Flexible Packaging Association research, using a new methodology from John Dunham & Associates, indicates that the flexible packaging industry is projected to generate $151 billion in total U.S. economic output in 2025, including $51.5 billion directly from flexible packaging manufacturers. The industry supports approximately 398,780 full-time equivalent jobs, including more than 98,000 directly in manufacturing and the rest through a broad network of suppliers and service providers.
Despite ongoing global uncertainty, industry profitability climbed to 12.8% in 2024, the second-highest level in FPA’s reporting history, just behind the 2021 pandemic peak of 13%. Volume growth was more measured at 1.8%, reflecting a stable yet competitive landscape. Over the past decade, the industry has achieved a compound annual growth rate (CAGR) of 3.5%, making it one of the steadiest segments of the U.S. packaging market. Today, flexible packaging represents 20% of the $213.4 billion U.S. packaging industry, ranking second only to corrugated paper.
The ongoing growth of our industry continues to result in ongoing legislative and regulatory scrutiny. This—including trade, tariffs, and sustainability—continues to be a major focus of flexible packaging converters and suppliers and will continue to be a major focus of FPA. In 2025, Maryland and Washington became the sixth and seventh states, respectively, to pass packaging extended producer responsibility (EPR) laws. Oregon’s EPR law went into effect this past July, and Colorado’s went into effect in January.
We anticipate that 2026 will be an equally busy advocacy year for FPA, as many other states will be tackling packaging public policy. We strive to protect the upstream benefits of flexible packaging while supporting reasonable solutions for downstream circularity. █
Dan FeltonPresident and CEO Flexible Packaging Association
The flexible packaging industry is entering a decisive and optimistic phase. With the market projected to reach $47.3 billion by 2028, flexible packaging continues to outpace other segments—driven by its unmatched versatility, material efficiency, and growing alignment with sustainability goals.
Across the industry, mid-to-senior leaders are responding pragmatically to labor constraints and cost pressures by accelerating adoption of automation and AI-driven process control. Investments in advanced in-line gauging and real-time monitoring are already delivering tangible returns, reducing material waste by as much as 20% while improving consistency and quality. At the same time, the shift toward single-pass solventless lamination is lowering energy consumption and scrap rates, while increasing throughput for increasingly complex multi-layer structures.
Innovation at the material level is equally encouraging. The move toward recyclable mono-material structures—such as all-polypropylene and all-polyethylene formats—signals meaningful progress toward circularity. Ultra-thin AlOx and SiOx barrier layers, applied through advanced vacuum deposition, now deliver high oxygen and moisture protection without sacrificing transparency or microwaveability. Water-based oxygen-barrier coatings and lightweighting strategies are further reducing package mass—often by up to 30%—while preserving food safety and shelf life. Emerging smart packaging technologies, including printed RFID and freshness sensors, are adding new layers of value through improved traceability and product integrity.
Underpinning all of this progress is roll-to-roll processing. As the scalable engine of innovation, R2R enables laboratory breakthroughs to become reliable, high-volume manufacturing realities. With digital hybrid lines and in-line metrology, converters are well positioned to meet regulatory demands, improve performance, and continue driving the flexible packaging industry forward with confidence.
Chris KerscherExecutive DirectorAssociation for Roll-to-Roll Converters
