Flexible packaging spending in North American to reach $25 billion by 2018
The North American converted flexible packaging market accounts for approximately 30% of global consumption with an annual spend of $20.7 billion in 2013, reveals a new report from PCI Films Consulting (www.pcifilms.com). Nearly 90% of sales in the region are concentrated in the U.S., with Canada and Mexico accounting for 7% and 5%, respectively. The North American Flexible Packaging Market to 2018 provides a comprehensive assessment of historic trends and the current state of the market, and also includes forecasts of how PCI expects the market to develop over the next five years in the U.S., Canada and Mexico.
After slowing in 2012 due to the economic downturn, demand for converted flexible packaging recovered to grow by around 4% by value in the U.S. and Canada in 2013. Conversely, the Mexican flexible packaging market slowed markedly during the year to around 1.5% due to uncertainties following the change of government and slowing gross domestic product (GDP) growth. Weakening margins and other competitive pressures caused significant rationalization and restructuring in the region with many plant closures and divestments, especially amongst the leading players.