North America Flexible Vacuum Packaging Market - Forecast(2024 - 2030)
North America Flexible Vacuum Packaging Market Overview
North America's flexible vacuum packaging market size is forecasted to grow at a CAGR of 3.2% during the forecast period 2022-2027. The flexible vacuum packaging manufactured by using polyethylene, polyamide, ethylene vinyl alcohol, and more offers various benefits such as extended product life, reduced weight loss due to evaporation management, contamination prevention, color preservation, and more, such benefits ensure higher packaging durability. The surging food and beverage industry is driving the growth of the flexible vacuum packaging market in North America. Moreover, the growing medical and healthcare sector in North America is expected to boost the demand for flexible vacuum packaging. This, in turn, will accelerate the market growth in the projected forecast period of 2022-2027. However, in 2020, the Covid-19 pandemic created ripples in the North American vacuum packaging market growth too. In 2021, the ease of Covid-19 related regulations resulted in a surge in the production of food & beverage and other such industries, which benefited the market growth in North America.
Report Coverage
The report: "North America Flexible Vacuum Packaging Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments of the North America Flexible Vacuum Packaging Market.
Key Takeaways
- USA country dominated the North America flexible vacuum packaging market, owing to the growing confectionery industry in the region. According to the National Confectioners Association U.S, in 2021, the total confectionery sales in the USA were US$36.9 billion, an increase of 11% over 2020.
- The surging pharmaceuticals industry growth in North America is fueling the demand for flexible vacuum packaging in North America to ensure superior durability, this is propelling the market growth.
- Moreover, the increasing adoption of thermoplastic materials due to their cost advantage is further fueling the flexible packaging market growth in North America.
- However, the environmental concerns regarding the materials used in flexible vacuum packaging are restricting the growth of the market in North America.
Figure: USA Flexible Vacuum Packaging Market Revenue, 2021-2027 (US$ Billion)
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North America Flexible Vacuum Packaging Market Segment Analysis – By Type
The thermoplastic segment held the largest share in the North America flexible vacuum packaging market in 2021 and is forecasted to grow at a CAGR of 3.4% during the forecast period 2022-27. Flexible vacuum packaging manufacturers prefer thermoplastic materials such as polyester, polyvinyl chloride, polypropylene, and more, over alternative packaging materials due to their inexpensive production and processing costs. In the flexible vacuum packaging sector, soft and pliable films are utilized for packaging products related to food& beverage, pharmaceuticals, and more. Furthermore, thermoplastic materials such as polyethylene have the lowest softening point among the core packaging plastics. The lower softening point results in lower production energy costs. Thus, due to these factors, the adoption of thermoplastics is increasing, which is aiding the market growth in North America.
North America Flexible Vacuum Packaging Market Segment Analysis – By End-use Industry
The food and beverage segment held the largest share in the North America flexible vacuum packaging market in 2021 and is forecasted to grow at a CAGR of 3.7% during the forecast period 2022-27. It is crucial for the food and beverage industry to increase the products' shelf life. Since flexible Vacuum packaging ensures superior packaging durability, low package damage, and more, it is often utilized by the food and beverage industry. The production of vegetables, fruits, bakeries, and other product products is surging in North America because of the factors such as increasing disposable income, growing demand for fresh food, and more. For instance, according to the United States Department of Agriculture (USDA), in 2019, the production of vegetables in Mexico was 5,254.5 tons, and in 2020, it was 5,514.0 tons, an increase of 4.9%. Hence, the growth of the food and beverage industry in North America is boosting the demand for flexible vacuum packing. This, in turn, is bolstering the market growth.
North America Flexible Vacuum Packaging Market Segment Analysis – By Country
USA country is the dominating country as it holds the largest share in the North America flexible vacuum packaging market in 2021 up to 60%. The growth of the United States' economy is being driven by the expansion of its sectors such as food and beverage, medical and healthcare, and other industries in the region. Factors such as increasing food security, surging demand for packaged food, and other factors are driving the food and beverage industry growth in the USA. For instance, according to the United States Department of Agriculture (USDA), in 2019, the production of processed vegetables in the USA was US$1,938 million, and in 2020, it was 2,008 tons, an increase of 3.6%. Moreover, according to the National Confectioners Association U.S, in 2021, the total confectionery sales in the USA were US$36.9 billion. Additionally, in 2021, sales of chocolate and non-chocolate products in the United States increased by 9.2 percent and 14.5 percent, respectively, over 2020. Therefore, the growth of the food and beverage industry in the USA is spurring the market growth.
North America Flexible Vacuum Packaging Market Drivers
Bolstering Medical Device Industry
Flexible vacuum packaging provides protection against environmental variables, providing higher durability. It also protects against accidental spills or splatters that are typical in fast-paced medical contexts. As a result of these advantages, flexible vacuum packaging is frequently employed in medical devices. Factors such as technological improvements in medical equipment and an aging population are accelerating the medical device industry growth in the North American region. For instance, according to the International Trade Administration (ITA), in 219, the Mexican medical device market was valued at US$15.27 billion, and in 2020, it was US$16.80 billion, an increase of 10%. Moreover, Canada is the world's eighth-largest medical device market, valued at around USD$8.6 billion in 2020. Thus, the growth of the medical device industry in North America is boosting the demand for flexible vacuum packaging, which, in turn, is driving the market growth.
Surging Application of Polyamides
Polyamide is employed in flexible vacuum packaging because it has superior clarity, adaptability, higher thermoforming ability, and low shrinkage qualities. Polyamide is a common resin used in the manufacture of flexible packaging films, and it is usually paired with polyolefin as a multilayer structural component. Furthermore, polyamides have strong puncture resistance, impact strength, and temperature resistance, as well as ideal qualities for gas barriers, making them popular in the vacuum packaging business. The polyamide manufacturers made in North America are adopting the strategy of new product launches, which is benefiting the market growth. For instance, in September 2019, Ascend Performance Materials, based in the U.S, launched several new specialty polyamides at K 2019 to fulfill the expanding needs of its customers. Vydyne XHT, long-chain polyamides, and high-temperature polyamides are some of the new products for the packaging industry. Hence, due to such benefits of polyamides, their application in flexible vacuum packaging is increasing, which is accelerating the market growth
North America Flexible Vacuum Packaging Market Challenges
Environment Concerns Regarding Material Use
The materials such as polyvinylidene chloride, low-density polyethylene, and more have advantages of higher durability, this results in the enhanced shelf life of flexible vacuum packaging. However, plastic landfills are expanding due to mass production related to plastic-based flexible vacuum packaging. For instance, according to UN Environment, just 9% of plastic is recycled, with the remainder ending up in landfills, dumps, and the natural environment. Governments have established norms and procedures for wrap recycling. For instance, the U.S. Environmental Protection Agency (EPA) announced the National Recycling Strategy in November 2021, reiterating the objective of increasing the United States' recycling rate to 50% by 2030. The Strategy defines strategic objectives and measures required to build a better, more resilient, and cost-effective municipal solid waste recycling system in the United States. All of these factors are creating a significant impediment to the North America flexible vacuum packaging market expansion.
North America Flexible Vacuum Packaging Industry Outlook
Technology launches, acquisitions, and increased R&D activities are key strategies adopted by players in the North America flexible vacuum packaging market. North America flexible vacuum packaging top 10 companies are:
- Amcor Limited
- Bemis Company Inc.
- Constantia Flexibles Group GMBH
- Sealed Air Corporation
- Coveris Holdings S.A
- Sonoko Products Company
- Berry Plastic Group Inc.
- Reynold Group Holding
- AMAC Technologies
- Colimatic USA Inc
Recent Developments
- In May 2020, PPC Flexible Packaging, a custom flexible packaging manufacturer for the premium food, healthcare, and horticultural markets, introduced PPC Green, its new sustainability portfolio.
- In February 2020, Moda vacuum packaging systems and Amcor Flexibles North America have launched a partnership. The companies can achieve operational improvements and total cost savings by integrating Amcor's shrink bag and roll stock film for meat and cheese with Moda's solution.
- In December 2019, Winpak LTD. of Canada introduced ReFresh, a sustainable vacuum packaging. The products offer high barrier, recycle-ready packaging solutions to food makers and brand owners.