The Flexible Packaging Association published its 2025 State of the U.S. Flexible Packaging Industry Report, providing a detailed view of market performance and trends across the sector. According to the report, the U.S. flexible packaging industry reached $42.6 billion in annual sales in 2024, representing a 2.9% increase from the previous year. The value-added segment, which includes processes such as printing, laminating, and coating, accounted for $34.1 billion of that total, reflecting the continued importance of manufacturing and conversion processes in the industry.

The report identifies flexible packaging as the second-largest packaging segment in the United States, representing approximately 20% of the overall market. Growth is expected to continue, with industry participants projecting a 4.8% increase in 2025, bringing the market to an estimated $44.6 billion. Material costs remain a significant factor, with films, paper, and resins accounting for nearly 75% of converter input expenses, underscoring ongoing cost pressures within the supply chain.

From a technology perspective, flexography continues to dominate printing methods in the sector, accounting for 76 percent of shipments, followed by gravure and a smaller share for digital printing. The report also highlights key challenges facing the industry, including labor shortages, rising imports, and a growing trade deficit. Despite these pressures, the outlook remains positive, with strong demand from food packaging and continued investment activity supporting long-term growth across the flexible packaging market.