| 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FFC | 100 | 99 | 95.7 | 101.3 | 108 | 108 | 112.3 | 116.7 | 121.7 | 124.3 | 127.3 | 130.3 | 134.3 | 133 | 138 | 141 |
| TOT. PACK. | 100 | 96.9 | 85.9 | 90.5 | 90 | 85.5 | 85.2 | 88.6 | 90.7 | 93.6 | 96.7 | 98.5 | 100.6 | 99.1 | 106 | 105 |
Sectors of use
Food. This packaging with a very high technological, innovative and modern content, always able to adapt to new requirements and challenges, is widely used in the food sector: it is estimated, in fact, that around 94% of flexible packaging for converting is intended for this area. In this context, fresh-cut fruit and vegetables and cheeses are the main users, accounting for respectively 26.3% and 21.4%. They are followed by baked products and pasta with 19.4%. Other types of foods follow further behind: cold meats with a 5.1% share, and frozen foods with 4.7%. Coffee accounts for 4.1% and pet food 1.7%. Under the heading “other food products” (11.6%) we find sauces, yoghurt, foods in oil and pickled foods, olives, baby food, sweets and chocolates (the latter accounting for 5.9% alone).
It is interesting to analyse how this form of packaging has evolved over the years in its main sector of use, that is, fruit and vegetables. Between 2008 and 2022, flexible packaging for converting moved from 7.6% to 27.5% in the packaging mix for fresh fruit and vegetables, with an annual growth variation of +18.6%!
Non-food. The cosmetic/pharmaceutical and household cleaning share 5.7% of the flexible packaging global market. Single-dose formats are particularly developed in the cosmetics area, while we find refills for bottles in the household cleaning area.
| 2021 | 2022 | |
|---|---|---|
| Bakery products and pasta | 20.40% | 19.40% |
| Cheese | 22.00% | 21.40% |
| Processed meats (cold-cut, cured meats) | 4.90% | 5.10% |
| Frozen foods | 4.50% | 4.70% |
| Convenience produce | 26.20% | 26.30% |
| Coffee | 3.80% | 4.10% |
| Petfood | 2.00% | 1.70% |
| Other foodstuffs | 10.70% | 11.60% |
| Total food | 94.50% | 94.30% |
| Pharmaceutical | 2.90% | 3.00% |
| Domestic detergents | 2.60% | 2.70% |
| Other non foods | 5.50% | 5.7%q |
| Total | 100% | 100% |
Raw materials used for the production of flexible packaging for converting
There has a continuous reduction for many years in the weight of poly-laminate, while maintaining the same performance.
This has influenced the preference of use of a number of materials compared to others; over the years, in fact, there has been a tendency to use plastic rather than paper and aluminium, which are obviously heavier.
The trend towards lightness has led to considerable research aimed at identifying both new materials and new manufacturing techniques. In this sense, in the last few years the use of cellulose and aluminium film has diminished (the latter, in many cases, has been replaced by metallization processes). These changes have been made possible by the design of plastic multilayers, capable of fulfilling the functions performed by the two materials mentioned above.
With regards to new material, the market is turning to biodegradable/compostable plastics also in the case of converted poly-laminates. The use of these materials is constantly growing and is achieved through the paper + (biodegradable/compostable) plastic combination or the plastic + plastic combination, in both cases biodegradable/compostable: a type of combination increasingly in line with the request for environmentally-friendly packaging, as in the case of bags for packaging pasta and baked products.
On the basis of the data reported by the Italian Packaging Institute’s data bank, it is estimated that of around 63,000 tonnes of flexible packaging for converting are used in these sectors, around 6.5% made through the combination of biodegradable/compostable materials.
