Flexible Paper Packaging Market Size, Share & Industry Analysis, By Type (Kraft Paper, Parchment Paper, Greaseproof Paper, and Glassine Paper), By Product Type (Wraps, Bags and Sacks, Envelopes, Pouches, Sachets, and Others), By End-use Industry (Food, Personal Care & Cosmetics, Pharmaceuticals, Consumer Goods, and Others), and Regional Forecast, 2024-2032

The global flexible paper packaging market size was valued at USD 117.82 billion in 2023. The market is projected to grow from USD 123.82 billion in 2024 to USD 200.02 billion by 2032, exhibiting a CAGR of 6.18% during the forecast period.

Flexible paper packaging refers to the segment of the packaging industry that focuses on the production, sale, and use of packaging solutions made primarily from paper materials that offer flexibility in form and function. These packaging solutions are typically lightweight, cost-effective, and eco-friendly alternatives to plastic-based packaging. They are used to wrap or contain a wide variety of packaging type products in industries, such as food & beverages, pharmaceuticals, cosmetics, and consumer goods, driving the market growth.

International Paper and Mondi Group are the leading manufacturers, accounting for the largest global flexible paper packaging market share.

MARKET DYNAMICS

MARKET DRIVERS

Growth in E-commerce and Food Delivery Services Enhance the Market Growth

The rapid expansion of e-commerce and food delivery services has increased the need for lightweight, cost-effective, and efficient packaging solutions. Flexible paper packaging, known for its durability, versatility, and lightweight characteristics, fits well into these requirements. Additionally, with the rise in home deliveries and online shopping post-COVID-19, businesses are increasingly adopting such packaging to ensure product safety, enhance branding opportunities, and drive the global flexible paper packaging market growth.

For instance, according to a study published in the Confederation of European Paper Industries, total paper production in 2022 reached 84.8 million tons, with a decrease reported in almost all paper and board grades, with the notable exception of household and sanitary grades.

Rising Consumer Preference for Eco-friendly Packaging Drives Market Expansion

With increasing environmental awareness, consumers are demanding sustainable and eco-friendly packaging solutions. Flexible packaging, being biodegradable and recyclable, aligns with these preferences, making it a popular alternative to plastic-based packaging. The push for reduced carbon footprints, bans on single-use plastics, and corporate sustainability goals have further accelerated the demand for flexible paper solutions in various sectors, including food & beverages, personal care, and pharmaceuticals.

MARKET RESTRAINTS

Limited Barrier Properties and Recycling Challenges Impedes Market Development

RTP solutions, such as reusable crates, pallets, and containers, require a higher upfront investment compared to single-use packaging options. The cost includes the purchase of durable materials, tracking technology, and maintenance over the product’s lifecycle. For many companies, particularly small and medium-sized enterprises (SMEs), the initial capital required for RTP adoption can be a barrier. The longer return on investment (ROI) period may discourage some businesses from switching from traditional packaging to reusable systems.

While paper is recyclable, flexible packaging can be complex to recycle if it is combined with plastic or other materials for functionality (e.g., laminated layers and coatings). The lack of widespread infrastructure to efficiently recycle these hybrid materials acts as a deterrent to wider use.

MARKET OPPORTUNITIES

Growth in E-Commerce and Growing Demand from Food & Beverage Industry Will Bring New Opportunities to the Market

The boom in e-commerce, fueled further by the pandemic, has led to a surge in demand for flexible packaging. Paper packaging offers protective cushioning and eco-friendly solutions for shipping products. Compared to rigid packaging, this packaging solution reduces shipping costs, providing a significant advantage in e-commerce.

There is an increasing preference for such packaging in food products, such as snacks, coffee, and fresh produce, as consumers demand convenience and good shelf life with minimal environmental impact. The rise in single-serve and portion-controlled packaging, especially in the health-conscious segment, thus offers potential growth opportunities.

MARKET CHALLENGES

Supply Chain and Raw Material Availability Affects the Market Growth

The demand for sustainably sourced paper products has increased, but the availability of high-quality, FSC-certified, or recycled paper material can be limited. It thus, affects production consistency and price stability. Paper-based packaging also requires significant raw materials (trees), creating concerns about deforestation and long-term sustainability.  

FLEXIBLE PAPER PACKAGING MARKET TRENDS

Shift Toward Lightweight Packaging and Circular Economy Initiatives in Packaging Emerges as a Key Trend

Companies are increasingly opting for lighter-weight packaging solutions to reduce shipping costs and improve logistics. It helps reduce the overall weight of packaged products without compromising product protection. This trend is particularly pronounced in the retail and e-commerce sectors. Brands are adopting circular economy principles, which focus on minimizing waste and pollutant materials for packaging purposes, reusing materials, and creating closed-loop systems. Many companies are investing in recyclable or reusable flexible packaging to meet these goals. Additionally, some companies are exploring fiber-based packaging solutions that are compostable or made from recycled materials.

IMPACT OF COVID-19

The COVID-19 pandemic accelerated the shift toward eco-friendly packaging due to rising environmental concerns. As consumers and businesses increasingly moved toward sustainable choices, flexible packaging made with paper material gained traction, particularly in industries such as food, pharmaceuticals, and e-commerce, which experienced a surge in demand during COVID-19.

SEGMENTATION ANALYSIS

By Type

Customizability and the Ability of Kraft Paper to Hold Ink Well Makes It a Dominating Segment in the Market

Based on the type, the market is segmented into kraft paper, parchment paper, greaseproof paper, and glassine paper.

Kraft paper is the dominating material segment and is projected to experience noteworthy growth during the forecast period. Kraft paper is known for its exceptional strength and durability, making it ideal for packaging products that require robust protection. The strong fibers in Kraft paper are derived from the Kraft process, which involves chemically treating wood pulp. This results in a highly durable material capable of withstanding heavy weights and rough handling, especially in industrial and e-commerce packaging.

Parchment paper is the second-dominating material segment. Parchment paper is widely used in food packaging, especially for baking and cooking purposes, due to its ability to withstand high temperatures. It is often treated with a silicone coating, giving it non-stick and moisture-resistant properties, making it ideal for direct food contact.

By Product Type

Versatility and Broad Application Makes Bags and Sacks a Dominating Segment in the Market

Based on the product type, the market is segmented into wraps, bags and sacks, envelopes, pouches, sachets, and others.

The bags and sacks are the dominating product type and are expected to witness exponential growth in the projected years. Bags and sacks are incredibly versatile and used across a wide range of industries, such as food and beverages, retail, agriculture, and personal care. They are especially prevalent in packaging products, such as groceries, bakery items, grains, seeds, cement, and chemicals.

Wraps are the second-dominating product type segment. Wraps, while used widely for protection and packaging, have a slightly narrower application range compared to bags and sacks, primarily used for wrapping smaller items and perishables and providing protective barriers for food products and other goods.

By End-use Industry

High Demand for Convenience Foods Makes it a Dominating Segment in the Market

Based on the end-use industry, the market is segmented into food, personal care & cosmetics, pharmaceuticals, consumer goods, and others.

Food is the leading end-use segment. The shift in consumer behavior toward packaged food and ready-to-eat food products has driven the demand for flexible packaging. The packaging is lightweight, easy to handle, and can be designed for multiple uses (such as resealable pouches), making it ideal for snacks, bakery items, dry foods, and more.

Personal care & cosmetics is the second-dominating end-use segment. Just like in the food sector, sustainability is a major focus for personal care and cosmetics brands. Consumers are increasingly concerned about plastic waste, leading brands are adopting eco-friendly alternatives, such as flexible packaging made with paper material for personal care products.

FLEXIBLE PAPER PACKAGING MARKET REGIONAL OUTLOOK

The market has been studied geographically across five main regions: North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Asia Pacific is Experiencing Rapid Economic Growth, Leading to Increased Demand for Packaging

The Asia Pacific region is the largest and fastest-growing market for flexible paper packages, driven by rapid urbanization, rising disposable income, and changing consumer preferences toward sustainability. China, India, Japan, and South Korea are key markets in this region.

According to the Federation of Paper Traders’ Associations of India (FPTA), in the last two decades, almost 60% of global new paper machine investments went to the Asia Pacific region. Every type of modern fiber, paper, and board-making technology, ranging from entry-level solutions to state-of-the-art, high-speed machines, and high-quality production lines, has been deployed by Asian pulp and paper producers.

Increasing Environmental Concerns and Consumer Demand for Eco-Friendly Packaging Solutions to Drive Market Growth in North America

North America holds a significant share of the market, largely driven by the food and beverage industry. It has been adopting flexible paper packaging due to rising demand for sustainable, recyclable packaging solutions, especially in the ready-to-eat and convenience food sectors.

The U.S. is one of the largest and most significant markets. The growth in the U.S. market is driven by increasing consumer awareness about sustainability and the environmental impact of plastic packaging. For instance, according to the Flexible Packaging Association, the largest market for flexible packaging is food (retail and institutional), accounting for about 52% of shipments.

Europe Represents a Significant Share Due to Stringent Environmental Regulations and Policies Aimed at Reducing Plastic Waste

Europe represents a significant share of the global market due to stringent environmental regulations and policies aimed at reducing plastic waste. Countries such as Germany, France, and the U.K. are in charge of adopting sustainable packaging solutions. The European Union’s Single-Use Plastics Directive, which restricts the use of certain plastic items, has driven demand for paper-based alternatives.

European Parliament aims to employ a circular economy system by 2050, which includes a series of new methodologies under which companies will have to respect new packaging reduction targets, so by 2040, packaging should be less than 15%. At the same time, some types of packaging will disappear gradually, such as plastic for fresh fruits or lightweight plastic carrier bags.

Latin America Has Witnessed Growing Environmental Awareness and Government Initiatives to Reduce Plastic Waste

The market in Latin America is emerging, driven by growing environmental awareness and government initiatives to reduce plastic waste. Countries such as Brazil, Mexico, and Argentina are witnessing increasing demand for sustainable packaging solutions. The food industry, particularly processed foods and beverages, is the largest end-use segment in the region, driving the demand for flexible packaging paper.

Following the implementation of Colombia's National Plan for Sustainable Single-Use Plastics Management in June 2021, which set the goal of making all single-use plastics reusable, recyclable, or compostable by 2030, the country took further steps in 2022. The new law bans 14 specific types of plastic products, such as plastic bags and straws, as well as packaging containers used for the retail sale of fresh fruits and vegetables.

Government Policies Aimed at Reducing Waste and Increasing Recycling Rates Fuel Market Growth in Middle East & Africa

The market in the Middle East & Africa is gradually gaining traction as countries in this region focus on sustainability initiatives and reducing plastic usage. South Africa, the UAE, and Saudi Arabia are key markets in the region.

For instance, according to the Paper Manufacturers Association of South Africa, about 280,000 tons of recyclable cardboard leave South Africa each year as secondary packaging.

COMPETITIVE LANDSCAPE

Key Industry Players

Key Market Players Are Offering Innovative Packaging Solutions to Boost Their Market Positions

The global market is highly fragmented and competitive. A few significant players are dominating the market by offering innovative packaging solutions in the packaging industry. These major market players constantly focus on expanding their customer base across regions by innovating their existing wide range of products. The market report also highlights the key developments by the manufacturers.

Major players in the industry include International Paper, Mondi Group, NIPPON PAPER INDUSTRIES CO., LTD, Amcor Limited, Smurfit Kappa, PBFY Flexible Packaging, and others. Numerous other companies operating in the market are focused on market scenarios and delivering advanced packaging solutions.

List of Key Flexible Paper Packaging Companies Profiled:

• International Paper (U.S.)


• Mondi Group (U.K.)


• NIPPON PAPER INDUSTRIES CO., LTD. (Japan)


• Amcor Limited (Switzerland)


• Smurfit Kappa (Ireland)


• PBFY Flexible Packaging (U.S.)


• Novolex (U.S.)


• TedPack Company Limited (China)


• Northeastern Envelope Company (U.S.)


• DS Smith (U.K.)


• ProAmpac (U.S.)


• Winpak LTD. (Canada)


• Tesa (Germany)


• Anhui Yongbang Paper Plastic Products Co., Ltd. (China)


• Pouch Makers India (India)

KEY INDUSTRY DEVELOPMENTS:

• In September 2024, Novolex announced that it had acquired the assets of American Twisting. American Twisting is a trusted manufacturer of twisted-paper handles used in the production of paper bags.


• In August 2024, tesa expanded its portfolio with the new recyclable paper-based transport securing tape (tesa® 64295). With the new tesa® 64295, tesa offers a more sustainable and efficient solution for securing household appliances and office equipment during transportation that meets the growing demand for more sustainable packaging solutions.


• In July 2024, DS Smith invested more than USD 52.91 million in its packaging facilities in Portugal in response to a growing demand for sustainable fiber-based packaging solutions.


• In June 2024, ProAmpac announced the launch of its patent-pending ProActive Recyclable® FiberCool curbside recyclable insulated bag. Going beyond a standard Self-Opening Sack (SOS), FiberCool offers the convenience of curbside recyclability and a temperature retention solution for the food and grocery delivery market.


• In February 2024, Mondi expanded the production of its innovative range of paper-based EcoWicketBags. It comes in response to increasing demand for sustainable packaging in the home and personal care (HPC) industry, particularly for products such as diapers and feminine hygiene products.

INVESTMENT ANALYSIS AND OPPORTUNITIES

In December 2023, Global alternative investment firm Investcorp led an investment of Rs 340 crore (around USD 41 million) in paper-based packaging solutions Canpac Trends. The company said the “contemplated transaction” will also provide a partial exit to Canpac’s earlier investor, JM Financial India Fund II. The latter had invested in Canpac in 2021. JM Financial acted as the exclusive financial advisor to Canpac and its selling shareholders.

REPORT COVERAGE

The market research report provides a detailed market analysis. The market overview also focuses on key aspects, such as top key players, small and medium-sized market players, competitive landscape, product/service types, market segments, Porter’s five forces analysis, and leading segments of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the abovementioned factors, the report encompasses several factors that have contributed to the market intelligence & growth in recent years.

Report Scope and Segmentation

ATTRIBUTE	DETAILS
Study Period	2019-2032
Base Year	2023
Estimated Year	2024
Forecast Period	2024-2032
Historical Period	2019-2022
Growth Rate	CAGR of 6.18% from 2024 to 2032
Unit	Value (USD Billion)
Segmentation	By Type Kraft Paper Parchment Paper Greaseproof Paper Glassine Paper
By Product Type Wraps Bags and Sacks Envelopes Pouches Sachets Others
By End-use Industry Food Hotels, Restaurants & Cafes Dairy Products Ready to Eat Meals Agricultural Produce Bakery & Confectionery Pet food Others Personal Care & Cosmetics Pharmaceuticals Consumer Goods Others
By Region North America (By Type, By Product Type, By End-use Industry, and Country) U.S. (By End-use Industry) Canada (By End-use Industry) Europe (By Type, By Product Type, By End-use Industry, and Country) Germany (By End-use Industry) France (By End-use Industry) U.K. (By End-use Industry) Spain (By End-use Industry) Italy (By End-use Industry) Russia (By End-use Industry) Poland (By End-use Industry) Romania (By End-use Industry) Rest of Europe (By End-use Industry) Asia Pacific (By Type, By Product Type, By End-use Industry, and Country) China (By End-use Industry) India (By End-use Industry) Japan (By End-use Industry) Australia (By End-use Industry) Southeast Asia (By End-use Industry) Rest of Asia Pacific (By End-use Industry) Latin America (By Type, By Product Type, By End-use Industry, and Country) Brazil (By End-use Industry) Mexico (By End-use Industry) Argentina (By End-use Industry) Rest of Latin America (By End-use Industry) Middle East & Africa (By Type, By Product Type, By End-use Industry, and Country) Saudi Arabia (By End-use Industry) UAE (By End-use Industry) Oman (By End-use Industry) South Africa (By End-use Industry) Rest of the Middle East & Africa (By End-use Industry)