Global converted flexible packaging market is forecast to reach 18.78 mln metric tons in terms of volume translating into US$70.15 bln in value terms by the year 2015, propelled by rising demand from consumer goods, food and beverage industries in developing economies; as per Global Industry Analysts, Inc. Product differentiation, development and innovation continue to reign as key growth drivers for the industry. In addition, new application breakthroughs in the healthcare and pharmaceutical industries are providing ample growth opportunities for flexible packaging converters. The global packaging industry witnessed the defining influence of technology innovation and development, a key reason for the industry's robust growth over the last few decades. The steady growth only took a breather during the few years of recession in the past, and the recent one in 2008-2009, which halted and even declined growth rates during the period. Over the years, technology development has been moving in sync with growing consumer demand for convenient and quality packaging. Eclectic packaging solutions, for instance, have evolved to offer exceptional product packaging advantages for manufacturers and consumers alike. Technology advancements have redefined the functionality of packaging from beyond the traditional need for mere product protection. Upgradation and modernization have offered huge potential for the growth of flexible packaging (including both converted and unconverted materials) at the expense of conventional semi-rigid and rigid packaging. Strong consumer demand for easy-to-prepare foods and processed foods in single serve packs is helping replace the demand for rigid and semi-rigid packaging with converted flexible packaging. Standup pouches, for instance, are replacing multi-wall bags in packaging of baked goods and snacks. Polypropylene and polyethylene dominate the global converted flexible packaging market owing to their cost advantages over foil and paper. World market for converted flexible packaging holds mixed potential for growth, with developed and mature markets, such as, US, Europe and Japan posting sedate year on year growth patterns, and developing Asian markets such as India and China, registering robust sales gains. Lucrative opportunities also exist in Eastern European, Latin American and Middle East markets. Given the untapped potential in developing markets such as India and China, the world converted flexible packaging industry has lately been witnessing increased strategic partnerships, mergers and acquisitions, asset exchanges, capacity expansions and establishment of new manufacturing facilities. The market is abuzz with activities as manufacturers strive to offer innovative flexible packaging solutions with improvements in several key areas of product performance. Rapid replacement of rigid containers with flexible packaging, together with the growing applications of converted flexible packaging in end-use sectors, including food & beverage, snacks, baked products, health & beauty and pharmaceuticals, are helping polish up the market's prospects. Flex packs featuring environmental friendly features, convenience, and superior barrier protection properties (such as seal quality and tolerance to microwave oven temperatures) are expected to witness the highest market gains. Plastic films are likely to grow at the expense of foils and paper packaging. The ongoing wave of consolidation is expected to further strengthen the strong hold of multinationals in the global converted flexible packaging market. Given, their dwindling presence in the mainstream markets, small domestic players are homing in on the niche markets by focusing product development efforts to new and innovative end-use packaging requirements. In the fiercely competitive marketplace, innovation stands out as the key to market success for players operating in the marketplace. Focus on research and development activities, product upgradation, production cost cuts, streamlining manufacturing operations, and realigning marketing, and distribution are few strategies adopted by companies to increase their bottom line profitability. The global packaging industry reeled under the severe impact of the worldwide economic slowdown. The overall packaging sales in the US and Europe witnessed all-time lows for 2008 in major end-use industries, while packaging manufacturers during the year, reported a massive 20% decline in sales. The position was no better in 2009. However, despite stagnant growth rates the overall damage in flexible packaging market was not as severe as that suffered by the larger packaging market, which witnessed huge declines over the period. The converted flexible packaging market displayed resilience in spite of investment slowdown in new conversion equipment. The major end-use market, the food-packaging sector, experienced a relatively smaller decline. In the US, as a result of the slowdown, over 55% of the companies reduced their capital expenditures by way of lower investment levels in 2009. In Japan, consumption of polyethylene in Japan represented 8.4% decline in 2009 in comparison to 2008. On the positive side, the market for flexible packaging started witnessing recovery in the year 2010 as several positive trends across the globe encouraged further growth in both volume and value terms. Asia-Pacific constitutes the single largest market for converted flexible packaging. India and China drive growth in the Asia-Pacific market enabling it to accrue a major share in the global market in volume terms. Europe and the US tail closely behind, the three markets together capturing a massive global share. The Asian region is also slated to surge ahead of the other markets at the overall fastest CAGR of more than 5.0% over the analysis period. The Plastic Films material substrate, comprising of polyethylene, PVC, polypropylene and other resins constitutes the largest market. With respect to fastest growth rate, the Polypropylene material under the plastic films group is projected to sail ahead at a CAGR of 3.5% through 2015. Key participants in the market include AEP Industries Inc, Amcor Limited, American Packaging Corporation, Bemis Company Inc., Clondalkin Group Plc, Constantia Packaging AG, Exopack LLC, Huhtamäki Oyj, Mondi Group, Printpack Inc, Pliant Corporation, Rexam Plc, Sealed Air Corporation, Sonoco Products Company, United Flexibles GmbH and Wipak Oy. A 2009 report by PCI Films Consulting had forecast growth in the global flexible packaging market to slow from 5.9% to 3.2% over the next five years because of the economic recession. The market will be worth US$68.1 bln (€45.3 bln) in 2013, compared to US$58.3 bln (€38.8 bln) this year, says PCI. Asia Pacific will storm ahead of other regions and account for 55% of growth over the forecast period, emerging ahead of North America and western Europe as the world’s largest regional flexible packaging market by 2013. The area will account for more than one-third of total demand. China on its own will have 10% of global demand – up from 8% in 2008. Over the last five years, all regions except West Europe experienced growth ranging from around 4% pa in North American to 9% in South-east Asia and Oceania as well as in East Europe. China and India were the most dynamic markets, growing in value terms by around 12% and 17% respectively. Consolidation at both the regional and global levels is expected over the next five years, says PCI. PCI released a report saying European converted flexible packaging market will return to growth rates of around 1-2% in 2011, after a decline of 5% this year. PCI expects European demand for flexible packaging will stabilise in 2010 before returning to growth the following year. In 2008, the European flexible packaging market grew 1.7% from 2007 levels to reach a value of just over €11.7 bln; accounting for around 30% of the world’s flexible packaging sales. Exports of converted materials fell to €909 mln as the Euro increased in value, while imports rose to €200 mln – 2% of the market. Most flexible packaging was used for food products, with packaging for confectionery, meat, cheese, dairy products and based goods accounting for 40% of total sale