U.S. Flexible Packaging Industry Fuels $151 Billion Economic Output
The U.S. flexible packaging sector has emerged as a powerful engine of national economic growth, generating over $151.4 billion in total economic output and supporting nearly 400,000 jobs, according to the latest Economic Impact Report 2025 released by the Flexible Packaging Association (FPA) and prepared by John Dunham & Associates.
According to the report, flexible packaging contributes to nearly every corner of the American economy—from food and medicine to consumer goods and industrial applications—underscoring its role as both an innovation driver and a sustainability leader.
Core Findings and Industry Highlights
The study reveals that flexible packaging supports a wide employment network: approximately 98,000 workers are directly employed in packaging manufacturing, while another 300,000 jobs are supported through suppliers and related industries. Total wages and benefits exceed $33 billion annually, and the sector generates $13.35 billion in tax revenues across federal, state, and local levels.
Flexible packaging, which includes pouches, wraps, and films, continues to grow as one of the most resource-efficient packaging solutions available. Its lightweight and durable design reduces transportation costs and material waste while helping to extend product shelf life.
“Flexible packaging is one of those industries that most people never think about, but can’t live without,” said Dan Felton, President and CEO of the FPA. “From food and medicine to critical household goods, flexible packaging keeps products protected, extends shelf life, and helps reduce waste.”
The full 2025 Economic Impact of the U.S. Flexible Packaging Industry report, available through FPA’s official website, provides detailed data on output, employment, wages, and tax contributions across all 528 U.S. economic sectors. The analysis, conducted by John Dunham & Associates, includes an interactive map showing state-by-state industry impacts.
Flexible packaging has seen consistent expansion over the past decade as brands and manufacturers shift toward more sustainable and cost-effective solutions. The U.S. government’s emphasis on circular economy policies and recycling innovation has further accelerated investment in advanced materials and recovery infrastructure.
Analysts predict that continued growth in e-commerce, food delivery, and healthcare packaging will sustain demand, while ongoing R&D efforts in recyclability and bio-based materials are expected to shape the industry’s next phase of development.
The 2025 report reinforces flexible packaging’s role not just as a production sector, but as a strategic contributor to U.S. economic and environmental goals. As companies invest in innovation and infrastructure, the industry’s ability to deliver both sustainability and economic value will remain central to its future success.
