Flex Films CEO: Navigating the global flexibles market amid shifting demands and disruptions 

24 Jun 2024 --- We speak to Anantshree Chaturvedi, vice chairman and CEO of Flex Films International, about the global flexible packaging market and the challenges and opportunities the sector is currently facing.

A part of UFlex, India’s largest multinational flexible packaging company, the company specializes in producing plastic-based materials for the F&B, pharmaceutical and homecare industries.  

Chaturvedi discusses the future of the industry amid the boom in demand for non-fossil-based solutions, the role of recycling, the rise of fast-acting biodegradation technologies, geopolitical trade disruption and more. 

Where do you see the future of the flexible plastics industry given the rise of paper and fiber-based alternatives?
Chaturvedi: The global flexible packaging market was valued at US$270.96 billion in 2023 and is expected to grow at a CAGR of 4.7% from 2024 to 2030, driven by increased demand in the medical and pharmaceutical sectors. Despite rising interest in sustainable packaging solutions and the growing popularity of eco-friendly paper and fiber-based alternatives, the flexible plastics industry continues to thrive. Its unmatched versatility and functionality make flexible plastics ideal for diverse packaging applications in F&B, pharmaceuticals and personal care products.

Flexible packaging requires less energy to manufacture and transport, which reduces GHG emissions and fossil fuel usage.  Comparatively, materials like glass, rigid PET and steel boxes commonly used in conventional packaging require large amounts of water and fossil fuels to manufacture. In five of six categories in flexible packaging, it is estimated that the packaging material made from plastics had lesser GHG emissions when compared to its non-plastic alternative.

Having said that, while flexible packaging reduces a company’s carbon footprint, it does not address the issue of plastic waste pollution if post-consumption packaging does not reach the appropriate recycling streams.

Consumer preferences and market demand significantly influence the future of the flexible packaging industry. Flexible plastics remain highly favored by consumers and businesses for their convenience, durability and cost-effectiveness.

The industry, including global companies like Flex, is dedicated to advancing innovation and sustainability within the flexible plastics sector. Flex Films manufactures Kingfisher grade certified 100% PCR films, which reduce the use of virgin plastic and promote recycled content. This initiative ensures that flexible plastics remain a viable and environmentally responsible packaging choice.

The Flex Films stand at Drupa 2024.Does the world need fossil-based flexible plastics? Could they one day be replaced entirely with bio-based alternatives?
Chaturvedi: Although fossil-based plastics are prized for their unparalleled versatility, offering essential properties like permeability to gases and water vapor, durability and transparency, their extensive usage presents significant environmental challenges. 

To mitigate this, a transition to a circular plastics economy is imperative.

At Flex, we are steadfast in our commitment to preserving the environment by ensuring plastic remains within the economy and out of natural ecosystems. This ethos is embedded across our product range, featuring films with low carbon footprints, mono-PE structures optimized for easy recycling, and innovative biodegradable polymers that will disintegrate in the environment under ambient conditions, reaffirming our dedication to sustainable practices and environmental stewardship. Enzyme-based technology breaks down uncollected flexible packaging waste into biomass in the soil under ambient conditions.

Howewer, biodegradation is not considered a preferred option by developed countries because of their well-established waste collection infrastructure and lack of intent to develop suitable biodegradable technologies. In countries like India, as opposed to developed countries, optimal source segregation and efficient collection will take another 15-20 years. In the interim, it is necessary to explore biodegradable packaging as a solution for uncollected waste.

On the flip side, it is easy to overlook that consumers and not just governments, regulators, or brand owners play a pivotal role in driving systemic change. While governments and brand owners increasingly focus on sustainable packaging, it is the consumers who must actively demand and propel this transformation forward.

Ultimately, transitioning to bio-based packaging materials is not just about replacing one material with another; it is about reimagining our entire approach to packaging. It involves designing packaging systems that minimize waste, prioritizing recyclability and composability, and supporting a circular economy where resources are in use for as long as possible.

By embracing innovation, implementing effective regulations, and empowering consumers, we can work toward a future where packaging serves its essential functions while minimizing its environmental footprint.

Can recycling ever fully close the loop on flexible plastics?
Chaturvedi: Recycling is a critical tool in lessening the environmental impact of flexible plastics. By diverting plastics from landfills and diminishing the reliance on new materials, recycling preserves resources while curbing energy consumption and GHG emissions.Flexible packaging production is expected to grow significantly in the coming years.

The recently unveiled Roadmap 2.0 by The US Plastics Pact represents a tangible strategy to revolutionize plastic usage. It emphasizes practical measures to foster a circular economy, where plastic packaging undergoes reuse, recycling and composting and remains integrated within the economy.

This comprehensive plan builds upon the achievements and insights from the original Roadmap to 2025, outlining updated and ambitious objectives to tackle plastic waste and instigate systemic transformation throughout the entire plastics value chain.

However, despite its pivotal role, recycling encounters hurdles in fully closing the loop on flexible plastics. A significant challenge lies in the intricate composition of flexible plastics, often comprising multiple layers or materials, which complicates recycling processes. Nevertheless, we have seen progress in addressing this complexity, with Flex leading the way in recycling multi-layer plastic waste.

Flex was one of the first companies in the world, back in 1994, to establish recycling plants where multilayer plastics (MLP), considered difficult to recycle, could be treated. Today, Flex recycles app. 30,000 tons of plastic waste annually in its recycling facilities in India, Mexico, and Poland, setting an example for the industry, the government, and the public.

Flex recycles post-consumer MLP mixed plastic waste into granules; upcycles recycled resins into post-consumer recyclate (PCR) PET films and partners with brand owners to create sustainable packaging solutions to reduce the use of virgin plastic at source. The goal is to reach 100,000 tons of recycling by building additional recycling capacities across global locations.

What are the biggest hurdles in achieving higher recycling rates? What can governments and consumers do? What can you and your fellow industry competitors do?
Chaturvedi: Plastics, being cost-effective, lightweight, and durable, have led to a surge in production over the past six decades. However, this heightened usage and disposal have raised significant environmental concerns. Recycling emerges as a crucial solution to mitigate these issues and is a thriving sector within the plastics industry today.

While plastic recycling efforts have been ongoing since the 1970s, rates vary based on location, plastic type, and application. Packaging materials have grown substantially in recycling rates across many countries. Overcoming recycling barriers is essential for establishing a truly circular economy. Inadequate waste infrastructure is a prevailing issue in major regions across the world. Approximately one-third of plastics evade collection by formal waste management systems, dispersing them as litter across lands, rivers, and oceans worldwide.

Violence in the Red Sea is causing disruption to the flexible packaging market.Enhancing recycling technology is vital for maintaining quality standards and encouraging manufacturers to use recycled plastics. Scaling up this technology can reclaim the economic value of plastics, boosting recycling efforts. Consumer indifference, confusion about recycling, and limited access to recycling facilities contribute to low recycling rates. Several economic factors, like fluctuating commodity prices, also affect recycling incentives.

Governments play a crucial role in addressing these challenges through policy interventions. While bans and taxes on single-use plastics are widespread, they may not effectively reduce pollution. Regulations should focus on investing in recycling infrastructure, implementing EPR schemes, and conducting public awareness campaigns.

Mandating minimum recycled content in products and packaging can drive demand for recycled materials. For instance, the Indian government has mandated that 30% of plastic in packaging must be recycled, with a target of 60% by 2028. 

Industry competitors have the opportunity to collaborate on initiatives aimed at enhancing recycling rates. This can include investments in research and development of recyclable materials, designing products with recyclability in mind, and contributing to the development of recycling infrastructure. Collaboration within the industry may also entail sharing best practices, technology, and resources to address shared challenges effectively. 

How are recent geopolitical developments impacting the flexibles industry?
Chaturvedi: Recent geopolitical events, notably the Ukraine-Russia conflict, the Israel-Palestine conflict, and the Red Sea crisis have significantly influenced the global packaging industry. These events have introduced dynamic shifts, affecting global trade and supply chains. 

Additionally, the Middle East, a key oil-producing region, plays a critical role in the packaging industry by supplying essential raw materials like resins, petrochemicals, and plastic films. However, the region’s geopolitical instability and the possibility of trade route disruptions pose significant risks to the industry’s stability.

In contrast to the end of 2023, prices for most flexible packaging materials saw slight increases during the first quarter of 2024. These changes are primarily linked to disruptions in resin and film supply caused by security concerns in shipping routes, particularly in the Red Sea. Despite this, demand remained consistent across all material markets.

With a cautious increase in demand alongside stabilized prices and inflation, coupled with the aforementioned factors, the market for flexible packaging materials may see modest growth later this year.

By Louis Gore-Langton