Steve Katz, Editor10.06.17
Flexible packaging is defined as any packaging or any part of a package whose shape can be readily changed. It can take on many shapes and sizes – bags, pouches, liners or overwraps – and it’s a packaging technology that’s on the rise. According to market research firm The Freedonia Group, in the US alone, demand for converted flexible packaging is projected to increase 3.3% annually to $20.7 billion in 2019.
Consumer demand for convenience, fresh food and added value are all fueling growth for flexible packaging. “Growth will benefit from the increased prevalence of value-added features, such as spouts and fitments, as well as the development of newer standup pouch designs that can contain heavier weight contents,” explains Esther Palevsky, an analyst for The Freedonia Group.
The demand for bags is expected to rise at a slower pace, due to the maturity of a number of applications, competition from pouches, and to some degree, rigid packaging such as clamshells and blister packaging. Factors that will play into the growth of bags include increased food production, an expanding elderly population and a desire for bags for bulk and large-sized packaging applications. Some of these include pet food, chemicals, building materials and agricultural and horticultural products.
The demand for wraps and other converted flexible packaging is forecasted to increase 3.1% per year to $1.6 billion in 2019. Applications in this category include meat overwrap films, candy wrappers, butter and cheese wrappers, and sleeve overwraps for refrigerated dough. Nonfood applications include ream wrap, pharmaceutical strip packs and overwraps for items including paper products, soap, tobacco and bandages.
Because of the diversity of these applications and their levels of maturity, prospects in these uses will vary. Food applications, which accounted for 74% of demand in 2014, will experience faster growth than nonfood packaging.
Flexible packaging material demand is projected to increase 1.4% annually to 8.8 billion pounds in 2019. Factors contributing to this increase will include cost, performance and source reduction advantages over rigid materials. Advances in barrier strength and other physical properties will play a role, as well.
Materials used for converted flexible packaging involve a combination of plastic resins. These primarily include polyethylene, polypropylene, polyester and some specialty resins. Kraft and sulfite paper and aluminum foil are regularly used as a barrier layer.
These materials, often blended in coextruded or laminated constructions, offer an enhanced barrier for extended shelf life and freshness that competes favorably with rigid containers in many uses. Some of the specialty resins and foil laminates also offer stiffness, high-quality reverse printing and graphics, protection from spoilage and contaminants and lightweighting capabilities through the use of thinner gauges and fewer film layers.
Food-Focused
According to a recent study conducted by the Flexible Packaging Association (FPA), when given the choice between the same product in non-flexible packaging, 71% of consumers said they prefer flexible packaging.
Here’s some more data from the FPA: On average, Americans are willing to spend 10.3% more for food packaged in flexible packaging, with Americans aged 35-44 willing to spend 15.5% more. Parents with children under 18 are willing to pay 17% more, and those between 18-34 years of age are willing to spend 17.2% more. In addition, 79% of Americans believe that there are benefits of having food products stored in flexible packaging vs. non-flexible packaging.
Consumers prefer a wide variety of products in flexible packaging vs. non-flexible packaging, including snacks/salty snacks, cereal/breakfast products, fresh produce, meat/poultry/seafood, and cheese/dairy. Consumers also said that the top three benefits of flexible packaging are the ability to reseal, easy to store, and easy to open.
Survey Says
The flexible packaging and label printing markets have a lot in common. Chiefly among their similarities is the dominant role the flexographic print process plays within both segments. With that said, narrow web label converters are positioned to enter the market and get in on the action, being that the majority of label companies already have the right equipment assets in place.
All Printing Resources (APR), a supplier of a wide range or prepress and pressroom products to the flexographic industry, recently commissioned market research firm LPC, Inc. to help carry out a survey of label converters. The purpose of the survey was to gauge label converters’ interest, experiences and successes in entering the flexible packaging space.
Dave Niemann, CEO and president of APR, explains, “APR is in a unique position. We represent a wide range of solutions within both the flexible packaging and label printing industries. We’re very involved in both prepress and the pressroom, helping converters optimize their flexo production and workflow best practices. We see increasing numbers of traditional label companies enter the flexible packaging space with narrow web presses. These companies have unique requirements when it comes to web handling and process optimization. We wanted to hone in on what the most critical issues for narrow web flexible packaging producers are, and how we can help them become even more successful in printing flexible packaging applications on their narrow web presses.”
Continues Niemann, “Commissioning this research has helped us do just that, and it allows us to better focus our technical resources effectively across the label and flexible packaging sectors.”
The survey objectives were as follows: to conduct technical research among companies printing/converting flexible packaging applications on narrow web presses; to identify some of the production parameters around narrow web flexible packaging (ink utilization, web widths, etc.); to identify primary day-to-day “pain points” for those companies printing/converting narrow web flexible packaging applications; and to gauge average annual growth for the narrow web flexible packaging sector in North America.
Survey invitations were sent out to converters across the US and were filled out extensively by more than 40 companies. Of the respondents, 58% have been manufacturing narrow web flexible packaging for longer than five years, 12% have been involved between three and five years and 24% between two and three years. Only 6% of survey participants were brand new to the space.
By The Numbers
Half of the survey respondents print/convert pouch applications while the lowest percentage of respondents (13%) print/convert bag applications.
After pouches, stick packs accounted for 44% of the work, followed by wraps and sachets, each amounting to 38%. Non-shrink sleeves came in at 31% and then shrink sleeves at 19%. “Other” applications totaled 6%.
When asked the number of narrow web presses at respondent plants active in flexible packaging production, 41% of participants said two presses, 24% – one, 18% - between four and six, 11% between seven and 10, and 6% use three presses.
With regard to web widths, 63% of the respondents use presses with widths between 17" and 20" to produce flexible packaging, 31% use presses with widths between 10" and 13", 19% utilize 14-16" presses and 13% use 21-26" presses. Just 6% of survey participants use presses with widths less than 10".
Water-based and UV ink usage dominates the converter respondents’ flexible packaging work, accounting for 69% and 63%, respectively, the survey revealed.
Challenges
In exploring the main challenges converters face when manufacturing flexible packaging, tension control and registration issues were repeatedly mentioned as the most pressing pain point in converting flexible packaging on narrow web (inline) presses.
After registration issues, respondents ranked the following as areas of the workflow presenting challenges: Ink adhesion, finishing (slitting, laminating, etc.), obtaining materials slit to the required specifications, prepress/plate issues, color control, maintaining job-to-job consistency, and controlling web temperature.
Another issue that was frequently mentioned – and not among the listed criteria respondents were asked to rank, but revealed during follow-up conversations – was the general lack of flexible packaging materials and constructions compatible with narrow web presses.
Also revealed in follow-up conversations, when asked about ranking challenges/pain points, a number of converters cited color matching as a significant issue in producing flexible packaging on narrow web presses. However, tension control/registration and ink adhesion were the most critical.
Growth Rates
The year-over-year growth average for narrow web flexible packaging applications for all converters surveyed was 9.73%. This figure broken down shows 38% experiencing 4-6% growth, 25% with more than 15% and 19% reporting a growth rate of 1-3%.
By and large, the converters that participated in the study are satisfied with the results they are getting from their inline narrow web presses. Few converters are considering investing in a central impression (CI) flexible packaging press, with 71% stating they are not considering the investment and will continue to produce these applications on narrow web equipment. Only 12% are seriously considering a CI press in the near future, and 17% already have a CI press for flexible packaging.
According to the research data, the “average” US narrow web converter producing flexible packaging applications is characterized by the following:
More Data
Last year, the Tag & Label Manufacturers Institute (TLMI) surveyed more than 130 label converters across the US and Canada – both members and non-members of TLMI. It was a rather large sampling, with participants’ aggregate revenues totaling more than $3 billion and included the largest multinational converters, as well as smaller label companies with sales of only $3-4 million.
LPC, Inc., who conducted the research on TLMI’s behalf, asked converters to identify the new markets they have entered over the past three years. Their answers revealed that two flexible packaging categories – shrink sleeves and non-sleeve flexible packaging – had the highest percentages of converters venturing into these new areas. Nearly one in five respondents indicated they have entered the flexible packaging market during the time period. For research purposes, shrink – which has long fallen under the flexible packaging umbrella – was separated out as a category. With that said, 17% indicated they have started producing shrink sleeves and/or non-shrink sleeves (wraparound labels) within the past three years.
Jennifer Dochstader, managing director for LPC, Inc., comments, “LPC has been tracking the entry of label converters into the flexible packaging space for the past decade. Within the past two to three years, we have seen the pace increase dramatically – more and more traditional PS label companies are branching out and producing flexible packaging applications on their inline narrow web flexo presses. Some of these companies are even going so far as to purchase mid-web central impression technology to keep up with their growth and to add capacity in this niche.
Dochstader concludes, “Out of all the printed packaging sectors – labels, flexible packaging, folding carton and corrugated – the average job sizes are contracting at the highest rate in the flexible packaging market. This represents a tremendous, and profitable, opportunity for label converters.”
Consumer demand for convenience, fresh food and added value are all fueling growth for flexible packaging. “Growth will benefit from the increased prevalence of value-added features, such as spouts and fitments, as well as the development of newer standup pouch designs that can contain heavier weight contents,” explains Esther Palevsky, an analyst for The Freedonia Group.
The demand for bags is expected to rise at a slower pace, due to the maturity of a number of applications, competition from pouches, and to some degree, rigid packaging such as clamshells and blister packaging. Factors that will play into the growth of bags include increased food production, an expanding elderly population and a desire for bags for bulk and large-sized packaging applications. Some of these include pet food, chemicals, building materials and agricultural and horticultural products.
The demand for wraps and other converted flexible packaging is forecasted to increase 3.1% per year to $1.6 billion in 2019. Applications in this category include meat overwrap films, candy wrappers, butter and cheese wrappers, and sleeve overwraps for refrigerated dough. Nonfood applications include ream wrap, pharmaceutical strip packs and overwraps for items including paper products, soap, tobacco and bandages.
Because of the diversity of these applications and their levels of maturity, prospects in these uses will vary. Food applications, which accounted for 74% of demand in 2014, will experience faster growth than nonfood packaging.
Flexible packaging material demand is projected to increase 1.4% annually to 8.8 billion pounds in 2019. Factors contributing to this increase will include cost, performance and source reduction advantages over rigid materials. Advances in barrier strength and other physical properties will play a role, as well.
Materials used for converted flexible packaging involve a combination of plastic resins. These primarily include polyethylene, polypropylene, polyester and some specialty resins. Kraft and sulfite paper and aluminum foil are regularly used as a barrier layer.
These materials, often blended in coextruded or laminated constructions, offer an enhanced barrier for extended shelf life and freshness that competes favorably with rigid containers in many uses. Some of the specialty resins and foil laminates also offer stiffness, high-quality reverse printing and graphics, protection from spoilage and contaminants and lightweighting capabilities through the use of thinner gauges and fewer film layers.
Food-Focused
According to a recent study conducted by the Flexible Packaging Association (FPA), when given the choice between the same product in non-flexible packaging, 71% of consumers said they prefer flexible packaging.
Here’s some more data from the FPA: On average, Americans are willing to spend 10.3% more for food packaged in flexible packaging, with Americans aged 35-44 willing to spend 15.5% more. Parents with children under 18 are willing to pay 17% more, and those between 18-34 years of age are willing to spend 17.2% more. In addition, 79% of Americans believe that there are benefits of having food products stored in flexible packaging vs. non-flexible packaging.
Consumers prefer a wide variety of products in flexible packaging vs. non-flexible packaging, including snacks/salty snacks, cereal/breakfast products, fresh produce, meat/poultry/seafood, and cheese/dairy. Consumers also said that the top three benefits of flexible packaging are the ability to reseal, easy to store, and easy to open.
Survey Says
The flexible packaging and label printing markets have a lot in common. Chiefly among their similarities is the dominant role the flexographic print process plays within both segments. With that said, narrow web label converters are positioned to enter the market and get in on the action, being that the majority of label companies already have the right equipment assets in place.
All Printing Resources (APR), a supplier of a wide range or prepress and pressroom products to the flexographic industry, recently commissioned market research firm LPC, Inc. to help carry out a survey of label converters. The purpose of the survey was to gauge label converters’ interest, experiences and successes in entering the flexible packaging space.
Dave Niemann, CEO and president of APR, explains, “APR is in a unique position. We represent a wide range of solutions within both the flexible packaging and label printing industries. We’re very involved in both prepress and the pressroom, helping converters optimize their flexo production and workflow best practices. We see increasing numbers of traditional label companies enter the flexible packaging space with narrow web presses. These companies have unique requirements when it comes to web handling and process optimization. We wanted to hone in on what the most critical issues for narrow web flexible packaging producers are, and how we can help them become even more successful in printing flexible packaging applications on their narrow web presses.”
Continues Niemann, “Commissioning this research has helped us do just that, and it allows us to better focus our technical resources effectively across the label and flexible packaging sectors.”
The survey objectives were as follows: to conduct technical research among companies printing/converting flexible packaging applications on narrow web presses; to identify some of the production parameters around narrow web flexible packaging (ink utilization, web widths, etc.); to identify primary day-to-day “pain points” for those companies printing/converting narrow web flexible packaging applications; and to gauge average annual growth for the narrow web flexible packaging sector in North America.
Survey invitations were sent out to converters across the US and were filled out extensively by more than 40 companies. Of the respondents, 58% have been manufacturing narrow web flexible packaging for longer than five years, 12% have been involved between three and five years and 24% between two and three years. Only 6% of survey participants were brand new to the space.
By The Numbers
Half of the survey respondents print/convert pouch applications while the lowest percentage of respondents (13%) print/convert bag applications.
After pouches, stick packs accounted for 44% of the work, followed by wraps and sachets, each amounting to 38%. Non-shrink sleeves came in at 31% and then shrink sleeves at 19%. “Other” applications totaled 6%.
When asked the number of narrow web presses at respondent plants active in flexible packaging production, 41% of participants said two presses, 24% – one, 18% - between four and six, 11% between seven and 10, and 6% use three presses.
With regard to web widths, 63% of the respondents use presses with widths between 17" and 20" to produce flexible packaging, 31% use presses with widths between 10" and 13", 19% utilize 14-16" presses and 13% use 21-26" presses. Just 6% of survey participants use presses with widths less than 10".
Water-based and UV ink usage dominates the converter respondents’ flexible packaging work, accounting for 69% and 63%, respectively, the survey revealed.
Challenges
In exploring the main challenges converters face when manufacturing flexible packaging, tension control and registration issues were repeatedly mentioned as the most pressing pain point in converting flexible packaging on narrow web (inline) presses.
After registration issues, respondents ranked the following as areas of the workflow presenting challenges: Ink adhesion, finishing (slitting, laminating, etc.), obtaining materials slit to the required specifications, prepress/plate issues, color control, maintaining job-to-job consistency, and controlling web temperature.
Another issue that was frequently mentioned – and not among the listed criteria respondents were asked to rank, but revealed during follow-up conversations – was the general lack of flexible packaging materials and constructions compatible with narrow web presses.
Also revealed in follow-up conversations, when asked about ranking challenges/pain points, a number of converters cited color matching as a significant issue in producing flexible packaging on narrow web presses. However, tension control/registration and ink adhesion were the most critical.
Growth Rates
The year-over-year growth average for narrow web flexible packaging applications for all converters surveyed was 9.73%. This figure broken down shows 38% experiencing 4-6% growth, 25% with more than 15% and 19% reporting a growth rate of 1-3%.
By and large, the converters that participated in the study are satisfied with the results they are getting from their inline narrow web presses. Few converters are considering investing in a central impression (CI) flexible packaging press, with 71% stating they are not considering the investment and will continue to produce these applications on narrow web equipment. Only 12% are seriously considering a CI press in the near future, and 17% already have a CI press for flexible packaging.
According to the research data, the “average” US narrow web converter producing flexible packaging applications is characterized by the following:
- Has been producing flexible packaging for 5.4 years
- Has three presses on their production floor producing flexible packaging applications
- Is producing flexible packaging applications on a 16-18" press
- Is achieving year-over-year growth rates of 9.73% for the flexible packaging applications they produce.
More Data
Last year, the Tag & Label Manufacturers Institute (TLMI) surveyed more than 130 label converters across the US and Canada – both members and non-members of TLMI. It was a rather large sampling, with participants’ aggregate revenues totaling more than $3 billion and included the largest multinational converters, as well as smaller label companies with sales of only $3-4 million.
LPC, Inc., who conducted the research on TLMI’s behalf, asked converters to identify the new markets they have entered over the past three years. Their answers revealed that two flexible packaging categories – shrink sleeves and non-sleeve flexible packaging – had the highest percentages of converters venturing into these new areas. Nearly one in five respondents indicated they have entered the flexible packaging market during the time period. For research purposes, shrink – which has long fallen under the flexible packaging umbrella – was separated out as a category. With that said, 17% indicated they have started producing shrink sleeves and/or non-shrink sleeves (wraparound labels) within the past three years.
Jennifer Dochstader, managing director for LPC, Inc., comments, “LPC has been tracking the entry of label converters into the flexible packaging space for the past decade. Within the past two to three years, we have seen the pace increase dramatically – more and more traditional PS label companies are branching out and producing flexible packaging applications on their inline narrow web flexo presses. Some of these companies are even going so far as to purchase mid-web central impression technology to keep up with their growth and to add capacity in this niche.
Dochstader concludes, “Out of all the printed packaging sectors – labels, flexible packaging, folding carton and corrugated – the average job sizes are contracting at the highest rate in the flexible packaging market. This represents a tremendous, and profitable, opportunity for label converters.”
