Vietnam Flexible Packaging Market Outlook to 2028

Vietnam Flexible Packaging Market Overview

• Vietnam flexible packaging market was growing at a positive growth, global flexible packaging market size was valued at USD 260 billion in 2023. This growth is driven by the increasing demand for packaged food and beverages, the rise of the pharmaceutical industry, and the growing need for consumer goods. The urbanization trend and changing lifestyles have led to higher consumption of packaged products, further propelling market expansion.
• The Vietnam flexible packaging market is dominated by several key players, including Amcor Limited, Bemis Company, Inc., Huhtamäki Oyj, Constantia Flexibles Group GmbH and Sonoco Products Company. These companies have established a strong presence through extensive product portfolios and strategic investments in advanced packaging technologies.
• In 2023, Bemis Associates has formed a joint venture with Lee Bou International, which includes Logotex, a subsidiary that specializes in film-based bonding solutions. This partnership will integrate Logotex's manufacturing capabilities in Vietnam, China, and Taiwan with Bemis's adhesive technology. The collaboration aims to accelerate product delivery and enhance service for customers in the apparel, footwear, and consumer electronics markets.

Vietnam Flexible Packaging Market Segmentation

By Product Type: Vietnam's flexible packaging market is segmented by product type into Pouches, Bags, Films and Wraps. In 2023, pouches held a dominant market share due to their versatility and convenience in packaging various products, particularly in the food and beverage sector. The demand for pouches is expected to continue growing due to their lightweight nature and ease of storage and transportation.

By Material Type: The market is segmented by material type into Plastic, Paper and Aluminum Foil. In 2023, plastic-based flexible packaging held the dominant market share due to its cost-effectiveness, durability, and versatility in packaging various products. However, with increasing environmental concerns, there is a growing shift towards more sustainable materials like paper and aluminum foil.

By Region: The Vietnam flexible packaging market is segmented by region into North, South, East and West. In 2023, the Southern region led the market due to concentration of manufacturing facilities, a strong industrial base, and a well-established supply chain network, making it the primary hub for packaging production and distribution.

Vietnam Flexible Packaging Market Competitive Landscape

• Introduction of Biodegradable Packaging: Flexible packaging manufacturer Constantia Flexibles has introduced EcoTwistPaper, its new sustainable confectionery packaging solution.  The product is a twist-wrap made entirely from paper, aligning with the global transition towards sustainable products.  EcoTwistPaper has been tested for repulpability by the Confederation of European Paper Industries, achieving a high score of 90 out of 100 for its printed material. 
• Investment by Tetra Pak: Tetra Pak, the leading food packaging company from Sweden, has announced a significant expansion of its beverage carton production plant in Binh Duong province, Vietnam. The company will invest an additional €97 million in the facility, bringing the total investment since 2019 to over €217 million.
• SCG Packaging introduced Bio-packaging: It has introduced biodegradable and recyclable packaging materials as part of its sustainability initiatives. The company aims to increase the proportion of sustainable products in its portfolio to 50% by 2025. Their biodegradable packaging solutions are projected to reduce plastic waste by approximately 30,000 tons annually, aligning with their commitment to environmental sustainability and the circular economy.

Vietnam Flexible Packaging Market Analysis

Vietnam Flexible Packaging Market Growth Drivers

• Increasing Demand for Packaged Food: In 2023, the Vietnamese packaged food sector was driven by the rising consumer preference for convenience foods. From 2017 to 2022, there were 18,266 new packaged food products launched in Vietnam, with snacks being the most predominant category, accounting for 4,009 new products.
• Pharmaceutical Sector Expansion: Vietnam's pharmaceutical industry has seen a notable increase in production, with the sector producing over 75,000 tons of pharmaceuticals in 2023. The need for safe and effective packaging for medicines and health supplements has consequently escalated, driving the adoption of flexible packaging materials like blister packs, sachets, and pouches.
• Growth in Export Activities: Vietnam's export of consumer goods, including food and beverages, pharmaceuticals, and personal care products, stood at USD 315 billion in 2023. The export-oriented manufacturing sector necessitates high-quality, durable, and flexible packaging solutions to meet international standards and ensure product safety during transit. The government's trade agreements and incentives for exporters are further propelling this trend

Vietnam Flexible Packaging Market Challenges

• Environmental Concerns due to the packaging industry: In 2023, Vietnam generated 1 million metric tons of plastic waste, of which a significant portion was from packaging materials. The environmental impact of plastic waste has led to increasing regulatory pressures and public demand for sustainable packaging solutions.
• Supply Chain Disruptions in flexible packaging: The flexible packaging industry in Vietnam faced supply chain disruptions in 2023 due to global geopolitical tensions and logistics challenges. The delays in raw material shipments, particularly for plastic resins and aluminum foil, impacted production schedules and increased operational costs.
• Cost Pressures in packaging manufacturing: The rising cost of raw materials, coupled with increased labor and energy costs, posed a significant challenge for the flexible packaging industry in 2023. PE prices increased by approximately $0.05 to $0.07 per pound, while PP prices saw a rise of about $0.03 to $0.07 per pound in early 2024.

Vietnam Flexible Packaging Market Government Initiatives

• Vietnam National Plastics Action Plan (2020-2030): The Vietnamese government aims to reduce plastic waste by 75% by 2030, promoting sustainable packaging solutions, including flexible packaging innovations, to achieve this goal. The NPAP outlines a 50% reduction in plastic litter leakage into the ocean by 2025, followed by the 75% target by 2030. This is a critical component of Vietnam's efforts to combat plastic pollution and align with international sustainability goals.
• Green Growth Strategy (2021-2030): It aims to promote sustainable economic development while addressing climate change. One of the key objectives of this strategy is to achieve a 20% reduction in greenhouse gas emissions by 2030 compared to a baseline year, which is typically 2014.
• Circular Economy Development Plan (2021-2030): This initiative promotes recycling and sustainable production practices, aiming to recycle 85% of all plastic waste by 2030, driving the growth of recyclable and reusable flexible packaging solutions through robust infrastructure and awareness programs.

Vietnam Flexible Packaging Market Future Outlook

By 2028, the Vietnam Flexible Packaging Market is projected to grow substantially, driven by continued advancements in packaging technologies, a growing focus on sustainability, and increasing consumer demand for lightweight, durable, and eco-friendly packaging solutions.

Future Market Trends

• Adoption of Smart Packaging: Over the next five years, the Vietnam flexible packaging market is expected to witness increased adoption of smart packaging solutions. These include packaging with embedded sensors and indicators that provide real-time information about product condition and shelf life.
• Shift Towards Sustainable Materials: By 2028, there will be a significant shift towards the use of sustainable materials in flexible packaging. The government’s target to reduce plastic waste by 50% by 2030 will drive the adoption of biodegradable and recyclable materials.
• Technological Advancements: Innovations such as advanced printing technologies, enhanced barrier properties, and lightweight materials will improve packaging efficiency and functionality. These advancements will cater to the evolving needs of consumers and manufacturers, enhancing the market's competitiveness