Major global demand for flexible packaging of confectionery predicted over next decade

Fast-rising demand for flexible packaging is anticipated to see the international segment increase from $9.8 billion in value this year to $13.4 bn within a decade, driven by a sustained growth within the ‘on-the-go’ product category, analysis, writes Neill Barston.

Research from FutureMarketinsights indicates a CAGR pattern of 3.10% growth per year, as time-pressured consumers switch their focus to shorter moments of snacking, in a marked shift away from just a couple of years ago amid the height of the Covid-19 pandemic that had halted travel and social interaction.

Significantly, films a wraps were anticipated to account for 30.4% in 2024, while in terms of applications, the biscuits category is projected to record a key share of 32.6% this year, with notable growth predicted in Canada, UK and mainland Europe, though high-density population areas of Asia are said to hold the highest level of potential for market expansion.

As the insights organisation noted, the trend for smaller, on-the-go products and pack sizes have been adopted by shoppers as a means of greater portion control to monitor their calorie consumption. However, as Confectionery Production has noted, the concept of ‘shrinkflation’ has also received considerable pushback from brand fans who now appear to be getting less for their money in a number of instances across the sector.

This in part, has been impacted by the ongoing high cost of core ingredients including cocoa and sugar, that has prompted manufacturers to pass on costs to consumers around the world, and in turn provoked reformulation and re-sizing measures.

Moreover, as the report highlights, amid a highly competitive global market, manufacturers are increasingly turning to high-end finishes to attract customers, particularly in regards to developing seasonal and novelty products around the world.

According to the research from FutureMarketInsights, smaller packaging sizes has seen a growth in higher levels of ‘functionality, sustainability and convenience’ that have been designed to attract a younger audience seeking conveniently packaged goods that have a high emphasis on sustainability.

As the organisation added, confectionery players further continuously release new products with varied flavours and textures, which continues the demand for flexible packaging. Equipped with a distinguished portfolio of packaging and paper products, market players are expected to work with manufacturers and brands to meet their packaging needs.

Ismail Sutaria, lead consultant in packaging at Future Market Insights, commented:  “Key players are releasing new designs in confectionery flexible packaging solutions to equip confectionery players with festive season packaging solutions. Additionally, players are investing in sustainable packaging solutions to resonate with eco-conscious consumers.”